Chapter 1

Colegio de San Juan de Letran
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY 1
CHAPTER I
Introduction
I.1 History, Ownership, Management, Culture
UCPB Savings Bank, Inc. (the “Bank”) is a domestic savings bank,
incorporated on October 18, 1962 to provide services such as deposit-taking,
loans and domestic fund transfers.
The Bank is a 97.4%-owned subsidiary of United Coconut Planters
Bank (UCPB). The Bank is the surviving entity of a merger with UCPB
Rural Bank, Inc (URB), another subsidiary of UCPB, on December 29,
2005. URB was incorporated in the Philippines on August 2, 1990 to engage
in the business of extending credit to the small farmers and tenants, and to
rural industries or enterprises, to accept deposits and transact business which
may legally be done by rural banks. The said merger was approved by the
Securities and Exchange Commission (SEC) and Bangko Sentral ng
Pilipinas (BSP) on January 5, 2006 and November 5, 2005, respectively.
As a banking institution, the Bank’s operations are regulated and
supervised by the BSP. In this regard, the Bank is required to comply with
the rules and regulations of the BSP such as, among others, relating to
adoption and use of safe and sound banking practices.
As of July 1, 2016, the Bank operates 45 branches, including 1
newly-opened branch in Ormoc City.
The Bank’s registered principal address is at 18th Floor, UCPB
Building, 7907 Makati Avenue, Makati City.

Organizational Structure
Figure 1.0 Board of Directors
Figure 1.1 Senior Management
Higinio O. Macadaeg, Jr.

Chairman of the Board
Ramon L. Macasaet Danilo V. Pulido

Director Director
Jose Alfonso A. Poblete Lizette Margaret Mary J. Racela

Director Director
Mao K. Andong, Jr. John B. Llamas

Director Director
I.2 Nature of Business

Product/ Services
A host of savings tools are available for our Clients as we have
unique savings facilities for young individuals who want to get into the habit
of money management and for mature individuals with more sophisticated
financial requirements. USB savings deposits and term deposits are made to
cater to clienteles specific needs. We offer very competitive interest rates
and convenient packages on all our products and services.
Lizette Margaret Mary J. Racela

Here are some of UCPB Savings
President offers:
and CEO
1. Deposits Ernesto O. Olavario

Menchie E. Lagac Loans Accounting Head
Treasury Head
USB savings deposits and term deposits are made to cater to

Atty. Alexander L. Paulino Ronald B. Bugayong
clientele’s specific
Legal Services Head needs. We offer very competitive interest
Internal Audit Headrates and
convenient packages on all our products and services.

Wilfredo S. Bautista Narisa Berlin R. Duran
Information Technology Head Risk Management Head
Under Deposits they have Peso Checking Account, Peso Savings
Account,
Irene S. Time Deposits and eCash Card.
Quintana Corazon R. Gueverra
Contollership Head Commercial Lending Head
Wilfred D. Abobo Dronnel A. Espina

Branch Banking Head Human Resources Head
a. Peso Checking Account
Alma D. Paculanan Ma. Pamela V. Suarez

Peso Checking
Compliance Head Account have several products
Consumerand services
Loans Head offered
by UCPB Savings such as:

Wilma D. Dancel
Credit Administration Head
 Checking Account
Current Account, otherwise known as a regular Checking
Account or Demand Deposit, is a non-interest bearing deposit, which is
withdrawable thru the issuance of a check.
FEATURES
Corporation
Individual
Regular With Regular With

ATA* ATA*
Initial Deposit 5,000 7,000 10,000 15,000
Interest Rate none none none none
Minimum Maintaining ADB n/a n/a n/a n/a

(MMADB) to Earn Interest
Minimum Maintaining ADB 5,000 0.0 10,000 0.00

(MMADB) not subject to service
charge
Manner of Interest Payment n/a
Withdrawal Issuance of check
Dormancy One (1) year from the last customer

initiated transaction
Table 1.1.0 Current Account Features
Automatic Transfer Arrangement (ATA)
o A facility wherein the current account is attached to the savings account
o Funds are deposited and maintained in the savings account
o Current account can have zero balance without being charged

o Funds are automatically transferred from savings to current account
whenever a check is drawn/ issued or the current account is debited.
CHARGES
Individual Corporation

ATA* ATA*
Below Minimum 200.00 200.00 200.00 200.00

Maintaining ADB
(MMADB) for two (2)
consecutive months
RCOCI Charge
Penalty Charge P200 for every P40,000 or fraction per

day per check
Service Charge P2,000 if returned
Table1.1.1 Charges of Current Account
REQUIREMENTS
1. Individual
 Latest “1 x 1 ID”  Two (2) Valid IDs
Picture
 Proof of Billing
2. Sole Proprietorship
 Certificate of Registration of Business/Trade Name with DTI
 Affidavit of Application of Business Name
 Two (2) Valid IDs of the Proprietor

