RULES ON POST DATED AND DISHONORED CHECKS

1. As a matter of policy, L-CORE discourages holding of the checks for deposit but allows
replacement of the same with cash no later than one week before due date.

2. Holding of checks for deposit if unavoidable may be allowed upon the client’s written request
made no later than seven (7) calendar days before due date subject to L-CORE approval. The
corresponding penalty of Php 1,500.00 or 15% of the amount of the check held, whichever is
higher, shall automatically be charged against client’s account upon approval of request.

3. Any check dishonored for any reason shall subject to a penalty of Php 1,500 or 15% of the
amount of the check dishonored, whichever is higher. L-CORE reserves the right to redeposit
dishonored checks without prior notice and advice from client.

4. Any dishonored check unredeemed after five (5) calendar days from maturity date without need
of notice to client shall be subject to a further monthly penalty equivalent to Php 1,500 or 15%
of the monthly amortization and an additional 10% interest on account closed thereon until fully
paid.

5. Each unreplaced check whether currently dated or postdated that is subject of a closed account
shall be charged interest of 10% of the amount of the check.

6. Payment made shall first be applied to the foregoing penalties and charges before they are
applied to arrears on interest and principal.

7. No provision in these rules shall be construed as a waiver of L-CORE’s right to institute criminal
action(s) for among others, violation(s) of B. P. 22 against erring clients, subject only to existing
laws on the matter.

B.P. 22 punishes the issuer of the worthless check with imprisonment of not less than 30 days but not
more than one year or a fine of not less than but not more than double the amount of the check, which
fine shall in no case exceed Php 200,000.00 or both such fine and imprisonment at the discretion of the
court.