As a clarification of the provisions of MC No. 68 s. 1991 which amended Section B.1 item C of MC No. 27 s. 1991, the computation of the amount to be paid by the IA should be as follows:

Amount to be paid by the IA^* = [30% (remaining balance of amortizable amount)] + surcharges

= [30% (account not yet due + back account)] + surcharges

Example:

Total chargeable cost	=	P100
Total equity paid	=	P10,000
Amount of loan to be amortized	=	P90,000
Amount paid as of date	=	P20,000
Remaining balance of amortizable amount	=	P70,000
Amount of back account as of date	=	P10,000
Account not yet due	=	P60,000
Surcharges as of date	=	P1,000

Computation:

Amount to be paid by IA = [30% (remaining balance of amortizable amount)] + surcharges

= [0.30 (not yet due + back accounts) + surcharges

= [0.30 (P60,000 + P10,000)] + P1,000

= P22,000

Please be guided accordingly.

Adopted: 28 Oct. 1991

(Sgd.) JOSE B. DEL ROSARIO, JR.
Administrator

^* Irrigators' Association.