20 March 2006 TO : All Clearing Banks/Institutions RE : CLARIFICATION OF “AUTHORIZED OFFICER” IN SECTION 36 – CHRR 1. At its meeting held on 30 January 2006, the Board formally designated the PCHC President as the “duly authorized officer” referred to in Section 36.2 of the Clearing House Rules and Regulations 2000. 2. Consistent with the powers granted the said authorized officer in Section 36.2, the PCHC President shall henceforth be authorized to constitute an Arbitration Committee, or appoint a Sole Arbitrator, and a Law Member from a short list to be forwarded to him by the PCHC Arbicom Executive Officer (which short list will be drawn randomly from a roster of Arbitrators and Law Members currently serving and future nominees to said roster). 3. This formal designation does not however abrogate the power of the Board of Directors to constitute an Arbitration Committee, or appoint a Sole Arbitrator, and Law Member when the timing therefor coincides with a scheduled Board Meeting or when Management determines that the import of a submitted dispute is such as to require the direct action of the Board of Directors. 4. This procedural guideline shall take effect immediately. 5. For all participants’ guidance.

26 May 2006 TO : All Clearing Banks/Institutions R E : AMENDMENT OF CHOM NO. 279 RE: “PING-PONG” CHECKS 1. To ensure finality of remedies and obviate conflicts in the interpretation of CHOM No. 279 (06 September 1996) vis- à-vis the Arbitration Rules of Procedure, Item 4 of the CHOM is hereby amended to read as follows: 4. If the arbitration mechanism is not availed of by any of the disputants within six (6) months from date of split pursuant to paragraph 2.2 above, the 50/50 settlement shall be deemed acceptable and final to both parties. 2. For handy reference, the provision as worded in said CHOM No. 279 is quoted hereunder: “4. If the arbitration mechanism is not availed of by the aggrieved party as called for under 2.2 above, it is understood that the “50-50 split” is acceptable to both, unless the contending parties decide otherwise and mutually seek other avenues for the final settlement of the controversy.” 3. Please be guided accordingly.

20 December 2006 TO : All Clearing Banks/Institutions RE : AMENDED IMPLEMENTING PROCEDURES COVERING “SPECIAL RETURN ITEMS BY DIRECT PRESENTATION” UNDER SECTION 21 OF THE AMENDED CHRR 1. A number of banks reportedly continue to refuse to accept/acknowledge transmittal letters covering items to be returned beyond the 24-hour reglementary rule via direct presentation as prescribed under Section 21 of the Clearing House Rules and Regulations(CHRR). 2. Such non-compliance apparently stemmed from the notion that by acceptance/acknowledgment of receipt, the Receiving Bank already agrees to the Drawee (returning) Bank’s demand against the check that is being returned. 3. To address this concern and as instructed by the PCHC Board in its meeting of 15 November 2006, we are updating the implementing procedures of Section 21 of the CHRR, to wit: 3.1 Drawee (returning) Bank/Branch 3.1.1 Prepares transmittal letter (pro forma sample enclosed as “Annex A”) addressed to the presenting bank/branch covering: a. Certified true (photo) copy of item to be returned. b. Affidavit of the payee of the check if reason for return is “forged endorsement” and/or affidavit of the drawer (maker) of the check if item is to be returned for reason of “material alteration”. (Please refer to “Annex B” and “Annex C”.) c. Duly accomplished and encoded MICR Special Clearing Receipt. 3.1.2 Delivers letter and aforestated accompanying documents to the presenting bank/branch by messenger/special courier. 3.2 Presenting (collecting) Bank/Branch 3.2.1 Receives the transmittal letter and the accompanying documents after checking the authenticity of the photocopy against the original of the item to be returned. Acknowledgement of receipt is MANDATORY but such receipt does not constitute an admission of liability neither should it be construed as agreement to the Drawee Bank’s demand. ∗ (The representative of the presenting bank/branch who signs for the documents must be an Authorized Signatory). _____________________________ ∗ Presenting Banks may include/integrate the phrase in the receiving rubber stamp. 3.2.2 Mandatorily responds in writing to the claim of the drawee (returning) bank/branch within five (5) clearing days from date of receipt of the item and supporting documents, as follows: a. If documents are found to be in order, accepts/signs all copies of MICR SCR and gives original and triplicate copies of the SCR to the drawee bank/branch in exchange for the surrender of the original item/check. b. Otherwise, if documents are found to be unacceptable, forwards a counter affidavit/claim to the drawee bank/branch. 3.3 After five (5) clearing days and no response is received from the collecting bank/branch and/or all feasible means of amicable settlement have been exhausted, drawee bank/branch may elevate/submit its claim to the Arbitration Committee. 4. The detailed procedures for the elevation to the Arbitration Committee of claims between participating banks are covered by CHOM No. 81 dated June 24, 1982, as amended in CHOM Nos. 406 and 406-A, dated 20 June 2005 and 07 November 2005, respectively. 5. Banks are enjoined to strictly observe the foregoing procedures in order to preclude sanctions or penalties that may be imposed by the PCHC Board should non-compliance continue to persist. 6. This supersedes CHOM No. 82 dated 24 June 1982.

