18 January 2017 T 0 : All Member/Participant Banks R E : REQUEST AFFECTING CICS OPERATIONS AND REPORTS GENERATION 1. PCHC maintains database of all Clearing Participants and parameters that define the system operations. Updates to this information on the system are carried out by PCHC on a semi- monthly basis. Such updates include requests from banks as follows: 1.1.Inclusion of a new bank/branch assigned BRSTN in the system 1.2.Deletion or inactivation of BRSTN; 1.3.Change of bank or branch Name and/or Address; 1.4.Change of bank president or its equivalent, to whom special reports and/or communications are specifically addressed; 1.5.Data capture requirements; and 1.6.Other requests that require changes to Processing Parameter Files. 2. To allow lead time for the required revisions and complete cycle systems testing (if required), Members/Participants must observe the cut-offs for the implementation of requests (which must be in writing) covering any of the aforementioned matters, to wit: 2.1.Requests received by PCHC on or before the 5th day of a calendar month shall be implemented on the 16th of that month or on the immediately following working day if the 16th of the month is a non-working day in both Manila and Makati cities; 2.2.Requests received on or before the 20th day of a calendar month shall be implemented on the 1st clearing day of the following calendar month. 3. We wish to remind that a bank or branch which has been assigned a BRSTN is not automatically included in the list of active participants unless date of participation is formally communicated to PCHC. Moreover, BRSTNs included in the list of active participants shall be subject to the prevailing Processing Fees (minimum) even if there is no inward or outward transactions. It shall be the responsibility of participant bank to advise PCHC to inactivate or delete BRSTNs as the case may be. 3.1.To save on minimum fees, a Member/Participant Bank may request temporary inactivation of BRSTNs newly included in the list of active participants if its actual participation for any reason, cannot be implemented as scheduled. 3.2.Request for deletion of active BRSTNs under CICS no longer requires the minimum number of inward items. 4. Member/Participant Banks requesting changes for immediate implementation (i.e. not observing standard cut-off) shall be charged a fee of Php20,000.00 to cover cost of programming and logistics for the unscheduled complete cycle system tests. 5. Attached is the pro forma letter to be used by Member/Participant Banks in requesting updates to the CICS Parameter Files. 6. For information and guidance.

18 January 2017 T 0 : All Member/Participant Banks R E : Implementing Procedures Coverin g Direct Presentation of Returns Under Section 19 and 20 of the PCHC CICS RR 1. Further to Sections 19 and 20 of the PCHC Check Image Clearing System Rules and Regulations (PCHC C1CS RR), we enumerate hereu nder the procedures coveri ng direct presentation of dishonored Checks that were not ret urn ed with in the Prescribed Period, to wit: 1.1 Special Clearing of Returned CICS Item of which payment has been refused due to Technicalities other than those specified in 1.2 of this document 1.1.1 . On con sent or agreement of the Presenting Bank, Returning Drawee Bank/Branch shall: a. Print 2 copies of Special Return Check Advice (see Annex A for the suggested format) bearing the images of the item/s to be returned; b. The Special Return Check Advice or SRCA must be de livered to the Presenting Bank's Central Clearing Unit not later than 11:00 AM of same day . The SCRA and the attendant Clearing Receipt/Charge Slip (CR/CS) should be signed/acknowledged by the Presenting Bank; and c. Effect settlement, by sending the CR/CS the next clearing session 1.1 .2. On other hand, the Presenting Bank shall : a. Receive and verify the SRCA, validating the authenticity of the printed image/s against the original check; b. Acknowledge and sign the CRiCS as we ll as the receiving copy of the SCRA; c. Debit the account of the depositor to reverse the entry. 1.2 Payment has been refused due to Alteration or Forged and/or Unauthorized Endorsement and/or Counterfeit Check 1.2.1 . The Drawee Bank/Branch shall communicate to the Presenting Bank its intention to return a check beyond the Prescribed Period due to "Forged Endorsement" and/or "Alteration" or "Counterfeit Check" and shall perform the following: a. Prepare a transmittal letter (see Annex B for the pro forma) addressed to the presenting bank/branch covering the direct presentation; b. Print Return Check Advice (SRCA) bearing the images (IRD) of the dishonored item/s to serve as documentation; c. Attach the affidavit of the Payee of the Check in case of Forged Endorsement and/or affidavit of the Drawer of the Check in case of Alteration and Counterfeit Check. d. Deliver the letter, SRCA and the attendant CR/CS to the Presenting Bank/Branch by messenger or special courier; e. Once the Presenting Bank acknowledges/signs the SRCA and CR/CS, effect the settlement by sending the CR/CS the next clearing session. 1.3 The Drawee Bank/Branch c1aim/s for reimbursement of the amount erroneously paid can only be made on items within One Hundred-Eighty (180) days from the date of its clearing. 1.4 Presenting Bank/Branch is mandated to acknowledge receipt of the transmittal letter covering the direct presentation in accordance with Section 19.3 of the C1CS RR. Additionally, 1.4.1 The representative of the presenting bank/branch who signs for the documents must be an Authorized Signatory; 1.4.2 Presenting Bank/Branch is obliged to respond in writing to the c1aimls of the Drawee (Returning) Bank/Branch within ten (10) clearing days from date of receipt of the transmittal letter; 1.4.3 If Presenting Bank/Branch consents to the return by direct presentation beyond the Prescribed Period, shall accept/sign all copies of the SRCA and deb it the account of the depositor; otherwise, if there is refusal, sign on the portion of the letter indicating reason for such refusal forwarding a counter affidavit/claim to the Drawee Bank/Branch. 2. If within ten (10) clearing days from date of receipt of the transmittal the Presenting Bank/Branch fails to respond, the Drawee Bank/Branch may elevate/file a case of claim with the Arbitration Committee. 3. The detailed procedures for the elevation to the Arbitration Committee of claims between participating banks are covered under Section 33 of the C1CS RR. 4. Banks are enjoined to strictly observe the foregoing procedures in order to preclude sanctions or penalties that may be imposed by PCHC should non-compliance persist. Any violation shall be subject to penalty the amount of which shall be fixed by the PCHC Board of Directors . 5. For your guidance/compliance.

