Interpretation of the phrase "twelve (12) months salary" as cited in Section 4301S(a) of Circular No. 192

MEMORANDUM CIRCULAR Series of 2004

TO       :  All NSSLAs

Subject:  Interpretation of the phrase "twelve (12) months salary" as cited in Section 4301S(a) of Circular No. 192 dated 5 March 1999 re: Implementing Rules and Regulations of R.A. 8367, otherwise known as the "Revised Non-Stock Savings and Loan Association Act of 1997", viz:

"Loan Limit to a Single Borrower - An NSSLA may grant loans not exceeding the amount deposited and/or contributed by the member-borrower plus his twelve (12) months salary xxxxxx"

For the guidance of all concerned, quoted below is the opinion of the Bangko Sentral Assistant Governor and General Counsel, in his memo dated 28 April 2004 -

"Regarding the ceiling which prescribes, among other things, a cap of "twelve months regular salary", an issue arises on what could be the composition of said "regular" salary.  While it is without doubt that the same would include the basic salary of a member of an NSSLA, we are willing to favorably consider the inclusion in such term of other regular benefits, such as 13th month pay and bonuses mandated under collective bargaining agreement, which bonuses, by their mandatory nature impress a characteristic of regularity." (Underscoring supplied"

ALBERTO V. REYES Deputy Governor