3. Partnership
 Articles of Partnership with SEC Certificate of Registration
 By-Laws with SEC Certificate of Filing
 Notarized Partnership Resolution
 Two (2) Valid IDs of the Signatory/ies of the account
4. Corporation
 Articles of Incorporation with SEC Certificate of Registration
 Notarized Board Resolution or Notarized Secretary’s Certificate
indicating the following:
o USB as the Depository Bank
o The type of account to be opened
o The name of the authorized signatories to the account
o The signature combination/s
 Two (2) Valid IDs of the signatory/ies of the account

 Cheque Plus
Cheque Plus is a special type of Demand Deposit. It is an interest
bearing Checking Account which is withdrawable thru the issuance of a
check.
FEATURES
Initial Deposit 7,000.00 15,000.00
Interest Rate .5% .5%
Minimum Maintaining ADB 15,000.00 20,000.00

(MMADB) to earn interest
Minimum Maintaining ADB 7,000.00 15,000.00

charge
Manner of Interest Payment 7,000.00
Withdrawal Issuance of checks
Dormancy One (1) year from the last customer

Table1. 1.2 Cheque Plus Features
REQUIREMENTS
1. Individual
 Latest “1 x 1 ID” Picture  Proof of Billing
 Two (2) Valid IDs

3. Partnership
4. Corporation

 Cheque Lite
Check Lite is a type of demand deposit product open to all
individual depositors. This shall be a variant of our existing current
account, non-interest bearing deposit, and withdrawable thru the
issuance of check.
FEATURES
Requirement
Initial Deposit 2,000
Minimum Maintaining ADB 2,000

(MMADB)
Withdrawable Thru / Proof of Issuance of Check / Bank

Deposit Statement
Dormancy One (1) year from the last

customer initiated transaction
Minimum Maintaining ADB n/a

Interest Rate n/a
Interest Crediting n/a
Table 1.1.3 Cheque Lite Features

Target Market
o Cooperative Member o Real Estate Borrowers
o PLI Borrowers o OFWs
o Auto Loan Borrowers o SLAIs
o Young Mobile o Entrepreneurs
Professionals
o Traders
Customer Benefits /Other Features
i. Lighter initial deposit /maintaining balance requirements
ii. Can now avail and utilize checking account at lower requirements for all
their recurring payment transactions ,with the convenience of non-
carrying of cash
iii. Client’s risk is mitigated due to non-maintenance of large amount of
cash in their residence
iv. Eligible for back-to- back loans or loans against hold- out on deposits
REQUIREMENTS
1. Individual
 Latest 1’’x1’’ID  2 valid IDs
Picture
 Certificate of Registration of Business /Trade Name with DTI
 2 valid IDs of the Proprietor
b. Peso Savings Account
Peso Savings Account is categorized into five, such as:
 Regular Savings Account
Savings Account is an interest bearing deposit, which is
withdrawable thru the presentation of passbook with a duly
accomplished withdrawal slip (WS).
FEATURES

ATA* ATA*
Initial Deposit 500.00 7,000.00 500.00 15,000.00
Interest Rate .5% .5% .5% .5%
Minimum Maintaining ADB 10,000.00 3,000.00 10,000.00 3,000.00


(MMADB)not subject to
service charge
Manner of Interest Payment Credited Monthly
Withdrawal presentation of passbook and a duly

accomplished WS
Dormancy Two (2) years from the last customer initiated

transaction
Table 1.1.4 Regular Savings Account Features

Note: For branches with ATM , required ADB to Earn Interest:

ATA* ATA*
Initial Deposit 5,000.00 7,000.00 10,000.00 15,000.00
Interest Rate .5% .5% .5% .5%


(MMADB)not subject to
service charge

accomplished WS

transaction
Table 1.5 Regular Savings Account Features w/ Interest
Automatic Transfer Arrangement (ATA)
o A facility wherein the current account is attached to the savings account
o Funds are deposited and maintained in the savings account
o Current account can have zero balance without being charged
o Funds are automatically transferred from savings to current account
whenever a check is drawn/ issued or the current account is debited.

CHARGES

ATA* ATA*
Below Minimum Maintaining ADB 200.00 200.00 200.00 200.00

(MMADB) for two (2) consecutive
months
Table 1 1.6 Regular Savings Account Charges
REQUIREMENTS
1. Individual
Picture
3. Partnership
4. Corporation
 ATM Account
ATM Account is a Peso savings or current account whereby
transfer of funds, withdrawals, balance inquiry, bills payment, request
for Statement of Account (SOA) or checkbook and purchase of PINs for
pre-paid phone/internet services may be done through the use of an ATM
Card.
FEATURES
Savings Passbook Current CA/SA Cheque

Savings Plus
Initial Deposit 500.00 5,000.00 2,000.00 7,000.00 7,000.00
Interest Rate .5% .5% none .5%
Minimum 3,000.00 10,000.00 none 10,000.00 7,000.00

