RESOLUTION NO. 2022-0100 (Sponsor: Honorable Jesus B. Bajamunde, Jr.) " A RESOLUTION APPROVING AND RATIFYING THE LOAN AGREEMENT, THE DEED OF ASSIGNMENT AND OTHER DOCUMENTS RELATED THERETO SIGNED AND EXECUTED BETWEEN THE CITY GOVERNMENT OF PAGADIAN, ZAMBOANGA DEL SUR, AND THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) WITH ALL THE TERMS AND CONDITIONS THERETO" WHEREAS, pursuant to City Ordinance No. 2022-518, entitled: "An Ordinance Authorizing the City Mayor, Hon. Samuel S. Co, to enter into and sign for and in behalf of the City Government of Pagadian a Term Loan Agreement, Deed of Continuing Assignment With Hold-Out and Deed of Undertaking in the Amount of One Hundred Fifty Million (P150,000,000.000) Pesos with the Development Bank of the Philippines (DBP), represented by its Lending Center Acting Head, SM Al Brain C. Tenorio, Under the Terms and Conditions Stipulated Herein," Honorable Samuel S. Co, City Mayor of Pagadian, entered into a Loan Agreement with the Development Bank of the Philippines (DBP) in the principal amount of One Hundred Fifty Million (P150,000,000.00) Pesos, hereinafter referred to as the "DBP Loan", for the following: Construction of Pagadian City Coliseum at Barangay Santa Lucia, this city, in the amount of One Hundred Fifty Million (P150,000,000.00) Pesos; and executed as security therefore, the Deed of Continuing Assignment of a portion of the Internal Revenue Allotment (IRA) and local revenues equivalent to the loan amount with hold-out provision equivalent to one (1) monthly amortization until the loans are fully paid; WHEREAS, the aforesaid Loan Agreement, Deed of Assignment and other documents are now before the Sangguniang Panlungsod for its perusal, study, ratification and approval; WHEREAS, the terms and conditions contained in the above loan documents are deemed fair, just, legal and in order; NOW, THEREFORE, on seconded motion of Honorable Jesus B. Bajamunde, Jr., be it RESOLVED, as it is hereby resolved, by this Sanggunian in the session duly assembled to ratify, confirm, approve and render effective and of full force and effect the loan under the terms and conditions of the Loan Agreement and the covering collateral and other documents executed in relation thereto. For this purpose, the City hereby authorizes the following: The LGU is to execute the Term Loan Agreement, Promissory Notes and other documents relating thereto, and specifically stating that the obligations of the LGU thereunder, as well as the terms and conditions thereof, shall be valid and binding on the LGU and shall not be subject to recall by the Sanggunian for the whole term of the loan, regardless of any change in its composition; The continuing assignment of the LGU's portion of the IRA and local revenues with hold-out on deposit equivalent to one (1) monthly amortization in favor of DBP until the loans are fully paid; Authority in favor of DBP to automatically debit on the due date from the LGU's CASA deposit account with DBP an amount equivalentw to the maturing loan amortization until the loan is fully paid; The inclusion of appropriation for debt servicing in the LGU's Annual Budget in accordance with the Local Government Code until the loans are fully paid; and The undertaking that the LGU will not incur additional obligation/indebtedness without DBP's prior consent. RESOLVED, FURTHER, that the Sanggunian undertake, as it hereby undertakes to appropriate in the City's Annual Budget for the years 2022 to 2037 an amount sufficient to pay its loan with DBP including interest thereon and other charges. The estimated amount to be appropriated in the Schedule of Payments, hereto attached as Annex "A" which forms part of this resolution, shall be as follows: YEAR PRINCIPAL INTEREST GRT TOTAL 2022 75,000.00 750.00 75,750.00 2023 2,788,333.33 27,883.33 2,816,216.67 2024 961,538.46 5,996,666.67 59,966.67 7,018,171.79 2025 11,538,461.54 5,829,594.02 58,295.94 17,426,351.50 2026 11,538,461.54 5,361,645.30 53,616.45 16,953,723.29 2027 11,538,461.54 4,893,696.58 48,936.97 16,481,095.09 2028 11,538,461.54 4,438,247.86 44,382.48 16,021,091.88 2029 11,538,461.54 3,957,799.15 39,577.99 15,535,838.68 2030 11,538,461.54 3,489,850.43 34,898.50 15,063,210.47 2031 11,538,461.54 3,021,901.71 30,219.02 14,590,582.26 2032 11,538,461.54 2,561,324.79 41,386.75 14,141,173.08 2033 11,538,461.54 2,086,004.27 104,300.21 13,728,766.03 2034 11,538,461.54 1,618,055.56 80,902.78 13,237,419.87 2035 11,538,461.54 1,150,106.84 57,505.34 12,746,073.72 2036 11,538,461.54 684,401.71 34,220.09 12,257,083.33 2037 10,576,923.08 217,521.37 10,876.07 10,805,320.51 TOTAL 150,000,000.00 48,170,149.57 727,718.59 198,897,868.16 RESOLVED, FURTHERMORE, that this Resolution shall remain valid and effective until the Loan with DBP has been fully settled and paid, and the executed Term Loan Agreement, Deed of Assignment and Deed of Undertaking shall form part of City Ordinance No. 2022-518. RESOLVED FINALLY, that copies of this Resolution be furnished the Office of the City Mayor, the City Treasurer's Office, the Auditor's Office, the City Development Council and the Development Bank of the Philippines. APPROVED UNANIMOUSLY. I HEREBY CERTIFY to the correctness of the foregoing resolution. BALDOMERO FERNANDEZ City Vice Mayor/Presiding Officer Verified: JESUS B. BAJAMUNDE, JR. SP Member/Floor Leader Attested: ELKID P. NACUA Secretary to the Sangguniang Panlungsod