Republic of the Philippines

department of @bncation
Region VII, Central Visayas
SCHOOLS DIVISION OF BOHOL
City of Tagbilaran

July 21, 2015

DIVISION MEMORANDUM
No. "506 . s. 2015

AMMENDMENTS TO THE M&RANDUM OF AGREEMENT BY AND BETWEEN

DepED & LAND BANK OF THE PHILIPPINES ON THE LIVELIHOOD LOAN FACILITY
OFFERED TO DepED PERSONNEL

TO: DIVISION SUPERVISORS/DIVISION COORDINATORS

DISTRICTSUPERVISORS/OIC-PSDSs
ELEMENTARY & SECONDARY PRINCIPALS/SCHOOL HEADS

1. Attached is Unnumbered Memorandum from Honorable USEC Francisco Varela,

Undersecretary for Finance & Administration, informing the field on the amendments to the
MoA drawn up by DepED and Land Bank of the Philippines on the Livelihood Facility for
DepED Personnel under the Payroll Deductions System.

2. For details, refer to the attached Memorandum.

3. Immediate dissemination and compliance of this Memorandum is desired.

WILFREDA t>. BONGALOS, Ph.D., CESOVT^"^

School Division Superintendent^pA

SGOD/dvd
T
 REPUBLEKANG PtUPDVAS
REPUBUC OFTHEPHILIPPINES
KAGAWARAN NG EDUKASYON
DEPARTMENT OF EDUCATION
REHIYON VH, GITNANG VISAYAS
REGION VH, CENTRAL VISAYAS
Sudlon, Lahug, Cebu City

July 16, 2015

MEMORANDUM

To Schools Division/City Superintendents

Off
icers-in-Charge of Regular Divisions
Secondary School Principals of OU's and IU's
Heads/School Principals Public Elementary Schools
All Others Concerned

SUBJECT : AMENDMENTS TO THE MEMORANDUM OF AGREEMENT BY AND BETWEEN

DEPARTMENT OF EDUCATION AND LAND BANK OFTHE PHILIPPINES ON THE
LIVELIHOOD LOAN FACILITY OFFERED TO DEPED PERSONNEL

1. Attached is an Of ice Memorandum No.OM-FA-2015-0018(MD) dated June 22, 2015

f
from Honorable USEC Francisco M. Varela, Undersecretary for Finance and
Administration, informing the field on the amendments to the memorandum of agreement
drawn up by and between the Department of Education (DepEd) and Land bank of the
Philippines (LBP) on the Livelihood Loan Facility for DepEd Personnel under the
Department's Payroll Deductions System (APDS).

2. For other details, refer to the attached Memorandum.

3. Immediate and wide dissemination ofthis Memorandum is desired.

JULIET A. JERWTA
Director III
Of
icer-in-Charge
f

JAJ/ATBMDSS
Abs: Memor
andum r
e: OM-FA-2015JM18(MD)

Ofice ofthe Director(ORDir), Tel. Nos.: (032) 231-1433; 231-1309; 414-7399; 414-7325; Of
f ice oftheAssistant Director,Tel. No.: (032)255-4542
f
Field TechnicalAssistance Division (FTAD), Tel. Nos.: (032) 414-7324 Cnrricnlnm Learning Management Division(CLMD), Tel Nos.: (032) 414-7323
Qualit
yAssurance Division (QAD),Tel. Nos.: (032) 231-1071 Human ResourceDevelopmentDivision (HRDD), Tel. No.: (032)255-5239
Education Support Services Division (ESSD),Tel. No.: (032) 254-7062 Planning, Policy and Research Division (PPRD), Tel. Nos.: (032) 233-9030;
414-7065 AdministrativeDivision, Tel. Nos.: (032) 414-7326; 4144367; 414-7366; 414-7322; 414-4367
FinanceDivision,Tel. Nos.: (032)256-2375; 253-8061; 414-7321
" 50. 2015: Xtvtapatan ng a&at, Panatutgutaa ng. ahat"

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e Department of Education ~ ""'
.@@'. @@.'@'@ .A I ION / V-f|J 'ij^ Region VII, Central Visayas

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@i V; V,;.,: - llJ Sepattment of Cbucatton n c @@

yv ,/ ,. .^JUl 0 9 I5 June 22,2015

If OFFICE MEMORANDUM
OM-f-A-2015- OO'P (Mb )

TO : ALL REGIONAL DIRECTORS

Attention :@@ The Chiefs, Finance Division

Heads of Regional Payroll Services Unit

FROM : FRANCISCO M. VARELA

Undersecretary for Finance and Administration

SUBJECT : AMENDMENTS TO THE MEMORANDUM OF AGREEMENT BY AND

BETWEEN DEPARTMENT OF EDUCATION AND LAND BANK OF THE
PHILIPPINES ON THE LIVELIHOOD LOAN FACILITY OFFERED TO
DEPED PERSONNEL
1. For information and guidance of all concerned, attached is a copy of the
Amendment to the Memorandum of Agreement (MOA) drawn up by and between
the Department of Education (DepED) and Land Bank of the Philippines (L8P) on the
Livelihood Loan Facility for DepED Personnel under the Department's Automatic

Payroll Deduction System (APDS).

