SOP Exhibits

Title:

Cash Sales Thru PNB Scheme of NFA - Exh 1

SOP Number : GM-DN01

Exhibit 1

__________________
(Date)

TO : Name of PNB Branch Manager
Designation
PNB Office

CASH SALES THRU PNB SCHEME OF NFA

The NFA Management has approved an alternative scheme inaccepting payments of cash sales of its stocks. This alternative scheme known as "Cash Sales thru PNB" is guided by NFA SOP No. ____________________ issued and made effective on _______________, a copy of which is encosed for your reference.

PNB's participation is necessary for the implementation of this scheme, therefore, NFA would like to request from PNB the adoption of the following policies and procedures, as PNB's participation in the scheme:

Opening of new accounts, ______________ to which collections deposited shall be credited (applicable only in case 2);

2 Acceptance on only authorized payments as evidence by the Authority to Accept Payment (AAP) issued by NFA Authorized personnel (for this purpose, specimen signatures of said personnel shall be furnished PNB);

3. Verification of the identiy of the payee through his NFA license and other identification papers;

4. Verification of the correctness of data indicated in the deposit slips as against presented AAP and for Case 2, further verification of the AAP as against PNB's copy of the Allocation Schedule;

5. Acceptance by PNB of only those payments to be made in the form of cash, treasury warrants, treasury checks, cashier's/manager's checks, postal money orders, bank drafts, and checks drawn against accounts of government-owned or controlled corporations, furthermore, said checks should be payable to the National Food Authority, and should not be out-of-town checks;

6. Validation of only three copies of the deposit slips retaining copy 1 and 2 thereof and giving copy 3 to client;

7. Giving all the validated duplicate deposit slips at the end of the day to the Cashier or authorized NFA representative;

8. Remitting all deposited collections to PNB-NFA office in accordance with existing approved remittance policies; and

9. Forwarding of corresponding bank tickets covering the deposits and remittance made under this scheme to the NFA Provincial Accountant on a weekly basis.

This request shall serve as the NFA-PNB Memorandum of Agreement for "Cash Sales thru PNB" Scheme upon signing of the CONFORME portion below. This agreement shal take effect beginning _________________ and shall continue to be in force unless suspended/revoded by either NFA or PNB for which a written notification shall be served to the other party concerned at least thirty (30) days before the effectivity date of the suspension/revocation.

_______________________________
Name of Provincial Manager
Designation
NFA Office

CONFORME:

____________________________
PNB Branch Manager
Designation
PNB Office