Addendum to CMO No. 16, Series of 2013 "Guidelines for the Implementation of Student Agribusiness Enterprise Loan Fund (SALF)"

November 2, 2017

CHED MEMORANDUM ORDER NO. 084-17

 

Pursuant to the pertinent provisions of Republic Act (RA) No. 7722, otherwise known as the "Higher Education Act of 1994," to provide better access to Student Agribusiness Enterprise Loan Fund (SALF) per CMO No. 16, s. 2013 "Guidelines for the Implementation of Student Agribusiness Enterprise Loan Fund (SALF)" and by virtue of Commission en Banc Resolution No. 727-2017 dated October 3, 2017, the following addendum is hereby adopted and promulgated by the Commission.

SECTION 1. Application Forms. —

The following are the Forms needed in applying for the loans for students enrolled in agriculture and fisheries programs requiring agribusiness enterprise as part of their curriculum:

1. SALF Form No. 1 HEI Information

This form contains basic information regarding the Higher Education Institution (HEI) applying for loan. Further, through this document the SALF Oversight Committee can ensure that an in-house SALF Committee which will administer and implement the program in the HEI level is in place.

2. SALF Form No. 2 — School-based Process Flow

This form should contain visual information regarding the stages involved on how the HEI, through the In-house SALF Committee, will implement the program from application to implementation. The school-based process flow should list each step necessary to perform a process as well as to resolve errors. Said process flow should be available to the students for their information and guidance.

Said stages are as follows: TIADCc

a. Proposal and Approval

b. Implementation and Monitoring

c. Collection and Repayment

3. SALF Form No. 3 Work and Financial Plan (WFP)

This form contains the list of activities to be undertaken for the duration of three (3) years with the corresponding estimated cost/budget breakdown.

The WFP will be the basis for the financial release. In addition, an updated WFP shall be submitted, as needed, for rolling over available funds.

4. SALF Form No. 4 Semestral Progress Report —

This form requires for the summary of the project outcome, particularly with regard to meeting the expected accomplishments and delivering the anticipated results. It also requires for the submission of the overall financial status with complete supporting documents and a description on how the SALF Program was administered.

SECTION 2. Template of Letter of Intent. —

This template outlines the terms of the SALF presented by Higher Education Institution (HEI) applying for loan. It formalizes a preliminary agreement on SALF before going through the evaluation of the SALF Oversight Committee.

SECTION 3. Template of Memorandum of Agreement (MOA). —

The Memorandum of Agreement describes a cooperative relationship between CHED and the SALF Participating Higher Education Institution (SPHEI) in providing loans to students enrolled in agriculture and fisheries programs requiring agribusiness enterprise as part of their curriculum to develop the student's skills in order to become successful agriculture and fisheries entrepreneurs.

SECTION 4. Allocation of Loan Fund. —

The loan fund shall be allocated based on the number of HEIs in agriculture and fisheries with Certificate of Program Compliance (COPC).

Attached in this Memorandum are the above-mentioned Application Forms (SALF Form Nos. 1-4), Template for Letter of Intent and Template of Memorandum of Agreement.

SECTION 5. Repealing Clause. —

All or other existing orders and memoranda which are contrary to, or inconsistent with any of the provisions of this CMO are hereby repealed, amended or modified accordingly.

SECTION 6. SeparabilityClause. —

If any part or provision of this CMO is declared void or unconstitutional by operation of law, rules and regulations the same shall apply only to that specific provision and the remaining clauses/provisions shall remain valid and enforceable.

SECTION 7. Effectivity. —

This CMO shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

Issued this 2nd day of November 2017 at Quezon City, Philippines.

(SGD.) PATRICIA B. LICUANAN, Ph.D.

Chairperson

ATTACHMENT

SALF Form No. 1 — HEI Information

SALF Form No. 2 — School-based Process Flow

SALF Form No. 3 — Work and Financial Plan

SALF Form No. 4 — Semestral Progress Report

Letter of Intent for Student Agribusiness Enterprise Loan Fund (SALF)

(Date)

Chairperson ________ :

Thru : Engr. Ronaldo A. Liveta, CESE

Dear Chairperson ________ :

This has reference to the implementation of the Student Agribusiness Enterprise Loan Fund (SALF) per CMO No. 16 series of 2013 "Guidelines for the Implementation of SALF."