Maintaining ADB
(MMADB) to earn
interest
Minimum 500.00 5,000.00 2,000.00 7,000.00 7,000.00

Maintaining ADB
(MMADB) not
subject to service
charge
Manner of Interest Credited Monthly

Payment
Withdrawal Automated Teller Machine (ATM) or presentation of

ATM Card with duly accomplished WS or through
Check/passbook, as applicable
Withdrawal limit per 10,000.00

transaction using
ATM
Withdrawal limit per 20,000.00

day using ATM
Dormancy Two (2) years (Savings, w/ ATA) or One (1) year

(Current, ChequePlus) from the last customer initiated
transaction
Table 1.1.7 ATM Account Features
Existing Accounts
Existing Savings/Current/ChequePlus Accounts (Individual) may be
converted into ATM Accounts.
Withdrawal Limit
Client may withdraw over-the-counter if amount exceeds the
withdrawal limit per day.
Types of Cards:
i. Quick Card – received by Client on the day of application
ii. Customized Card – indicates client’s name, account number and card
number; received by the Client in four (4) banking days
Savings Passbook Current CA/SA Cheque

Savings Plus
Replacement of lost ATM 100.00

Card
Below Minimum 100.00 200.00 200.00 100.00/td> 200.00

Maintaining ADB
(MMADB) for two (2)
consecutive months
Table 1.1.8 ATM Account Charges
REQUIREMENTS
1. Individual
Picture
 Stratified Savings Deposit
Stratified Savings Deposit (SSD) is a special type of savings
deposit whose interest is based on the pre-agreed rates and level of
deposit (ADB for the month). This account is evidenced by a passbook
and by a SSD Agreement. Withdrawal is done thru the presentation of
passbook with a duly accomplished withdrawal slip.
FEATURES
Interest Rate Based on the negotiated rate at

the of time opening
Minimum Maintaining ADB (MMADB) to 500,000.00 500,000.00

earn Interest
Minimum Maintaining ADB (MMADB) not 100,000.00 100,000.00

subject to service charge
Manner of Interest Payment Monthly
Withdrawal presentation of passbook and

accomplished withdrawal slip
Dormancy Two (2) years from the last

customer initiated transaction
Table 1.1.9 Stratified Savings Deposit Features
CHARGES
Below Minimum Maintaining ADB 100.00 100.00

(MMADB) for two (2) consecutive months
Table 1.1.10 Stratified Savings Deposit Charges
REQUIREMENTS
1. Individual
Picture
3. Partnership
4. Corporation
 My First Step
My First Step Savings Account is a special savings deposit
designed for children/teens from 7 to 17 years old. It is neither an ‘In-
Trust-For’ (ITF) account nor a ‘For-Account-Of’ (FAO). This account is
evidenced by a passbook designed for My First Step Savings Account.
My First Step accountholders with more than 5 years historical
relationship with the Bank have the privilege to continue enjoying this
product with no change in its features, even upon reaching his/her
maturity age.
FEATURES
Minimum Initial Deposit 100.00
Interest Rate 0.7%
Minimum Maintaining 500.00

ADB (MMADB) to earn
interest
Minimum Maintaining 500.00

ADB (MMADB) not
subject to service charge
Evidence of Deposit Passbook

accomplished Withdrawal Slip (signed by parent
or legal guardian)

transaction
Freebies a) Gift Check (GC) or gift item worth P100.00,

upon opening of account.
b) Additional Php 100.00 GC or gift item when
the account reaches Php50,000.00 ADB and PhP
100,000.00 ADB respectively.
c) Birthday Card
Table 1.1.11 My First Step Features
CHARGES
Below Minimum Maintaining ADB (MMADB) for two (2) Php100.00

consecutive months
Account Closure within 30 days Php 100.00
Witholding Tax 20% on interest

paid
Table 1.1.12 My First Step Charges
REQUIREMENTS
Valid IDs from both the Parent/Guardian and Child/Teen shall also be
required as follows:
1. Parent/Guardian
 Latest “1 x 1 ID” Picture  Proof of Billing
 At least one (1) primary
and two (2) secondary ID
with photo and signature
2. Children/Teens
 Latest “1 x 1 ID” Picture  Student Driver’s License /
Passport / School ID
 Birth Certificate issued by
NSO  School Registration Form

Specimen signatures of both child/teen and parent/guardian (if new
account) shall be obtained.
 Savings Builder
Savings Builder is an interest earning peso deposit account
covered by a “Savings Builder Agreement and is linked to a primary
account. The Savings Builder is the secondary account. Both Accounts
are under the name of the Primary Accountholder. The Bank shall
automatically transfer a specific amount from the primary account to the
Savings Builder account on specified date/s of the month (maximum of
two (2) transfers per month). Individuals, including sole proprietorship,
may open this type of account. Direct withdrawal from the Savings
Builder Account and direct deposit to the Savings Builder Account is not
allowed.
FEATURES
Minimum Initial Deposit 500.00
Minimum Maintaining ADB

charge n/a
Minimum Maintaining ADB 5,000.00

Interest Rate: 0.5% for below Php50,000.00 ADB
0.6% for above Php50,000.00 up to

Php99,999.99
0.7% for Php 100,000.00 and above ADB
Max No. of transfers 2 transfers per month
Minimum Amount per transfer 100.00
Interest Payment Monthly
Evidence of Deposit Passbook

accomplished WS (fund transfer to the
primary account)
Dormancy Two (2) years from the last customer

