POLICY AND PROCEDURAL GUIDELINES NO. 304-16 …

POLICY AND PROCEDURAL GUIDELINES NO. 304-16 FUNCTIONAL AREA: Real Estate Asset Disposition and Management DISTRIBUTION : All Senior Vice Presidents Actuarial and Risk Management Group

Corporate Services Group Insurance Group Controller Group Financial Management Group Luzon Operations Group NCR Operations Group VisMin Operations Group

Legal Services Group Information Technology Services Group : Vice President Internal Audit and Services Office SUBJECT MATTER: DISPOSITION OF INVESTMENT PROPERTIES–RETAIL

UNIT (IP-RU) THROUGH PUBLIC BIDDING _____________________________________________________________________________________________________

I. BACKGROUND/RATIONALE

The existing policy on the sale of Investment Properties–Retail Unit (IP-RU) is on a “first-come, first-served”1 and on cash basis2 only. This policy slowed down the disposition of IP-RU, which led to the issuance, on October 23, 2014, of Board Resolution No. 160, approving the Policy and Procedural Guidelines (PPG) on Financing of GSIS Housing Accounts and Investment Properties (Retail Units) by External Financing Institutions (EFIs), otherwise known as PPG 268-14 (Annex A). In order to make the disposition process more transparent and competitive, and to realize the optimum value on our investment properties that will redound to the benefit of the Fund, the existing policies on the disposition of IP-RU were reviewed.

II. OBJECTIVES This PPG aims to:

1 Section V (H) of PPG 197-07 dated April 25, 2007 – Disposition of Acquired Assets Subject of Cancelled Deed of Conditional Sale and Foreclosed Real

Estate Loan Accounts:

“There shall be no disposal thru accredited brokers and no accreditation of licensed brokers in as much as the sale of the cancelled housing units shall be on a

‘first come, first served

’ basis after the actual occupant has refused or failed to positively reply to GSIS’ offer to sell within the prescribed period.

”

2 Board Resolution No. 109 dated April 28, 2011, Par. 4: Disposition of acquired assets, however, shall continue but on a cash basis only.”

A. Provide comprehensive guidelines for the implementation of new policies in the disposition of IP-RU through public bidding;

B. Incorporate in the disposition process the sale through external financing subject to existing guidelines; and

C. Define the duties and responsibilities of various units involved in the disposition of IP-RU.

III. DEFINITION OF TERMS

For purposes of this PPG, the following terms shall be defined as follows:

A. As-Is-Where-Is–the present physical condition of the retail unit that GSIS is selling and the buyer is buying, "with all attendant faults," whether or not immediately apparent and without any express or implied warranty. The buyer takes this condition at his or her own risk, without recourse against the GSIS as to their condition. This includes knowledge by the buyer of the presence of occupants in the retail-unit being purchased.

B. Cash Bid–is a mode of payment in the form of a legal tender or in the form of a manager’s check (MC).

C. Cancelled Deed of Conditional Sale (DCS) Accounts–housing units

covered or documented through a DCS executed by and between GSIS and a buyer or awardee which were cancelled due to failure of buyer or awardee to pay his or her correct monthly amortization for more than six months and after the lapse of a 30-day grace period from the receipt of the Notarized Notice of Cancellation.

D. Current Market Value (CMV)–the value of the IP-RU, including the improvements built thereon, if any, determined on an annual basis by the Property Administration Department (PAD) based on recognized modes of real estate appraisal.

E. Deed of Conditional Sale (DCS)–is an IP-RU contract between the GSIS and a buyer or awardee wherein the latter agrees to pay the purchase price of the housing unit on installment basis and where the title covering the IP-RU subject of the sale remains in the name of GSIS until the purchase price is fully paid and all other conditions in the sale are complied with.

F. External Financing Institutions (EFI3)–any private or government bank or

government financial institution that will take out the obligation of GSIS housing awardees/borrowers or will finance the purchase of a GSIS IP-RU.

G. Equity–the difference between the selling price and the amount guaranteed

by the EFI stated in the Letter of Guaranty (LOG) to be paid by the winning bidder directly to the GSIS.

3 Definition of Terms, Section III, Board Resolution No. 160 dated October 23, 2014

H. Foreclosed Real Estate Properties–real estate properties mortgaged to

GSIS to secure a housing loan and which was foreclosed by GSIS for failure of the borrower to pay for a period of more than six months said housing loan and where the redemption period has already expired.

I. GSIS Investment Properties-Retail Unit (IP-RU)–GSIS’ real estate inventories for sale (house and lot or lot only) where the CMV is less than Php10 million.

J. Letter of Guarantee (LOG)–letter issued by an EFI committing or guaranteeing payment to GSIS of the amount indicated and within the validity period indicated therein in exchange for submission of the documents stated thereon, including the Transfer Certificate of Title (TCT) covering the retail-unit subject of EFI’s financing.

K. Minimum Bid Price–the lowest price that a participating bidder or buyer may bid during the scheduled public bidding of the IP-RU that he or she intends to purchase.

L. Mortgagor–the registered owner of the housing unit mortgaged to GSIS to secure a housing loan.

M. Notice of Approval (NOA)–a written notice issued to the interested buyer

whose offer was accepted and approved under the ‘first come, first served’ policy.

N. Notice of Approval of Sale (NOAS)–is a written notice issued by GSIS to the winning bidder, indicating the terms and conditions of sale of the IP-RU, containing a provision for approval of the sale through external financing based on existing policies.

O. Original Awardee–the original or first buyer of the retail unit where the sale is

on an installment basis under a DCS.

P. Posting Date–actual date of posting by the Corporate Communications Office (CCO) in the GSIS website of IP-RUs scheduled for sale through public bidding, for the information of interested bidders.

Q. Publication Date–actual date of publication of IP-RUs scheduled for sale

through public bidding in a newspaper of general circulation.

R. Public Bidding Date–the scheduled bidding date, 30 working days (WDs) after the list of available properties for sale has been published in a newspaper of general circulation.

S. Retire – process of excluding the IP-RU from the inventory of IP-RUs recorded in the GSIS books.

T. Right to Match – the option given to an existing tenant and/or occupant of the IP-RU being sold in a public bidding to match the amount offered by the highest bidder. The said right is exercisable only during the public bidding.

U. Selling Price – the highest qualifying bid submitted during the public bidding. IV. POLICIES

A. Coverage and Exclusions This PPG shall cover the disposition of all GSIS IP-RU, with the exception of the following properties:

1. Those with pending case;

2. Those with previously issued Notice of Approval (NOA), subject to fulfillment of the following conditions:

a. That the buyer will exercise the option to buy the retail unit within six

(6) months from the written notification sent by Real Estate Asset Disposition and Management Office (READMO);

b. That the selling price will be based on the property’s current market value (CMV) at the time the option to buy is exercised; and

c. That the buyer shall submit additional documents required by GSIS for

the issuance of a NOAS which shall replace the NOA previously issued.

Any previous payments made on the property based on the previously-issued NOA will be credited as payment under the new account.

3. Those with written offer to buy from current occupants received from January 2012 up to the date of effectivity of this PPG provided they will submit all required documents including the waiver from original awardees, when applicable, and provided, further, that they will exercise their offer to buy the IP-RU within six (6) months from the date of effectivity of this PPG.

If the persons mentioned under items 2a and 3 above fail to exercise their option, the said properties will be made available for sale under the policies of this PPG.

