SOP Exhibits

Title:

Exhibit 6-NFA-PNB/LBP-Rural Bank Tie Up

SOP Number : FS-CS05

EXHIBIT 6

NATIONAL FOOD AUTHORITY
_______________
Office

The Manager
Rural Bank of _________________

Dear Mr.

This is to renew the NFA-PNB/LBP-Rural Bank Tie-Up on the encashment of procurement checks by the farmers.

The following provisions shall be complied with for the utilization of your bank in the scheme.

1. Accreditation of the Central Bank is required. This is to be determined jointly by the NFA and Central Bank;

2. The Rural Bank has o outstanding obligations with the National Food Authority;

3. Prior to the acceptance and encashment of checks, it shall be the responsibility of the bank to check and verify the identity of the farmer-payee through, but not limited to, the presentation of the Purchase Receipts (PRs) and the farmers' passbook. The checking for the veracity and authenticity of the farmer's signature shall also be the bank's responsibility.

4. The Rural Bank will use its own funds in the encashment of farmer's checks. This is to be refunded by the drawee bank, where the Regular/Special Disbursing Officer (RDO/SDO) maintains the accounts;

5. No fees or charges shall be exacted in the encashment of checks;

6. The Rural Bank shall endorse the check with the drawee bank only.

7. Checks for encashment shall be accepted by the Rural Bank only under the following conditions:

7.1 On the face of the check, the following phrases are stamped:

"Valid within 30 days up to
P50,000.00 and negotiable only
with the (name of drawee bank)
and/or Rural Bank of ________
and/or NFA Cashier."

7.2 At the back of the check, the following phrases shall be imprinted:

"GRAINS PROCUREMENT
PR NO. ________________

8. Should any irregularity occur in the encashment or deposit of the check or on the check encashed or deposited itself and which irregularity be subsequently discovered by the NFA, the same shall be the responsibility/liability of the Rural Bank and shall be settled within ninety (90) days from date of notice by the NFA to the Rural Bank. This, however shall be without prejudice to the filing of the proper legal actions against the Rural Bank and/or all the persons responsible.

9. In case of anomalies, the Rural Bank will coordinate with the NFA by opening its books and providing information relevant to the immediate solution of such anomalies.

10. On the collection of farmer's obligations, the Rural Bank will negotiate with the drawee bank as to who will have the priority on the proceeds of the check of the farmers with outstanding loans.

This letter agreement may be terminated by either party upon thirty (30) days written notice. The NFA, in consultation with your organization may amend or alter any of the foregoing provisions as circumstances warrant.

Should the foregoing be acceptable, may we request you to affix your conformity on the space provided below.

Thank you and we look forward to a mutually beneficial relationship.

Very truly yours,


____________________________
Provincial Manager

C O N F O R M E:

Rural Bank of __________________________

______________________________________
Authorized Signature

______________________________________
Bank