August 24, 2020 TO : All PCHC Member Banks/Institutions RE : CICS BCP DRY RUN EXERCISE WITH CLEARING PARTICIPANTS 1. As part of the annual exercise with the banks, please be informed that PCHC shall conduct CICS BCP Dry Run exercise on Saturday, September 12, 2020. 2. The exercise aims to achieve full participation of all the clearing participant banks/institutions to ensure connectivity to the PCHC DR Site and be accustomed to the procedures that need to be undertaken in a real BCP scenario. 3. BCP Test guidelines shall be emailed to all clearing participants through their respective liaison officers on or before September 4, 2020. 4. Should there be any clarifications or inquiries on the activity, please do not hesitate to get in touch with any of the following personnel: NAME EMAIL TEL. NOS. Ruben Conseja rubenconseja@pchc.com.ph 8537-2711 Maxi Torrecampo maxitorrecampo@pchc.com.ph 8537-2710 Royette Delos Reyes royettedlreyes@pchc.com.ph 8537-2707 Noel Quitlong noelquitlong@pchc.com.ph 8537-2712 5. We count on everyone's participation.

01 September 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 New Clearing Participants BANK/BRANCH BRSTN ADDRESS LBP - LAMITAN CITY 62035-002-0 Quezon Blvd. Corner Angela St. Brgy. Malinis, Lamitan City, Basilan RBC - ANNAPOLIS STREET 01107-081-2 The Meridien Condominium, 29 Annapolis Street, Greenhills, San Juan City BDO NB - PANGASINAN - 05118-003-4 G/F, Units 03 & 04, Royal Palm Center Bldg., Brgy. MANGATAREM Pogon - Lomboy, Mangatarem, Pangasinan CITY SAVINGS - SORSOGON 16124-002-6 AD Reyes Building 1461 Magsaysay St., Brgy. Salog, Sorsogon City 4700 1.2 Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO 06004-028-8 BPI - BPI EXP SAN FERNANDO - Jose Abad Santos Avenue, LDL Building IV, Diego GAPAN ROAD San Fernando, Pampanga Silang Street, Sta. Cruz, Lubao 2005, Pampanga 01011-052-4 PBCOM - LIBIS Unit G/F F Aspire Tower, S & R Libis, E. Roriguez E. Rodriguez Jr. Ave., Quezon Jr. Avenue, C-5, City Bagumbayan, Quezon City 13122-014-4 PSBC - SAN ILDEFONSO Cagayan Valley Road, ECG Building, Cagayan Poblacion, San Ildefonso Valley Road, San Juan, San Ildefonso, Bulacan 1.3 Deletion of the following branches BANK BRANCH NAME BRSTN YSB - ALABANG 01113-002-4 2. Pursuant to CICS OM No. 17-004 dated 18 January 2017, the aforementioned updates will be implemented effective 01 September 2020. 3. For your information and guidance.

September 16, 2020 TO: All Clearing Banks/Institutions RE: RESULTS OF THE CICS BCP RUN EXERCISE CONDUCTED ON SEPTEMBER 12, 2020 1. We wish to inform that the CICS BCP Dry Run Exercise last Saturday, September 12, 2020, pushed through with a participation rate of 57% which was below the expected participation. 2. There were only 49 out of 86 clearing participant banks that were able to send outward transactions to the DR Site and we would like to express our warm appreciation for their active participation, to wit: BANK OF THE PHIL ISLANDS BANCO DE ORO UNIBANK, INC. PNB SAVINGS BANK STANDARD CHARTERRED BANK MIZUHO BANK, LTD BDO NETWORK BANK PHILIPPINE NATIONAL BANK BANGKOK BANK STERLING BANK OF ASIA, INC CHINA BANK CTBC BANK BANK OF MAKATI PHIL BANK OF COMMUNICATION BDO PRIVATE BANK, INC. 1ST VALLEY BANK SECURITY BANK CORPORATION FIRST CONSOLIDATED BANK SUMITOMO BANK MAYBANK PHILS, INC. MALAYAN BANK SHINHAN BANK QUEEN CITY DEV'T. BANK ISLA BANK INCORPORATED RURAL BANK OF MANGALDAN UCPB EQUICOM SAVINGS BANK, INC BANGKO NUESTRA SEÑORA DEL PILLAR AL-AMANAH ISLAMIC BANK PHILIPPINE BUSINESS BANK GUAGUA RURAL BANK, INC BPI FAMILY BANK BANK ONE SAVINGS BANK OF FLORIDA, INC. UNION BANK OF THE PHILS ASIA UNITED BANK GATEWAY RURAL BANK BANK OF COMMERCE CITYSTATE SAVINGS BANK COUNTRY BUILDERS BANK, INC. MUFG BANK, LTD ROBINSONS BANK CORPORATION CAMALIG BANK PHILIPPINE SAVINGS BANK CHINA SAVINGS BANK, INC. RURAL BANK OF GUINOBATAN UCPB SAVINGS BANK YUANTA SAVINGS BANK CENTURY SAVINGS BANK BANK OF CHINA 3. There were 37 banks that were unable to successfully participate because most of them encountered production issues/conflict with their respective internal activities while some attempted to participate but were unsuccessful due to configuration and/or connectivity issues. 4. Of the 37, fifteen (15) banks have never participated in any of the BCP Dry Run activities conducted. PCHC will AGAIN call the attention of these banks to impress the importance of participation in the BCP exercise as all banks must be ready to shift to the DR site should an actual contingency occurs. 