B. Determination of IP-RUs Qualified for Sale

1. The determination of the IP-RUs available and qualified for sale through public bidding shall be approved by the Senior Vice President (SVP)-Financial Management Group (FMG) upon the recommendation of: a. Vice President (VP), Real Estate Asset Disposition and Management

Office (READMO) for Central Office (CO) accounts; and b. Branch Manager (BM), for Branch Offices (BOs) accounts with the

concurrence of their respective VPs and SVPs.

2. IP-RUs for disposition shall meet the following requirements:

a. GSIS is the registered owner of the retail unit for disposition and the Real Property Tax Declarations (TDs) is in GSIS’ name and its “tax exempt” status indicated thereon;

b. GSIS has custody of owner’s duplicate copy of the title and a certified true copy thereof issued by the appropriate Registry of Deeds (RD), provided the certified true copy was issued to GSIS prior to the determination of IP-RUs for sale, within three (3) months prior to publication;

c. The IP-RU is free from liens and encumbrances except the deed of

restrictions applicable or required for the subdivision or condominium projects where the IP-RU is located;

d. DCS account has been properly cancelled or the TCT of the foreclosed

retail-unit has been consolidated in GSIS’ name;

e. The CMV is valid and will not expire within two (2) months from the public bidding date; and

f. Not subject of any pending case as certified by Legal Services Group

(LSG).

3. Only IP-RUs published in a newspaper of general circulation shall be subject of public bidding.

4. Disposition of IP-RU shall be on an “as is-where is” basis. Only payments through cash, MC or external financing shall be accepted.

C. Determination of Minimum Bid Price

The minimum bid price of each IP-RU shall not be less than the highest value among the following: CMV, zonal valuation, or previous purchase offer received from interested buyer/s prior to posting of properties for public bidding. The CMV of each IP-RU from CO and BO shall be the appraisal value as determined by Property Administration Department (PAD).

The Vice President (VP), READMO shall then recommend the minimum bid price of IP-RUs available for sale for the approval of the SVP-FMG.

D. Posting and Publication

1. The list of IP-RUs available for sale through public bidding shall be posted in the GSIS website and published in a newspaper of general circulation for three (3) consecutive calendar days, with the following information indicated in the prescribed form (Annex B):

a. Location of the retail unit b. Lot Area c. Lot Number d. TCT Number e. Retail unit’s Description (either house & lot or lot only) f. Minimum Bid Price g. Occupancy Status (both vacant and occupied units shall be posted) h. Date of Bidding i. Place of Bidding

The list shall also be posted in the Registry of Deeds (RD) building, bulletin boards in barangay, municipal or city halls, and if practicable, in the entrance or clubhouse, if any, of subdivisions, and other conspicuous places where the properties are located.

E. Calendar of Activities

The bidding process, from the identification of the IP-RUs available for sale up to the bidding proper, shall follow the timeline provided in the Table below. This will be undertaken on a monthly basis starting from the first week of the calendar month:

Activities Time Line/Working Days (WDs)

Responsible Unit

1 Identification of properties available for sale after passing the criteria set in Section IV.B.2 above.

Within the 1st to 7th WD of the month.

RPAMD/VP – READMO

2 Provide master list of IP-RU available for sale to various branches through e-mail

Within the 1st to 7th WD of the month (simultaneous with the other activities being done on the same period).

RPAMD

3 Preparation and sending of a memo-report of the amount of previous offers for the IP-RUs provided in the master list, if any, to RPAMD.

8th to 10th WD of the month.

Special Business Units (SBUs) / Branch Managers (BMs) in BOs concerned

4 Preparation of a schedule of bidding dates and place of bidding for the IP-RUs submitted by RPAMD, to be concurred in by the respective VPs and SVPs of Operations Group and submitted back to RPAMD both in hard and soft copies (Annex B).

11th to 12th WD of the month (or may be simultaneous with the other activities being done on the 8th to 10th WD of the month).

SBUs/ BMs in BOs concerned

5 Set the minimum bid price as defined in Section IV.C. above.

13th to 14th WD of the month (or may be simultaneous with the other activities being done on 11th to 12th WD of the month).

READMO

6 Consolidation of the list of IP-RUs available for sale from the CO and BOs concerned for posting and publication.

15th to 16th WD of the month.

RPAMD

7 Approval of IP-RUs for sale as recommended by VP-READMO/VP and SVP-BO, for posting and publication.

17th WD of the month. SVP-FMG

8 Posting in the GSIS website and publication in a newspaper of general circulation of the list of properties available for bidding.

18th WD of the month. Posting in the website shall be done by CCO; Publication in a newspaper of general circulation and related expenses shall be processed and shouldered by READMO.

9 Posting of the IP-RUs available for sale in the bulletin boards of the RD in the locality and in the respective barangay, municipal or city halls in areas where the properties are located.

19th WD of the month. RPAMD, assisted by SBU, PAD and/or Housing Accounts Remedial and Titling Department (HARTD)

10 Public Bidding 30 WDs after the list of properties available for sale was published in a newspaper of general circulation.

Authorized personnel in CO/BOs concerned

F. Bidding Process

1. Minimum Qualification

Prospective bidders must be Filipino citizens or otherwise authorized by law to acquire real property in the Philippines, including domestic corporations or partnerships duly registered with the Securities and Exchange Commission (SEC).

2. Disqualification

The following shall be prohibited from participating in the bidding process:

a. All GSIS personnel involved, directly or indirectly, in the disposition of the IP-RU under this PPG and their relatives up to 4th degree of consanguinity or affinity (except GSIS employees who are original awardees and/or legitimate buyers of rights); and

b. Commission on Audit (COA) personnel who will witness the bidding process.

3. Attendees to the Bidding Proper

The presence of the following shall be required during the bidding process:

a. For CO

1) Bidder or duly authorized representative; and

2) RPAMD Manager or Officer I and any one of the duly designated Staff Officer or alternate.

b. For BO

1) Bidder or duly authorized representative; and

2) BM or Division Chief, Frontline Services Department (FSD) and any one of the BO’s duly designated Staff Officer or alternate.

Representatives from COA shall be invited to witness the bidding proper.

4. Bidding Requirements

Bidders shall be required to submit a sealed envelope containing the following:

a. Tender bid deposit of at least ten percent (10%) of the bid amount in the form of Manager’s Check (MC) payable to GSIS on the day of bidding for all bidders;

b. Duly accomplished prescribed Bid Form downloadable from the GSIS website (Annex C).

Bidders who submit incomplete requirements shall be disqualified. A bidder is entitled to submit only one (1) bid for each property scheduled for bidding.

5. Opening of sealed bid

a. Qualified bidders or their duly authorized representatives must be present at the opening of bids. Bids of the absentee shall not be entertained and shall not be considered as a qualifying bid in the bidding process.

b. For CO

The bid envelopes shall be opened by the RPAMD Manager or Officer I to be assisted by any one of the duly designated Staff Officer or alternate at the designated venue, date and time.

c. For BO

The bid envelopes shall be opened by the BM or Division Chief, FSD to be assisted by any one of the BO’s duly designated Staff Officer or alternate at the designated venue, date and time.

Upon opening of the sealed bids, contents of the submitted envelopes shall be verified and confirmed if in order by the assigned personnel. The GSIS assigned personnel (in 5.b and 5.c above) shall confirm that the requirements in Section IV.F. 4 are in order. The bidder who fails to comply with the requirements in Section IV.F.4 shall not be considered.