Memo Circular No. 3635 December 02, 2020 TO : All Clearing Banks/Institutions RE : CAUTION ON DUPLICATE PRESENTMENT OF CHECKS PCHC has received reports on attempts to present cleared/negotiated clearing items/Checks that were previously captured, particularly via mobile device. These presentations were not successful as the concerned Drawee Banks were able to detect the second presentment of the items since they have ways of checking duplicates against their respective databases. Nonetheless, we would like just the same, to remind all our participant bank/branches to be vigilant/cautious when accepting Checks for clearing. For your information, ING Bank has adopted/implemented mobile check capture through its digital banking platform allowing its clients to deposit with said Bank Checks in the form of their images captured via mobile device/s. There are also other banks contemplating of adopting/implementing the same technology soon. Each bank must therefore continue to implement strict KYC and put in place layered safeguards against fraud and double presentment as there is the possibility (as reported) that a Check already captured and electronically deposited earlier with a bank that allows/accepts electronic deposit of Checks (the "Digital Depository Bank" like ING) may, inadvertently or intentionally, be presented/deposited in its physical or original form to/with another bank. We strongly recommend that the following measures be adopted, to wit: 4.1. When looking at the back (dorsal) side of a physical Check as presently being done, the accepting bank shall make sure that there is no previous negotiation made prior to acceptance . Erasures or alterations on the dorsal side of a Check should not be disregarded. 4.1.1 For the information of non-Digital Depository Banks, as a control measure against fraud or double presentment of Checks, the following details: a. the name of the bank (i.e., the Digital Depository Bank); b. the account number in the Digital Depository Bank to where the Check amount would be credited; c. the date of presentation, and d. the endorsement of the Payee by affixing their signature are required by the Digital Depository bank to be shown on the image of a check (the "Digital Check") that is deposited with it. The mobile check capture process therefore requires a client intending to deposit checks electronically (the "Digital Check Depositor") to indicate all the information mentioned above on the physical check prior to its mobile capture. 4.2. If an endorsement 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 refused acceptance of such a Check for deposit. 4.2.1 If a physical Check shows no erasure or any indication/writing at its dorsal side at the time of its deposit but turns out later to have already been paid or honored, the Drawee Bank and the Presenting Bank should report the incident to PCHC which will then endorse to the relevant bank/s for proper action. 5. As more banks are looking at the potential adoption of remote/mobile check capture or acceptance of Digital Checks, we enjoin our participant banks to establish layered protective measures in order to help one another prevent or mitigate against possible fraud committed by or in the name of Digital Check Depositors. While strengthening KYC policies is one key area, it would be essential, if not yet done, for banks to build or have their own database of negotiated/paid Checks to avoid double negotiations/debits on account of duplicate presentation. 6. We count on the mutual cooperation of our participant banks.

PDDTS MC No. 2020-67 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.

Lockdown Scenarios due to Covid-19 Pandemic

Participation of Camalig Bank, Inc. - A Rural Bank (Bank 146) in CICS