2. The amendments made to the aforesaid APDS-MOA are as follows:

a. One percent (1%) rebate shall be given to DepED borrowers based on

the Average Loan Balance as of end of November of each year,
provided the eligibility criteria set therein are met;

b. The required loan renewal period from at least twelve (12) months shall
be reduced to six (6) months; and

c. In case of Loan Take-out, upon issuance of check by the LBP representing

full payment of loan to a Private Lending Institution (PLI), only the Official
Receipt (OR) shall be required to be provided by the said PLI to the
DepED borrower, instead of both the OR and Certificate of Full Payment.

3. The aforementioned amendments to the APDS-MOA shall take effect

immediately.

4. For proper dissemination of this Memorandum to your respective

implementing and non-implementing units.

. /

FRANCISCO ^n. VAKtLA

Undersecretary
 13299 ^ i!
@ >: \ y CLASS D
JUL 0 9 1815
AIP&NDMENTTO THE HEMORANDUM OF AGREEMENT (MOA)

This First Amendment to the Memorandum of Agreement made and executed on this
day of _ ?-.r , 2015 in Pasig City, Philippines, by and between:

LAND BANK OF THE PHILIPPINES, a government financial institution created and

existing under and by vir tue of the provision of Republic Act No. 3844, as amended,
wi;h principal office at LANDBANK Plaza, 1598 M. H. del Pilar cor. Dr. J. Quintos
Street, Malate, Manila, Philippines, represented by this Act by its President and
Chief Executive Officer, GILDA E. PICO, hereinafter referred to as "LANDBANK",

-and-

DEPARTMENT OF EDUCATION a government agency created and existing under

and by vir
tue of Philippine law, with principal office address at DEPED Complex,
Meralco Avenue, Pasig City, Philippines, represented herein by its Secretary,
ARMIN A. LUISTRO, hereinafter referred to as "DEPED".

WITNESSETH: That
WHEREAS, on July 31, 2014, the parties executed a Memorandum of Agreement (MOA)
on Livelihood Loan Facility for DEPED employees nationwide;

WHEREAS, LANDBANK Management approved the granting of 1% rebate under the

DEPED Livelihood Loan Facility for DEPED employees, provided that the eligibility
criteria are met. The said additional feature of the loan shall form par
t of the MOA as
Section I.K (Rebate);

WHEREAS, LANDBANK Management also approved the following to expedite the

release of the DEPED employees' loan proceeds:

1. Reduction on the required renewal period from at least twelve (12) months to six (6)
months only;

2. Requiring the submission of the Official Receipt (OR) only from the Private Lending
Institutions (PLI) instead of both OR and Cer
tificate of Full Payment, in case of loan
tak^-out.

ift/HEREAS, all related provisions in this MOA and IRR such as, but not limited to,
Sectiors I.E (Renewal Terms), I.I.3 and I.I.4 (Loan Take-out) of the MOA and Section
7.2.2 (Loan Take Out Component of the corresponding IRR are likewise amended in
accordance with the LANDBANK Management's approval.
 xl

WOW, THEREFORE, for and in consideration of the toregoing premises anu ui me leims
and conditions hereinafter set for
th, the above par
ties hereby mutually agree as follows:

Section I.E (Renewal of Terms) of the MOA shall be fur

ther amended to read as

follows:
Loen Renewal shall be allowed on or after six (6) months from the availment of the
loan provided that LANDBANK has received payments equivalent to at least six (6)

Section LK. (Rebate) shall be added to the MUA to read as toiiows.

One percent (1%) rebate based on the Average Loan Balance (ALB) as of end of
November of each year shall be granted to DEPED employees under the Livelihood
Loan Facility. Said rebate shall be credited to the respective employees' payroll
account on or before the third week of December of the following year, provided the
following eligibility criteria are met:

1. The borrower must have paid at least twelve (12) months amortization for the
reference months of November 30 to November 30 of the following year/s of the
@:erm of loan;

2. The borrower must not incur actual past due for the last twelve 12 reference

months;

3. The loan account must be active as of November 30 of each year;

4. Office or School has not incurred any actual past due for the reference months,
otherwise, the said incentive will be forfeited.