6. Declaration of Highest Bidder

Unless there is a failed bidding for the reasons mentioned in Section IV.F.9, RPAMD/BO shall open all bids, whether cash bids or bids through EFI, and shall declare the highest bidder for each retail unit.

Procedure in case of a tie among the highest bidders, i.e., the highest bidders tender the same amount of bids: a) Where the highest bidders are all cash bidders, RPAMD/BO shall

conduct another sealed bidding in order to break the tie immediately after the opening of bids. The new bids shall not be lower than the last bid price submitted.

b) Where the highest bidders are all bidders through EFI, the same procedure in Section 6(a) above shall be observed;

c) Where there is only one cash bidder and the rest are bidders through EFI, the cash bidder shall be declared the highest bidder;

d) Where there are two or more cash bidders and the rest are bidders through EFI, the procedure in Section IV.F.6.(a) above shall be observed but only the cash bidders will be allowed to participate.

e) The same procedure in Section IV.F.6.(a) and (b) above shall be observed until the tie is broken and a highest bidder is declared.

7. Right to Match

a. The existing tenant or occupant or his or her duly authorized representative shall have the “right to match” the offer of the declared highest bidder provided that he or she: 1) Immediately manifests his/her intention to match the offer of the

highest bidder and accomplishes and submits the right to match form;

2) Is present during the actual bidding, or is duly represented by an attorney-in-fact through a valid Special Power of Attorney (SPA);

3) Participated in the actual public bidding of the property subject to the “right to match”;

4) Tenders the full 10% deposit based on the matched bid amount of

the declared highest bidder;

5) Offers the same or better mode of payment than the mode of payment of the declared highest bidder, i.e. cash basis if the declared highest bidder is bidding on cash basis, and cash or EFI basis if the declared highest bidder is bidding on EFI basis.

6) Is occupying the retail unit subject of bidding; and

7) Brings a Barangay Certificate to prove actual residence in the said

retail-unit, along with any of the following:

a) Valid Postal Identification Card; b) Any valid Government-issued Identification indicating that

his or her address is the retail unit he or she is bidding for, as

proofs of occupancy; or c) Proof of latest billing address.

b. Should the existing tenant or occupant of the retail unit or his or her

duly authorized representative be able to match the offer of the highest bidder, then he or she shall be declared as the new highest bidder. The previously declared highest bidder shall automatically be declared as the second highest bidder.

8. Declaration of Winning Bidder

a. The highest bidder who complied with the conditions set forth in

Section IV.F.4 to 7 shall be declared the winning bidder and shall be issued NOAS by the RPAMD for CO and BM for BO.

b. The second highest bidder, if any, shall also be declared during the bidding so that in the event that the winning bidder fails to complete the requirements stated in the NOAS, the second highest bidder shall be declared the winning bidder.

c. The winning bidder shall submit the following documentary

requirements within fourteen (14) calendar days from receipt of the NOAS:

1) Duly accomplished Personal Profile/Company

Profile/Corporate Profile, whichever is applicable (Annex D);

2) Photocopies of two (2) valid Identification Cards (one should be a Government-issued ID);

3) If a corporation, copy of the Articles of Incorporation, By Laws and current General Information Sheet duly certified by the Securities and Exchange Commission (SEC);

4) If a partnership, Articles of Partnership and current General Information Sheet duly certified by the SEC;

5) If a sole proprietorship, Registration Certificate from the Department of Trade and Industry; or

6) If cooperative, Cooperative Development Authority Registration or any proof of such registration for cooperatives; and

7) Current Mayor’s permit issued by the city or municipality where the principal place of business of the winning bidder is located, if applicable.

d. In case the winning bidder fails to submit the requirements in Section

IV.F.8.c within fourteen (14) calendar days from receipt of NOAS, or fails to secure the Bank LOG (for bid through EFI) within forty five (45) days4, the second highest bidder shall be considered the winning bidder, and will be notified in writing to comply with the same requirements within fourteen (14) calendar days from receipt of NOAS.

e. After the bidding process, the ten (10%) percent deposits of non-

winning bidders including other contents in the bidding envelope shall be returned.

9. Failed Bidding5

There is a failure of public bidding when:

4 PPG 268-14

5 Based on opinion dated 17 June 2015 of the COA Assistant Commissioner and General Counsel that a “no bidder or no bids submitted” scenario falls

under the definition of ‘failed bidding”

a. There is no bidder who participated in the public bidding; or

b. The bid/s received fall below the minimum bid price; or

c. Bids received are higher than the minimum bid price but the bidders failed to submit post-qualification requirements, or failed to comply with the NOAS.

In these cases, READMO shall again include the IP-RU in the list of properties available for sale.

G. Treatment of Deposit Made by the Winning Bidder

1. The deposit made by the winning bidder shall be non-refundable and shall form part of his or her payment of the purchase price.

2. In case the existing tenant or occupant or his or her duly authorized representative exercises the right to match and is declared the winning bidder, he or she shall be required to pay the full ten percent (10%) of the matched amount, up to 4:00 pm of the actual date of bidding.

3. In case the winning bidder fails to comply with the conditions provided in the NOAS, the second highest bidder shall be required to pay the non-refundable deposit of ten percent (10%) of the bid amount after issuance of the NOAS in his/her favor.

4. The payment of ten percent (10%) of the bid amount shall be forfeited if the sale is not consummated due to the fault or negligence of the winning bidder.

H. Issuance of NOAS

1. RPAMD/BO concerned shall issue the pertinent NOAS, (Annex E), signed

by Officer IV, RPAMD for CO and BM of BO concerned, to the winning bidder.

2. In case the winning bidder, either through cash or EFI, fails to comply with the terms and conditions provided in the NOAS, the said NOAS shall be deemed automatically revoked and the bidder shall be informed in writing by RPAMD/BO concerned. Thereafter, the second highest bidder will be informed in writing by RPAMD/BO concerned and a signed and approved NOAS will be released in his/her favor before the payment of the ten percent (10%) deposit provided for in Section IV.G.3.

3. No winning bidder shall be declared in case the second highest bidder:

a) Fails to appear before RPAMD/BO concerned within seven (7) days after receipt of written notice from RPAMD/BO; and

b) Fails to comply with the terms and conditions provided in the NOAS.

In such cases, READMO shall again include the IP-RU in the list of properties available for sale.

I. Submission of Documents and Full Payment

1. For cash payment

The winning bidder shall comply with the following requirements:

a. Submission of the required documents stated in Section IV.F.8.c; and

b. Payment of the balance to fully pay the IP-RU within thirty (30) calendar days from receipt of the NOAS.

Failure to do so would lead to the forfeiture of the right to purchase by the winning bidder who will be advised in writing.

2. For payment through EFI, existing policies on external financing shall apply

J. Preparation of Deed of Absolute Sale (DAS)

Once the winning bidder has fully complied with the conditions for the sale (submission of documentary requirements and full payment of bid price), RPAMD shall prepare a memo transmitting to HARTD (for CO) and/or to SBU (for BO) the following documents:

1. Personal Profile duly accomplished by the bidder;

2. Photocopies of two (2) valid Identification Cards (one should be a Government-issued ID) submitted by the bidder;

3. Notice of Approval of Sale from RPAMD/BO concerned;

4. Letter of Guaranty, if applicable, from the bank;

5. Certified xerox copy of Official Receipts (ORs) from Treasury Office of GSIS/BO concerned evidencing payment of (i) the 10% deposit; and (ii) balance of bid price (for cash sale) or equity (for sale through an EFI); and

6. Certification issued by RPAMD/BO concerned indicating that the retail unit was duly sold.

HARTD for CO or the SBU for the BO concerned shall prepare the DAS to be signed by the winning bidder and the GSIS’ authorized signatories, based on the approved Manual of Signing and Approving Authorities (MOSAA).