Table 1.1.13 Savings Builder Features
Qualified Primary Accounts:
i. Individual Payroll Account
ii. Regular Savings or Current Account (with or without ATA or ATM)
iii. ChequePlus Account (with or without ATM)
iv. Joint Accounts (same type of account as above)
CHARGES
Below Minimum Maintaining ADB (MMADB) for two (2) n/a

consecutive months
Withholding Tax 20% of interest

paid
Table 1.1.14 Savings Builder Charges
REQUIREMENTS
1. Individual
Picture
 Two (2) Valid IDs of  Proof of Billing
the Proprietor
c. Time Deposits
Under Time Deposits, UCPB offers different types of deposits such
as:
 Regular Time Deposits
Regular Time Deposit is an interest bearing deposit, with specific
maturity date, evidenced by a certificate (CTD) signed by two (2)
authorized signatories of the Bank.
FEATURES
Minimum 5,000.00 5,000.00

Amount
Minimum Term 30 days 30 days

Interest Rate Based on negotiated rate at the time of placement
Manner of At maturity, based on negotiated term at the time of

Interest Payment placement interest payment via credit to clients account or via
Managers Check.
Withdrawal Surrender the original CTD duly endorsed by the depositor/s
Dormancy Two (2) years after maturity
Table 1.1.15 Regular Time Deposits Features
CHARGES
Below Minimum n/a n/a

ADB for two (2)
consecutive
months
Withholding Tax 20% of the total interest earned

For tax exemptions, entities claiming such excemptions shall
provide the bank a copy of a valid, current and subsisting tax
exception certificate or ruling as per existing administrative
issuances any and issuances that maybe issued from time to
time , before payment of the related income. (BIR) Revenue
Memorandum 8-2014 dated February 6, 2014.
Pre-Termination
Charges
Documentary P1.00 for every P200 x term/365

Stamps
Penalty – Within Seventy five (75%) percent of the stipulated rate

1st half of the
term
Penalty – Within Fifty (50%) percent of the stipulated rate

2nd half of the
term
Table 1.1.16 Regular Time Deposits Charges
BENEFITS
i. For the clients:
 Higher interest rate
ii. For the bank:
 Increase total bank/branch funds/deposit
 Promote better business relationship with the client
 Prevent client/s from taking out the funds
REQUIREMENTS
1. Individual
Picture

3. Partnership
4. Corporation

 Long Term Deposits
Long Term Time Deposit (LTD) is a special type of term deposit,
available to eligible depositors (both individuals & corporations).
FEATURES
Minimum 50,000.00 50,000.00

Amount
Minimum Terms 0ne (1) year 0ne (1) year
Five (5) years & one (1) Five (5) years & one (1) day
day
Interest Rate Based on negotiated rate at the time of placement
Manner of At maturity, based on negotiated term at the time of

Interest Payment placement interest payment via credit to clients account or
via Managers Check.
Withdrawal Surrender of the original CTD duly endorsed by the

depositor/s
Dormancy Two (2) years after maturity
Table 1.1.17 Long Term Deposits Features

CHARGES
Below Minimum ADB for two (2) consecutive n/a n/a

months
Withholding Tax 20% of the total interest

earned
Documentary Stamp P1.00 for every P 200.00
Table 1.1.18 Long Term Deposits Chargers
PRE-TERMINATION CHARGES
Withholding Tax
Holding Period Account Type
Individuals & Tax-exempt Corporations (w/o tax

Corporations exemption)
5 years & 1 day 0% 20%
4 years to less than 5%

5 years
3 years to less than 12%

4 years
Less than 3 years 20%
Table 1.1.19 Long Term Deposits Pre-Termination Charge
Tax-exempt corporations must submit a valid, current, and subsisting Tax
Exemption Certificate or ruling from BIR as per exiting administrative issuances and any
issuance that maybe issued from time to time before payment of related income. Revenue
Memorandum Circular 8-2014 dated February 6, 2014.
Pre-termination Date Penalty Rate
Within the first 29 days 100%
Within the first half of the term but not less than 30 days 75%
Within the second half of the term 50%
REQUIREMENTS
1. Individual
Picture
3. Partnership
4. Corporation
d. eCash Card
UCPB Savings Cash Card is the bank’s prepaid, reloadable card
which can be availed by individuals, partnership, corporations and other
legal entities as payment channel for remittance, commission and other
types of pay-out or disbursement.
UCPB Savings Cash Card Account is a peso denominated electronic money
account attached to the Cash Card whereby cash loading, withdrawal,
balance inquiry and bills payment maybe done through the use of this Card.
FEATURES
1. is not considered a deposit account and not insured with the PDIC
2. is claimed through face value
3. does not earn interest / rewards / incentives convertible to cash
4. cannot be purchased at a discount
5. requires no maintaining balance
6. does not close at zero balance
7. is not subject to inactivity and dormancy fees
8. has no Statement of Account
9. is subject to an aggregate monthly load limit of Php 100,000.00 in
the CBS-CASA system.