16 April 2007 MEMO TO : All Clearing Banks/Institutions SUBJECT : AMENDMENTS TO THE ARBITRATION RULES OF PROCEDURES 1. As recommended by the Arbitration Oversight Committee and as approved by the PCHC Board in its meeting of 25 January 2007, Sections 11, 12 and 14 of the PCHC Arbitration Rules of Procedures (ARP) are hereby amended to read as follows: Section 11 – The decision made by the ARBICOM or sole arbitrator after the Motion for Reconsideration is denied or the resolution of the Board of Directors of the PCHC shall be executory in the manner above provided without the necessity of judicial confirmation of the award provided in Sec. 23 of the Arbitration Law. Section 12 – The finding of facts of the decision or award rendered by the ARBICOM or by the Sole Arbitrator and/or by the PCHC Board of Directors as the case may be, shall be final and conclusive upon all parties in said arbitration dispute. The resolution or order of the Board of Directors affirming, modifying or reversing the decision or award of the ARBICOM or the Sole Arbitrator shall be appealable only on questions of law to the Honorable Court of Appeals, and the procedure to be followed by the parties in such appeal shall be governed by Rule 43 of the 1997 Rules of Civil Procedure. The appellant shall perfect its appeal by filing a Notice of Appeal to the Arbitration Secretariat and a petition with the Honorable Court of Appeals for the review of the decision of the Arbicom or Sole Arbitrator and of the resolution or order of the Board of Directors affirming, modifying or reversing the arbitral award within a period of fifteen (15) days or such other period as provided in Rule 43 of the 1997 Rules of Procedure, from and after its receipt of the decision. Section 14 – The taking of an appeal to the Courts by any party to the controversy from the decision of the ARBICOM or sole arbitrator or of the Board of Directors shall not be a ground for the suspension nor revocation of the automatic debit of the clearing account of the losing party for the amount of the aforesaid decision and the corresponding credit thereof to the clearing account of the prevailing party. However, should the Court on appeal reverse the decision of the ARBICOM or sole arbitrator or Order of the Board of Directors the appellant may recover from the appellee, interest at such rate as the court may prescribe from the time of the debit from the appellant’s clearing account for the amount of the aforesaid award previously debited from its account by virtue of the said award without prejudice to such other damages as may be awarded by the Court. This decision of the Appellate Court reversing the decision of the Arbitration Committee or Sole Arbitrator or order of the Board of Directors, upon becoming final and executory, may be enforced by the Arbitration Secretariat of the PCHC by mere motion with the latter for it to issue a Charge Slip debiting the amount of said award and such other damages, from the clearing account of the losing party on appeal and crediting the same to the account of the prevailing party in the same manner as the enforcement of the award of the ARBICOM or order of the Board of Directors as provided in Section 10 hereof. The motion shall be accompanied by proof of service of said motion to the opposing party and original certificate of finality from the appellate court. 2. For information and guidance.