5. Below is the summary of issues that were reported and the corresponding action taken to resolve them: _____________________________________________________________________________________________ EXCEPTIONS _____CAUSE ____ACTIONS TAKEN -------------------------------------------------------------------------------------------------------------------------------------------------------- Cannot Access 'pacsweb3.pchc.com.ph" Erroneous certificate installed at PCHC installed a new certificate to the Globalscape server at PCHC the server --------------------------------------------------------------------------------------------------------------------------------------------------------- Some banks were unable to receive The PBM ID used is different Set the correct PBM ID at CICS DR inward files --------------------------------------------------------------------------------------------------------------------------------------------------------- Unable to login to the PCHC VPN VPN password of the bank at DR Reset the password because of Invalid Gateway Password site is not correct --------------------------------------------------------------------------------------------------------------------------------------------------------- The PBM was not able to receive The IP address of the CICS Server Remove the IP address found in the inward ICL files and the was being blocked by the EFT blacklisted IP list of the EFT server at corresponding acknowledgment server at the bank's PBM the bank's PBM Change the IP address defined in the Globalscape rules at the DR site. ----------------------------------------------------------------------------------------------------------------------------------------------------------- ICL files were stuck up at the The communication link between Asked the bank to check: xfer/send folder of the PBM the PBM and PCHC is not - internet connection established - configuration of Cute FTP ----------------------------------------------------------------------------------------------------------------------------------------------------------- 6. Again, we thank the 49 banks for their active participation as we strongly encourage those that were not able to participate to address their respective issues/concerns encountered during the dry run so that everyone will be able to connect to the DR Site in the next BCP exercise. 7. We trust for the full cooperation of all our members/clearing subscriber banks.

November 25, 2020 T O : All Clearing Banks / Institutions R E : CLEARING CUT-OFF STARTING DECEMBER 1, 2020 1. In connection with the BSP PhilPaSS Advisory (BPU-2020-109), we wish to inform that PCHC will revert to its normal operating hours starting December 1, 2020. 2. As such, all clearing participants shall strictly observe the following cut-off: PAYMENT SYSTEM CUT-OFF TIME Nationwide Check Clearing 4:30 PM PESONet 4:00 PM PDDTS RTGS/PvP 4:00 PM PDDTS Batch EOD 4:00 PM 3. Please be guided accordingly.

November 26, 2020 T O : All Clearing Banks / Institutions R E : BANKS’ READINESS TO PROCESS ICLS WITH WORK TYPE 8 (WT8) Further to Memo Circular No. 3615 dated August 7, 2020 (Mandatory Implementation of Work Type 8 for Banks Offering Mobile Deposit Capture), PCHC would like to check the progress of CICS participants insofar as readiness to tag and receive ICL files with WT8 tag. In said Memo, banks offering mobile check deposits must be able to mark or tag those mobile captured Checks for clearing with a WT8 in their outward ICL files before they are transmitted to PCHC. On the other hand, Receiving Banks need to ensure that their respective CICS Front-end system will be able to process any incoming ICL files that bear the WT8 tag from banks offering mobile check deposits. The readiness of all participant banks’ CICS Frontend system to process inward ICLs with work-type 8 will allow PCHC to deploy the new facility at the backend immediately and make it ready should any of the banks offering mobile capture start to send outward ICLs with WT8. We therefore request all participants to accomplish the attached survey and email duly accomplished form to PCHC on or before December 4, 2020 to the following: To: philclear@pchc.com.ph Subject: REPLY - WT8 IMPLEMENTATION READINESS 6. Hoping for your immediate response.

