NIA MEMORANDUM CIRCULAR, October 28, 1991

[ NIA MEMORANDUM CIRCULAR, October 28, 1991 ]

CLARIFICATION OF THE PROVISIONS OF MC NO. 68 S. 1991

As a clarification of the provisions of MC No. 68 s. 1991 which amended Section B.1 item C of MC No. 27 s. 1991, the computation of the amount to be paid by the IA should be as follows:

Amount to be paid by the IA * = [30% (remaining balance of amortizable amount)] + surcharges

= [30% (account not yet due + back account)] + surcharges

Example:

Total chargeable cost =

P100

Total equity paid =

P10,000

Amount of loan to be amortized =

P90,000

Amount paid as of date =

P20,000

Remaining balance of amortizable amount =

P70,000

Amount of back account as of date =

P10,000

Account not yet due =

P60,000

Surcharges as of date =

P1,000

Computation:

Amount to be paid by IA = [30% (remaining balance of amortizable amount)] + surcharges

= [0.30 (not yet due + back accounts) + surcharges

= [0.30 (P60,000 + P10,000)] + P1,000

= P22,000

Please be guided accordingly.

Adopted: 28 Oct. 1991

(Sgd.) JOSE B. DEL ROSARIO, JR. Administrator

* Irrigators' Association.