Members Handbook

AirAsia Employees Credit Cooperative AECC AECC AECC AECC AECC AECC AECC AECC Member's Handbook

About Us: LOAN NOW! The AirAsia Employees Credit Cooperative (AECC) is a primary savings and credit cooperative registered with the Cooperative Development Authority (CDA) on 29 March 2017, with an authorized capitalization of Php 10M and with 67 original cooperators. It started its loaning operations on 22 June 2017 with a capital of Php 756 K. This cooperative was conceived as a viable business endeavor for all regular employees of Philippines AirAsia Inc. to address their financial concerns. By 14 June 2019, the CDA approved the increase in its authorized capitalization from Php10M to Php6OM. By 31 Dec 2018, RHCC had a total asset of almost Php23.12M, with 651 members. LOCATION YOU CAN CONTACT US OTHERS THROUGH ALPAP Headquarters, [email protected] Andrews Avenue, Pasay City 09153876130 Red Horizon Satelite Office 7119-4128 Red Horizon Credit Red Point Headquarters, Cooperative NAIA Terminal 3, Pasay City

COMPANY The most relevant, reachable and responsive provider of financial services for RHCC stakeholders. We provide financial services to promote the common welfare of all stakeholders and the RHCC community. We encourage thrift and savings among members so that each individual may achieve financial stability; We offer providential and productive loans at viable interest rates; We operate transparently through good governance and highest ethical standards, We are committed to organizational development and continuous improvement; We are dedicated to serve and create increased value to all stakeholders; o We adhere to the universally accepted.cooperative principles. We believe in treating our customers with respect. We grow through creativity and innovation. We integrate honesty, integrity, business ethics and social responsibility into all aspects of our business functioning. Increase the assets of the cooperative and develop a strong membership base to support the development of services. Build a good reputation in providing financial services to its members to become their cooperative of choice.

SERVICES OFFERED! AECC services include capital contribution build-up, savings and time accounts, and, providing loans of up to 12- month terms





A. Qualification for Membership Membership of this Cooperative is open to all Filipino Citizen of legal age and a regular employees of Philippines AirAsia Inc. Which employees are in agreement with its purposes and its By-Laws. The prospective member should: 1. Pledge to undertake the responsibilities of a member. 2. Complete the prescribed Pre-Membership Education Seminar 3. Use or anticipate to use the services of the Cooperative more particularly the Savings and Loaning Services and other Allied Services relative thereto. B. Types of Membership and their Rights 1. Regular Member - Those who are entitled to all the rights and privileges of membership including the right to vote and to be voted upon, and have the following rights: a. Participate in the deliberation during Membership Meetings. b. Vote on all matters brought before such meetings. c. Seek any elective position, subject to the provisions of Section Section 12 Article III of the AECC By-Laws. d. Avail himself of the services of the cooperative without any discrimination whatsoever upon compliance with the conditions and requirement thereof. e. Entitlement to Vote or be Voted Upon. 1. Has paid the required membership fee of Php 300.00 and the 25% value of his/ her minimum subscription. 2. Is not delinquent in the payment of his capital contribution and loan obligation. 3. Has a maintaining balance of Php 1,000.00 in his/her Savings Account. 4. Has attended and completed the prescribed Pre-membership Education Seminar.

5. Patronizes regularly the business of the cooperative and participates in its parliamentary affairs. 6. Complies with all obligations, duties, and undertakings of membership. 7. Has not violated any provision of the AECC By-Laws; Rules and Regulations, Circulars/ Memoranda and other issuances of the CDA; membership and subscriptions agreements and other instruments required of him/her to execute as provided in the By-Laws; or, as prescribed by the Board of Directors. 2. Associate Member - Those who have no right to vote or to be voted upon. C. Application for Membership 1. The application for membership shall be made in writing on a form provided for the purpose and shall be presented to the Board of Directors for action. The application shall be accompanied by a membership fee of Three Hundred (Php300.00) which may be adjusted by the Board from time-to-time and shall be returned to the applicant in case of rejection. 2. The applicant shall subscribe to at least TWO HUNDRED (200) shares with a total value of Php 20,000.00 of which at least Five Thousand pesos (Php 5,000.00) corresponding to Fifty (50) Shares shall be paid upon submission of the application for Membership. For pilots, the applicant shall subscribe to at least FOUR HUNDRED (400) shares with a total value of Php 40,000.00 of which at least Ten Thousand Pesos (Php 10,000.00) corresponding to One Hundred (100) shares shall be paid upon submission of the application for Membership.