December 02, 2020 TO : All Clearing Banks/Institutions RE : 1. NEW CLEARING PARTICIPANTS/BRSTN REGISTER UPDATES 2. NOTICE FROM BDO NETWORK BANK, INC. 1. With reference to various request letters/notices received from the clearing participant banks, we numerate hereunder the following updates to the PCHC clearing participant banks/BRSTN Register and Operating Parameter, viz: 1.1. New Clearing Participants BANK/BRANCH BRSTN ADDRESS SBC - KATIPUNAN BLUE RIDGE 01014-221-7 Upper Ground Floor JSO BUILDING, # 210 Katipunan Avenue, Barangay Blueridge, Quezon City SBC - ROBINSONS MAGNOLIA 01014-222-0 Ground Floor Unit 107, 2047 Robinsons Magnolia, Aurora Boulevard corner Dona Hemady and N. Domingo Streets, New Manila, Quezon City SBC - CEBU IT PARK 02014-015-7 G/F Shops 7 & 8, SKYRISE 4B, Cebu I.T. Park Subdivision Barangay Apas Cebu City SBC - ILOILO JARO 08014-005-8 Westwood Building, #422 E. Lopez Street, Brgy. Luna Jaro, 5000, Iloilo City PVB - BALANGA 06033-004-0 The Bunker, Capitol Compound, Brgy. Tenejero, Balanga City Bataan LBP - SUAL (PANGASINAN) 05035-014-0 Municipal Compound, National Road, Poblacion, AGRI-HUB Sual, Pangasinan LBP - CALABANGA 07035-009-4 Del Carmen Street, Calabanga Camarines Sur (CAMARINES SUR) AGRI-HUB LBP - BAROTAC VIEJO (ILOILO) 08035-011-0 Barotac Viejo Trade Center, Zulueta Drive AGRI-HUB Barangay Poblacion, Barotac Viejo, Iloilo LBP - ECHAGUE (ISABELA) 26035-013-4 Echague - Poblacion Road San Fabian, Echague, AGRI-HUB Isabela LBP - STA. MARIA (ILOCOS SUR) 32035-006-1 Barangay Maynganay Sur Sta. Maria, Ilocos Sur AGRI-HUB BDO - WALTERMART - 14053-012-6 Ground Floor Waltermart Candelaria, Sambat, CANDELARIA Maharlika Highway, Barangay Malabanban Norte, Candelaria Quezon BDO NB - CAGAYAN - SOLANA 23118-003-2 No. 3 Rizal St., Brgy. Centro Northwest, Solana, Cagayan EBI - RONDA 02138-003-9 Villanueva Bldg., Purok 4, Centro Poblacion, Ronda, Cebu, Philippines 6034 BOF - BACOLOR 06140-017-3 Purok 1 Sta. Ines, Bacolor, Pampanga GATEBANK - PANDI 13143-003-1 Sergio Osmeña Street, Poblacion, Pandi, Bulacan GATEBANK - PULILAN 13143-004-4 National Road, Poblacion, Pulilan, Bulacan 1.2. Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO 01008-287-2 PNB Makati - 6754 Ayala Ave Makati - Allied Bank Center 01026-230-4METRO-999 Mall Soler Street, Binondo, Manila 3rd Floor, 999 Mall, Soler Street, Binondo, Manila 24026-001-1 METRO-Gen. Santos Pioneer Avenue, Cotabato City Pioneer Avenue, General - Pioneer Santos City 01102-110-4 ASIA UNITED-Malabon 5 Gen. Luna St., San Agustin, 911 M. Naval St., Almacen, Gen. Luna Malabon City Navotas City 02102-005-6 ASIA UNITED A.S. Fortuna - A and W Company Cebu Fortuna - MY Center Bldg., A.S. Fortuna St., Banilad, Ground Floor Space 2, Gov. Mandaue, Cebu City Cuenco corner A.S. Fortuna St., Banilad Cebu City 06118-001-1 BDO NB - Pampanga 2/F, CP Destiny Bldg., McArthur G/F, Unit G09, Mabalacat Mabalacat Highway, San Rafael Mabiga, Square, Mac Arthur Highway, Mabalacat City, Pampanga Brgy. San Francisco, Mabalacat City, Pampanga 28118-001-1 BDO NB - Zambales - 2631, 2/F, Balajadia Bldg., Rizal G/F, 1200 Rizal Ave., Brgy. Olongapo Ave., West Bajac-bajac, East, Tapinac, Olongapo City, Olongapo City, Zambales Tapinac, Olongapo City, Zambales 2. In a notice sent by BDO Network Bank, Inc. dated November 17, 2020, the bank informed that all issued checks bearing the old name, “One Network Bank, Inc.”, which will be sent for clearing beyond December 28, 2020 shall be returned with a reason as “Validity Restricted”. This is in reference to Memo Circular No. 3555 dated September 05, 2019, that BDO Network Bank, Inc. will continue to honor issued checks bearing the old name One Network Bank, Inc. until December 28, 2020 only. 3. Pursuant to CICS OM 17-004 dated 18 January 2017, the aforementioned updates will be implemented effective December 01, 2020 . 4. For your information and guidance.