K. Release of the TCT

1. For the release of TCT to the winning bidder who paid in cash, the following conditions shall be observed: a. The winning bidder, after notification by HARTD or BO concerned shall

sign the prepared DAS for notarization. The notarial fee shall be shouldered by the winning bidder.

b. After notarization, the HARTD or the BO concerned shall release to the winning bidder the corresponding TCT, under the name of GSIS.

2. For the release of TCT to the winning bidder who paid through EFI, existing policies shall apply.

L. Recording of Transaction

For the recording of the sale transaction, the RPAMD or the BO concerned shall remove from the GSIS books or retire the account from the System Applications Products – Financial Asset Accounting (SAP-FIAA) immediately after the full payment of the winning bidder.

The Controller Group shall provide the necessary accounting entries to record transactions in accordance with this PPG.

XXX XXX XXX

V. EFFECTIVITY

All orders, circulars, policy and procedural guidelines which are inconsistent herewith are hereby superseded, modified or repealed accordingly.

This PPG shall take effect fifteen (15) days after publication in a newspaper of general circulation.

ORIGINAL SIGNED ROBERT G. VERGARA President and General Manager Date: 21 March 2016

LIST OF ACRONYMS 1. BM - Branch Manager

2. BOs - Branch Offices

3. CCO - Corporate Communications Office

4. CMV - Current Market Value

5. CO - Central Office

6. COA - Commission on Audit

7. DAS - Deed of Absolute Sale

8. DCS - Deed of Conditional Sale

9. EFI s - External Financing Institutions

10. FMG - Financial Management Group

11. FSD - Frontline Services Department

12. HARTD - Housing Accounts Remedial and Titling Department

13. IP-RU - Investment Property – Retail Unit

14. JRF - Job Request Form

15. LOG - Letter of Guaranty

16. LSG - Legal Services Group

17. MC - Manager’s Check

18. MOSAA - Manual of Signing and Approving Authorities

19. NOA - Notice of Approval

20. NOAS - Notice of Approval of Sale

21. ORs - Official Receipts

22. PAD - Property Administration Department

23. PPG - Policy and Procedural Guidelines

24. RD - Registry of Deeds

25. READMO - Real Estate Asset Disposition and Management Office

26. RPAMD - Real Property Accounts Management Department

27. SAP-FIAA - System Applications Products – Financial Asset Accounting

28. SBUs - Special Business Units

29. SEC - Security and Exchange Commission

30. SO - Staff Officer

31. SPA - Special Power of Attorney

32. SVP - Senior Vice President

33. TCT - Transfer Certificate of Title

34. TDs - Tax Declarations

35. VP - Vice President

36. WDs - Working Days

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POLICY AND PROCEDURAL GUIDELINES NO. K%'1$

FUNCTIONAL AREA : REAL ESTATE ASSET DISPOSITION AND MANAGEMENT

DISTRIBUTION ALL FUNCTIONAL GROUPS

SUBJECT MATTER : FINANCING OF GSIS HOUSING ACCOUNTS AND INVESTMENT PROPERTIES (Retail Units) BY EXTERNAL FINANCING INSTITUTIONS (EFIs)

I. BACKGROUND/RATIONALE

The Housing Loan Remedial and Restructuring Program (HLRRP) was approved and implemented under BR No. 48 dated May 23, 2013 with the ultimate aim of heiping the awardee/borrower retain or acquire ownership of the property and for the GSIS to cleanse its housing loan portfolio. Although the HLRRP has provided liberal terms of payment, there are still awardees/borrowers who cannot afford to fully pay or restructure their accounts. To maximize the assistance that GSIS can extend to the awardees/borrowers or to their children or successors-in-interest, GSIS has made arrangements with external financing institutions (EFIs) including private banks to take over the financing of these accounts. This will enable the awardee/borrower to get a longer paying term, resulting in more affordable monthly amortizations.

In addition, when the GSIS closed its lending window for housing, the sale of investment properties (retail) is now being offered only on cash basis. This makes the disposal of acquired assets more difficult and less affordable to interested buyers. The arrangements with the EFIs include the accommodation of extending real estate loans to those who are interested in buying GSIS's investment properties (retail) thereby enabling the buyer to pay the purchase price over a longer period of time.

II. OBJECTIVES

A. To update and close the delinquent housing accounts by having these financed by EFIs either for the original awardees/borrowers, their heirs, descendants or transferees;

B. To convert GSIS's Housing Receivables and/or Investment Properties (retail) to investible cash; and

C. To provide assistance to original awardees/borrowers, their heirs, descendants or transferees to retain or acquire ownership over the property.

DEFINITION OF TERMS AND ACRONYMS

A. Active Accounts - Housing accounts that have not been cancelled or foreclosed.

B. Awardee - Pertains to recipient of real property through a Deed of Conditional Sale

C. Borrower - Pertains to mortgagor of Real Estate Loan

D. Certificate of Sale (COS) - Certificate issued to the winning bidder in a foreclosure sale.

E. Date of Refinancing - Pertains to the date when actual full payment is received by GSIS.

F. Deed of Absolute Sale (DAS) - Document representing an agreement of absolute sale of a subject real property between the GSIS as seller and the awardee of a fully paid property covered by a Deed of Conditional Sale (DCS) or the buyer of GSIS IPRetail.

G. Deed of Conditional Sale (DCS) - A bilateral contract whereby the GSIS, as seller, expressly reserves the ownership of the subject property despite delivery thereof to the buyer/s and binds itself to deliver the title of the said property to the buyer/s upon full payment of the purchase price.

H. Deed of Real Estate Mortgage (DREM) - A bilateral contract that gives GSIS, as lender, a lien or security interest in the mortgaged property.

I. Due and Demandable (DND) - Accounts that have incurred arrearages equivalent to more than six (6) monthly amortizations and are eligible for sending of Demand Notices.

J. Equity Payment - The required payment corresponding to the difference between the amount indicated in the Letter of Guarantee from the external financing institution and the total outstanding balance of the awardee's/borrower's housing account with GSIS or the selling price of IPRetail.

K. External Financing Institution (EFI) refers to any private or government bank or government financial institution like the Home Development Mutual Fund (HDMF) that will take out the obligation of GSIS housing awardees/borrowers or will finance the purchase of GSIS IPRetail.

L. GSIS Investment Properties - Retail (IPRetail) - GSIS's real estate inventories for sale (Residential House & Lot or Lot Only) provided that the

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appraised value is less than PhP10 million; otherwise, the provisions of the PPG on Cash Sale of Medium Ticket and Big Ticket Accounts (MTAs/BTAs) will apply.

M. Housing Loan Redemption Insurance (HLRI) - A yearly renewable term insurance where the borrower's coverage is equivalent to the amount of his/her loan obligation to GSIS. This also refers to Sales or Mortgage Redemption Insurance.

N. Housing Loan Remedial and Restructuring Program (HLRRP) - Restructuring and condonation program provided under PPG 232-13, which was approved under Board Resolution No. 48 dated May 23, 2013.

