XUCCCO

Xavier University Community Credit Cooperative
A HISTORICAL PERSPECTIVE

By Jessica D. Salon

In 1985, Fr. Ernesto O. Javier, S.J., then Xavier University President, saw the need for an organization that would help the university employees meet their financial needs without borrowing from usurers or resorting to frequent cash advances. He proposed to set-up the “XU Employees Fund” into which the community could pool their savings together and thereby help one another avail of loans in times of need. He requested Dr. Anselmo B. Mercado to draft a concept paper for this.

In 1986, a Committee was formed and drafted the rules and regulations of XU Employees Fund. The members of said committee were: Dr. Anselmo B. Mercado, Fr. Ernesto O. Javier, S.J. Mr. Rico Quilab, Mrs. Carol S. Tandog, Mrs. Ana Maria Y. Villaranda, Mrs. Lolita Cañizares, Miss Lumen Teodoro, Dr. Agustin Cabrera, Mrs. Rose Racines, Mrs. Henie B. Paylangco, Mrs. Bern Geveso, and Mrs. Annabelle Acedera.

On September 4, 1987 Fr. Ernesto O. Javier, S.J. happily announced that the XU Employees Fund was ready to start with its three-fold objectives, namely: a) to encourage the virtue of thrift among members; b) to extend loan facilities; and c) to give mutual assistance and aid to the members of the FUND.

Thus, the Xavier University Community Savings and Loan Fund (XUCSLF), briefly known as the “The Fund” was born with a seed capital of P50,000 donated by Xavier University (P30,000) and XU Parents and Faculty Association (P20, 000).

In the beginning, “The Fund” had 116 members composed of XU employees from the Grade School, High School, College Faculty, Library Staff, Office Staff, Janitorial, Maintenance and Security groups. Other Non-XU Employees belonging to XU-related organizations like the RIMCU, Canteen, MILAMDEC, and Xavier Science Foundation were eventually accepted as members.

1987

Atty. Florentino Dumlao, Jr. was formally elected as the first president of XUCSLF with the following officers: Dr. Anselmo B. Mercado, Mrs. Bernadette Geveso, Mrs. Magdalena Cabaraban, Mr. Jacinto Alingasa, Mr. Charles Culanag, Mrs. Teresa Roa, Dr. Agustin Cabrera, Mr. Rogelio Yeban, Engr. Eduardo Llosa, Mrs Ana Maria Villaranda.

Mrs. Ma. Teresa Roa, was appointed as the first manager, to Managed “The Fund”.

1988

A Memorandum of Agreement (MOA) was signed between Xavier University (represented by Fr. Javier) and XUCSLF (represented by Atty. Dumlao) on January 29, 1988 regarding the commitment of Xavier University to course through payroll deduction at the Finance Office the capital contribution, savings and loan payments of members of “The Fund”. Such MOA provided further that in the event a member resigns or retires from the University, the latter shall facilitate the collection of the amount such member owes from XUCSLF. A similar MOA was eventually signed between The Fund and RIMCU, Xavier Science Foundation, Canteen, and much later with MILAMDEC.

XUCSLF opened an account at the Bank of Philippine Islands (BPI) South Divisoria Branch with an Automatic Transfer Account (ATA).
Lending operation started in February
As of March 31, 1988 total assets was P138, 941, with P43, 067 and P41,510 coming from share capital contribution and savings deposit, respectively. A net loss of P1,014.47 was reported.
A student assistant (Aniceta Caracal) was hired to assist the finance officer in bookkeeping. Later she was hired as full time Manager.
XU assigned the College of Law Library stockroom at the 2nd floor of Xavier hall for “The Fund’s” Office.

1990

Dr. Anselmo B. Mercado was elected as second President of XUCSLF.

In February 24, 1990, The General Assembly voted upon and adopted the Code of By-Laws of XUCCCO.
Members applying for housing deposited to XUCSLF P5,000 Commitment fee per member for University Housing Project.

