SINKING FUND A.K.A.

KUOT-KUOT NI ROMIE

INTRODUCTION OF SINKING FUND

A sinking fund is a fund that is earmarked for a specific purpose like to pay off the debts to be settled in
the future and to make investments. The money set aside regularly in a sinking fund shall be used for its
specific purposes.

OBJECTIVES OF THE SINKING FUNDS

● It is maintained to reduce the risk of funds being short at the time of repayment of debts. It makes
repayment more manageable.
● It is a pool of money saved every month that can be used to finance members and non-members.
● It protects members from large cash outflows by allowing sinking fund funds their obligations through
borrowing since we do have a lower interest rate.
● It gives confidence to members to put more money in the sinking fund as there is a certain level of
protection for them where the sinking fund is maintained.

HOW DOES IT WORK?

It is created by setting aside some funds twice a month. Our group decided to raise money every
payday / twice a month to suffice the funds throughout the year. Our main objective for these funds is to be
circulated through a lending act in which it has a five percent (5%) interest rate for members and ten percent
(10%) interest for non-members which is to be paid off twice a month.

Example:
Graph 1.1 - Snippet of Projected Savings from Jan 25-June 25, 2023

Graph 1.2 - Snippet of Projected First Set/Round of Member Loans for Feb 25, 2023

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie

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 Graph 1.3 - Snippet of Projected 3rd Set/Round of Member&Non-member Loans for April 25, 2023

SECURITY FOR THE FUNDS

It is advisable to deposit the money to the bank every time the funds have been collected. Through
this, we put some security to the money not just for the money but also for the person who is liable for
keeping the funds. Having this method we can easily keep tracking the amount that is withdrawn and avoid
other members of the group to think negative thoughts about the person/s who secure the funds.

TERMS AND AGREEMENT FOR MEMBERSHIP

● Every probationary and regular employee is allowed to enter into the agreement.

● Collection of the funds is every 10th and 25th of the month / every payday however if there is a delay in
the payment the collection of the funds will be done on the exact payday date.

● The amount to be collected every payday is Php500.00 which is the minimum per head. If a member
wishes to pay more than Php500.00, it is up to the member and he/she can also opt to double the
amount on the next payday if he/she missed submitting the amount in the previous payday.

● In case a member will resign, terminate, and have his or her contract ended, he or she can still decide
to continue the membership since we will accept collections through online payment channels.

● For resignation, termination, and end-of-contract reasons, if a member decides to withdraw his or her
money then there will be an indemnity fee amounting to Php300.00.

Terms and Conditions - SINKING FUND a.k.a. KUOT-KUOT ni Romie

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 Example:
Graph 2.1 - Snippet of Projected Savings from Jan 25-June 25, 2023 with a scenario showing a
pioneer member who resigned on June 25, 2023, with an existing borrow/loan and without a loan (both
with indemnity fee due to voluntary resignation).

● Since the funds collected will be circulated through a lending act, the interest will be 5% for members
and 10% for non-members every month. Profit sharing will be done at the end of the year.
● For resignation, termination, and end-of-contract reasons, a member entitled to this can claim his or
her profit less any existing borrowed amount and with the indemnity fee of Php300.00. Technically, a
member can only claim his or her savings with the prorated calculation of the profits minus the existing
borrowed amount minus the indemnity fee. Please be mindful that a sinking fund that only started
cannot withstand if there is a member decides to withdraw his or her money unexpectedly. It is also for
the security of other members to still have a chance to continue the platform.
● All members are entitled to decision-making and approvals. No leaders. No members. All are fund
holders or Pioneers.

LOAN TERMS AND AGREEMENT

● Loans are payable every 10th and 25th of the month in case there will be an outside borrower.
● Interest is 5% for members and 10% for non-members.
● Maximum loanable amount for pioneer members of the group is only Php3,000.00 per head from Feb
25, 2023, to June 25, 2023, and a maximum of only Php4,000.00 per head from July 25, 2023, until
Nov 25, 2023. For non-members, the maximum loanable amount is only Php3,000.00 from April 25 -
Nov 25, 2023.
● In the event that a member wishes to borrow an amount for both of his account heads, he/she
needs to have a current saving equal to or greater than the amount to be borrowed.
● If a member intends to borrow and is not able to pay on the due date there will be a penalty of
Php50.00 for late payment at the end of the month. By this, we encourage every member to pay on
time considering we need to be role models to our non-member borrowers.
● If a non-member intends to borrow, he/she needs to have a co-maker who is one of the pioneer
members of the group. In addition, the member/guarantor will not be allowed to file for a loan while
the non-member is still in the process of completing his/her 1-month term loan. In this way, just in
case the non-member fails to pay the borrowed amount in due time (1-month term), we will collect the
amount due plus the interest from the co-maker (guarantor/member).

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 ● If a non-member intends to borrow and is not able to pay on the due date, there will be a penalty of
Php25.00 for late payment at the end of the month. By this, we encourage every non-member to pay
on time.
● To process loans for the members, he/she needs to fill out the borrower’s agreement form and Jezreel
and Clark will be the ones to release the loanable amount every 25th of the month.
● To process loans for non-members, he/she needs to fill out the borrower’s agreement form, and
submit a photocopy of his/her valid government-issued ID. Jezreel and Clark will be the ones to
release the loanable amount. We will have at least 1-2 days processing time since we will first
secure all the members’ approval and their signatures for the borrower’s agreement form.
● All members are entitled to have a signatory to the amortization schedule of all the borrowers (both
members and non-members).
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We hereby understand and agree to the aforementioned terms and conditions of our sinking fund.
Below is the list of pioneer members’ signatures affirming the agreement stated herein.

Signed By:

Melissa Ortega
Romie Sandigan Concierge, Rocketmiles
Concierge, Rocketmiles Sophi Outsourcing Inc.
Sophi Outsourcing Inc.

Mark Lesther Conog

Concierge, Rocketmiles
Hannah Quintana Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Mary Cloude Ocampo

Concierge, Rocketmiles
Jezreel Regala Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.

Gilbert Pacris
USA Concierge, Rocketmiles
Luanne Aves Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.
Jonhrey DelaTorre
Concierge, Rocketmiles
Farah Lagaras Sophi Outsourcing Inc.
Concierge, Rocketmiles
Sophi Outsourcing Inc.
Jovel Clark Contratista
Concierge, Rocketmiles
Sophi Outsourcing Inc.
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