DOCUMENTARY REQUIREMENTS
1. Individual Client
a. UCPB Savings Cash Card Availment and Maintenance Form
(CCAMF)
b. Two (2) valid photo bearing identification cards (IDs) of the
Applicant and the Cardholder Note: For students, only one (1) valid
photo-bearing ID shall be required in accordance with the AML
Manual.
c. Endorsement Letter by Applicant other than the Cardholder-for bulk
availment listing all Cardholder names
2. Corporate Client
a. UCPB Savings Card Memorandum of Agreement (MOA)
b. Card Application File (for clients using the electronic upload)
c. Two (2) Valid photo-bearing IDs of:
i. Cardholder, and
ii. Company’s Authorized Representative/s as identified in the
MOA
d. Notarized Board Resolution or Secretary’s Certificate authorizing the
availment of the UCPB Savings Cash Card facility

e. Signature Cards with specimen signatures of Cardholder
f. Endorsement Letter of the Applicant other than the Cardholder-for
bulk availment listing all Cardholders names
2. Loan Products
USB Loan Products are multi–purpose consumer and commercial
loan facilities that cater not only to individuals but also to corporate and
single proprietorship accounts. They have competitive interest rates and
flexible payment terms.
a. Salary Loan
 Government Entity Payroll Service Plan
1. PAYROLL SERVICE PLAN LOAN (PSPL) – refers to the Salary
Loan granted to Qualified Employees of Accredited Government
Entity.
Types of PSPL
a. PSPL-DepEd – refers to Salary Loan granted to Teachers/Employees of
Public Schools as follows:
o Public Schools with Centralized Payroll System
These refer to Public Schools wherein the payroll of the teachers
are prepared and processed at the DepEd Central Office in
Manila.
o Public Schools with Regionalized Payroll System
These refer to Public Schools wherein the payroll of the teachers
are prepared and processed at the DepEd Regional Office.
o Stand-Alone/Chartered Public Schools
These refer to Public Schools which have their own charters and
not dependent on DepEd Regional Offices for the funding of its
payroll and other administration and maintenance requirements.
b. PSPL – PUBLIC (Non-DepEd)/(PSND) – refers to Salary Loan granted
to Employees of Local Government Units (LGU) and Other Government
Agencies (OGA) other than Public Schools.
Accreditation of the employer/company is necessary.
BASIC REQUIREMENTS
1. The Unit/Entity shall be an Accredited Government Entity (AGE).
2. An Agreement between the Bank and the AGE which, among other
conditions, stipulates that the AGE undertakes to deduct from the payroll
of its employees the amount equivalent to the monthly amortization and
remit to the Bank whatever amount the employees owe under its Salary
Loan Program.
Types of Agreement
a. WITH SURETYSHIP
This refers to a Salary Loan Program in which the Accredited
Government Entity (AGE) acts as a Surety, and is jointly and severally
liable for the loans granted by the Bank to the Qualified Employees of the
AGE.
The AGE shall execute the following agreements:
i. Salary Loan Surety Agreement (SLSA); and
This is an Agreement that requires among other conditions that
the repayment of all obligations of the employees shall be

secured by the joint and several liabilities of the Unit/Entity
referred to as the “Sureties”.
ii. Salary Loan Memorandum of Agreement (SLMOA)
before the employees of the Government Entity can avail of the
Salary Loan, the Government Entity shall undertake to deduct
from the salaries of the employees and remit the same to the
Bank whatever amount the employees owe the Bank under the
Salary Loan Program.
b. WITHOUT SURETYSHIP
This refers to the salary loan in which the AGE does not act as
Surety for loans granted by the Banks to the Qualified Employees of the
AGE. The AGE shall execute any of the following agreements:
i. Salary Loan Automatic Debit Arrangement (SLADA); or
This is an Agreement that requires, among other conditions that
before the employees of the AGE can avail of the Salary Loan
Program, the AGE shall permit such employees to authorize the
Bank to regularly debit from their payroll accounts with the Bank
the amortizations on their loans under the Salary Loan Program.