The _______________ (HEI), ____________________ (address), would like to apply for SALF in the amount of ______________, (amount in words) (PhP ______ ) to provide loans to students enrolled in agriculture programs requiring agribusiness enterprise as part of their curriculum.

The _______________, (HEI) agrees and commits to abide with the provisions of CMO No. 16 series of 2013. AIDSTE

Attached in this Letter of Intent are SALF Forms Nos. 1-4 for your evaluation.

Very truly yours,

______________ (Name)

______________ (Designation)

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement made and entered into this ____ day of _____ 2016 by and between:

The COMMISSION ON HIGHER EDUCATION, a GOVERNMENT agency with principal office at CHED-HEDC Building, C.P. Garcia Avenue, U.P. Diliman, Quezon City represented herein by its Chairperson, DR. PATRICIA B. LICUANAN and hereinafter referred to as "CHED";

and

The __________________, a duly AUTHORIZED/recognized higher education institution with PRINCIPAL office address at ________________ herein represented by its President, ________________________ and hereinafter referred to as SALF Participating Higher Education Institution "SPHEI."

WITNESSETH

WHEREAS, CHED is mandated by law to promote affordable, quality and relevant higher education that is accessible to all;

WHEREAS, the implementing guidelines governing the administration and operation of SALF is issued through CHED Memorandum Order No. 16, Series of 2013 "Guidelines for the Implementation of Student Agribusiness Enterprise Loan Fund";

WHEREAS, _________________ agreed to undertake the duties and responsibilities outlined per CMO No. 16 s. 2013;

WHEREAS, to effectively implement the SALF there is a need to define the working relationship between CHED, through the SALF Oversight Committee, and the concerned SPHEI;

NOW, THEREFORE, for and in consideration of the foregoing premises, the parties herein agree, as they hereby agree as follows:

I. Objective

The parties hereby agree, to establish a functional and working relationship in order to ensure prompt and punctual delivery of services to the student beneficiaries of the SALF.

II. Program Administration

A. CHED

CHED through the SALF Oversight Committee shall:

1. Determine the approved fund allocation and fund releases to participating institutions;

2. Monitor the performance of the participating SPHEIs to ensure the effective implementation of the program;

3. Monitor the fund condition to ensure judicious investment and management; and

4. Provide and implement appropriate actions/sanctions such as discontinuance of funding or the filing of appropriate legal actions in case of violation either by the student beneficiaries or the SPHEIs of the terms of the SALF and the provisions of this Agreement.

B. SPHEI

The SPHEIs shall:

1. Screens and process the loan application in accordance with the criteria;

2. Enter into loan contract with the student/group borrowers;

3. Orient student/group borrowers and their parents/guardians on the regulations of the program;

4. Submit to the SALF Oversight Committee within two (2) weeks after the closing of enrolment the list of eligible student/group borrowers together with a photocopy of their accomplished certificate of enrollment;

5. Conclude contract of loan to be signed by the borrower, co-borrower (parents or guardian) endorsed by a guarantor who is a faculty (e.g., technical advisers, SALF coordinators) with permanent appointment;

6. Provide needed facilities and equipments for the conduct of approved agribusiness enterprise;

7. Oversee the conduct of the student's/group's agribusiness enterprise;

8. Collect loan repayments from student/group borrowers which shall be deposited to their SALF current account maintained at LBP;

9. Submit copies of monthly bank reconciliation statement to the SALF Oversight Committee on a semestral basis; AaCTcI

10. Submit to the SALF Oversight Committee the status of fund report/s for completed and on-going projects and semestral report on the status of fund and progress of agribusiness enterprise using the forms and procedures; Failure on the part of the HEIs to comply with the reportorial requirements such as project and financial and other provisions contained in this guidelines shall cause the termination of the program and shall be dealt with accordingly;