XUCSLF became a member of the Social Security System (SSS) with I.D. number 08-0920747-3.
First distribution of dividends and patronage refunds with the rate of 10% and 5.4% respectively
First payment of interest on savings deposits to members was fixed at 9%.
Total assets was P1,170,128, total loans granted to members was P1,705,885 with 376 borrowers, share capital reached P333,302, savings deposits was P632,777.
Membership in XUCSLF reached 335

1991

“The Fund” applied for a cooperative status with the Cooperative Development Authority (CDA). The application was approved on April 12, 1991 with the name: Xavier University Community Credit Cooperative (XUCCCO) with registration number 033-CGY.

XUCCCO logo designed by Mr. Rafael Palo, with the slogan: “Unity, Strength and Growth” was formally adopted.

Petty Cash loans started to provide more loan service to the members. The maximum loanable amount of P300 was payable within one month with no service fee. However in 1992 a 1-percent service charge on petty cash loans was implemented.
A policy on new LOAN interest rates was implemented:

Term of Payment	Interest Rate per annum
1 year	9.75%
1 & ½ years	13%
2 years	14%

XUCCCO was invited by the Philippine Federation of Credit Cooperatives (PFCCO) to become a member. XUCCCO invested P5,000 and started to pay its annual dues and the yearly contribution of the Cooperative Education and Training Fund (CETF) as requirements for membership with PFCCO.
Transferred its account from the Bank of Philippine Island (BPI) South Divisoria branch to the Development Bank of the Philippines (DBP).

1992

Ms. Lovenia P. Naces was elected as Third Chairperson of the Board of Directors.

XUCCCO was certified by PFCCO on May 30, 1992 as a fullfledged member of the World Council of Credit Unions (WOCCU) and the Asian Confederation of Credit Unions (ACCU) with official affiliation number 515-NM-CC.

XUCCCO actively participated in the Coop Month Celebration (Oct. 15 –Nov 14). It was in-charge of some of the activities for the celebration such as Essay Writing Contest, Extemporaneous Speech and Oratorical Contests.
BPI required higher daily maintaining balance and lower interests rates on deposits than DBP.
Henceforth, XUCCCO became the regular in-charge of the quiz bowl, essay, and oratorical contests every Co-op month
A computer unit worth P62,000 was acquired.3 A program (worth P50,000) with a 5-year life span was designed for XUCCCO’s operation by Mr. Jose de la Cerna. Such program had a lifetime warranty and was subject to review and modifications from time to time to suit the needs of XUCCCO.
The office was temporarily housed at the office of Dr. Imelda G. Pagtolun-an at the first floor of the Social Science Building to protect the computer from heat. The previous office space that was directly hit by afternoon sunshine was not suited for computers.
On May 4, 1992, XUCCCO borrowed P20,000 from Xavier University (through Fr. Ben Nebres, S.J. at 7% interest rate per annum) to beef up its capitalization for petty cash loan services.

1993

The request of XUCCCO to have a permanent office at the 2nd floor of the Lucas Hall Building was granted by Fr. Ben Nebres, S.J., then President of Xavier University.

Chairman Lovenia Naces was elected as a member of the PFCCO National Council (Council member at-large4).
The General Assembly approved the increase for Regular Loans from P15,000 to P18,000 and for Petty Cash Loans from P600 to P1,000.

On March 15, 1993, XUCCCO negotiated another loan from XU through Fr. Ben Nebres, S.J. amounting to P100,000. The request was granted and the amount was released on March 17, 1993 at 10% per annum.

1994

Mr. Mario D. Ayudtud was elected as Fourth Chairman of the Board of Directors of XUCCCO.

The computerization committee, which negotiated for the hardware and program, customized for XUCCCO was headed by Dr. Imelda Pagtolun-an. Other members were Anselmo Mercado, Lovenia Naces, and Edgardo Palasan. 4 A Council member-at-large, unlike the Regional Representatives who are elected in the regional level, represents the PFCCO members regardless of region, therefore, such officers (there are two slots in the Council reserved for them) are elected by the General Assembly in the national level.

XUCCCO adopted an In-house Member’s Protection Program aimed at protecting member’s families from the burden of bad debts in the event of the death or permanent disability of a member.
The Coop Laboratory5 was launched by XUCCCO to enable the students of Xavier University (XU) to open a savings account in the coop and to develop thrift among students through the savings mobilization program.
Medical loans up to P3,000 was made available to members for their medical-related needs/expenses. These loans were payable in one year.
XUCCCO hired an additional office staff (Jessica Salon) to provide better service to members.

1995

XUCCCO was registered as PAG-IBIG Fund member.

Extended the Light and Water installation loans (P2,500) per loan for Xavier heights housing beneficiaries payable within 6 months. The loan fund for this purpose came from a soft loan (worth P100, 000 which was later increased to P150, 000) extended by Xavier University to XUCCCO.

The family of the deceased Mrs. Estrellita Fe Rodriguez of XU Grade School, was the first recipient of the In-house Insurance Program in the amount of P30,000.
The Coop Laboratory was finally organized. First officers were college students: Mr. Philip Oliver C. Rubi, Mr. Jermy Prenio, Miss Marianne Jayag, Miss Melinda Orion, Miss Dahly Rose Juagfao.
Regular Loans increase from P18,000 to P25,000 while Petty Cash Loans increased from P1,000 to P2,000.
On Feb. 25, 1995, XUCCCO availed of a P100,000 loan from PFCCO at 13.5% per annum with a service charge of 1.5%.
On May 1995, CENTRACE invested P30, 000 in XUCCCO.
On June 25, 1997 XU (through Fr. Antonio Samson, S.J.) deposited P200, 000 to XUCCCO at a negotiated interest rate of 10% per annum.
XUCCCO Board member Lovenia Naces was re-elected as member of the PFCCO National Council.

1996

Mr. Jaime J. Lachica was elected as Fifth Chairman of the Board of Directors of XUCCCO.

XUCCCO converted its In-house Insurance Program to the Cooperative Insurance System of the Philippines (CISP).
XUCCCO became affiliated with the Cagayan de Oro Cooperative Development Council.

The General Assembly approved a Multi-Purpose Loan of P10,000 for house repairs, appliance, educational, income generating and others.
A policy was approved to set aside a Scholarship Fund for XU students from the yearly dividend earnings of the P50,000 seed capital (donated at the time of organization)
Approved a policy where retired members may continue as special depositors of XUCCCO.
The co-op laboratory was renamed Xavier University Laboratory Cooperative for Savings (XULCOS).
Smart and Extelcom Company offered XUCCCO as a dealer of their cellphones.
XUCCCO Director Lovenia Naces became the founding president of the Northern Mindanao Research Council for Cooperative Development.
Nov. 22-26, 1996, XUCCCO sent a delegate (Mr. Philip Oliver C. Rubi ) to the training for future leaders in credit union held at Sukabumi, Indonesia. His expenses were co-sponsored by Fr. Antonio J. Ledesma, S.J., Fr. Antonio S. Samson, S.J., Philippine Federation of Credit Cooperatives, Xavier University College of Arts & Sciences ParentsTeachers Association, XU Student Government and XUCCCO.

1997

United Coconut Planters Bank-Coconut Industry Investment Fund (UCPB-CIIF) Foundation, Inc. accredited XUCCCO as a qualified conduit for cooperative members with an initial credit line of P500,000. XUCCCO, however, does not yet feel the need to avail of this credit line.

XUCCCO was granted a P300,000 loan by PFCCO at 10% interest rate per annum and 1-% service charge.

The assembly approved the following:

- PABAON to the RETIREE PROGRAM where members contribute P200 for each of the members retiring from XU;
- Amendment to the In-house Insurance Program where instead of each member giving a P20- premium per quincina, members will donate P100 per member to the family of a member who dies. Such donation will be charged to each member’s savings.
- Members shall donate P25 per member to a fellow member in the event of death of any of his immediate relative.

- Approved the new loan ceilings as follows:

Type of Loan	From	To	Term of Paymt
Regular	P25,000	P40,000	3 yrs.
Multi-Purpose	P10,000	P12,000	2 yrs.
Medical	P3,000	P5,000	1 yrs.
Petty Cash	P2,000	P3,000	3 mos.

- The General Assembly approved a new loan service to provide Emergency Loan of P500 to members. The Board was tasked to formulate guideline on this loan.

