2008 R - 169 - APPROVING AND RATIFYING THE LOAN AGREEMENT, THE CONTINUING DEEDS OF ASSIGNMENT WITH HOLD-OUT AND OTHER DOCUMENTS RELATED THERETO SIGNED

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON OCTOBER 22, 2008 AT THE CITY HALL.

PRESENT:

Hon. Cynthia G. Cajudo - - - - - - - - - - - City Vice-Mayor & Presiding Officer
Hon. Gina Gulanes-Perez - - - - - - - - - - - City Councilor
Hon. John Carlos G. Delos Reyes- - - - - - - - - - - - “ “
Hon. Rodel S. Cerezo - - - - - - - - - - - - - - - - - - - - “ “
Hon. Sarah Lugerna Lipumano-Garcia- - - - - - - - - “ “
Hon. Edwin J. Piano - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr.- - - - - - - - - - - - - - - - “ “
Hon. Anselmo A. Aquino- - - - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu- - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Jonathan G. Manalo- - - - - - - - - - - - - - - - - - “ “
Hon. Carlito A. Baloy - - - - - - - - - - - - - - - - - - - - President, Liga ng mga Barangay
Hon. Cheenee F. Hoya- - - - - - - - - - - - - - - - - - - - SK Federation President

ABSENT:

Hon. Angelito W. Baloy - - - - - - - - - - - - - - - - - - City Councilor
(Sick Leave)

RESOLUTION NO. 169
(Series of 2008)

A RESOLUTION APPROVING AND RATIFYING THE LOAN AGREEMENT, THE CONTINUING DEEDS OF ASSIGNMENT WITH HOLD-OUT AND OTHER DOCUMENTS RELATED THERETO SIGNED AND EXECUTED BETWEEN THE CITY OF OLONGAPO (LGU), AND THE DEVELOPMENT BANK OF THE PHILIPPINES (DBP) WITH ALL THE TERMS AND CONDITIONS THEREOF.

WHEREAS, as duly authorized by the City Council of Olongapo (the “Sanggunian”), Hon. James J. Gordon, Jr. City Mayor of Olongapo and Marcelino D. Andawi, City Treasurer have entered into a Loan Agreement with the DEVELOPMENT BANK OF THE PHILIPPINES (DBP) in the principal amount of TWENTY FOUR MILLION NINE HUNDRED SIXTY NINE THOUSAND ONE HUNDRED FORTY PESOS (PhP24,969,140.00), hereinafter referred to as the “DBP Loan”, to finance General Funding requirements of the LGU and executed as security therefore, the Loan Agreement dated October 21, 2008, the Continuing Deed of Assignment on the applicable portion of the LGU’s Internal Revenue Allotment (IRA) with hold-out provision equivalent to three (3) monthly regular interest under the Loan Agreement and other related documents; and the Continuing Deed of Assignment with Hold-out of the LGU’s Unreleased Share of IRA differential for CY 2001 and 2004, based on the Notice of Payment Schedule (NPS) duly issued by the Department of Budget and Management (DBM), local taxes and other revenues of the City duly allocated for debt servicing.

WHEREAS, the aforesaid Loan Agreement, Continuing Deeds of Assignment with Hold-out and other related documents are now before the Sanggunian for its perusal, study, ratification and approval;

WHEREAS, the terms and conditions contained in the above loan document are fair, just, legal and in order.

NOW, THEREFORE, on motion of Councilor Jonathan G. Manalo, with the unanimous accord of the Members of the Sangguniang Panlungsod present,

RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session 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 document/s executed in relation thereto.

For this purpose, the City is hereby authorized as it is hereby authorizes, the following:

1. To maintain with DBP its existing Debt Servicing Account (DSA) where the Unreleased Internal Revenue Allotment CY 2001 and 2004, based on the Notice of payment Schedule (NPS) duly issued by the Department of Budget and Management (DBM) and the applicable portion of the LGU’s IRA shall be deposited subject to continuing assignment with hold-out of the Unreleased Share of IRA differential for CY 2001 and 2004, based on the Notice of payment Schedule (NPS) duly issued by the Department of Budget and Management (DBM), Realty Taxes, other taxes and revenues; and of the applicable portion of the LGU’s IRA with hold-out provision equivalent to three (3) monthly regular interest under the Loan Agreement and other related documents, in favor of DBP and for the City Mayor to execute the covering Continuing Deeds of Assignment with Hold-out;

2. To maintain its 20% allowed Debt Service Ceiling under Section 324(b) of the Local Government Code of the Philippines;

3. The Continuing Assignment with Hold-out of the LGU’s Unreleased Share of IRA differential for CY 2001 and 2004, based on the Notice of Payment Schedule (NPS) duly issued by the Department of Budget and Management (DBM), local taxes and other revenues of the City duly allocated for debt servicing.

4. The Continuing Assigment on the applicable portion of the LGU’s Internal Revenue Allotment (IRA) with hold-out provision equivalent to three (3) monthly regular interest under the Loan Agreement and other related documents.

RESOLVED, that the Sanggunian undertakes, as it hereby undertakes to appropriate in the LGU’s annual budget for the years 2008 to 2015 an amount sufficient to pay its loan from DBP including interest thereon and other charges.

RESOLVED, that this Resolution shall remain valid and effective until the Loan with DBP has fully settled and paid.

RESOLVED FINALLY, that copies of this Resolution be furnished the Office of the City Mayor, City Treasurer’s Office, the Auditor’s Office and the concerned Development Council, and DBP.


APPROVED UNANIMOUSLY, October 22, 2008.

CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer

GINA GULANES-PEREZ JOHN CARLOS G. DELOS REYES
City Councilor City Councilor

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA
City Councilor City Councilor

EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor
(Sick Leave)

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO
City Councilor City Councilor

ELENA C. DABU JONATHAN G. MANALO
City Councilor City Councilor

CARLITO A. BALOY CHEENEE F. HOYA
President, Liga ng mga Barangay SK Federation President

ATTEST:

ELFLIDA S. SALMON
Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.


JAMES GORDON, JR.
City Mayor

ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor