SC CIRCULAR NO. 65-99, October 28, 1999

For the information and guidance of all concerned, quoted
hereunder is the Resolution of the Court En Bane dated October 19, 1999 in
Administrative Matter No. 99-8-12-SC Re: Motorcycle Loans for Process
Servers.

“A.M. No. 99-8-12-SC Re: Motorcycle Loans for Process
-Servers.

In a letter dated May 5, 1S9S, the Process Server Association
of the Philippines (PROSAPHIL) thru its President requested the Chief Justice
for the procurement of motorcycles for the use of process servers in the
interest of speedy service of summons and other court processes. The request was
forwarded to the Court Administrator and the Financial Management Office for
recommendation and report.

The Financial Management Office filed Memorandum recommending
approval of the request and stated that an estimated amount of seventy million
two hundred thousand pesos (P70,200,000.00) will be necessary to fund the
program. The FMO suggested that the grant of the loan should be made in batches
and that the succeeding batch of loans shall not be approved until after the
first batch shall have paid their loans in order not to deplete the resources of
the JDF.

The Court Administrator filed Memorandum on September 30, 1999
recommending the approval of the request and stating that the purchase of the
said motorcycles under the proposed Motorcycle Acquisition Program (MAP) may be
deemed part of the welfare and personnel development plan mandated by Section
31, Chapter 5, Subtitle A, pertaining to the Civil Service Commission of Title I
Book V of the 1987 Administrative Code Moreover, the use of funds from the
Judiciary Development Fund to finance personnel welfare program has been
previously allowed by this Court in a Resolution dated August 18, 1998 in
Administrative Matter No. 38-8-01-SC Re: Creation and Operation of the Supreme
Court Health and Welfare Plan. The Court Administrator recommended the following
guidelines for the implementation of the Motorcycle Acquisition Program (MAP) as
follows:

3. Recommendations:

We recommend the establishment of the Motorcycle Acquisition
Program (MAP) for the Process Servers of the lower courts and the Office of the
Court Administrator We also recommend the following:

1. The Office of the Court Administrator should be tasked to implement the
   Program;

2. The Court Administrator should be authorized to approve the applications
   under the said Program;

3. The Court Administrator should issue a circular to inform all Process
   Servers interested about the Motorcycle Acquisition Program and the
   qualifications, terms and conditions; and

4. The Court Administrator should assign the appropriate personnel in the
   Office of the Court Administrate! to assist in the implementation and
   administration of the Program.
   and proposed the following qualifications,
   terms and conditions for the availment of motorcycle loans by process
   servers:

(1) The employee must be a holder of a permanent item in the
Judiciary,

(2) The employee must be appointed to a Process Server
position;

(3) The employee must have rendered at least three (3) years of
continuous service in the Judiciary;

(4) The employee must be fifty-nine (59) years of age or less
as of the date of the application for the motorcycle.

(5) The employee must have no pending administrative or
criminal case as of the date of the application for the motorcycle loan;

(6) The employee must have a minimum total of thirty (30) day;
of earned vacation and/or sick leave credits as of the date of the application
for the motorcycle loan and 50% of such minimum total must always be maintained
and may be used only by the employee concerned for valid and meritorious reasons
as determined by the Court Administrator.

(7) only the cost of the motorcycle shall be advanced from the
Judiciary Development Fund The employee shall shoulder the costs of forwarding
or freightage, if any; registration charges, insurance premiums as well as other
incidental expenses. The employee shall also be responsible for the costs of
maintenance and repair of the motorcycle.

(8) The cost of the motorcycle shall be amortized over a period
of three (3) years. For this reason, the employee must render service obligation
in the Judiciary for three (3) years immediately after receipt of the motorcycle
during which period the installments shall be deducted monthly from his salary
All payments shall accrue in favor of the JDF.

Should the employee fan to render the required three -year
service obligation through his own fault, negligence, unsatisfactory or poor
performance or other causes within his control resulting in the nonpayment of
the full cost of the motorcycle; or should the employee resign, transfer to an
agency or office under another branch of Government, voluntarily retire, or be
separated/removed from the service, the entire unpaid balance shall become due
and payable

(9) The deductions from the salary of the employee must not
reduce his monthly take home pay to an amount lower than P2,000.00 after
deducting all other statutory deductions (in accordance with the provisions of
Section 36, General Provisions of the General Appropriations Act for 1999).

(10)The PROSAPHIL shall not in any manner collect or charge
fees of any nature (processing, etc.) from Process Servers applying for a
motorcycle under the Motorcycle Acquisition Program).

This Court hereby APPROVES the request of PROSAPHIL for the
adoption of the Motorcycle Acquisition Program, as recommended by the FMO and
the OCAD, with the following additional terms and conditions for the availment
of motorcycle loans:

1. The applicant is a licensed motorcycle driver;
2. a co-maker/guarantor processing the same qualifications required under terms
   and conditions nos. 1,3,4,5 and 6 and with a salary grade equal to or higher
   than that of the applicant should be required to guarantee payment of the
   loan.

October 28, 1999.