ii. Salary Loan Memorandum of Agreement (SLMOA) (Without
Suretyship)
before the employees of the Government Entity can avail of the
Salary Loan, the Government Entity shall undertake to deduct
from the salaries of the employees and remit the same to the
Bank whatever amount the employees owe the Bank under the
Salary Loan Program.
The Payroll Service Plan Loan (PSPL) is a Salary Loan Program
WithoutSuretyship. The Accredited Government Entities (AGE) does not act
as Sureties for loans granted by the Banks to its Qualified Employees.
2. ACCREDITED GOVERNMENT ENTITY (AGE) – refers to the
Employer of the Borrower that passed the criteria, evaluation and
accreditation process set by the bank and shall be referred to in these
guidelines as “Government Entity”.(GE)
a. National Government (NG) – refers to Government Agencies
such as Departments, Bureaus, Offices and instrumentalities, but
excluding government-owned and government-controlled
commercial corporations.
b. Local Government Unit (LGU) – refers to a Government Unit
below the level of National Government such as Provinces,
Cities, Municipalities and any other political subdivisions created
by law enacted by Congress and to Barangays created by
ordinance passed by the SanguniangPanlalawigan or the
SanguniangPanlunsod that are located within its territorial
jurisdiction, subject to such limitations and requirements
prescribed in R.A. No. 7160 (Local Government Code of 1991).
c. Other Government Agency (OGA) – refers to Government Unit
or Agency other than LGU and DepEd
3. QUALIFIED EMPLOYEES/ELIGIBLE BORROWERS – are
employees of the Accredited Government Entities that passed the
evaluation and qualification process.
FEATURES
ELIGIBLE BORROWERS Salary Loans shall be granted only to the
following Qualified Employees of the Accredited Government Entity
(AGE):
EMPLOYEE QUALIFICATIONS
Criteria DepEd/PSPL LGU / OGA-PSND
1. Borrowers All Dep. Ed. Teaching & non- teaching employees -PSPL
All Govt. Employees outside of Dep. Ed-PSND
2. Maximum Loan P100,000.00 to P 200,000.00
Amount P500,000.00
-New Borrower
– Repeat Borrower
3.Minimum Loan P10,000.00

Amount
-New Borrower
4. Interest Rates Based on Prevailing Subject to change based on
(AOR) Dep. Ed Rate prevailing interest rate
-1 year / 12 7.5% p.a. 12.00% to 18.00% p.a.
months 9.00% p.a. 12.00% to 18.00% p.a.
-2 years / 24 9.00% p.a. 12.00% to 18.00% p.a.
months
-3 years / 36
months
5.Loan Tenor / 12,24,& 36 months 12,24, 7 36 months. Elected
Term Officials (not to exceed term of
office)
6.Service Charges 6.00% of Amount 5.00% to 6.00% of Amount
Financed Financed (excluding MRI &
Notarial Fee)
7.Processing Fee Not applicable 1.50% of Amount Financed
8. Mode of Salary deduction
Payment
9. Insurance /MRI Based on the MRI Table provided by Loans Accounting
Department
10. Age At least 21 years old at the time of loan availment and not
more than 59 years old upon loan maturity. For elective
government officials, the term of the loan shall not to exceed
their term of office.
11. Employment Exemptions for borrowers over

Status 59 years old are the following:
i. Borrower is a person of
influence in the unit or office
Employee of Accredited they are employed, such as:
Gov’t. Entity with - Elected Officials
permanent status - Heads of Office
- Disbursing Officer, School
Principal and Accountant
- Payroll Encoder
- Payroll Supervisor
- Contact Persons
ii. Maximum loan exposure does
not exceed PhP 200,000.00
12. Residence Residing/Office is within the USB/UCPB service area
13. NTHP/Credit Based on the allowed NTHP of GAA for the year, or
Ratio P4,000.00, whichever is higher (USB after deductions)
14. Credit 1. No derogatory records with any Gov’t entity
Background 2. No past due account, accounts under IUL or WOA in
USB/UCPB or other financial institution
3.Credit Rating: Excellent, outstanding or satisfactory
15. Co-Maker Required=NTHP can be lower than the principal borrower,
provided they can still service the loan amortization of the
principal borrower.
Table 1.2.0 Salary Loan Features
Customer’s Benefits:
o Convenience – loans are processed at the earliest possible time

o Worry-Free – Since no collateral is required, clients can be provided
with their basic necessities and indulge in luxuries without any
hassle
o Affordability – interest rates are low and payment terms are
affordable and easy on the budget
o Efficient and Personalized Service – efficient staff will promptly
answer question and offer assistance with a personalized touch
DOCUMENTATION REQUIREMENTS
Criteria PSPL PSND

