ORDINANCE NO: 1999-172 "AN ORDINANCE PROVIDING FOR THE IMPLEMENTING GUIDELINES OF THE CITY LIVELIHOOD DEVELOPMENT ASSISTANCE PROGRAM, PHASE II (CILDAP II)" WHEREAS, there is a need to pursue the various programs of the City Livelihood Development Assistance Program under CILDAP-II in order to provide non-agricultural cooperatives in the city with much needed capital to sustain the their viability and operational capabilities. WHEREAS, the amount of One Million (P1,000,000.00) Pesos out of the CILDAP Trust Fund is available and set to be loaned out to qualified cooperatives under the non-agricultural category who engage in consumer credit/lending and other non-agricultural income generating projects. NOW THEREFORE, be it enacted by the Sangguniang Panlungsod in session assembled that: SECTION 1. - Definition of Terms. For the purpose of this ordinance, the following terms shall be construed to mean: CILDAP II - the City Development Livelihood Assistance Program Phase II which is the program that will cater to the financial needs of non-agricultural cooperatives. Non- Agricultural Cooperatives - are qualified non-agricultural cooperatives concerned by the program and who engage in credit/lending and other non-agricultural income generating projects. Cooperative Borrower - shall mean a qualified cooperative who had already availed of the soft loan from the CILDAP II. Soft Loan - shall mean the prescribed amount of loan that may be availed of by qualified cooperative borrowers to augment their capitalization. SECTION 2. - Project Description. The second phase of the City Development Livelihood Assistance Program shall support the Non-Agricultural Cooperatives through the initial release of One Million (P1,000,000.00) Pesos. Soft loans may be availed through such amount by qualified cooperative borrowers with a maximum amount of Fifty Thousand (P50,000.00) Pesos granted by CILDAP. The assessment and identification of eligible cooperative applicants in so far as their operational viability and managerial capabilities is concern will be undertaken by the City Cooperative Development Office, under the Office of the City Administrator. The Cooperative Borrower shall be charged with an interest rate equivalent to three (3%) percent per annum for the total amount availed. The principal amount plus the interest shall be paid within two years in eight equal quarterly installments. All payments shall be deposited in the CILDAP II Trust Fund for easy roll over of funds. All loans under CILDAP II shall be approved by the City Mayor upon the favorable recommendation of the CILDAP Management Committee. SECTION 3. - Requirements and Availment Procedures. The applicant shall submit the application to the City Cooperative Development Division which shall oversee the processing thereof upon compliance of the following requirements. a. Project Proposal c. Resolution of Intent to avail the assistance signed by the Board of Directors d. Two (2) year track record (Audited Financial Statement) e. Promissory Note signed by the Board of Directors f. Projected Cash Flow in the amount borrowed g. Schedule of loan amortization h. Board Resolution authorizing the chairman to transact business and sign documents for and in behalf of the organization. SECTION 4. - Project Fund and Monitoring. Fund releases and receipts of quarterly repayments for the loan availed shall be the sole responsibility of the City Treasurer, subject to the usual Accounting and Auditing rules and regulations. The City Mayor through an appropriate issuance shall constitute a monitoring committee to monitor the projects and shall be composed of the following: Chairman : Representative of the City Mayor Coordinator : City Cooperative Development Office Members : a) The City Treasurer or her duly authorized representative b) The City Budget Officer or her duly authorized The CLGOO or his duly authorized representative The City Planning and Development Coordinator or his duly authorized representative. SECTION 5. - Penal Clause. For the delinquency of payments, the cooperative-borrower shall be further assessed with 2% interest of the total amount payable reflected in the amortization schedule. SECTION 6. - Effectivity. This ordinance shall take effect upon its approval. ENACTED AND APPROVED by the Sangguniang Panlungsod (6th City Council) of Pagadian City on its 67th Regular Session held on November 4, 1999 at the Sangguniang Panlungsod Session Hall.