PAYMENT / PENALTY PROVISIONS

"I listen and I forget, I see and remember, I experience and I understand" - a Chinese proverb

May 21, 2012

TO                    :           ALL

FROM               :           JORGE U. SAGUINSIN

THRU                 :           ALL SBU CMO/ SFC/ CSS

According to Article 5, 6 and 7 of the General Provisions of the PPA ( Pre-Need Purchase Agreement, the following shall be observed with regards to payment:

1.  Installments due shall be paid at Holy Gardens Memorial Park at its principal office.
2. All unpaid amounts shall be charged with penalty rate of 4% per month of delay  (compounding).
3. All customers are provided with Statement of Account (SOA) indicated the amount to be paid on a monthly basis. It is the responsibility of the customer to pay on or before the amortization dates as follows:

              a. Account dates 1 – 15 shall be paid on the 16^TH – 20^th without penalty.

              b. All accounts paid between 16-30 shall be paid on the 1^st to 5^th of following month  

                  without penalty.

      4.  The customer is given 30 days or one (1) month to update his payment on arrears. At the lapse of         

           60 days from the due date; otherwise, HGMP at its option may terminate the agreement. The       

           provision of the Maceda Law is applied; whereas 50% of the amortization shall be paid to the    

           customer

    

      5.  The customer due to a fortuitous event shall not be able to continue the monthly amortization, the 

           total amount of principal less the expenses shall be returned to customers upon his request

     6. Application of monthly payments, if there are interest or penalties that are due, the manner of payments 

        are as follows:

            (Please see attached sample computation)

Name of Customer:	xxx
Location:	xxx
Lot Price	33,870.96
PC	4,064.52
Vat	4,064.52
Total Lot Price	41,999.99
Processing Fee	600.00
Total Amount	42,599.99
Downpayment	9,000.00
Balance	33,599.99
Term	1 year
Rate	12%
Monthly Amortization	3,136.00
First Installment	15-May-12

Computation:	15-Jun-12	15-Jul-12	15-Aug-12	15-Sep-12	15-Oct-12	15-Nov-12	15-Dec-12	15-Jan-13	15-Feb-13	15-Mar-13	15-Apr-13	16-Apr-13
		3,261.44	6,648.32	10,160.64	13,798.40	17,561.59	21,450.23	25,464.31	29,603.83	33,868.79	38,259.19	42,775.03
MA	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00	3,136.00
Penalty	125.44	250.88	376.32	501.76	627.20	752.64	878.08	1,003.52	1,128.96	1,254.40	1,379.84	1,505.28
Total Amount Due	3,261.44	6,648.32	10,160.64	13,798.40	17,561.59	21,450.23	25,464.31	29,603.83	33,868.79	38,259.19	42,775.03	47,416.31

In no case shall the payment be applied directly to the principal.

7. Advance payment may be allowed with a discount of 1% of the total amount of MA provided it shall be 
   before 15 days on the due date. The customer who shall issue a post-dated check is entitled to a 1.5% 
   discount of the total amount of MA.

8. Senior Citizens Discount on Interments (Discounts for Senior Citizen is not applicable to lots) shall only be   
   given to the deceased who can present upon payment of Interment Fee a valid OSCA (Office of the    
  Senior Citizens Affair) ID as provided for by law and IRR (Implementing Rules and Regulations). In any 
  case that the customer fails to present the valid OSCA ID on or before the date, the customer shall pay the 
  Interment Fee in full. The discount shall only be refunded to him upon presentation of OSCA ID.

For immediate compliance.

JORGE U. SAGUINSIN

Senior Managing Director