The document discusses the policies and procedures of a cooperative, including its definition, objectives, organizational structure, roles and responsibilities of members, and loan programs. Specifically, it defines a cooperative as a registered association of persons who voluntarily join together to achieve social and economic needs. It outlines the cooperative's goals, committees and their duties, and rights and obligations of members. It also describes the Single Loan Facility (SLF) which provides loans to members based on their capital share, tenure, and capacity to pay.

1. July 18, 2011 as approved by the
Cooperative Development Authority

2. A cooperative an autonomous and duly registered
association of persons, with a common bond of interest,
who have voluntarily joined together to achieve their
social, economic, and cultural needs and aspirations by
making equitable contributions to the capital required,
patronizing their products and services and accepting a
fair share of the risks and benefits of the undertaking in
accordance with universally accepted cooperative
principles.

3. •The main benefit is economic since members get a share of the
cooperative’s net surplus by patronizing its services. A certain % of the
net surplus is returned to the members after a period of one year usually
during the annual general assembly. It is called patronage refund.
•Patronage refund shall be distributed to the members in proportion to
their patronage to the services of the cooperative. The distribution shall
be in accordance with their cooperative policies based on the
cooperative law, the RA 9520. Through the patronage refund, members
are actually saving while using the services of the cooperative.
•Those who do not patronize the services of the cooperative are not
entitled to patronage refund, only the interest on their share capital
invested in the cooperative.

4. That the objectives and purposes for which this cooperative is formed are:
1.To encourage thrift and savings mobilization among the members for capital formation;
2.To create funds in order to grant loans for productive and providential purposes to its
members;
3.To promote the cooperative as a way of life for improving the social and economic well-
being of the people;
4.To undertake other activities for the effective and efficient implementation of the provisions
of the Cooperative Code.
5.To deposit operational fund to any commercial or cooperative banks and gain interest
based on the current prevailing interest rates
6.To invest any excess, unutilized funds including the General Reserved Fund in any gainful
investment sites such as but not limited to Commercial Banks, Cooperatives, Mutual Funds,
Government Guaranteed Placements like Treasury Bills, Special Deposit Accounts, etc.
7. To provide members with services such as bills payment cell phone loading, booking
and ticketing, easy access to quality medicines and such other services that
members might need in the future.
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5. •It serves as the training ground for its members in simple business
operation, democratic leadership and responsible citizenship.
•It offers opportunities to its member’s potential capabilities in productive
purposes which may redound to their material benefits and progress.
•It teaches its members self-discipline, self-reliance and other desirable
attitudes, which make every member a better individual and a better
member of society.
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6. GENERAL ASSEMBLY
BOARD OF ELECTION
AUDIT COMMITTEE
DIRECTORS COMMITTEE
SECRETARY
TREASURER
MED-CON ETHICS CREDIT TRAINING & EDUC.
COMMITTEE COMMITTEE COMMITTEE COMMITTEE
MANAGEMENT
STAFF
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7. Duties and Responsibilities of Committees:
Election Committee
Implement election rules and guidelines duly approved by the General/Representative
Assembly.
Audit Committee
Review continuously and periodically the books of account and other financial records to
ensure that these are in accordance with the cooperative principles and generally accepted
accounting procedures.
Mediation and Conciliation Committee
Formulate and develop the Program and ensure that it is properly implemented.
Ethics Committee
Develop Code of Governance and Ethical Standards to be observed by the members, officers
and employees of the cooperative subject to the approval of the Board of Directors and
ratification of the General/Representative Assembly.
Credit Committee
Have the power to review all loan requests, determine whether or not a given loan would
benefit the applicant, and whether or not the security offered is sufficient and the terms
appropriates;
(NOTE: Election and Audit committee are elected by members while the rest are 7
appointed by BOD’s)

8. Reggie Zarzuela Rocky Casas Ludy Villamin Leny Abanes Carmi Rivera
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Secretary Secretary Staff Staff Staff