The family of Ms Thais Dumpa of the Counseling Department was the first recipient of the Death Aid Program in the amount of P11,375.
Dr. Agustin Cabrera and Lt. Nicolas Pascua of the Graduate School and Security Department respectively were the first recipients of the Pabaon to the Retiree Program in the amount of P70,400 each.

1998

The 1998 General Assembly approved the following:

- To increase the authorized capital from 1 to 50 million pesos;
- To annually increase each member’s capital share from P500 (1997) to P1,000 (beginning 1998 and yearly thereafter).
- To increase allocation to Reserve Fund from 10% to 20% for the fiscal year 1998 only to be reviewed thereafter.

- To allocate 0.2% of the total loans outstanding from the annual net surplus for Provision for Bad debts.
- The General Assembly approved increase of ceilings on the following types of loans:
- Members shall donate P25 per member to a fellow member in the event of death of any of his immediate relative.

- Approved the new loan ceilings as follows:

Type of Loan	From	To	Term of Paymt
Regular	P40,000	P50,000	3 yrs.
Multi-Purpose	P12,000	P15,000	2 yrs.
Medical	P5,000	P7,000	1 yrs.
Petty Cash	P3,000	P5,000	5 mos.

- The General Assembly approved a new loan service to provide Emergency Loan of P500 to members. The Board was tasked to formulate guideline on this loan.

Dr. Anselmo B. Mercado was elected as Sixth Chairman of the Board of Directors of XUCCCO.
XUCCCO obtained a Taxpayer Identification Number (TIN) 004-995- 737 from the Bureau of Internal Revenue (BIR).
The Computer system was upgraded under contract with Mr. Jose dela Serna in the amount of P35,000.
Board Member Lovenia Naces was chosen as the third nominee for the ALL-COOP Party-list during the 1998 national elections.
In August, officers Clarrisa Lagura, Socorro Ramos, and Lourdes Oñate joined the SEARSOLINERS in Women in Cooperative Development Training.
In October, during the Cooperative Month Celebration, the CDA awarded XUCCCO the 1998 Most Outstanding Award for Credit Cooperatives in Misamis Oriental for 1998.
The Board officially approved the contractual services of a legal counsel (Atty. Ariel Tizon).
The board passed a resolution to pay rebates of loan interest to member who pay their loans in advance.

1999

Mr. Isagani B. Daba was elected as Seventh Chairman of the Board of Directors of XUCCCO.

The MANCOM ( Management Committee) was created to oversee the operation of the cooperative. The members of the committee were Isagani B. Daba, Ma. Veronica I. Ortega, Feliciana A. Araneta, Agnes G. Cabizon. For the first time they met and tackled several issues such as: Loan ceiling, Deposit rates and the results of the psychological exam of applicants for XUCCCO Manager in replacement of Aniceta C. Dacup. Out of six applicants, four mustered the preliminary interview and were asked to undergo psychological tests. From the results of the test, three were chosen to undergo the final interview by the Board.

The board approved the recommendations of the credit committee for an increase in the ceiling of our services like, medical loan from P7,000 to P10,000. Any amount exceeding P7,000 shall be subject to the presentation of a hospital bill. The loan amount is P10,000 of the hospital bill whichever is lower. Regular loan increased to P60,000 from P50,000 and Multi-purpose from P15,000 to P20,000 during its regular monthly board meeting held last April 17, 1999.
Last April 22-25, Ma. Veronica I. Ortega, Nenita E. Esmejarda,Maximino Padua & Isagani Daba participated in the Seminar/Workshop/Conference of PFCCO during its Annual General Assembly held in Bohol Tropics, Tagbilaran City, Bohol to have an update on the issues, development of PFCCO.

The following were submitted by the MANCOM to the Board for approval during May 15, 1999 regular board meeting:

- Re-loan can be done after payment of 70% on the usual installment (in a normal procedure) assuming the balance is paid for in cash; provided further that releases of loan which were not paid earlier will take precedence than the re- loan.

Loan Interest rates and related polices.

