DA-QUEDANCOR-NFA FARM LEVEL GRAINS CENTER-WORKING CAPITAL LOAN (FLGC-WCL) PROGRAM

Circular No. 100, Series of 1999, on the DA-QUEDANCOR-NFA Farm Level
Grains Center-Working Capital Loan (FLGC-WCL) Program is hereby amended
with respect to the following items:

x               x                      x

5.         STATEMENT OF POLICIES

x               x                      x

5.3       Security/Collateral arrangements

The loan shall be secured by any or a combination of the following:

5.3.1        Real Estate Mortgage;

5.3.2        Chattel Mortgage on motor vehicle/farm implements/post-harvest facilities; or

5.3.3        Joint and Several Signatures (JSS) of at least
three (3) officers and Hold-out deposit equivalent to ten percent (10%)
of the total loan principal. In the event of change in officer, the
cooperative shall sign a new JSS.

Issuance of post dated checks for their amortization is required.

x               x                      x

5.6           Interest Rate, Term and Mode of Payment

The loan shall bear an interest of fourteen percent (14%) per
annum, payable in five (5) years on a semi-annual mode of payment.
Interest for the first six (6) months shall be deducted from the
loan proceeds while the succeeding interest shall be imputed in the loan
amortizations and shall be computed based on diminishing principal
balance.

x               x                      x

6.         MECHANICS OF IMPLEMENTATION

x               x                      x

6.3       Processing of Loan

6.3.1        Application for FLGC-WCL shall be submitted by
accredited applicant directly to the QOO together with the following
documents:

—      Project Proposal (PFS 3)
—      Certificate of Accreditation
—      Applicable Security/Collateral documents pursuant to Section 5.3 herein

Real Estate

—      Transfer Certificate of Title (TCT)
—      Tax Declaration
—      Official Receipts (OR) of latest realty tax payments for land and improvements
—      Lot Pan and Vicinity Map
—      Insurance Cover on improvement, if applicable

Chattel

—      Certificate of Registration/Proof of Ownership
—      OR of latest payment of registration fee, if applicable
—      Insurance policy cover and OR of premium payment, if applicable

JSS

—      Income Statement and Statement of Assets and Liabilities for the previous year

6.3.2 x                  x                     x

6.3.3 x                  x                      x

6.4       Loan Documentation

Proper documentation shall be the responsibility of the
Quedancor Regional Office. This shall include the Loan Application Form
(LAF) CER, PN, LPM, Comprehensive Surety Agreement/Real Estate
Mortgage/Chattel Mortgage and other applicable collateral documentation.
The mortgage shall be properly registered with the concerned government
agencies.

The RAVP shall ensure that the original loan documents shall be
received at POD within three (3) working days from release of loan for
safekeeping by Custodian in accordance with the SOP on Centralized
Filing and Safekeeping of loan and Collateral Documents.

x               x                      x

8.         EFFECTIVITY

This Circular shall take effect immediately.

Adopted: 16 Sept. 1999

(SGD.) GALO B. GARCHITORENA
President & CEO