11. Keep separate records of the fund subject to periodic ocular visit and evaluation by the SALF Oversight Committee or their representatives;

12. Upon payment by the concerned borrower to HEI, the same amount will be deposited to the HEI's LBP account. This maintaining amount shall be held in trust by the HEI subject to the usual accounting and auditing rules and regulations. This shall exclusively form part as the revolving fund of the SALF project; and

13. In case of additional loan requirement, the HEI shall request from CHED through the SALF Oversight Committee for approval and release. In instances where the HEI fails to utilize the allocated amount, the unutilized portion shall be returned to the LBP-Trust.

III. Implementation of Rules and Regulations

The pertinent provisions of CHED Memorandum Order No. 16, s. 2013 shall form part of this Agreement, hence, the corresponding obligations and rights of the respective parties stated in said CMO are hereby deemed incorporated.

This Agreement shall be subject to such existing policies, rules and regulations of CHED relating to SALF and the loan grants under said Program, and such other related programs currently being implemented by the Commission.

IV. Incentives and Sanctions

Only SPHEIs with one hundred percent (100%) repayment to CHED and whose payments have not been delayed, shall be allowed a new loan in the full amount required for the microprojects of the student beneficiaries for the succeeding Academic Year.

In meritorious cases, SPHEIs may be granted a loan less the unpaid amount from the previous loan, provided that the SPHEIs shall execute a Deed of Undertaking to repay the same within three (3) months from execution of the said Deed; Provided finally, that no fund shall be released to SPHEIs if on record it has less than fifty percent (50%) repayment from the preceding Academic Year's release.

V. Termination

Before the actual completion of the SALF, this Agreement may be terminated due to the following grounds or reasons:

a. Refusal or failure of the SPHEIs without any justifiable reason to comply with any of the provisions of this Agreement;

b. Misuse or mismanagement of the SALF funds or any part of such funds thereof other than the intended purposes of the Program by the SPHEI, its faculty, staff or by the student borrowers;

c. Adoption of a resolution by CHED enbanc winding-up the activities of the Program, and;

d. For other similar just causes and grounds, CHED reserves the right to discontinue the Program at any time, or upon determination that the objectives are not being met, hence do not justify the continuing implementation of the Program.

VI. Withdrawal by the SPHEI

The SPHEI cannot withdraw from the SALF Program unless said withdrawal is with the consent of CHED; that it shall not affect adversely the SALF in the SPHEI and that the SPHEI has fully repaid the loan obtained from CHED.

VII. Amendments

The parties hereto, may upon mutual consent, modify this Agreement by or through an addendum signed by all parties which shall form an integral part hereof.

VIII. Effectivity

This Agreement shall take effect upon its signing by the herein contracting parties and release of funds, and shall be in full force and effect until the Program is terminated for cause.

IN WITNESS HEREOF, the parties have hereunto signed this Agreement voluntarily this ______ day of ___________ 20 ______. EcTCAD

COMMISSION ON HIGHER EDUCATION	SALF Participating Higher Education Institution
PATRICIA B. LICUANAN, Ph.D.	____________________________________
WITNESSES
________________________________	________________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )________________________________) S.S

BEFORE ME, a Notary Public, for and in City of ____, Philippines, this _____ day of _________ 2017 at _______, personally appeared the following persons, with their identification cards, personally known to me (or proved to me on the basis of competent evidence of identify) to be the same persons who executed the foregoing instrument and they acknowledge to me that the same is their free and voluntary act and deed, and the free and voluntary act and deed of the corporations or entities herein represented to wit:

NAMES	GOV'T ISSUED ID	DATE AND PLACE ISSUED

This document refers to a Memorandum of Agreement, consisting of four (4) pages including this page on which this Acknowledgement is written, signed on each and every page by the parties and their instrumental witnesses.

WITNESSMYHANDANDSEAL on the date and at the place first above mentioned.

Doc. No. _____;

Page No. _____;

Book No. _____;

Series of 2017.