O. Letter of Guarantee (LOG) - This is the letter commitment of the EFI to pay GSIS the amount indicated therein within the defined validity period in exchange for submission of documents and the TCT of the property subject of the EFI's financing.

P. Notice of Approval to Refinance Account (NARA) - This is a document confirming GSIS approval for a housing account to be refinanced by an EFI subject to the terms and conditions enumerated therein.

Q. Notice of Approval of Sale (NOAS) - This is a document confirming GSIS approval of sale to the prospective buyer of an IPretail, thereby allowing financing by an EFI subject to terms and conditions enumerated therein.

R. Purchase Price - Selling price of an investment property for disposition, which is set in accordance with the provisions of Board Resolution No. 154 dated 25 November 2010

S. Real Estate Loan (REL) - A contract by which the borrower, in consideration of a loan which he/she secures from GSIS, mortgages or assigns his/her real estate property as security in case the loan is not paid in accordance with the agreed terms and conditions

T. Release of Mortgage (ROM) - A legal document that removes a previous claim or lien on an asset, and which is issued once a mortgage previously secured against the asset has been paid in full.

U. Total Monthly Amortization Payment (TMAP) - The sum of all monthly amortizations paid by a borrower or awardee, including payments previously collected through deduction from proceeds of claims.

IV. GENERAL POLICY GUIDELINES

A.Coverage and Conditions

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The following shall be covered by this PPG and shall be qualified to avail of the External Financing Program of the GSIS:

1. Awardees or borrowers whose housing accounts are active in status, which can either be:

a. Up-to-Date; or

b. Due and demandable;

2. Awardees whose housing accounts are cancelled in status and who availed or will avail of the HLRRP;

3. Borrowers whose accounts are in the midst of foreclosure proceedings but without COS and who have availed or will avail of the HLRRP;

4. Borrowers whose accounts are foreclosable and have availed or will avail of the HLRRP; and

5. Prospective buyers of Investment Properties (Retail).

B. External Financing Program

1. Any awardee or borrower who intends to avail of the External Financing Program of GSIS must submit a letter of intent to refinance the account.

2. The amount due shall be computed based on the following:

a.If the awardee or borrower availed of the Refinancing and HLRRP within the implementation period of HLRRP.

Account Amount Migrated Principal xxx.xxx.xx Accrued Interest from October 2007 xxx.xxx.xx Penalties/Surcharge xxx,xxx.xx Fire Insurance Premium x.xxx.xx HLRI Premium x.xxx.xx Total Outstanding Balance (Before Condonation, if applicable)

xxx.xxx.xx

LessPenalties/Surcharges, if applicable xxx.xxx.xx Outstanding Balance (Net of Penalties and Surcharges, if applicable)

xxx.xxx.xx

Discount on Unpaid Interest (40%; 50%; 80%, 100% depending on TMAP), if applicable

x.xxx.xx

Outstanding Balance (Net of Downpayment or Discount, if applicable)

xxx.xxx.xx

Add: Foreclosure Expenses (if any) x.xxx.xx Taxes x.xxx.xx

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Other Incidental Expenses x.xxx.xx Amount to Fully Pay xxx.xxx.xx

For those who will avail of the External Financing Program after the implementation of HLRRP, the amount to fully pay the account shall be as follows:

b.The outstanding balance of the restructured account as of the date of refinancing, if the awardee or borrower availed of the HLRRP;

Account Amount Principal XXX, XXX. XX Accrued Interest xxx.xxx.xx Penalties/Surcharge xxx, XXX. XX Fire Insurance Premium x.xxx.xx HLRI Premium x.xxx.xx Total Outstanding Balance xxx.xxx.xx Taxes x.xxx.xx Other Incidental Expenses x.xxx.xx Amount to Fully Pay xxx.xxx.xx

c.The outstanding balance of the account as of the date of refinanc (without the benefit of the condonation from the HLRRP), if 1 awardee or borrower did not avail of the HLRRP.

Account Amount Migrated Principal xxx.xxx.xx Accrued Interest from October 2007 xxx.xxx.xx Penalties/Surcharge xxx.xxx.xx Fire Insurance Premium x.xxx.xx HLRI Premium x.xxx.xx Total Outstanding Balance xxx.xxx.xx Add: Foreclosure Expenses (if any) x.xxx.xx Taxes x.xxx.xx Other Incidental Expenses x.xxx.xx Amount to Fully Pay xxx.xxx.xx

3. A NARA (Annex A) shall be issued by GSIS for accounts that are qualified to avail of the External Financing Program within thirty (30) calendar days from receipt of letter request. The NARA will be valid for seventy-five (75) calendar days upon receipt of awardee/borrower. A statement of account (SOA) shall be issued together with the NARA indicating the amount needed to fully pay the account. The computations shall be as of the fourth month end from the date of the NARA.

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Awardees/borrowers whose request cannot be accommodated shall be informed within 30 calendar days from receipt of request.

4. The NARA shall be approved in accordance with the following:

a. The Officer IV, HARD for CO/Branch Manager for the Branches and the Vice President, READMOA/ice President of respective areas for branches, for amount up to PhP1.5 Million; or

b. Vice President, READMOA/ice President of respective areas for branches and Senior Vice President Financial Management Group/Senior Vice President of respective Operations Group, for amount beyond PhP1.5 Million.

5. A LOG shall be issued by the EFI to cover, in whole or in part, the outstanding balance of the borrower's or awardee's GSIS housing loan account, as indicated in the NARA and the attached SOA. If the amount guaranteed by the EFI, as indicated in the LOG, is less than the amount needed to fully pay the account, the difference shall be paid by the awardee or borrower within the time prescribed below.

The LOG must be received by the GSIS not later than 45 calendar days from receipt of the NARA by the borrower. Equity payment, if any, must be received by the GSIS not later than 30 calendar days from receipt of the LOG.

The NARA shall be cancelled if the LOG is received by the GSIS beyond 45 calendar days or if the awardee or borrower fails to pay the equity within 30 calendar days from receipt of the LOG. This will not preclude the awardee/borrower from re-applying for external financing under this PPG, but subject to re-computation and issuance of new NARA and SOA.

If the NARA is cancelled, the GSIS shall inform the EFI and return the unsigned LOG to the latter.

6. Upon verification of its authenticity, the LOG shall be conformed to by the same authorized officers as follows:

a. The Officer IV, HARD for CO/Branch Manager for the Branches and the Vice President, READMOA/ice President of respective areas for branches, for amount up to PhP1.5 Million; or


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7. Refinancing of REL Accounts shall not require the execution of a Memorandum of Agreement (MOA) between the GSIS and the EFI.1

The GSIS representative, together with the EFI representative, shall bring the Transfer Certificate of Title (TCT) to the Registry of Deeds (RD) for the annotation of the EFI's second mortgage, and the annotated TCT shall then be returned to GSIS thereafter. 2

8. The GSIS shall only release the TCT and issue the corresponding Release of Mortgage Document (for REL accounts only) to the EFI after receipt of the amount of full payment of the borrower's account with GSIS.

In case the EFI borrower is a person other than the GSIS REL borrower, the arrangement shall be between the EFI and the EFI borrower. However, GSIS shall require the EFI borrower to submit a Special Power of Attorney (SPA) indicating that the representative is authorized to transact, pay, sign and receive documents from GSIS in behalf of the borrower prior to the release of the TCT to the EFI.