D. Duties of a Member 1. Pay the Installment on capital stock subscription as it falls due and participate in the capital build-up of the Cooperative. 2. Patronize regularly its business. 3. Attend and participate in its parliamentary affairs. 4. Attend the Membership Meetings, Regular or Special 5. Obey all the Rules and Regulations provided by R.A. 9520, RHCC By-Laws, the decisions of the general assembly and the Board of Directors, and policies and decisions that may be promulgated by the Cooperative Development Authority (CDA). 6. Promote the aims and purposes of the cooperative, the success of its business, the welfare of its members and the cooperative movement as a whole. The Board may determine additional duties that may qualify members of good standing. It is my responsibility to put up share capital, I have the right to receive dividends. and build-up on capital contribution. I have the right to elect RHCC Officers. It is my responsibility to vote I have the right to be elected. It is my responsibility to fulfill my duties as a member and/ or as an officer. I have the right to participate. It is my right to receive patronage refund and It is my responsibility to attend meetings and to participate in its parliamentary affairs. it is my right to avail of the coop services, I have the right to borrow. It is my responsibility to patronize the goods and services of the coop. I have my responsibility to pay back loans It is my responsibility to promote the coop and work for the coop. It is my responsibility to help the members and the community.

FAQS Frequently Asked Questions Q. What is a cooperative? A. A Cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. The Cooperative Development Authority (CDA) is the government agency in- charge of the registration and regulation of cooperatives. Q. What is a credit cooperative? A. A Credit Cooperative is one that promotes and undertakes savings and lending services services among its members. it generates a common pool of funds in order to provide financial assistance to its members for productive and provident purposes. Q. Who may become members of AECC? A. All Filipino citizen and a regular employee of Philippines AirAsia Inc., including those who are assigned/ based in AirAsia Malaysia, Kota Kinabalu and other AirAsia hubs. Q. How can I apply for membership? A. 1. Fill-out RHCC membership application form; 2. Pay the Membership Fee of Php 300.00; 3. Subscribe to at least the minimum required subscription of at least ONE HUNDRED (100) shares with a total value of (Php 10,000) of which at least (Php 100) corresponding to 1 share. 4. Must attend Online Pre-Membership Educ. Seminar (PMES) to acquire PMES Certificate.

FAQS Frequently Asked Questions Q. What happens to my membership status, If I resign from the company? A. The status of a Regular Member who has resigned from PAA but opted to continue membership in the coop is downgraded to that of an Associate Member. Q. What is a Share? A. The term Share refers to a unit of capital in a primary cooperative-for AECC the par value of which is One Hundred Pesos (Php 100.00) Q. What is Share Capital Contribution? A. The share capital of a cooperative is money paid or required to be paid for by members for the coop to conduct its operations. Applicants for membership shall at least ONE HUNDRED (100) shares with a total value of (Php 10,000) of which at least (Php 100) corresponding to 1 shares upon the approval of his/her membership. Q. What is Continuous Capital Build-up? A. The By-Laws of every cooperative provide for a reasonable and realistic program of capital build-up to allow the continuing growth of the members' investment in their cooperative. Q. What is Net Surplus? A. The net surplus of a cooperative is the income from its operations- i.e. Total Revenue less Total Expenses. The distribution and allocation of net surplus of RHCC is specified in its by-laws. Q. How is RHCC's Net Surplus Distributed? A. 30% statutory funds balance shall be distributed to members as patronage refund and intent on share capital.

FAQS Frequently Asked Questions Q. Is there a limitation on the subscription of share capital? A. No member shall own or hold more than ten per centum (10%) of the share capital of the cooperative. However, the management always takes into account the coop's liquidity. Q. What is Interest on Share Capital (ISC)? A. It is that part or portion of the profits of the cooperative set aside, declared and ordered by the Board of Directors to be paid ratably to the members at fixed time. Q. When is the payment of ISC made? A. Payment shall be made on the day after the Chairman has announced the rate of ISC to the general assembly. Q. What is Patronage refund (PR)? A. It is that part or portion of the profits of the cooperative set aside, declared and ordered by the Board of Directors to be paid to all borrowers of good standing in proportion to their individual patronage. Q. When is the payment of PR made? A. Payment shall be made on the day after the Chairman has announced the rate ISC to the general assembly only to those members who have paid their loan obligation in full.

FAQS Frequently Asked Questions Q. What are the coop's services? A. 1. Capital Contribution: Issued to Regular Members Only Common Shares Minimum subscription is detailed in para C2 above; Interest is based on CDA prescribed computation Preferred Shares Issued to Associate Members; Minimum subscription is Php 10,000.00 Interest is based on CDA prescribe computation Savings .005% p.a., compounded quarterly Maintaining balance is Php 1,000.00 Time Deposit Minimum of Php 20,000.00 Interest rates: 1-Yr. Term: 3% p.a. 2-Yr. Term: 4% p.a. interest is computed on maturity. Q. How do I apply for loan? A. Hereunder are the steps to be undertaken when applying for loan: 1. Enlist as a member; 2. Fill-out AECC Loan Application Form; 3. Fill-out BDO Auto-Debit Authorization Form; 4. Submit complete loan requirements; 5. Should have 1 co-maker as being implemented this CY 2022 Q. What are the loan requirement? A. Hereunder are the requirement: 1. Completed RHCC Loan Application Form; 2. Should be enrolled in BDO ADA; 3. Print-out of four (2) consecutive latest pay slips; 4. One (1) latest 2x2 ID Picture; 5. Photocopy of Company ID with 3 signatures; 6. Photocopy of one (1) government ID with 3 signatures; 7. Photocopy of ATM with 3 signatures;

