SINKING FUND A.K.A. KUOT-KUOT NI ROMIE v2.

INTRODUCTION OF SINKING FUND

A sinking fund is a fund that is earmarked for a specific purpose, to pay off the debts to be settled in
the future and to make investments. The money set aside regularly in a sinking fund shall be used for its
specific purposes.

OBJECTIVES OF THE SINKING FUNDS

● It is maintained to reduce the risk of funds being short at the time of repayment of debts. It makes
repayment more manageable.
● It is a pool of money saved monthly that can be used to finance members.
● It protects members from large cash outflows by allowing sinking fund funds their obligations through
borrowing since we do have a lower interest rate.
● It gives confidence to members to put more money in the sinking fund as there is a certain level of
protection for them where the sinking fund is maintained.

HOW DOES IT WORK?

It is created by setting aside some funds twice a month. Our group decided to raise money every
payday / twice a month to suffice the funds throughout the year. Our main objective for these funds is to be
circulated through a lending act which has a five percent (5%) interest rate for members which is to be paid off
twice a month.

Example:
Graph 1.1 - Snippet of Projected Savings from Jan 25-June 25, 2023

Graph 1.2 - Snippet of Projected First Set/Round of Member Loans for Feb 25, 2023

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie v2.0

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SECURITY FOR THE FUNDS
It is advisable to deposit the money to the bank every time the funds have been collected. Through
this, we put some security to the money not just for the money but also for the person who is liable for
keeping the funds. Having this method we can easily keep tracking the amount that is withdrawn and avoid
other members of the group to think negative thoughts about the person/s who secure the funds.

TERMS AND AGREEMENT FOR MEMBERSHIP

● Every probationary and regular employee is allowed to enter into the agreement.

● Collection of the funds is every 10th and 25th of the month / every payday however if there is a delay in
the payment the collection of the funds will be done on the exact payday date.

● The amount to be collected every payday is Php500.00 which is the minimum per head. If a member
wishes to pay more than Php500.00, it is up to the member and he/she can also opt to double the
amount on the next payday if he/she missed submitting the amount in the previous payday.

● In case a member resigns, terminates, and has his or her contract ended, he or she can still continue
the membership since we will accept collections through online payment channels.

● For resignation, termination, and end-of-contract reasons, if a member decides to withdraw his or her
money then there will be an indemnity fee amounting to Php300.00.

Example:
Graph 2.1 - Snippet of Projected Savings from Jan 25-June 25, 2023 with a scenario showing a
pioneer member who resigned on June 25, 2023, with an existing borrow/loan and without a loan (both
with indemnity fee due to voluntary resignation).

● Since the funds collected will be circulated through a lending act, the interest will be 5% for members
every month. Profit sharing will be done at the end of the year.
● For resignation, termination, and end-of-contract reasons, a member entitled to this can claim his or
her profit less any existing borrowed amount and with the indemnity fee of Php300.00. Technically, a
member can only claim his or her savings with the prorated calculation of the profits minus the existing

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie v2.0

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 borrowed amount minus the indemnity fee. Please be mindful that a sinking fund that only started
cannot withstand if a member decides to withdraw his or her money unexpectedly. It is also for the
security of other members to still have a chance to continue the platform.
● All members are entitled to decision-making and approvals. No leaders. No members. All are fund
holders or Pioneers.

LOAN TERMS AND AGREEMENT

● Loans are payable every 10th and 25th of the month.
● Interest is 5% for members.
● Maximum loanable amount for pioneer members of the group is only Php3,000.00 per head from Feb
25, 2023, to June 25, 2023, and a maximum of only Php4,000.00 per head from July 25, 2023, until
Nov 25, 2023.
● In the event that a member wishes to borrow an amount for both of his account heads, he/she
needs to have a current saving equal to or greater than the amount to be borrowed.
● If a member intends to borrow and is not able to pay on the due date there will be a penalty of
Php50.00 for late payment at the end of the month. By this, we encourage every member to pay on
time.
● To process loans for the members, he/she needs to fill out the borrower’s agreement form, and Jezreel
and Clark will be the ones to release the loanable amount every 25th of the month.
● All members are entitled to have a signatory to the amortization schedule of all the borrowers.

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We hereby understand and agree to the aforementioned terms and conditions of our sinking fund.
Below is the list of pioneer members’ signatures affirming the agreement stated herein.

Signed By:

Luanne Aves
Romie Sandigan Concierge, Rocketmiles
Concierge, Rocketmiles Sophi Outsourcing Inc.
Sophi Outsourcing Inc.

Farah Lagaras
Concierge, Rocketmiles
Hannah Quintana Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Jolia Solon
USA Concierge, Rocketmiles
Jezreel Regala Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie v2.0

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 Melissa Ortega
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Mark Lesther Conog

Concierge, Rocketmiles
Sophi Outsourcing Inc.

Mary Cloude Ocampo

Concierge, Rocketmiles
Sophi Outsourcing Inc.

Gilbert Pacris
USA Concierge, Rocketmiles
Sophi Outsourcing Inc.

Jonhrey DelaTorre
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Jovel Clark Contratista

Concierge, Rocketmiles
Sophi Outsourcing Inc.

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie v2.0

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