September 11, 2020 TO : All Clearing Banks/Institutions RE : 2nd UAT for MAW FACILITY 1. Please be informed that PCHC shall conduct UAT Cycle 2 for the Morning Adjustment Window (MAW) from September 16, 2020 until September 23, 2020. 2. To recall, MAW System was developed as a facility outside of CICS that can be used by check clearing participants exclusively for settlement of over and under-encoded items that were sent to clearing on previous clearing day. 3. MAW will enable passing of an electronic charge slip for presenting banks to rectify under-encoded amount on checks while drawee banks to rectify over-encoded amount to be done after the 4:30 PM Regular Clearing Cut-off (1:30 PM currently under the shortened clearing window). 4. Once live, the net settlement results shall be consolidated with the AM Returns net results that are uploaded to the BSP for posting to the DDA accounts of banks. 5. Meantime, this UAT exercise shall make use of the MAW's production environment where participant banks would be able to search and view their actual CICS transactions. 5.1. Please take note however that all settlement transactions made during this test exercise WILL NOT YET be consolidated as part of actual AM Returns Clearing Results that will be sent to BSP. 5.2. All updates/transactions made in the system during the scheduled UAT will be for test purposes only. 6. For the convenience of the UAT participants, we have attached the Test Mechanics and Test Scripts. 6.1. UAT Sign-off and the Admin User Creation Forms which are hereto attached must be accomplished by UAT participants and emailed to PhilClear@pchc.com.ph on or before September 25, 2020. 7. Should you need more information or further clarification, you may contact our Help Desk, viz: 7.1. Royette delos Reyes - 8537-2707, 0917-592 1576 7.2. Anthony Manongas - 8537-2704, 0917-886 7932 7.3. Ruben Conseja - 85372711, 0917-838 7010 7.4. Maxi Torreccampo - 8537-2710, 0917-838 7096 8. We trust everything is in order. Forms: Mechanics, Test Scripts, Sign-off, Admin User Request Form

December 16, 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 New Clearing Participants BANK BRANCH NAME BRSTN ADDRESS CBC - PASIG - CARUNCHO (ME5) 01010-290-1 #7, Caruncho Ave., Pasig City CBC - THE PODIUM (ME4) 01010-293-0 3/F The Podium, ADB Ave., Ortigas Center, Mandaluyong City USB - RIZAL - NUEVA ECIJA 13049-003-0 Quezon St., Poblacion Centro, Rizal, Nueva Ecija BRANCH LITE RBC - BF HOMES PARANAQUE 01107-084-1 180 J. Elizalde corner Concha Cruz Drive, BF Homes Executive Village, Parañaque City BDO NB - CAGAYAN -SANCHEZ 23118-001-6 G/F, Stall No. A8-A10a, MASCOOP Center, Centro MIRA 1, Sanchez Mira, Cagayan 1ST VALLEY - DUMANJUG CEBU 02127-009-7 Valley View Hotel Bldg., Poblacion Central, Dumanjug, Cebu CARD SME - LIPA CITY 19141-002-0 Brgy. Sabang, Lipa City, Batangas CARD SME - SUBIC 28141-001-1 Baraca-Camachile, Subic, Zambales CARD SME - CALAMBA CITY 31141-003-3 High Rise Business Center, National Highway, Brgy. Halang, Calamba City, Laguna 1.2. Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO 08010-001-4 CBC-Iloilo Iznart G/F John A. Tan Bldg., Iznart Street, Iznart corner De Leon Streets, Iloilo City Iloilo City 28026-002-6 METRO-Subic Bay Subic Bay Metropolitan Authority Bldg. 640 Sampson Road, Subic Bay, Olongapo Subic Bay, Freeport Zone, Olongapo City 28026-008-4 METRO Subic - Harbor Point Subic Bay - Manila Ave 26102-002-3 ASIA UNITED Cauayan - Maharlika Highway, Cauayan Isabela - S and J Cauayan City ` Building, Maharlika Highway, District II, Cauayan City, Isabela 01107-067-6 RBC J.P. Rizal St., Makati - G/F Mendoza J.P. Rizal St. - Shop 1 and 2 Bldg., 834 J.P. Rizal St. cor. E. Zobel MRJ Corporate Center, #954 St., Makati City J.P. Rizal corner P. Gomez St., Poblacion, Makati 2. Pursuant to CICS OM No. 17-004 dated 18 January 2017, the aforementioned updates will be implemented effective December 16, 2020. 3. For your information and guidance.