9. The GSIS and the EFI shall execute a Memorandum of Agreement containing the terms and conditions agreed to by both parties such as but not limited to:

a. Issuance of necessary documents b. Procedures to be followed by both parties, including timelines c. Responsibility of the EFI to transfer the title still in GSIS' name

to the name of the awardee for DCS accounts. d. Recognition of GSIS' tax-exempt status under Section 39 of

Republic Act No. 8291

10. In case of refinancing of DCS accounts in the name of the awardee's heirs or other successors-in-interest, the transfer of the account and the execution or submission of necessary documentation must first be undertaken in accordance with GSIS' existing procedures on transfer of rights. The terms of the External Financing Program can then be availed of after the transfer of the account to the heir/s or successor/s-in-interest.

C. Financing of the sale of GSIS - IPRetail

LWhen a prospective buyer has applied for purchase of a GSIS IPRetail through the External Financing Program, a NOAS indicating the total

1 This is a regular industry practice. There is no need to transfer the TCT to the name of the borrower since it is already in his/her name.

2 This procedure was given authority by the Board in its Resolution No. 67 dated 11 June 2014.

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purchase price shall be issued. The NOAS shall be valid for 75 days from date of issuance to the prospective buyer.

The NOAS and LOG shall be approved and conformed to in accordance with signing limits defined in MOSA by:

a. The Officer IV, RPAMD for CO/Branch Manager for the Branches and the Vice President, READMOA/ice President of respective areas for branches, for amount up to PhP1.5 Million; or


2. A LOG shall be issued by the EFI to cover, in whole or in part, the purchase price under the NOAS. If the amount guaranteed by the EFI as indicated in the LOG is less than the purchase price, the difference shall be paid by the prospective buyer.

The LOG must be received by the GSIS not later than 45 days from the issuance of the NOAS. Equity payment, if any, must be received by the GSIS not later than 30 days from receipt of the LOG.

The NOAS shall be cancelled if the LOG is received beyond 45 days or if the prospective buyer fails to pay the equity within 30 days from GSIS' receipt of the LOG.

If the NOAS is cancelled, the GSIS shall inform the EFI and shall return the unsigned LOG to the latter.

3. The GSIS shall only release the TCT to the EFI after receipt of the amount guaranteed under the LOG.

4. The EFI and GSIS shall enter into a MOA for financing of GSIS IP (retail sales). The MOA shall contain the terms and conditions agreed by both parties such as but not limited to the issuance of necessary documents and its corresponding timelines, and responsibility of transferring the title from GSIS to the buyer.

D.Issuance of Implementing Guidelines

An Office Order may be issued to supplement the guidelines in this PPG.

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V. System, Document and Reportorial Requirements

A. The Legal Services Group (LSG) shall prepare the pro-forma contract agreements (Memorandum of Agreement, Deed of Sale, Deed of Release of Mortgage) to be executed and/or issued by the GSIS..

B. The Controller Group (CG) shall provide the proper accounting entries to record all transactions contained in this PPG.

C. The Information Technology Services Group (ITSG) shall ensure that the necessary system adjustments and reportorial requirements are made in order to conform to this PPG.

D. The Internal Audit Services Office (IASO) and Information Security Office (ISO) shall oversee the user acceptance testing (UAT) and ensure that internal controls in the system are in place.

E. The Corporate Communications Office (CCO) shall prepare the information materials to convey this PPG to all GSIS employees, members and the general public.

VI. MANUAL OF OPERATIONS

The functional group/s concerned shall ensure that their respective Manuals of Operations shall conform to the guidelines set forth in this PPG.

VII. PROCEDURES

The detailed procedures in the Manual of Operations of the concerned Functional Groups shall adhere to the following general procedures.

A. For Refinancing of REL and DCS Accounts

Activity Responsible Unit CO BO

1. Receive from the Awardee or Borrower an Application to refinance the REL or DCS account by an EFI and evaluate eligibility to avail of the EFS (refer to Section IV.A above).

1.1 If eligible, proceed to Activity 2.

1.2lf not eligible, inform awardee or borrower of the reason for such.

Housing Accounts

Reconciliation Department-

External Financing Unit (HARD-EFU)

Member's Assistance

Officer (MAO)

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2. Check status of TCT.

2.1 If TCT is under GSIS custody and is in order, request the Awardee/Borrower to submit the Tax Clearance and Tax Declaration for the current year and the Certified true copy of the title from the Registry of Deeds (RD). Proceed to Activity

2.2 If TCT is not in GSIS custody or is not in order, inform the Awardee/Borrower that he/she will not be able to refinance through an EFI.

3. Reconcile and prepare the statement of account (SOA) as of four (4) months from date of application plus recoverable expenses, if any.

HARD BCRD

4.

Prepare the Notice of Approval to Refinance Account (NARA). Inform the Awardee/Borrower that he or she may claim the NARA for the EFI's processing.

The NARA shall be signed in accordance with signing limits defined in MOSA by:

a. The Officer IV, RPAMD for CO/Branch Manager for the Branches and the Vice President, READMOA/ice President of respective branches; or

b. Vice President, READMOA/ice President of respective branches and Senior Vice President FMG/Senior Vice President of respective branches.

Housing Accounts Reconciliation Department-External Financing Unit (HARD-EFU)

BCRD

5. Check status of Letter of Guarantee (LOG) submitted by borrower/awardee.

HARD-EFU MAO

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5.1. If LOG has been issued within 45 days, accept from the Awardee/Borrower the copy of the LOG and confirm authenticity.

5.2 If no LOG has been issued or the LOG was received after 45 days, inform the Borrower that the NARA is no longer valid and has to be cancelled.

6. Advise the Borrower to pay the Equity portion, if any, within 30 days from receipt of LOG by Borrower. Provide the BP No. and endorse to Cashier for issuance of Official Receipt (OR).

HARD-EFU MAO

7. Bring the TCT to the RD together with the EFI representative for annotation of the second mortgage. (For REL account refinancing).

Housing Accounts

Reconciliation and Titling

Department (HARTD)

MAO

8. Provide the HARD-EFU a copy of the annotated TCT and safe keep the original. (For REL account refinancing)

HARTD MAO

9. Upon receipt of the payment from EFI, provide the BP No. and endorse to Cashiering Unit for issuance of OR.

HARD-EFU MAO

10. Prepare and issue a Letter of Undertaking to deliver the Original TCT and relevant documents to the EFI.

HARD-EFU MAO

11. Forward the Final SOA and copy of the ORs to HARTD.

HARD-EFU MAO

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Activity Responsible Unit

CO BO 12. Prepare Release of Mortgage (ROM)

(for REL account refinancing) or DAS (for DCS refinancing) and endorse the same together with the TCT to HARD-EFU for final delivery to the EFI

HARTD MAO

13. Deliver the TCT and ROM (in case of REL refinancing) or TCT and DAS (in case of DCS refinancing) to the EFI and forward to HARTD the original receiving copy of the transmittal for inclusion in the HEA/E of the Buyer.

HARD-EFU MAO

End of Process

B. For Sale of GSIS IP (Retail)


1. Receive letter of intent to buy from a prospective buyer.

Housing Frontline

MAO

2. Compute purchase price and prepare Notice of Approval to Sell (NOAS)

RPAMD MAO

3. Forward NOAS with Certified True Copy of TCT, copy of latest Tax Declaration and Tax Clearance, valid Appraised Value and Official Receipt (OR) of deposit paid by prospective buyer to HARD-EFU.