24 August 2007 TO : All Clearing Banks/Institutions R E : UPDATED CLEARING HOUSE RULES & REGULATIONS (CHRR) AND ARBITRATION RULES OF PROCEDURE (ARP) 1. We are pleased to announce the release of the updated Clearing House Rules and Regulations (CHRR) and the Arbitration Rules of Procedure (ARP). 2. The updated compilation which includes the implementing and explanatory CHOMs, was converted into a .pdf format and will be made available on CDs. 3. PCHC shall provide each of the participating member banks a CD copy for free. (to be released to the respective bank’s Liaison Officers). Banks may reproduce the said CD for their respective branches/offices. Since the rules and regulations exclusively cover the member banks of PCHC, we request that same be safeguarded from any illegal use or reproduction. 4. Banks who may still opt to request additional CD copies may do so by accomplishing the attached order form. Duly accomplished forms may be submitted to PCHC either by personal delivery or thru fax or e-mail to any of the following: Manila Office Makati Office Mr. Francisco Gementiza Mr. Jose Dy G/F 3 Story Bldg. BSP Complex 10/F Export Bank Plaza Mabini, Malate, Manila Sen. Gil Puyat, Makati City Fax : 522-11-40 886-13-49 e-mail : atoygementiza@pchc.com.ph jody@pchc.com.ph 5. For information and proper guidance.

18 February 2009 TO : All Clearing Banks/Institutons RE : RE IMPLEMENTING GUIDELINES COVERING SECTION 6.3 OF THE CLEARING HOUSE RULESAND REGULATIONS (CHRR) 1. Further to Section 6.3 of the CHRR, we enumerate the implementing guidelines to be observed by PCHC and the Member Banks in case an instruction or authority/directive is received from the monetary authorities:

10 June 2009 TO : All Clearing Banks/Institutions RE : AMENDMENT OF CLEARING HOUSE RULES AND REGULATIONS (CHRR) SECTION 4 - PARTICIPANTS CHRR Sec. 4 - PARTICIPANTS Application for participation in MICR clearing shall be made to the President who shall, in turn, submit the application to the Board of Directors for consideration. An affirmative vote of the majority of the Board of Directors shall be required for the entry of an entity asa clearing participant. 4.1 General Criteria/Guidelines for Admission a) Applicant must be a banking institution which operates as such under a charter, or certificate of authority granted by the Bangko SentralNg Pilipinas; b) Applicant must expressly state in its letter that it agreesto be bound by the policies and promulgations of the Board and all the Rulesand Regulationsof the PCHC; c) An applicant is admitted as a "direct" or an "indirect" participant in accordance with the criteria prescribed under Sub-section4.2 herein. 4.2 Classes of Participants 4.2.1 Direct Clearing Participants must comply with the following requirements: (a) Commercial Banking Institutions which are members of the Bankers Association of the Philippines (BAP) must own equity holdings with PCHC representing equal shareholdings of each stockholder member plus the corresponding premium to be assessed thereon as prescribed by the Board of Directors. (b) For Non-Commercial Banking (Non-KB) Institutions applying asnon-stockholder (Associate) members of the PCHC Check Clearing, they shall be required to pay a one-time non-refundable entry fee equivalent to the book value of 21,000 PCHC shares + 50% premium but not lower than the contribution of the last approved participant (KBor non-KB). (c) The refundability/creditability of the existing refundable deposit of Associate Members shall be subject to the following conditions: 1) Conversion To Commercial Bank For current Associate Members that may convert to a commercial bank (KB), they may opt to avail themselves of the application of the refundable portion of their entry deposit as payment for the book value of 21,000 shares + 50% premium but not lower than the contribution of the last approved participant. This would entitle them to the full range of PCHC product/service lines. Otherwise, they may retain their current status as an associate member which participation is limited to check clearing only.

August 7, 2020 TO : All Clearing Banks/Institutions RE : MANDATORY IMPLEMENTATION OF WORK TYPE 8 FOR BANKS OFFERING MOBILE DEPOSIT CAPTURE 1. The recent implementation of check deposit through digital mobile capture (Mobile Deposit Facility or MDF) by some banks has posed risk of multiple presentments of a Check. In fact, there were already several attempts which fortunately were caught/returned by drawee banks to sending banks. 2. In order to prevent perpetrators from gaining grounds, there is a need to institute additional controls aside from those already published measures. One that PCHC embarks is the creation of a new Work Type that would enable banks providing MDF, to put a value 8 in the Work Type Field before generating the ICL File. 3. The new Work Type 8 (WT8) will be mandatorily required for banks offering MDF so that items presented through it are easily identified by PCHC and all participating banks/institutions. 4. WT8 will likewise enable the receiving banks to identify transactions presented via MDF automatically by validating the value of the Work Type field in the inward ICLs received or by manually comparing the report that will be generated by PCHC after clearing cut-off. 5. For detailed information of this new feature, attached is the Work Type 8 Operating Guidelines for MDF. 6. For banks interested to explore the WT8, contact and coordination may be made with any of the following PCHC officers, to wit: NAME EMAIL CONTACT NUMBER Ruben Conseja rubenconseja@pchc.com.ph 8537-2711 Royette Delos Reyes royettedlreyes@pchc.com.ph 8537-2707 Maxi Torrecampo maxitorrecampo@pchc.com.ph 8537-2708 7. Implementation of WT8 shall be deployed in the UAT environment on August 12, 2020 so that banks offering MDF can prepare their system and tag mobile transactions accordingly. At the same time, all participant banks are expected to determine the impact of this new WT8 in their respective front-end system to avoid complications once it is implemented in production. 8. Schedule of the UAT will be announced in a separate memo. 9. For your information and guidance.