RULES AND REGULATIONS FOR THE PHILIPPINE EFT SYSTEM & OPERATIONS NETWORK AUTOMATED CLEARING HOUSE (“PESONet”) Section 1 – PURPOSE OF RULES These Philippine EFT System & Operations Network (PESONet) Automated Clearing House (the ACH) Rules and Regulations serve to provide the basic understanding and agreement by and among its Participants, and to define the responsibilities of the Clearing Switch Operator (CSO), the Bangko Sentral ng Pilipinas (BSP), the responsibilities and liabilities of the Participants, as well as the relationships between and among the CSO, BSP, and the Participants. Section 2 – OBJECTIVES The objectives of the PESONet are: 2.1 To establish a secure, efficient, and cost-effective clearing facility for a fully electronic batch fund transfer system for payments, where the payer sends a payment instruction to their financial institution to transfer funds from their account to one or more Beneficiary Accounts maintained at another financial institution. The fund transfer instructions are processed and cleared at batch intervals with each payee receiving full value into their account. 2.2 To provide the banking and financial community with an infrastructure that will support and promote the design, development, implementation, and usage of electronic banking products and related services; and 2.3 To promote electronic commerce in both the local and global environments as embodied in the Electronic Commerce Act (R.A. 8792). Section 3 – AGREEMENT TO THESE RULES Any Participant, by the mere act of its continued participation in the PESONet, is deemed to be in agreement to these Rules and Regulations, and all subsequent amendments to it. Section 4 – DEFINITION OF TERMS Page 2 of 11 As used in these Rules and Regulations: 4.1 Banking Day means a day on which banks are open for business, except Saturdays, Sundays, non-working days on the basis of declaration of holidays or suspension of work by authorized government authorities. 4.2 BSP means the Bangko Sentral ng Pilipinas. 4.3 Beneficiary means the natural or juridical person named as the owner of the Beneficiary Account. 4.4 Beneficiary Account means the bank account maintained with the RFI designated in a Payment Item to be credited the Payment Amount. 4.5 Clearing Switch Operator (CSO) – the party selected to act as the system operator of the clearing system to be used by the Participants, according to the guidelines and authorities set in the ACH Charter and applicable annexes thereto. 4.6 Clearing Day refers to a Banking Day on which the CSO receives Payment Items for processing and net settlement reports are generated and sent to the BSP for settlement. 4.7 Demand Deposit Account or DDA means the demand deposit account of a Participant maintained with the BSP. 4.8 IBCL Rate (Interbank Call Loan) is the lending rate among banks for periods generally not exceeding 24 hours primarily for the purpose of covering reserve deficiencies. 4.9 Netting Session – refers to the procedure wherein the CSO will process all outstanding Payment Items sent by the Participants, and generate the net settlement report for each Participant. BSP will then post the corresponding debit or credit entries to the Participants’ DDA according to the net settlement report. There may be multiple Netting Sessions on each Clearing Day. 4.10 Netting Time – the times of the Clearing Day as determined by the PESONet Steering Committee when the Netting Sessions will occur 4.11 Originating Financial Institution (OFI) means a Participant that sends a Payment Item to another Participant. 4.12 Participant means a financial institution that participates in the PESONet either as an OFI, RFI, or both. Page 3 of 11 4.13 Payment Item means an electronic instruction from an OFI to an RFI to effect credit of the Payment Amount to the Beneficiary Account. 4.14 PhilPaSS refers to the Philippine Payments and Settlements System, which is the real time gross settlement system operated by the BSP. 4.15 Receipt Date means the Banking Day on which a Payment Item is received by the RFI, or a Returned Item is received by the OFI. 4.16 Return Item - Any Payment Item that is to be returned by the RFI to the OFI because it is rejected or cannot be posted by the RFI to the designated Beneficiary Account for any reason, except for Payment Items which are withheld for posting according to applicable Anti-Money Laundering and Terrorist Financing rules and regulations 4.17 Receiving Financial Institution (RFI) means a Participant that receives a Payment Item from another Participant. 4.18 Settlement – successful posting of all debit or credit entries by the BSP on the Participants’ DDA, or in the case of Sponsored Participants – on the Sponsoring Participants’ DDA, based on the net settlement report received by the BSP from the CSO. 4.19 Settlement Date means the Banking Day on which the BSP posts debits and credits to the Participants’ or Sponsoring Participants’ DDA which should always be effected on the Clearing Date of the relevant Payment Item/s of that Participant. 4.20 Settlement Finality means the transfer of value of funds irrevocably and unconditionally to the Beneficiary Account 4.21 Payment Amount means the amount in Philippine Pesos specified in the Payment Item for credit to the Beneficiary Account. 4.22 Sponsored Participant refers to a Participant who is not a PhilPaSS member but directly participates in PESONet through an arrangement with a Sponsoring Participant, whereby the latter allows the former to settle their PESONet transactions through the latter’s DDA. 4.23 Sponsoring Participant means a Participant who is a direct member of PhilPaSS, who enters into an arrangement with another Participant who is not a member of PhilPaSS, allowing the latter to settle their PESONet transactions through the former’s DDA. 4.24 Transaction Reference Details refers to information relating to the transaction purpose, such as invoice numbers, bill reference numbers, Page 4 of 11 utility account numbers, mobile phone numbers, etc., which are either provided by the payer or automatically provided by the OFI. Section 5 – PARTICIPATION 5.1 To be a Participant, a financial institution should be a signatory to the PESONet ACH Agreement. 