FAQS Frequently Asked Questions Q. What are the requirement for the co-maker ? A. Hereunder are the requirement: 1. (2) latest payslip 2. Government ID and Employee ID Q. What is a VALE Loan? A. VALE loan stands for Very Affordable Loan for Emergency Use, enable client to immediately loan depends on its 80 % of the Capital Contribution, and it is payable within 3 months. Q. What are the requirements of a VALE Loan? A. Hereunder are the requirement: 1. Visit the Office to fill-up and complete the VALE Loan form. 2. Company and Government ID. 3. (2) latest payslip. Q. What are the available loan terms ? Who determines the term of my loan? A. Loans are payable in 3 months, 6 months, 9 months and 12 months. Loan terms are determined by AECC management. Longer terms are subject to Board approval. Q. What are the modes of paying my loan obligation? A. RHCC accepts BDO auto-debit remittances or Post-Dated checks (PDCs only) Q. When is my first payment due? A. For new loans , the next scheduled pay day, provided such date is not less than 7 days from the date of loan check. For loan renewals, the deduction is continuous.

FAQS Frequently Asked Questions Q. How is my paying capacity determined? A. The computation of paying capacity is based on the basic salary less the total deduction (where withholding tax shall be based on the BIR Table). Allowances are not included in computing the paying capacity. After determining the net pay only 80% of the 60% of net pay of the borrower is considered. Setting the credit limit for a borrower is specified in AECC credit & Collection Policy Nr 1, 2nd Edition dated 15 June 2019. Q. Can I use my capital contribution as collateral? A. AECC members may apply for loan with their capital contribution as collateral. Amount of Gross Loan that may be granted to these applicants shall be equal to their existing capital investment. Mode of payment shall be thru ADA or PDCs. The assigned Capital Contribution cannot be withdrawn until the total outstanding balance is paid in full. Q. Why is there a deduction for Capital Build-up and savings in my loan computation? A. As part of the Cooperative's Policy on Capital build-up, loans borrowed from the cooperative require a one percent (1%) build-up fund. This means that the borrower will have to add the equivalent of 1% of the loan principal into his share Capital Contribution (or Php500.00 whichever is higher), payable in full open release of loan. In addition, to be included in the loan monthly amortization is an amount of not less than Php200.00 per month shall be added, as savings build-up of the member-borrower. Q. When is my loan payment considered due and demandable? A. The payment for the month should be made on or before the last day of the payment month.

FAQS Frequently Asked Questions Q. What will happen if my payment is made on the following month? A. Surcharges are imposed to those borrowers that cannot pay their monthly amortization on due date. Q. Is my investment ensured by PDIC? A. As had been explained on disturbing the net surplus of the cooperative, an amount for the reserve fund shall be at least ten per centrum (10%) of the net surplus, provided, That, in the first five (5) years of operation after registration, this amount shall not be less than fifty per centrum (50%) of the net surplus. The reserve fund shall be used for the stability of the cooperative and to meet net losses in its operations. The general assembly may decrease the amount allocated to the reserve when the reserve fund already exceeds the share capital. Any sum recovered on items previously charged to the reserve fund shall be credited to such fund. The reserve fund shall not be utilized for investment, other than those allowed in R.A. 9520. Such sum of the reserve fund in excess of the share capital may be used at anytime for any project that would expand the operations of the cooperative upon the resolution of the general assembly. Q. What are the advantages in investing and acquiring loans in coop? A. As seen in the distribution of net surplus, cooperatives do not retain earnings. As such, all net surplus is distributed in the statutory funds and the members thru interest on share capital and patronage refund. with this, cooperatives are able to give higher percentages of interest on share capital. Patronage refund is a portion of the interest paid to the cooperative by good- paying borrowers which is given back to them in cash, after paying their obligation in full. Rated depend on the audit period they paid such interest.

FAQS Frequently Asked Questions Q. What do we expect from RHCC in the future? A. The Board of Directors has programmed to continuously develop new services to serve our client better. Hope this address some of your queries! LOAN NOW!

AS A FILIPINO I AM AND I BELIEVE IN THE COOPERATIVE ALONE AND I AM WEAK BUT WITH OTHERS I AM STRONG SO I COMMIT MYSELF TO WORK, TO COOPERATE FOR ALL TO BE PROSPEROUS HARMONY, INDUSTRY I WILL VALUE COOPERATIVE AFFAIRS I WILL ATTEND RESPONSIBILITIES, I WILL ASSUME THE COOPERATIVE PHILOSOPHY, I WILL LIVE ONE VISION, ONE BELIEF, ONE FEELING IN COOPERATIVISM, MY LIFE I PLEDGE SO HELP ME GOD. RHCC BOARD OF DIRECTORS SATURNINO A VILLANUEVA Chairman of the Board DARREN ADRIAN N ACCORDA RAYMUND PANCRACIO M MURILLO Vice-Chairman Directors RYAN JAKE Y CACDAC NICHOLAS VAN J APAO Directors Directors LUKE MELCHOR O MARTEM ALAN O ROQUE Directors Directors