9. Duties and Responsibilities of a Member
a) Pay the installment of his share capital subscription as it falls due and to
participate in the capital build-up and savings mobilization of the Cooperative;
b) Patronize the Cooperative’s businesses and services;
c) Participate in the membership education programs;
d) Attend and participate in the deliberation of all matters taken during general
assembly meetings;
e) Observe and obey all lawful orders, decisions rules and regulations
adopted by the Board of Directors and the general assembly; and
f) Promote the goals and objectives of the Cooperative, the success of its
business, the welfare of its members and the cooperative movement in
general.
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10. Rights of a Regular Member Entitled to Vote.
A member entitled to vote shall have the following rights:
a)Participate and vote on all matters deliberated upon during general
assembly meetings;
b)Seek any elective or appointive position, subject to the provisions of this By-
laws and the Philippines Cooperative Code of 2008;
c)Avail himself of the services of the Cooperative, subject to certain conditions
as may be prescribed by the Board of Directors;
d)Inspect and examine the books of accounts, the minutes books, the share
register, and other records of the Cooperative during office hours;
e)Participate in the continuing education and other training programs of the
cooperative; and
f)Such other rights and privileges as may be provided by the General
Assembly.
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11. Withdrawal of a Member:
A member may, for any reason, withdraw his membership from the Cooperative by
giving a written notice to the Board of Directors at least thirty (30) days prior the
effectivity date of his termination. However, no member shall be allowed to withdraw
or terminate his membership during any period in which he has any pending obligation
with the Cooperative.
Expulsion of a Member:
A member may be terminated by a vote of the majority of all the members of the Board
of Directors for any of the following causes:
a)When he has not patronized any of the services of the Cooperative for an
unreasonable period of time as may be previously determined by the Board of Directors;
b)When he has continuously failed to comply with his obligations;
c)When he has violated any provision of this By-laws and the rules promulgated by the
Cooperative; and
d)For any act or omission injurious or prejudicial to the interest or
the welfare of the Cooperative.
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12. SLF – SINGLE LOAN FACILITY
WHICHEVER IS LOWER
ADI Capital Share
Category Payment Term
Tenure Limit Loanable Amount Capacity-To-Pay
Limit Limit
6 mos. 1,000 to 25,000 CS x 2
SLFCat1 to below 5
yrs.
25,001 and up CS + 25,000 1,000 to 1,000,000 =
Take Home Pay =
1 year or 2 years or 3
40% Basic Pay
years
5 yrs. 1,000 to 50,000 CS x 2
SLFCat2 to below
10 yrs.
50,001 and up CS + 50,000
1,000 to 1,000,000 =
10 yrs. CAPITAL SHARE x 3 up to 1 million Take Home Pay =
SLFCat3 1 year or 2 years or
and above pesos only. 40% Basic Pay
3 years or 4 years
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13. EXPRESS LOAN
Special Express Loan is offered to members with insufficient capacity-to-pay in
the amount of Php5,000.00 payable in 6 months. PROVIDED, that the take
home pay is not less than ten percent (10%) of the basic pay after the
deduction of Special Express Loan.
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14. Notes:
• Re-structure is allowed for Express loan and SLF after 25% payment
deduction from the system.
• Members can fully pay the remaining loan balance for Express loan,
SLF , Computers loan, St. Peter Plan.
• Submission of loan applications and release of loans must be in the
following schedules:
Date of Submission of Loan Date of Processing of Date of Releasing of Loans
Loans
Applications Loans Thru Check or ATM
SLF and EL Within the 1st working day On the 2nd working day On the 3rd working day
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15. ST. PETER PLAN LOAN
1st Year Principal & Amortization* 2nd to 5th Year Principal &
Plans Amort.**
Principal Semi-Mo. Principal Semi-Mo.
Amort. Amort.
St. Francis 6,840.00 285.00 7,592.40 316.35
St. Paul 10,000.00 416.67 11,100.00 462.50
St. John 22,000.00 916.67 24,420.00 1,017.50
St. James 11,500.00 479.17 12,765.00 531.88
St. Jude 16,500.00 687.50 18,315.00 763.13
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16. COMPUTER LOAN
Terms Interest Service Fee
1 Year to pay 0% 1%
2 Years to pay 9% 2%
COD 0% 2%
Note: 9% interest for 2 years is only specific for Accent Micro. 9% per annum
will apply on other appliance center.
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17. OTHER ADEMC BUSINESSES
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18. Note: Ordering thru ADEMC office or you may call
Prinza Phone # :046897457
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19. Section 2 of ADEMC By-Laws, states:
Section 2. Deposit – The cooperative shall receive two kinds of deposits:
Savings Deposits – Any member, in addition to his share capital
investment, may open a saving deposit, the rate of interest of which shall be
determined by the Board at the beginning of each fiscal year in no case to
exceed the rate prescribed by Bangko Sentral ng Pilipinas.
Savings deposit not falling below P 1,000.00 during any calendar
month shall be entitled to interest to be computed quarterly based on the
lowest monthly balance outstanding during the period. The interest shall be
credited to the depositor’s account, and the same shall earn interest from the
date it is credited, at the same rate as savings deposits.
The Board of Directors shall prescribe the rules and regulations governing
withdrawals from the savings deposits.
TIME deposit – Second kind of deposit , still for review of the Board
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20.  All members shall have the right to open and maintain a savings deposit
account.
 A minimum of Two Hundred Pesos (P200.00) shall be required as a
maintaining balance for the member’s savings account. The required