5.2 At the minimum, the financial institution should: a. be duly licensed by the BSP to open and operate bank or electronic money accounts for the public b. comply with all the requirements for such participation, as provided for in the PESONet on-boarding guidelines and procedures, including payment of setup fees, if any, to the CSO c. have a DDA and be a member of PhilPaSS or otherwise be sponsored by a Sponsoring Participant d. have the capacity to process electronic payment instructions 5.3 The PESONet ACH steering committee will determine the eligibility of applicants. The applicant shall be notified in writing by the ACH, attaching thereto the notice from the CSO of their successful enrollment to PESONet 5.4 Each Participant agrees and undertakes to abide by and comply with the rules and regulations of the ACH, all applicable laws, regulations, ordinances and codes, including but not limited to issuances by the BSP. Section 6 – WITHDRAWAL OF PARTICIPATION 6.1 Any Participant that elects to withdraw, whether temporarily or permanently, from the PESONet shall notify the PESONet Steering Committee and the CSO in writing sixty (60) calendar days before the desired effectivity date. Upon effectivity of such withdrawal, Payment Items from/to the withdrawing Participant shall no longer be accepted for processing. 6.2 The PESONet Steering Committee will confirm its acceptance of the Participant’s termination within 30 calendar days from receipt of the notification. Page 5 of 11 6.3 The PESONet Steering Committee will inform Participants via broadcast messages regarding any voluntary termination at least thirty (30) calendar days before the termination takes effect. Section 7 – SUSPENSION/EXCLUSION 7.1 The PESONet Steering Committee may recommend to the Payments System Management Body the suspension/exclusion from the PESONet of any Participant for material breaches of the PESONet Rules and Regulations. 7.2 In the event of a strike, civil disturbance, self-declared holiday or fortuitous event which prevents an RFI from processing incoming Payment Items, notice of such circumstance shall be given to the CSO which shall in turn inform all other Participants in order for the OFIs to inform their payers that Payment Items to the RFI shall be held in abeyance until such time the RFI resumes participation. In such cases, Payment Items to the RFI concerned shall be temporarily rejected by the CSO. 7.3 The provision of any BSP directive or court order providing for the suspension/exclusion of any Participant from the PESONet shall be observed and be binding on all Participants. 7.4 The suspension or closure of a Participant’s or a Sponsoring Participant’s DDA, or their exclusion or suspension from PhilPaSS, shall automatically mean the suspension of the Participant from the PESONet. The Participant should inform the PESONet Steering Committee and the CSO as soon as practicable upon knowledge of such suspension of their or their Sponsoring Participant’s DDA. 7.5 If a Participant or its Sponsoring Participant is placed under receivership or liquidation by the BSP, or closed-down by the BSP due to violations of banking rules or willful disregard of regulations, the Participant shall automatically be suspended from PESONet. 7.6 The PESONet Steering Committee will inform Participants via broadcast messages regarding any involuntary termination immediately upon receiving such information. Transactions that have already been settled prior to suspension of the Participant are still considered final and irrevocable. Section 8 – AVAILABILITY OF FACILITIES Page 6 of 11 The PESONet facility shall be available to the Participants every Banking Day, except to suspended/excluded Participants. Section 9 – TRANSMISSION OF PAYMENT ITEMS 9.1 Payment Items shall conform strictly to the technical requirements as defined and specified by the CSO, but as a minimum, it should contain the following information: a. payer’s name b. payer’s account number c. Payment Amount d. beneficiary name e. Beneficiary Account number f. Beneficiary Bank / RFI g. OFI transaction reference number 9.2 Payment Items that do not pass validation and authentication shall be rejected by the CSO. 9.3 Payment Items shall be sent electronically, either in batches or individually, to the CSO. OFIs may transmit the Payment Items on a Clearing Day any time from system start time to system end time. The CSO, upon the instruction of the PESONet Steering Committee, shall notify all Participants of the official system start and end times, including all subsequent amendments or changes thereto. 9.4 Payment Items received by the CSO before the prescribed Netting Time of a Clearing Day shall be processed and the net settlement report for the Participants shall be generated after each Netting Session. There may be multiple Netting Sessions on a Clearing Day. The PESONet Steering Committee is authorized to prescribe the frequency of the Netting Sessions, as well as the Netting Times. The CSO, upon the instruction of the PESONet Steering Committee, shall notify all Participants of the frequency of the Netting Sessions and the prescribed Netting Times, including all subsequent amendments or changes thereto. 