August 10, 2020 TO : All Clearing Banks/Institutions RE : REMINDER ON THE NON-ACCEPTANCE OF CHECKS WITH ERASURES, ALTERATIONS AND/OR DUPLICATE ACCOUNT NUMBER WRITTEN AT THEIR CORRESPONDING DORSAL SIDES 1. We continue to receive reports of incidents where Checks found to have any of the following exceptions at the dorsal side are being disregarded despite the rule of non-acceptance pursuant to Memo Circular No. 3514 dated February 19, 2019 and CICS Operating Memo No. 20-033 dated July 8, 2020, to wit: 1.1. Erasure/s on the account number 1.2. Two account numbers are written 1.3. Dorsal Deposit Information (DDI) for another bank is indicated 2. As a gentle reminder and for guidance of all bank branches/offices accepting check deposits, we are issuing this reminder such that when looking at the back (dorsal side) of a physical Check, the accepting bank branch/office shall make sure that: 2.1. Prior to accepting a Check, there is no previous negotiation. If a check was previously negotiated, it can easily be identified as there is the presence of an endorsement by a depository bank (bank guarantee or UIC) at its dorsal side. 2.2. Written DDI does not belong to another bank. It may be recalled that under the above mentioned Memo Circular and Operating Memo, Digital Depository Banks are mandated to require their respective clients to write/indicate at the dorsal side of the Check the following details: 2.2.1. The Name of the Digital Depository Bank 2.2.2. The Depository Account Number in the Digital Depository Bank 2.2.3. The Date of Presentation/Mobile Capture 2.2.4. The endorsement of the Payee/s by affixing their Signature 2.3. There are no erasures in the endorsement area (DDI). An erasure particularly on the account number may indicate previous negotiation thru a different depository bank. 3. In an endorsement/DDI of another bank is already indicated or if there are erasures or duplicate indication of Account Number at the dorsal side of a physical Check, a bank should refuse acceptance of such Check for deposit. Otherwise, it may bear/share the loss incurred by the Drawee Bank due to multiple presentments. 4. If the physical Check shows no erasures or any indication/writing at its dorsal side at the time of its deposit but turns out later that it has already been paid or honored previously, the Drawee Bank and/or the Presenting Bank through its Clearing Officer should report the incident to PCHC for proper disposition. 5. For information and dissemination of all banks' branches/offices.

17 August 2020 TO : All Clearing Banks/Institutions RE : NEW CLEARING PARTICIPANTS/BRSTN REGISTER UPDATES __________________________________________________________________________________________________ 1. With reference to various request letters/notices received from the clearing participant banks, we enumerate hereunder the following updates to the PCHC clearing participant banks/BRSTN Register and Operating Parameter, viz: 1.1 Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO _____________ _____________________ __________________ ____________________ 02026-055-8 METRO Cebu Light Industrial Cebu - Light Industrial Park - M. Patalinghug Park - CLIP Ave., Brgy. Basak, Administration Bldg., LapuLapu City Cebu Light Industrial Park, Patalinghug Ave., Brgy. Basak, LapuLapu City 01035-031-3 LBP - Tanay F.T. Catapusan St., Km. 54, Manila East Brgy. Plaza Aldea, Road, Barangay Tanay, Rizal TandangKutyo, Tanay, Rizal 16035-002-7 LBP Ligao - Albay - Along Ligao - Ground Floor, Rizal St., Poblacion, LGU Commercial Ligao, Albay Building corner Del Rosario and Washington Streets, Guilid, Ligao City, Albay 2. Pursuant to CICS OM No. 17-004 dated 18 January 2017, the aforementioned updates will be implemented effective 17 August 2020 . 3. For your information and guidance.