RPAMD MAO

4. Inform prospective buyer that he or she may claim the NOAS with the necessary documents and forward the same to the EFI.

HARD-EFU MAO

5. Accept and check status of Letter of Guarantee (LOG).

5.1 If LOG has been issued within 45 days, accept from the prospective buyer the copy of the LOG and confirm authenticity.

HARD-EFU MAO

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5.2 If no LOG has been issued or if it was received after 45 days, inform the Borrower that the NARA is no longer valid and has to be cancelled

6. Advise the Borrower to pay the Equity portion, if any. Refer to RPAMD for Order of Payment.

HARD-EFU MAO

7. Receive the copy of the Official Receipt and request the authorized signatories to sign the "CONFORME" portion of the LOG.

HARD-EFU MAO

8. Prepare the endorsement for release of TCT, signed by authorized signatories. Forward to HARD-EFU.

RPAMD

9. Upon receipt of the payment from EFI, endorse to RPAMD for issuance of Order of Payment.

HARD-EFU MAO

10. Prepare and issue a Letter of Undertaking to deliver the Original TCT and relevant documents to the EFI within the required time from the date the final payment has cleared.

HARD-EFU MAO

11. Record and forward endorsement for release of TCT with the following attachments to HARTD:

a. NOAS b. Conformed LOG c. Approved Letter of Guarantee d. Copy of valid Appraised Value

Print-out from the system. e. Proof of payment by the Buyer of

the difference between LOG and purchase price indicated in NOAS

f. Certified True Copy of TCT g. Copy of Latest Tax Declaration h. Copy of Latest Tax Clearance i. Proof of Payment of EFI for the proceeds of the LOG.

HARD-EFU MAO

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Ref. No. : 09182014-0001

R E P U B L I K A NG PILIPINAS PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) Financial Center, Roxas Blvd.,Pasay City, 1308

HOUSING ACCOUNTS RECONCILIATION DEPARTMENT

NOTICE OF APPROVAL TO REFINANCE THE ACCOUNT (NARA) (thru External Financing Institution)

Date:

MR/MS.

Dear Mr/Ms.

This refers to your request to refinance your account with following details:

ACCOUNT AND PROPERTY DETAILS:

Accnt. No./IO No. Business Partner No. Borrower's Name Property Location TCT No. Amount to Refinance

This is to inform you that your request has been approved and this Notice of Approval to Refinance the Account (NARA) shall be valid for seventy five (75) days and subject to the following terms and conditions:

1. That you shall secure and submit to GSIS the Letter of Guarantee (LOG) of the EFI within forty-five (45) calendar days from receipt of this notice.

2. That you shall submit the other required documents upon submission of the LOG.

3. That you shall pay the difference between the total outstanding balance and the amount stated in LOG, if there is any, either in cash or manager's check, within thirty (30) calendar days from receipt of the LOG by GSIS.

Name of Buyer Page 1

Ref. N o . : 09182014-0001

4. That this Notice of Approval to Refinance the Account (NARA) shall be deemed cancelled if we do not receive the Letter of Guarantee (LOG) within the forty five (45) calendar days abovementioned.

5. That in case of cancellation of this NARA due to non-compliance with the terms and conditions stated above, during the 45 calendar day period, the account will revert to its original status prior to application for refinancing and will be covered by the existing GSIS policy on cancellation and foreclosure.

Thank you.

Very truly yours,

MA. CAROLINA DJ. RETARDO OFFICER IV Housing Accounts Reconciliation Department Real Estate Asset Disposition and Management Office

Buyer's/Buyers' Conformity:

lA/Ve fully understand that this APPROVAL shall only be in full force and effect after strict compliance of with the above requirements and submission of the Letter of Guaranty (LOG). Otherwise, this NARA shall be cancelled.

Conforme:

Buyer Buyer (Spouse, if applicable)

Name of Buyer Page

Annex B

PROVINCE District/Subdivision City/Municipality Property Location TCT No.Lot Area

(sqm)

Minimum Acceptable Offer/

CMVProperty Classification

Occupancy

StatusBidding Date Place of Bidding

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Republic of the Philippines

GOVERNMENT SERVICE INSURANCE SYSTEM

GSIS Building, Financial Center, Roxas Boulevard, Pasay City 1308

PRE-OWNED PROPERTIES FOR DISPOSITION

REAL ESTATE ASSET DISPOSITION AND MANAGEMENT OFFICE

REAL PROPERTY ACCOUNTS MANAGEMENT DEPARTMENT

BID FORM RIGHT TO MATCH FORM

Date of Bidding: ____________________ Name of Bidder: ____________________ Particulars of Property: Block No. ______ Lot. No. ______ Phase No.____ Name of Subdivision _____________________________ Location ______________________________________ Mode:

Cash

Through External Financing Institution

I agree to pay the equity required (difference between the bid amount and the amount of the Letter of Guaranty [LOG] to be issued by the accredited Bank). Bid Amount: (In words) ___________________________________ (In figures) ___________________________________

________________________________ (Signature over Printed Name of the Bidder)

Republic of the Philippines GOVERNMENT SERVICE INSURANCE SYSTEM GSIS Building, Financial Center, Roxas Boulevard, Pasay City 1308

Annex C



PERSONAL PROFILE

BU

YE

R’S

IN

FO

RM

AT

ION

NAME OF BUYER ____________________________________________________________________________________________ LAST NAME FIRST NAME MIDDLE NAME DATE OF BIRTH (dd/mm/yyyy) ___________________ CIVIL STATUS ___________ GENDER ______ CITIZENSHIP _________ CONTACT NOS. HOME _____________________ MOBILE _______________________ TIN NO.__________________ PERMANENT HOME ADDRESS __________________________________________________________________________________ __________________________________________________________________________________ PRESENT HOME ADDRESS __________________________________________________________________________________ __________________________________________________________________________________ COMPANY/EMPLOYER BUSINESS NAME & ADDRESS ______________________________________________________________ __________________________________________________________________________________________________________ BUSINESS TELEPHONE NO. _________________________; ___________________________ PREFERRED MAILING ADDRESS ______________________________________________________________ ______________________________________________________________

SP

OU

SE

PE

RS

ON

AL

DA

TA

NAME OF SPOUSE ___________________________________________________________________________________________ LAST NAME FIRST NAME MIDDLE NAME DATE OF BIRTH (dd/mm/yyyy) _________________________________ GENDER ______________________ CITIZENSHIP ______________ TIN NO. ______________ MOBILE NO ____________________ PERMANENT HOME ADDRESS _________________________________________________________________ _________________________________________________________________ COMPANY/EMPLOYER BUSINESS NAME ____________________________________________________ COMPANY/EMPLOYER BUSINESS ADDRESS ____________________________________________________ ____________________________________________________

DO

CU

ME

NT

S

AT

TA

CH

ED

GOVERNMENT ISSUED IDS _________________________ OTHER IDS __________________________________ 2 PCS OF 2 x 2 ID PICTURES OTHER DOCUMENTS __________________________________________________________

I/We certify that the foregoing information/statements are to the best of my/our knowledge, true, correct and complete. ________________________________ _______________________________ Signature of the Applicant/Date Signed Signature of the Spouse/Date Signed

FOR GSIS USE ONLY Signature of GSIS Representative Received by:

Printed Name/ Position Date Received:

