ORDINANCE NO: 2021-468 (Sponsored by: Committee on Infrastructure, Public Bidding and Community Development) "AN ORDINANCE APPROVING THE BORROWING OF THE CITY OF PAGADIAN, PROVINCE OF ZAMBOANGA DEL SUR, WITH THE LAND BANK OF THE PHILIPPINES (LBP) IN THE TOTAL AMOUNT OF ONE HUNDRED SIXTY MILLION (P160,000,000.00) PESOS AND, AUTHORIZING THE HONORABLE CITY MAYOR TO ENTER AND SIGN THE LOAN AGREEMENT AND THE DEED OF ASSIGNMENT RELATED THERETO UNDER THE TERMS AND CONDITIONS STIPULATED HEREIN" Be it ordained by the Sangguniang Panlungsod (13th City Council) of the City of Pagadian, in session assembled that: SECTION 1. The City Mayor, HON. SAMUEL S. CO, in representation of the City of Pagadian, hereinafter referred to as the "City" is hereby authorized to enter and sign the loan agreement with the Land Bank of the Philippines (LBP) in accordance with Section 297 of Republic Act No. 7160 or the Local Government Code, in the total amount of One Hundred Sixty Million (P160,000,000.00) Pesos, 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 priority projects and subject to the requirements under Section 123 of Republic Act No. 7653 as implemented by the Bangko Sentral ng Pilipinas Circular No. 402. In this connection, the City Mayor shall have the power and authority to sign, for and in behalf of the City Government of Pagadian, all documents, contracts, deed and papers as may be necessary and proper for the full and total implementation of the authority herein granted. SECTION 2. The said priority projects herein specified are hereby certified to be local infrastructure and socio-economic development projects in accordance with the approved local development plan and public investment program for the period 2020 to 2021 of the City of Pagadian which is also hereby approved by the Sangguniang Panlungsod through Resolution No. 2020-0797. SECTION 3. Consistent with salient features of the proposed borrowing as indicated in the letter offer presented by the Land Bank of the Philippines, the features, terms and conditions shall be as follow and are hereby approved: Amount: One Hundred Sixty Million (P160,000,000.00) Pesos Purpose: To finance the expansion of motor pool through acquisition of brand-new heavy equipment Interest Rate: Fixed at 4.0% per annum until 31 December 2022, inclusive of the interest rate subsidy under the Bayanihan Act 2, subject to availability of funds. Interest rate after December 31, 2022--at Land Bank prevailing rate subject to annual repricing, but not lower than 4.0% per annum. Term: Seven (7) years, inclusive of six (6) months grace period on principal. Repayment Term Principal: Payable in Seventy-Eight (78) equal monthly amortizations to start at the end of the 7th month from date of initial loan release. Interest: Payable monthly in arrears to start at the end of the 1st month from date of initial loan release. Mode of Releases: Release of loan shall be lumpsum based on the Contract/Purchase Order of the winning bidder/supplier of the equipment exclusive of Bank charges/fees. Proceeds shall be directly credited to the LGU's account maintained with the Bank subject to completion of documentary requirements, acceptance by the Borrower and inspection by LANDBANK Appraiser. SECTION 4. The City hereby appropriates the entire proceeds of the borrowing exclusively to finance the expansion of motor pool through acquisition of brand-new heavy equipment. SECTION 5. The City hereby approves the assignment of the Internal Revenue Allotment (IRA) and other income, revenues and collection as collateral/security to the loan obtained and declaring them to be available and not restricted by law or its other obligation. SECTION 6. The City hereby directs the City Treasurer and the City Accountant to enter the loan in the appropriate books of the City. SECTION 7. The Sanggunian undertakes, as it hereby undertakes, to appropriate in the City's Annual Budget an amount sufficient to pay its loan with the LANDBANK including interest and other charges until the loan is fully paid. SECTION 8. The LANDBANK is hereby authorized to deduct for set-off and/or deduct amounts from general funds of the City with the LANDBANK and apply the same to the payment of the loan or any portion thereof, or interests and penalties thereon as may be deemed necessary by the LANDBANK. SECTION 9. The City hereby grants its City Mayor authority to execute a letter waiving our rights to confidentiality of information by authorizing LBP, our trustee bank and all banks or financial institutions with which we have transactions to disclose to the Bangko Sentral ng Pilipinas (BSP) all information pertaining to the deposits, investments, loans, or other transactions including the history or status of our dealings with said banks or financial institutions and for the BSP to make all inquiries as may be necessary regarding the same. FURTHERMORE, the BSP is likewise authorized to disclose and share any such information furnished or obtained from said banks of financial institutions to the Department of Finance in relation to the performance by said Department of its function. SECTION 10. That this shall remain valid and effective until the Loan with LANDBANK has been fully settled and paid. SECTION 11. Any Ordinance or parts thereof inconsistent with this enactment is hereby repealed or amended accordingly. SECTION 12. This ordinance shall take effect upon its publication and compliance with all procedures required under Republic Act No. 7160 of an ordinance for its validity, including the affixation of signatures of the Sangguniang Panlungsod Members, in concurrence thereto, composing at least a majority thereof out of the total members, on all pages of this Ordinance, SECTION 13. Copies of this Ordinance be furnished to the Honorable City Mayor, the City Accountant, the City Auditor, and the Bangko Sentral ng Pilipinas for their information and appropriate action. ENACTED AND APPROVED by the Sangguniang Panlungsod (13th City Council) during its 70th Regular Session on 10 February 2021 at the SP Session Hall, 4th Floor, City Commercial Center, Barangay Santiago, Pagadian City.