The 1 % rebate will be computed as follows:

_ u . Total Interest Collected for 12 mos. ., @ ., n, n . . n .
Rebate Amount = = ALB X 1 % Rebate Rate
10.5%

Sections 1.1.3 and 1.1.4 of the MOA shall likewise be amended to read as follows:

In case of Loan Take-out, DEPED shall submit to LBP the list of the institutional

lenders of the teachers.

The borrower must submit to LBP the statement of account/outstanding balance or

the most recent billing statement of the borrower from other Private Lending
Institutions (PLIs) duly cer
tified by the borrower.

LBP will take-out the existing loans of the DEPED personnel with other PLIs. The
borrower shall sign on the Livelihood Application/Agreement Form Authorizing

LANDBANK to:
1. issue a check payable to the PLI/PLIs representing the outstanding balance of the
 2. remit the check/ payment directly to the PLI/PLIs;

3. receive the Official Receipt from the PLI/PLIs;

4. withhold the release of the net loan proceeds/outstanding balance of the payroll
account pending its receipt of the Official Receipt from the PLI/PLIs.

This Agreement shall be effective from the date of execution hereof and shall remain in
full force and effect unless terminated by either party hereto upon thirty (30) calendar
days prior written notice to the other; provided, however, that this Agreement shall
continue to be in effect with respect to the obligations of the borrowers and/or sureties
until full payment of the loan, interest and penalties, as applicable.

IN WITNESS WHEREOF, the parties through their respective authorized representatives

have hereunto signed this ___ day of , 2015 at Pasig City.

DEPARTMENT.OF EDUCATION LAND BANK OF THE PHILIPPINES

By: /f By:

ARMH&'A. LUISTRO GHWE. PICO

Secretary Resident and CEO

SIGNED IN THE PRESENCE OF:

@N. FRXN<?i C01t

a. VARELA
/hi'l hi'li/
MARILYNJ1. TIONGSON
Undersecretary SVP, South NCR Branches Group
Finance and Administration OIC, Branch Banking Sector
 <$f
cKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

__ PASIG CITY ) S.S.

At the above stated place, on the @ day or before me personally

appeared:

NAME Government-Issued ID/ No. Expiry

HON. BR. ARMIN A. LUISTRO Passport Number Sept. 2, 2015

DP 0007134
known to me the same persons who executed the foregoing instrument and
acknowledged the same to be their free and voluntary acts and deeds as well as those of
the corporation and instrumentality of the Government herein represented

Said instrument refers to a MEMORANDUM OF AGREEMENT consisting of five (5)

pages including this page whereon the Acknowledgement is written, signed by the
par
ties and their witnesses on the signature page hereof, and initialed on the other pages
and sealed with the notaries seal.

NOTARY PUBLIC
Doc. No. I

Book No. ^V#

Series of 201 s > *" Y- f&AR 0 AM0RAW0
Notary Public
Pasig, Tagiiio, San Juan, Paf
eros. MM
Until December 31, 2016
868 B Shaw Blvd. Kapitolyo, Pnsig City
PTR No. 0250884 Jim. 5,20)5
IBP No. 976041 Oct. 22, 20U Roll No. 663?
Appointment No. ? (2O15-?O'6}
 . N*V f"bf
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ACKNOWLEDGEMENT

REPUBLIC O^E^LIPPINES)

At the above stated place, on the

JUNday
0 3of
2U15 before me personally
appeared:

NAME Government-Issued ID/ No. Expiry

GILDA E. PICO LBP ID Number 1128

known to me the same persons who executed the foregoing instrument and
acknowledged the same to be their free and voluntary acts and deeds as well as those of
the corporation and instrumentality of the Government herein represented

Said instrument refers to a MEMORANDUM OF AGREEMENT consisting of five (5)

pages including this page whereon the Acknowledgement is written, signed by the
parties and their witnesses on the signature page hereof, and initialed on the other pages
and sealed with the notaries seal.

* NOTARY PUBLIC
oc- No. _% . #

Page No. Z!/^ , <===^^~^J^

Series of 20?5~/ A1TV. OES/AR D. AMORANlO
/votary mom
Pasig, Tagnig, SaoJuan, Paf
eros. MM
Until'DecemberM, 2016
866 6 Shaw Blvd. Kap/folyo, Pa.<% City
PTR No. 0250884 Jan. 5, ?0T5
)8PNo, 976Wt Or). 22.2OU Roll No. $637
Apjr
oift
oi! No. / {?0i5-20ff
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