Service	Interest
Charge	Rates
(discounted)	--

One Year term	1.0%	12.0%	Added to Principal
18-month loan	1.5%	12.5%	1st year interest added to principal and 6 months interest to be taken from savings at start of the 13th month.
Two- year loan	2.0%	13.0%	1st year interest Added to principal 2nd year interest to be debited from savings at start of the 2nd year.
Three year loan	3.0%	14.0%	1st year interest Added to principal 2nd and 3rd year interest to be debited from savings at start of the 2nd and 3rd year.

1. For Regular and Multi-purpose Loans only.
2. Borrower must save, through payroll deductions, an amount whose cumulative total should not be less than the subsequent period/year interest. The subsequent period interest shall be debited from savings.
3. In case of inability to pay the required installment, the unpaid installment shall be imposed the applicable interest, plus penalty of 1% per month (or fraction).
- - University personnel on probationary status may be accepted as member of XUCCCO and can avail of all the benefits due a member except the availment of loans.

The Chairman of the Board of the Directors Mr. Isagani B. Daba was elected as Chairman of the PFCCO – National. He carries a lot of responsibility and challenge taking into account the situation of the national office.
Our Cashier/OIC Ms. Beatriz O. Racines was hired last May 3, 2000
Last August 31, 2000 XUCCCO remitted to PFCCO amounted to P200,000 for pledges for the coop bank.
XUCCCO purchase a safe vault worth P7,370.00.

The table below summarizes the membership, assets, savings, capital contribution and net income growth of XUCCCO. It shows, XUCCCO’s growth over the years in financial, business and membership aspects.

	1988	1989	1990	1991	1992	1993	1994	1995	1996	1997	1998
Assets	P352T	738T	1.1M	1.7M	2.3M	3.0M	3.7M	5M	7M	9.5M	13.5M
Deposit	P182T	419T	632T	591T	751T	759T	806T	923T	1.8M	1.9M	2.9M
Capital	P92T	163T	333T	860T	1.2M	1.6M	2.2M	2.7M	3.5M	4.5M	5.6M
Net Income	P4T	P43T	P75T	P100T	P175T	P273T	P305T	P378T	P590T	P891T	1.08M
Members	247	303	335	393	426	443	432	447	468	503	529
Dividend			10%	10%	10.5%	13.5%	9%	10%	11%	13%	11.54%
Patronage Refund			5.4%	6%	7%	7%	14%	14%	13%	10.67%	10%

	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009
Assets	P17.6M	P27.1M	P34.3M	P39.9M	P45.5M	47.1M	P54.6M	P68.9M	P86.5M	P94.4M	118.1M
Deposit	P6.4M	P11.9M	P14.8M	P15.4M	P17.4M	P17.4M	P18.8M	P24.8M	P26.8M	P27.6	38.5M
Capital	P7.1M	P9.8M	P12.3M	P15.3M	P17.6M	P21.1M	P26.1M	P32.9M	P45.5M	P51M	58.7M
Net Surplus	P1.5M	P2.2M	P3.1M	P3.6M	P5M	P4.6M	P5.9M	P7.9M	P7.9M	P8.1M	11.4M
Members	528	550	543	552	580	589	605	677	667	730	767
Interest on Share Capital	13%	13.75%	15.42%	14.88%	16.42%	13.2%	14%	13.58%	11.04%	9.577%	11.5%
Patronage Refund	13%	13.75%	13.75%	11.77%	14.58%	11.4%	11.35%	10.58%	12.66%	12.24%	13.6%

	2010	2011	2012	2013	2014	2015	2016
Assets	140M	159.5M	185.03M	205.7M	228.3M	250.2M	275.3M
Deposit	45M	49.8M	57.6M	63.1M	71.9M	72.8M	77.4M
Capital	70.4M	80.2M	93.7M	109.1M	120.02M	136.4M	153.3M
Net Surplus	13.6M	14.9M	15.9M	16.3M	17.1M	19M	19.4M
Members	929	994	1,029	1,338	1,491	1,651	1,638
Interest on Share Capital	11.07%	13.24%	15%	8.76%	9%	9.1%	8.3%
Patronage Refund	13.32%	10.87%	11%	21.88%	14.76%	15.29%	15.27%