THIS FORM CAN BE REPRODUCED, NOT FOR SALE

Attach here

2 x 2 ID photo

of bidder


Annex D



COMPANY / CORPORATE PROFILE

BUYER’S

INF

OR

MA

TIO

N

NAME OF COMPANY / PARTNERSHIP / CORPORATION ____________________________________________________________________________________________ CITIZENSHIP ______________________________________________ CONTACT NOS. OFFICE _____________________ MOBILE _______________________ TIN NO.__________________ PRINCIPAL OFFICE ADDRESS __________________________________________________________________________________ __________________________________________________________________________________

DO

CU

ME

NT

S A

TT

AC

HE

D

CORPORATION:

Articles of Incorporation duly certified by the SEC General Information Sheet duly certified by the SEC By Laws duly certified by the SEC General Information Sheet duly certified by the SEC PARTNERSHIP Articles of Partnership duly certified by the SEC General Information Sheet duly certified by the SEC SOLE PROPRIETORSHIP Registration Certificate from the Department of Trade and Industry COOPERATIVES Cooperative Development Authority Registration or any proof of such registration Current Mayor’s permit issued by the city or municipality where the principal place of business of the winning bidder is located Duly notarized Special Power of Attorney OTHER DOCUMENTS __________________________________________________________

I/We certify that the foregoing information/statements are to the best of my/our knowledge, true, correct and complete.

__________________________________________________________________ Signature of the duly authorized Representative over printed name / Date Signed

FOR GSIS USE ONLY

Signature of GSIS Representative Received by:

Printed Name/ Position Date Received:

THIS FORM CAN BE REPRODUCED, NOT FOR SALE


Annex D.1


REPUBLIKA NG PILIPINAS

PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) Financial Center, Roxas Blvd., Pasay City, 1308

___________________________________________________________________________ REAL PROPERTY ACCOUNTS MANAGEMENT DEPARTMENT

NOTICE OF APPROVAL OF SALE (Cash Payment)

Date MR/MS. _____________ ____________________ Dear Mr/Ms. _________, This refers to your offer to buy the property with the following details:

Location Registered Owner

TCT No. Area Selling Price

This Notice of Approval of Sale (NOAS) is issued subject to the following terms and conditions:

1. That you shall pay the 10% of the bid amount as deposit upon receipt of this NOAS.

2. That the amount paid as deposit shall be deducted from the agreed selling price.

3. That the balance amount (agreed selling price less the non-refundable deposit) shall be payable either in cash or Manager’s Checks within thirty (30) calendar days, without the privilege of extension, from receipt of the Notice of Approval of Sale. Failure to do so will result in the cancellation of this Notice of Approval of Sale;

4. That you shall submit the other required documents within fourteen (14) calendar days from receipt of NOAS.

5. That the property shall be sold on an “AS IS, WHERE IS” basis.

6. That you will take possession of the property without seeking assistance from GSIS.

7. That by signing your conformity below, you acknowledge that : (a) You conducted an actual inspection of the property prior to your Offer;

Annex E


REPUBLIKA NG PILIPINAS

PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN (GOVERNMENT SERVICE INSURANCE SYSTEM) Financial Center, Roxas Blvd.,Pasay City, 1308

____________________________________________________________________________ REAL PROPERTY ACCOUNTS MANAGEMENT DEPARTMENT

NOTICE OF APPROVAL OF SALE (through External Financing Institutions)

Date MR/MS. _____________ ____________________ Dear Mr/Ms. _________, This refers to your offer to buy the property with the following details:

Location Registered Owner

TCT No. Area Selling Price

This Notice of Approval of Sale (NOAS) shall be subject to the following terms and conditions:

1. That you shall pay the 10% of the bid amount as deposit upon receipt of this NOAS.

2. That you shall submit the Letter of Guarantee (LOG) to GSIS, within forty-five (45) calendar days from receipt of this notice.

3. That you shall submit the other required documents to GSIS within fourteen (14) calendar days from receipt of this notice.

4. That the amount paid as deposit shall be deducted from the agreed selling price.

5. That you shall pay the deficiency amount directly to GSIS in cash or Manager’s Check, if there is any, (i.e., the difference between selling price (net of 10% deposit) and the amount stated in LOG), within thirty (30) calendar days from receipt of LOG by this Department including the amount stated in the LOG.

6. That the property shall be sold on an “AS IS, WHERE IS” basis.

7. That you will take possession of the property without seeking assistance from GSIS.

8. That by signing your conformity below, you acknowledge that : (a) You conducted an actual inspection of the property prior to your Offer;

Annex E.1


(b) The GSIS has fully disclosed to you all material information within its knowledge that may have legal implications, i.e., if the property is in the possession, or encroached upon by an adjacent property, of a third person. You will be solely responsible in instituting the proper court action, if necessary. The GSIS may assist you but only to the extent of providing documents or evidence which are in its possession; and

(c) You have accepted the physical and legal conditions of the property and have

waived the right to rescind or cancel the sale and ask for refund of payments made to the GSIS by reason of any defect therein.

9. That this Notice of Approval of Sale shall automatically expire and be cancelled if we do

not receive the Letter of Guarantee (LOG) within forty five (45) calendar days.

10. That in case of cancellation of this notice due to non-compliance with the terms and conditions stated above:

a. the amount paid as deposit shall not be refunded;

b. the property involved shall be disposed through public bidding; and

c. you may re-participate as interested buyer once the property is again disposed

through public bidding.

Thank you. Very truly yours,

_____________________________ Real Property Accounts Management Department Real Estate Asset Disposition and Management Office Buyer’s/Buyers’ Conformity: I/We fully understand that this APPROVAL shall only be in full force and effect after strict compliance with the above requirements and upon immediate payment of the non-refundable 10% deposit, the submission of the Letter of Guaranty (LOG) within 45 calendar days from receipt of this NOAS, and the payment of the deficiency amount within 30 calendar days from receipt of LOG. Otherwise, this Notice of Approval of Sale shall be rendered ineffective. Conforme: ___________________________ _____________________________



(b) The GSIS has fully disclosed to you all material information within its knowledge that may have legal implications, i.e., if the property is in the possession, or encroached upon by an adjacent property, of a third person. You will be solely responsible in instituting the proper court action, if necessary. The GSIS may assist you but only to the extent of providing documents or evidence which are in its possession; and

(c) You have accepted the physical and legal conditions of the property and have

waived the right to rescind or cancel the sale and ask for refund of payments made to the GSIS by reason of any defect therein.

8. That in case of cancellation of this notice due to non-compliance with the terms and

conditions stated above: a. the amount paid as deposit will be forfeited;

b. the property involved shall be disposed through public bidding; and

c. you may re-participate as interested buyer once the property is again disposed

through public bidding.

Thank you. Very truly yours,

_____________________________ _____________________________ Real Property Accounts Management Department Real Estate Asset Disposition and Management Office Buyer’s/Buyers’ Conformity: I/We fully understand that this APPROVAL shall only be in full force and effect after strict compliance with the above requirements and upon immediate payment of the non-refundable 10% deposit and the balance within 30 calendar days from receipt of the NOAS. Otherwise, this Notice of Approval of Sale shall be rendered ineffective. Conforme: ___________________________ _____________________________


POLICY AND PROCEDURAL GUIDELINES NO. 304-16 …

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Transcript of POLICY AND PROCEDURAL GUIDELINES NO. 304-16 …