9.5 The CSO shall assign a unique reference number for each Payment Item, which shall be used by the Participants when tracing a Payment Item or submitting a Return Item. 9.6 By sending a Payment Item, the OFI warrants and agrees that: Page 7 of 11 a. Appropriate watchlist screening or monitoring on the payer and its transactions are regularly performed according to applicable BSP regulations or circulars b. the account name of the source account and the amount are consistent with the Sender Name and the amount indicated in the Payment Item c. the Payment Item is fully funded by the payer, or the OFI takes full credit risk on any shortfall in funding d. the Payment Item is immediately executable (i.e. not future dated) e. the Payment Item is deemed irrevocable upon clearing. However, the right of the OFI to recover any Settled Payment Amount outside the purview of the PESONet shall remain to be governed by the general principles of law. 9.7 Payment Items shall be covered by corresponding instructions executed by the payer, which has been verified and authenticated by the OFI, with indication of the name of the intended Beneficiary and the Beneficiary Account number in a prescribed format. 9.8 OFIs may charge reasonable service fees to the payers intending to send Payment Items in accordance with applicable pricing principles, circulars or regulations published by the BSP. Section 10 – INTERBANK SETTLEMENT 10.1 After every Netting Session, the Participants authorize the CSO to generate the corresponding electronic debit and credit entries on the basis of the various OFI’s Payment Items, and to transmit the net settlement report to the BSP for posting of the entries to the respective DDAs of the Participants or Sponsoring Participants on Settlement Date. 10.2 The Participants and Sponsoring Participants authorize the BSP to post debits and credits to their DDAs on the basis of the net settlement report transmitted by the CSO. 10.3 Settlement Finality of debits and credits to Participants’ and Sponsoring Participants’ DDAs shall be in accordance with the BSP’s settlement rules, policies, and schedules. 10.4 Participants and Sponsoring Participants shall verify their respective transactions as reflected in the reports to be furnished by CSO. 10.5 Participants and Sponsoring Participants shall verify the final settlement amounts as reflected in the statements of account to be furnished by BSP. Page 8 of 11 10.6 Participants and Sponsoring Participants should promptly raise any inconsistencies with regards to reports or statements furnished by the CSO and the BSP. Section 11 – SETTLEMENT FAILURES 11.1 Settlement is considered failed when the BSP cannot successfully post debits or credits to one or more of the Participants’ / Sponsoring Participants’ DDAs for any reason, such as, but not limited to: a. the Participant’s DDA has insufficient funds to support the debit despite a curing period provided to the Participant to cure the insufficient balance in the DDA b. the Participant’s DDA has been closed or put on hold /freeze status 11.2 Immediately after posting the net settlement files, the BSP should inform the CSO immediately if any of the Participants’ accounts have insufficient balances to support the debit. 11.3 The CSO, upon notification by the BSP of any Participant(s) with insufficient DDA balances, shall perform the following: a. Promptly notify and inform the Participant(s) who caused the settlement failure b. Withhold the release of the clearing results for that Netting Session to all the Participants until such time that settlement is confirmed 11.4 The Participants are responsible for monitoring their respective DDAs for any pending debits due to insufficient balances, and have to promptly fund their DDAs so that settlement can proceed. 11.5 The Participants will be given a curing period (to be determined by the PESONet Steering Committee) to fund their DDA. After the lapse of the curing period, settlement is considered failed. 11.6 Upon occurrence of settlement failure, the CSO will re-process the transactions and generate a revised net settlement report which excludes all Payment Items from the Participants with insufficient DDA balances. Page 9 of 11 11.7 Participants that cause settlement failures may be charged penalties as determined by the PESONet ACH Steering Committee. Section 12 – RECEIPT OF SETTLED PAYMENT ITEMS 12.1 Settled Payment Items shall be validated and processed by the RFIs on their respective Receipt Dates. 12.2 RFIs shall post / credit the Payment Amount to the Beneficiary Account specified on the Payment Item on Receipt Date, and funds shall be made available and withdrawable according to the funds availability schedule (to be determined by the PESONet Steering Committee) set for each Netting Session or at the latest, by end of Receipt Date. However, if crediting to the Beneficiary Account is deferred due to regulatory or the Participant’s policy to comply with Anti-Money Laundering risk management, the RFI must send notification to the OFI via appropriate means advising the reasons therefore. 12.3 By crediting a Payment Item to the Beneficiary Account, the RFI warrants: a. that the Beneficiary Account indicated in the Payment Item matches a valid account number maintained with the RFI b. that appropriate watchlist screening or monitoring on the beneficiary and its transactions are regularly performed according to applicable BSP regulations or circulars 12.4 The Payment Amount shall be credited in full to the respective Beneficiary Account, without deduction for any fees and charges. 12.5 The RFI shall provide the CSO-generated unique reference number and the Transaction Reference Details to the beneficiary either through their transaction records, bank statements, credit advice or other similar confirmations or reports. 12.6 Once the Beneficiary Account has been correctly and accurately credited, the transfer of value of funds is deemed final and irrevocable. Section 13 – RETURN ITEMS 13.1 RFIs have an obligation to transmit all Return Items promptly without delay, except for reasons where the Payment Item cannot be readily processed due to AML or regulatory impediments. For Payment Items that cannot be readily processed or returned due to AML or regulatory Page 10 of 11 impediments, procedures under existing applicable law or regulation shall apply. 