minimum maintaining balance could not be withdrawn as long as he/she is a
member of ADEMC. Savings deposit not falling below P1,000.00 average
daily balance shall be entitled to interest to be computed quarterly. Quarterly
is based on the calendar year.
 Savings deposit shall be done through payroll deduction or over the counter.
A member will fill up “Increase/Decrease Savings Deposit Form” (as in the
current practice of doing the capital share contribution) to initiate the process
of payroll deduction.
 The total deductions to be made from an employee’s salary shall be
submitted by ADEMC to ADI payroll at least two (2) weeks before the payroll
period, which shall include the authorized amount for the member’s savings
deposit.
 Over-the counter deposits can be made at the Cashier at the start of office
hours by filling up the Savings Deposit Slip while observing the cut off time of
3PM.
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21.  Regular Savings Deposit shall earn a corresponding
interest rate quarterly, based on the average daily
balance during the period.
 The rate of interest on savings deposit shall be two
percent (2%) per annum or as may be determined by
the majority of the Board of Directors prior the
beginning of each calendar year.
 Savings deposit not falling below P1,000.00 average daily
balance shall be entitled to interest to be computed
quarterly. Quarterly is based on the calendar year.
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22.  Savings account withdrawal can be made by filling up
“ADEMC Withdrawal Slip” until 3PM only to allow reconciliation
of transactions received by ADEMC within the day.
 A member shall only be allowed single withdrawal per day.
 Release of cash and check withdrawals should be
acknowledged by the member or his authorized representative
upon receipt.
Note: Implementation –April 11, 2013
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23. Patronage Refund and Interest on Share Capital
Definition of terms:
Patronage Refund - shall refer to the amount returned to individual members who
patronize the goods and services of the cooperative in proportion to their individual
patronage.
Interest on Share Capital - Interest on Share Capital shall not exceed the Rate of
Return on Investment.
Total Average Share Month - shall refer to the sum total of the average share month,
which is determined by adding the monthly ending balances of the member’s share
capital and dividing the sum by twelve (12) months.
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24.  All payments of interest and patronage refund must be made on the annual general
assembly or such other date after the calendar year as may be determined by the
Board of Directors.
 Total Patronage Refund to be returned to individual members who patronize the
goods and services shall not be less than 30% but not more than 66.67%.
 Interest on share capital shall not be less than 33.33% but not more than 70%.
 Patronage Refund for credit services = 50% of the allocation or 50% of the interest
paid for loans whichever is lower.
 Allocation of Patronage Refund for other services shall be determined by the Board
of Directors.
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25. Statutory Reserve Fund
Reserve Fund – Ten percent (10%) of the net surplus. The reserve fund shall be used
for the stability of the Cooperative and to meet net losses in its operations.
Education and Training Fund – Five percent (5%) of the net surplus. Half of the
amount allocated to the education and training fund may be spent by the cooperative
for education and training purposes; while the other half may be remitted to a union or
federation of which the cooperative is a member.
Community Development Fund – Three percent (3%) shall be used for projects and
activities that will benefit the community where the cooperative operates.
Optional Fund – One percent (1%) shall be set aside for Optional Fund for land and
building fund, and any other necessary expenses
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26. SAMPLE COMPUTATION OF INTEREST
ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:
Dividend = Average Share X Dividend Rate
Patronage Refund = Interest Paid by member X Patronage Refund Rate
To compute your average share: Ex. Member with P54,000 cap. share with P400
monthly contribution
Months Monthly
Balances FY2012 The Board of Directors,
January Php54,000.00
February 54,400.00 based on the computation, declared
April 54,800.00 4.74% for dividend and 37.12% for
May 55,200.00
June 55,600.00 Patronage Refund
July 55,800.00
August 56,000.00
September 56,400.00
October 56,800.00
November 57,200.00
December 57,400.00
Total Php613,600.00
Average Share (divided by 12) Php51,133.33
Dividend (Ave. Share X 4.74%) Php2,423.72
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27. SAMPLE COMPUTATION OF INTEREST
ON CAPITAL OR DIVIDEND and PATRONAGE REFUND:
Computation of Patronage Refund
Patronage Refund = Interest Paid by member in 2012 X Patronage
Refund Rate
If a member paid total interest of Php5,500 on his loans, his Patronage
Refund would be:
Patronage Refund = Php5,500.00 X 37.12%
Patronage Refund = Php2,041.12
Member’s Total Dividend and Patronage Refund to receive:
Php4,465.32
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28. Net Income:
Less Appropriations:
General Reserved Fund (10% x NI)
Education & Training (5% x NI)
Land & Building Fund (1% x NI)
Officers Bonus Payable (2% x NI)
Net Income To Be Distributed to members
Allocations:
Patronage Refund (50% of net income to be distributed to members)
Dividend (50% of net income to be distributed to members)
Allocation of Patronage Refund for other services shall be determined by the Board of Directors.
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29. Notes:
Service Fee
1% for Express loan
2% for SLF
Membership Fee
P20 for new members
P100 for re-members and Initial Share of P200
Bereavement Assistance
P10 per deceased immediate family members and siblings. In-laws not allowed.
2K – from ADEMC for non member
Share Capital
1 share = P20
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