SOP Exhibits

Title:

Exhibit 5 - MOA - Cash with Procurement Disbursing Officers

SOP Number : FS-CS05

EXHIBIT 5

NATIONAL FOOD AUTHORITY
______________________
Office
____________________
Date
The Branch Manager
PNB/LBP Branch

Dear Mr.

Anent to the NFA-PNB/LBP-Rural Bank Tie-Up on the encashment of procurement checks by the farmers, the NFA would like to renew the said scheme for the NFA procurement period beginning ______:

Under this scheme, a demand deposit account shall be opened and maintained for individual Regular/Special Disbursing Officer (RDO/SDO). The account shall be operated in the following manner:

1. NFA shall deposit cash and/or check marked "For deposit only" to the account.

2. Withdrawals against the account shall be evidenced by the issuance of PNB/LBP checks.

3. The signatory to the checks shall be the NFA Regular/Special Disbursing Officer.

4. The account shall be denominated thus:

NATIONAL FOOD AUTHORITY

By: ___________________________
Regular/Special Disbursing Officer

5. NFA shall furnish the PNB/LBP Branch, where the account is to be maintained, with the specimen signature and initial of the authorized signatory to the account, duly authentidicated by the NFA Provincial Manager. The PNB/LBP branch shall rely on the authority of NFA's authorized signatory up to and until the designation of the authorized signatory is revoked by NFA written notice to PNB/LBP.

6. NFA shall notify the PNB/LBP branch concerned in writing of any change in signatory accompanied by a new set of duly authenticated specimen signature cards.

7. The Provincial Manager shall frunish the PNB/LBP branch a copy of the Special Order designating the the employee as RDO/SDO. He shall accomplish the specimen siganture card at the PNB/LBP branch.

8. The PNB/LBP checks for issuances, shall conform with the format prescribed by the Central Bank Security Plant and the Philippine Clearing House Corporation. The check shall be drawn in favor of the farmer-payee and the following limitatios will be imprinted on the face of each check:

"Valid within 30 days up to
P50,000.00 and negotiate only
with Rural Bank of _________,
Inc., and/or PNB/LBP banches
and/or NFA Cashier".

Likewise, the following phrases shall be imprinted at the back of each check:

"GRAINS PROCUREMENT"
PR No. _______________

9. Every Friday of the week, or on the last regular banking day of the week. If Friday is not a banking day or is declaring a holiday, the RDO/SDO shall furnish the PNB/LBP branch where the account is maintained, a list of the serial numbers of the checks intended to be used in the ensuing/following week.

10. Checks drawn against the account shall be accepted by PNB/LBP branch in the following manner:

a. For encashment or deposit - where the check is presented by the farmer-payee or the NFA-accredited rural bank to the PNB/LBP branch where the account is maintained:

b. For deposit only to either:

1) The farmer-payee's account or the NFA-accredited rural bank's account, where the check is presented to the PNB/LBP branch other than that where the account is maintained; or
2) The NFA Cashier's account (Crereal Procument Fund) where the check has been previously negotiated by the farmer-payee to the NFA Cashier.

The acceptance of the check shall be subject to prior compliance with the usual banking requirement, and provided that the checks presented to PNB/LBP for deposit/encashment as above-mentioed, bear a serial number included in the list submitted by the RDO/SDO to PNB/LBP as specified in No. 9 above.

11. In cases where checks presented for payment are questionable, the NFA Provincial Manager/OIC shall be adivsed at the first opportunity.

12. Monthly Bank Statements of the current account shall be provided by PNB/LBP to the NFA. UPon request of the duly authorized NFA representative, PNB/LBP shall furnish interim statement of account as of the date of request. For this purpose, the NFA shall furnish the PNB/LBP branch, where the account is maintained, the address of the NFA office where the monthlys tatement of account shall be sent. The NFA shall also specify and designate in writing the officer/personnel authorized to verify the status of the account maintained with PNB/LBP branch.

13. The status of the current accounts and transactions related thereto, may beexamined and/or audited by any of the authroized representative of the NFA or the Commission on Audit.

OTHER PROVISIONS:

1. Any further agreement which may be reached between the parties hereto in connection with the implementation of the terms of this Agreement shall be reduced into writing and shall be considered as supplement/s of this Agreement.

2. Any and all amendments to the terms and conditions stated herein may be implemented upon mutual consent of the parties without need of amending this particular Agreement. Provided, however, that the said amendment/s shall be reduced in writing either before or after the implementation of this Agreement and the same shall be considered anintegral part of this agreement.

3. The implementation of the terms of this Agreement or any supplement or amendment, shall be subject to present and future policies of PNB/LBP and to applicable rules and regulations issued by the Central Bank of the Philippines governing transactions of this nature.

4. The PNB/LBP shall not be liable for any act or failure to act in the implementation of the terms of this Agreement, or any supplement or amendment, unless such act or failure to act amounts to fraud, gross negligence or willful malfeasance of PNB/LBP.

5. All notices, demands, requests or correspondence contemplated by this Agreement shall be in writing and served personally or by registered mail at the address of the parties given herein or at such other addresses whicheither party may designate.

Should the above terms and conditions be acceptable, please affix your signature in the space provided below.

Very truly yours,


_____________________
Provincial Manager
NFA

CONFORME:



Branch Manager
PNB/LBP