1.Borrowers 1. Latest Dep ID & PRC 1. Latest Govt. or PRC
Card Card
2. Latest Appointment Paper 2. Certificate of
of GURO Certificate Employment & Service
3. Latest ITR (Form 2316 or Record
Alpha list duly received by 3. Latest ITR (Form
BIR) 2316 or Alpha list duly
4. Original latest payslips received by BIR)
Stand Alone=1 month 4. Original latest
Region/APDS=3 months payslips (1 month)
5.Authority to Deduct 5. Authority to Deduct
6. Latest 1×1 or 2×2 pics.(2 of co-maker and maker
copies) 6. Certificate of no
pending criminal or
administrative case
7. Latest 1×1 or 2×2
pics.(2 copies)
2. Entity/Company If Region Paid – Not 1. MOA (notarized)
required 2. City or Mun. Council
If Stand Alone: Resolution
1. Approved Plantilla 3. Latest Approved
2. Latest payroll list Plantilla
3. List of authorized entity 4. Latest Payroll list
signatories 5. List of Authorized
4. Credit History entity signatories
6. Latest Financial
Statement
7. Credit History
3. Approval medium Stand Alone School-CRAM CRAM: Credit
for school/Unit/ Credit Recommendation & Recommendation &
Borrower Approval Memorandum) Approval
Accreditation Region Paid- N/A Memorandum
Table 1.2.1 Salary Loan Requirements
 Time Plan Loan

Time Plan Loan is a multi-purpose loan extended to employees of
accredited private companies and to achieve the following Customer’s
Benefits:
Convenience – loans are processed at the earliest possible time
Borrowers do not have to go to the bank to pay amortizations, repayment is via
salary deduction
Worry-Free – Since no collateral is required, clients can be provided with their basic
necessities and indulge in luxuries without any hassle
Affordability – interest rates are low and payment terms are comfortable and easy
on the budget
Efficient and Personalized Service – efficient staff of UCPB Savings will promptly
answer question and offer assistance with a personalized touch
ACCREDITATION PROCESS
COMPANY
Company must apply for accreditation.
KYC rule must be observed by the AO/BH on pre-qualification stage in accordance
with the AML Manual.
Company must execute a Memorandum of Agreement covering TPL loans to its
personnel.
MOA must include provisions covering the following:

Warranties and Responsibilities on deduction and remittance of payments.
Hold of employee’s final claim and its application to any outstanding TPL in case of
resignation/termination or separation from the company.
Notice to the Bank’s Collection group of resignations and separations as this event
would make the employee’s loan due and demandable.
Company must have a minimum of fifty (50) regular and permanent employees.
Company must have profitable operation for the last five (5) years.
Audited Financial Statement for the last three 3 years duly stamped received by
BIR.
Should have adequate benefits for employees such as retirement, commutation of
VL or SL, etc.
Credit Investigation performed by CI as requested by the AO/Branch Head and the
entity including its Directors.
EMPLOYEE:
Must be a Filipino citizen.
Must be permanent employee of the accredited company for at least three (3) years.
Must be 23-55 years old Must have proof of billing to validate the identity of the
borrower.(Billing Statements)
Credit investigation performed by CI as requested by the AO/ Branch Head.

CREDIT INVESTIGATION:
CI shall be performed by CAID Authorized Associate as follows:
REQUIRED CI CHECKING
for Individual/Company &
Co. Directors DETAILS OF CI CHECKING

Credit File verification
(NFIS/CMAP)
Court Case Verification (Internal
Checking)
In-House File Verification WebLoan File Verification

Residence/Neighborhood
Verification (for individual
borrowers)
Business Verification/Ocular
Inspection Trade Verification (for
Company)
Experience with other Banks or
Field Verification referrals (for Company)

Experience with other Banks or referrals (for Company)
Guidelines on request for CI and sending of CI reports are under CAID Manual.
EVALUATION
Evaluation of Company Accreditation shall be the responsibility of the Branch
Head/Credit Officer and Region Head/BBD Head.
Evaluation shall be based on:
Complete Pre-Accreditation Documents
CI Report
3. Results of evaluation shall be documented using the Credit Recommendation and
Approval Memorandum (CRAM).
Application may be any of the following:
New or first time accreditation
Renewal or repeat accreditation
APPROVAL OF ACCREDITATION
Approving Authorities
Company Accreditation – recommended by the Branch Head, endorsed by the
Credit Officer / Region Head and approved by the Branch Banking Division Head.
Documentation deficiencies, other deviations and policy exceptions shall be
covered in POLEX.
LOAN AVAILMENT-LOAN AMOUNT
With company suretyship w/out company suretyship

CREDIT RATIO: 50% of NTHP 30% of NTHP
FEATURES:
Loan Amount (Must be based on employees salary)

Minimum
Maximum P10,000.00 P10,000.00

Officer P100,000.00 P50,000.00
Rank & File P100,000.00 P30,000.00
Clean with co-maker of at least the same repayment
Loan Capacity as the borrower

Interest Rate Prevailing Interest, Diminishing
Other Charges
Processing
Fee : Php3,000.00 (to cover Credit Investigation cost)

Insurance- Based on the MRI Table provided by Loans
MRI Accounting Department

Payment
Terms 6 to 24 months
Mode of Equal Monthly Amortization (Principal plus Interest)
Payment Via salary deduction

