ORDINANCE NO: 2003-229
"AN ORDINANCE AUTHORIZING THE BOND FLOTATION OF THE CITY GOVERNMENT OF PAGADIAN UNDER THE TERMS AND CONDITIONS HEREIN SET TO FUND THE PAGADIAN CITY FISH PORT PROJECT AND FURTHER AUTHORIZING THE MAYOR TO NEGOTIATE, SIGN AND EXECUTE CONTRACTS OR AGREEMENTS PERTINENT THERETO"
Be It Ordained by the Sangguniang Panlungsod of the City Government of Pagadian in session assembled that:
SECTION 1. - The Mayor, in representation of the City Government of Pagadian, hereinafter referred to as the CITY, is hereby authorized to issue and float "Bonds" under the terms and conditions herein set forth and such other terms and conditions as may be agreed upon with any person, corporation or entity for the purpose of funding the City's priority projects specifically the Pagadian City Fish Port project which were made part and included in the Master Development Plan and Annual Investment Plan of the City. In this connection, the Mayor shall have the full power and authority to represent the City in negotiating the terms and conditions for the said "Bonds" and in signing, executing and delivering such agreements, contracts, deeds, papers and documents as may be necessary and proper for the full and total implementation of the authority herein granted;
SECTION 2. - Unless otherwise provided in the covering construction and development contract, trust indenture, deed of assignment, mortgage contracts, and such other agreements as may be entered into by the City in connection with the flotation of the "Bonds", the features, terms and conditions of the bond flotation shall be as follows, and are hereby approved with the corresponding projects for which the proceeds shall be utilized.
2.1 Bonds
Issuer : City Government of Pagadian
Bond Name/Label : Yllana Bay Bonds
Amount : One Hundred Ninety-One Million Two Hundred Eleven Thousand & 00/100 (P191,211,000.00) Pesos issued or to be floated in staggered amounts as allowed by the financial capacity of the City.
Issue : Registered Local Government Bonds of the City Government of Pagadian
Purpose : Pagadian City Fish Port Project
Offering Price : One Hundred (100%) Percent of face value
Term : Up to Seven (7) Years from issue date
Form : Registered
Denomination : P5,000.00; P10,000.00; P100,000.00 or in amounts as the underwriter may require.
Medium of Sale : 1. Public Offering
2. Private Placement
3. Direct payment to suppliers, contractors, and/or project developers/proponents.
Manner of Payment:
Interest : Semi-annual or Quarterly Payment.
Principal : Balloon/Amortized principal repayment at the end of the seventh year from issue date and/or principal payment amortized over seven years.
Interest Rate : Interest shall be floating based on the weighted average of the 182-day or 91-day Philippine Treasury Bill ("T-Bill") rate, plus a spread of not more than three percent (3%) per annum or at fixed rate, whichever is preferable at issue date or the issue may use of an alternative base rate in computing interest to reflect true market conditions during the lifetime of the bonds.
Collateral Guarantee/Security : Proceeds from the revenues of the project, project improvements, and facilities funded by proceeds of the bond, and assignment of Internal Revenue Allotment (IRA).
Trustee & Fiscal Agent : Any financial institutions licensed to act as Trustee or fiscal agent for Local Government Unit Bonds to be designated by the Mayor to act as the fiscal agent, handle the sinking fund, act as fund manager, transfer agent and paying agent, subject to the ratification of the Sangguniang Panlungsod.
Trustee Fee : Up to ? of 1% per annum.
Underwriter : If needed and to be designated by the project contractor/developer, any government or private financial institution licensed to undertake underwriting of securities as allowed under Philippine Laws.
Underwriting Fee : One time fee chargeable to developers, proponent, contractors, or investors of the project.
Guarantor : If needed and to be designated by the project contractor/developer, any government or private financial institution with the capability and capacity to extend guarantee on the Bonds.
Guarantee Fee : One time fee chargeable to developers, proponents, contractors, or investors of the project.
SECTION 3. - The Mayor is hereby authorized to designate a trustee or fiscal agent for the Bonds, and sign and execute a Trust Indenture Agreement and Deed of Assignment relative to the flotation of the bond and designation of the said bank in a form and substance to be ratified by the Sangguniang Panlungsod.
SECTION 4. - The City hereby appropriates the entire proceeds of the bonds, upon its successful issue, to finance the priority project identified under Section 2.1 and pay for financial advisory fee and trustee fee and other financial obligations relative thereto.
SECTION 5. - The City shall appropriate such amount as may be necessary to fund the sinking fund that will be created through the appointed trustee bank in the City's annual budget. It shall further appropriate a portion of the Internal Revenue Allotment (IRA) and the share of the City from gross revenue collection of the National Government to guarantee the redemption/repayment of the Bond, such monies forming part of the aforesaid sinking fund. In connection therewith, the Mayor is authorized to cause the assignment in favor of the trustee bank of any collections due to the City from its Internal Revenue Allotment from the Department of Budget and Management.
SECTION 10. - This Ordinance shall take effect upon its approval.
ENACTED AND APPROVED by majority vote of the members of the Sangguniang Panlungsod (7th City Council) of Pagadian City on its 101st Regular Session held on October 8, 2003 at the Sangguniang Panlungsod Session Hall.