13.2 All Return Items, or notifications for deferred credits defined in Section 13.1 should be transmitted to the CSO promptly, and no later than the cutoff time to be prescribed by the PESONet Steering Committee. 13.3 Return Items shall be returned by the RFI to the OFI in full and without deduction for any fees, and should conform to agreed standards and formats. At a minimum, this should indicate the Payment Item’s unique CSO generated reference number and the reason or reason code for the return. 13.4 The PESONet Steering Committee will determine a Return Item fee for processing of Return Items, such fee to be charged by the RFI to the OFI. 13.5 By sending a Return Item, the RFI agrees that: a. the Return Item is irrevocable after clearing b. the Return Item is immediately executable However, the right of the RFI to recover any settled Return Item outside the purview of the PESONET shall remain to be governed by the general principles of law. 13.6 Settled Return Items shall be validated and processed by the OFIs, and credited by the OFI back to the payer on their respective Receipt Dates. The OFI may charge reasonable service fees to the payers for processing of Return Items in accordance with applicable pricing principles, circulars or regulations published by the BSP. Section 14 – RISK MANAGEMENT 14.1 The PESONet Steering Committee, in coordination with the CSO and the BSP, shall establish internal controls, policies, guidelines and procedures consistent with industry best practices to ensure the integrity of processing, data confidentiality, records retention and cybersecurity within each party’s respective areas of operation. 14.2 The PESONet Steering Committee, in coordination with the CSO and the BSP, shall establish a comprehensive business continuity plan in order to ensure uninterrupted PESONet processing at each party’s respective points of operations. The Participants, the CSO, and the BSP shall conduct regular testing of the business continuity plan. Section 15 – ORGANIZATION OF SUB-COMMITTEES Page 11 of 11 The PESONet Steering Committee may establish various sub-committees (whose members may be comprised of non-official representatives of the Participants in PESONet), who are subject matter experts, to advise the PESONet Steering Committee in the formulation and implementation of strategies, policies and plans. However, all sub-committee recommendations have to be vetted and approved by the PESONet Steering Committee prior to implementation. Section 16 – ASSESSMENT OF FEES & PENALTIES ON PARTICIPANTS 16.1 Participants shall be assessed CSO clearing fees, Return Item fees and penalties as imposed by the PESONet Steering Committee after the end of each calendar month, such fee amounts to be determined by a pricing structure to be approved or amended by the PESONet Steering Committee. 16.2 Fees and penalties will be debited from each Participant’s or Sponsoring Participant’s DDA account based on a schedule to be determined by the PESONet Steering Committee. 16.3 All fees and penalties due from or due to a sponsored Participant shall be settled through the DDA of the Sponsoring Participant. It is up to the Sponsoring Participant and the sponsored Participant to reconcile such fees and penalties among themselves. 16.4 Participants should notify the CSO immediately on any disputes on each Participant’s assessed fees and penalties, based on a cutoff schedule to be determined by the PESONet Steering Committee. Section 17 – GENERAL SANCTIONS Violations or non-compliance with these Rules and Regulations shall be subject to penalties or sanctions as may be imposed by the PESONet Steering Committee. Section 18 – ARBITRATION Any dispute involving Participants which cannot be resolved amicably by the PESONet Steering Committee shall be referred to the BSP recognized Payments Systems Management Body for arbitration.

September 16, 2020 T O : All Clearing Banks / Institutions R E : NEW CLEARING PARTICIPANTS/BRSTN REGISTER UPDATES 1. With reference to various request letters /notices received f rom the clearing participant banks, we enumerate hereunder the following updates to the PCHC clearing participant banks/BRSTN Register and Operating Parameter, viz: 1.1 New Clearing Participants BANK/BRANCH BRSTN ADDRESS METRO -BACOOR-BAYANAN 41026-024-9 Altrove Building, Bacoor Blvd Brgy. Bayanan Bacoor BACOOR BLVD City RCBC -DIGITAL ENTERPRISE 01028-234-2 12/F A.T. Yuchengco Center, 26th and 25th Streets, AND INNOVATIONS GROUP Bonifacio Global City, Taguig City 1634 RCBC -GLOBAL TRANSACTION 01028-235-5 16th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala BANKING GROUP -PRODUCT Avenue, Makati City 0727 MANAGEMENT DIVISION ASIA UNITED -MAGINHAWA 01102-150-2 G/F ANIMAT BLDG. 128 Maginhawa St. Teacher's Village East, Diliman QC BDO NB -PAMPANGA - 06118-003-7 Unit G09, Primark Town Center, Poblacion, Parian, MEXICO Mexico, Pampanga BDO NB -CAMARINES SUR 07118-003-0 G/F, Lim Bldg., Real St. Brgy. Vinagre, Tigaon, -TIGAON Camarines Sur BDO NB -ISABELA -SAN 26118-006-0 G/F, Leaño Bldg., National Highway, Barangay 03, San MATEO Mateo, Isabela BDO NB -COTABATO CITY 27118-001-8 G/F, Stall No. 7-9, Mall of Alnor, Bldg. 4, Sinsuat Ave., Rosary Heights 9, Cotabato City GATEBANK -NORZAGARAY 13143-009-9 M. Palad Street, Poblacion, Norzagaray, Bulacan 1.2 Relocation/Change in Branch Name and/or Address BRSTN BANK/BRANCH NAME FROM TO 01026-433-1 METRO Roxas Blvd -City of Dreams Ayala Malls Manila Bay 01102-034-1 ASIA UNITED 3rd Ave -Kalookan -154 -158 Kalookan 6th Avenue -G/F, Rizal Ave. Extension, Grace Howard Towers, 6th St. cor Park, Kalookan City Rizal Avenue Ext. Kalookan City 2. Pursuant to CICS OM No. 1 7-004 dated 18 January 2017 , the aforementioned updates will be implemented effective September 16, 2020. 3. For your information and guidance.