Annex C.

Policy & Procedure on Direct Investment

Policy on Payment to Direct

TITLE NUMBER Fin-1
Investment

This policy applies to the

investments received by the Financial
APPLIES TO/SCOPE POLICY OWNER
corporation and the procedure of Operations
payment of interest

SUPERSEDES CREATION DATE March 18, 2019

APPROVAL BOARD OF TRUSTEES EFFECTIVE DATE

APPROVAL DATE NEXT REVIEW DATE

1. PURPOSE
This policy aims to strengthen the corporation through providing mechanisms to increase
direct investment through the corporation by clarifying responsibilities and commitment of
the corporation to direct its investors

2. POLICY
It is a policy of the corporation that all direct investment to the entity shall be paid directly
by the corporation through its corporate checks under the grounds and terms mutually agreed
by the corporation and the investor in the Memorandum of Agreement.

3. DEFINITION
3.1. Memorandum of agreement refers to the document that sets the terms of dealing
between the corporation and its investors, and mutually signed by both parties. This
includes at least the following information;
3.1.1. Total Amount of Investment
3.1.2. Schedule of Interest and its Payment
3.1.3. Parties involved in agreement
3.1.4. Penalties and charges
3.2. Direct investment refers to agreements made by the corporation and another party
for the purpose of financing corporation’s operations and by providing mutually agreed
interest to the latter.

4. RESPONSIBILITIES
Annex C. Policy & Procedure on Direct Investment
4.1. Only the President and Chief Operations Officer of the corporation shall be allowed to
enter to agreement after endorsement and review of the Chief Executive Officer and Chief
Finance Officer.
4.2. It is the responsibility of the Chief Financial Officer to track financial standing of the
corporation and to plan for allocation of due payment, including interest, penalties and
charges, to investors based on the terms set in the Memorandum of Agreement. The Chief
Finance Officer shall issue checks using the corporation bank account as form of payment to
the investor.

5. PROCEDURE
5.1. The Chief Executive Officer shall review the signed Memorandum of Agreement for
its completeness and issue request for payment to the Chief Operations Officer, attaching the
signed Memorandum of Agreement.
5.2. The Chief Operations Officer shall acknowledge the request and advise Chief Finance
Officer to proceed in issuance of check/s.
5.3. The Chief Finance Officer shall issue check based on the terms shared by the request
and shall hold the following documents for safekeeping;
5.3.1. Bank Note/ Check Logs
5.3.2. Approved Request of Payment
5.3.3. Attachment/s to Request of payment (i.e. Memorandum of Agreement, Demand
Letter, etc.)
5.4. VP Comptroller conducts periodic review of the documents mentioned.

6. RELATED POLICIES
6.1. Policy on Net Income from Direct Investment

7. RELATED FORMS
7.1 Request of Payment Form
7.2 Memorandum of Agreement