DOCUMENTARY REQUIREMENTS:
1. Latest Income Tax Return
2. Two (2) months’ payslips (original & photocopy)
3. Latest “1 x 1 ID” Picture
4. Two (2) Valid IDs (i.e. Company ID & 1 Govt. Issued ID, Phil. Passport, etc.)
5. Proof of Billing/Latest Billing Statement from a Credit card/Utility Company
6. Certificate of Residency/Barangay Clearance

7. Certificate of Employment
REQUIRED FORMS:
Application for Accreditation-USB Form 05-44
Salary Loan Application Form (USB Form 05-01)
Salary Loan – Borrower & Co-Maker’s Authorization (USB Form 05-06B)
Credit Recommendation Approval Memorandum-USB Form 05-26
Promissory Note-USB Form 05-09
 Cash Loan
b. Real Estate Loan
c. Auto Loan
d. Commercial Loan
e. Business Loan
3. Cash Management
a. Payroll Service Agreement
b. Deposit Pick Up
4. Other Auxiliary Services
a. Domestic Telegraphic Transfer
b. Managers’ Check
c. Domestic Demand Draft
d. Interbranch Transaction
e. Safety Deposit Bank
5. Acquired Assets for Sale
a. Branches and Lending Offices

I.3 Current Revenue, Size, & Profit

In terms of Assets, UCPB Savings Bank has a total of 18,184,000.95
pesos as of September 30, 2017 and ranked at 10th place in the Philippines
Thrift Bank Group.
I.4 Major Market Segment

UCPB Savings Bank is a subsidiary of UCPB Commercial bank and owned by
several stockholders of the company. They are also under Government Owned and
Controlled Corporations, were they are partially owned by private and public. They
conduct both commercial and non-commercial activity
I.5 Number of Employees

Chapter 1

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Colegio de San Juan de Letran

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY 1

I.1 History, Ownership, Management, Culture

UCPB Savings Bank, Inc. (the “Bank”) is a domestic savings bank,

incorporated on October 18, 1962 to provide services such as deposit-taking,

loans and domestic fund transfers.

The Bank is a 97.4%-owned subsidiary of United Coconut Planters

Rural Bank, Inc (URB), another subsidiary of UCPB, on December 29,

2005. URB was incorporated in the Philippines on August 2, 1990 to engage

rural industries or enterprises, to accept deposits and transact business which

Securities and Exchange Commission (SEC) and Bangko Sentral ng

Pilipinas (BSP) on January 5, 2006 and November 5, 2005, respectively.

As a banking institution, the Bank’s operations are regulated and

adoption and use of safe and sound banking practices.

As of July 1, 2016, the Bank operates 45 branches, including 1

newly-opened branch in Ormoc City.

The Bank’s registered principal address is at 18th Floor, UCPB

Building, 7907 Makati Avenue, Makati City.

Figure 1.0 Board of Directors

Figure 1.1 Senior Management

Higinio O. Macadaeg, Jr.

Ramon L. Macasaet Danilo V. Pulido

Jose Alfonso A. Poblete Lizette Margaret Mary J. Racela

Mao K. Andong, Jr. John B. Llamas

I.2 Nature of Business

A host of savings tools are available for our Clients as we have

of money management and for mature individuals with more sophisticated

cater to clienteles specific needs. We offer very competitive interest rates

and convenient packages on all our products and services.

Lizette Margaret Mary J. Racela

1. Deposits Ernesto O. Olavario

USB savings deposits and term deposits are made to cater to

convenient packages on all our products and services.

Wilfred D. Abobo Dronnel A. Espina

Alma D. Paculanan Ma. Pamela V. Suarez

by UCPB Savings such as:

Current Account, otherwise known as a regular Checking

Account or Demand Deposit, is a non-interest bearing deposit, which is

withdrawable thru the issuance of a check.

Regular With Regular With

Initial Deposit 5,000 7,000 10,000 15,000

Interest Rate none none none none

Minimum Maintaining ADB n/a n/a n/a n/a

Minimum Maintaining ADB 5,000 0.0 10,000 0.00

Manner of Interest Payment n/a

Withdrawal Issuance of check

Dormancy One (1) year from the last customer

Table 1.1.0 Current Account Features

Automatic Transfer Arrangement (ATA)

o A facility wherein the current account is attached to the savings account

o Funds are deposited and maintained in the savings account

o Current account can have zero balance without being charged

o Funds are automatically transferred from savings to current account

whenever a check is drawn/ issued or the current account is debited.

Regular With Regular With

Below Minimum 200.00 200.00 200.00 200.00

Penalty Charge P200 for every P40,000 or fraction per

Service Charge P2,000 if returned

Table1.1.1 Charges of Current Account

 Latest “1 x 1 ID”  Two (2) Valid IDs

 Certificate of Registration of Business/Trade Name with DTI

 Affidavit of Application of Business Name

 Two (2) Valid IDs of the Proprietor