2009 R - 140 - APPROVING AND RATIFYING THE LOAN AGREEMENT, THE CONTINUING DEED OF ASSIGNMENT WITH HOLD-OUT, CHATTEL MORTGAGE (IF APPLICABLE)

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON SEPTEMBER 30, 2009 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. Cheenee F. Hoya- - - - SK Federation President

ABSENT:

Hon. Angelito W. Baloy - - - City Councilor

(On Vacation Leave)

RESOLUTION NO. 140

(Series of 2009)

A RESOLUTION APPROVING AND RATIFYING THE LOAN AGREEMENT, THE CONTINUING DEED OF ASSIGNMENT WITH HOLD-OUT, CHATTEL MORTGAGE (IF APPLICABLE) 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, 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 Eighty One Million Pesos (PhP81,000.000.0), hereinafter referred to as the “DBP Loan” to finance acquisition of the dredging system composed of a one (1) unit Versi dredge starwheel drive and a one (1) unit sewer drainage vacuum cleaner and declogging machine for used of the LGU and executed as security therefore, the Loan Agreement dated September 28, 2009, the Continuing Deeds on the applicable portion of the LGU’s Internal Revenue Allotment (IRA)with hold-out provision equivalent to one (1) quarterly amortization under the Loan agreement and other related documents, local taxes and other revenues of the City duly allocated for debt servicing;

WHEREAS, the aforesaid Loan Agreement, Continuing Deeds of Assignment, Chattel Mortgage ( If applicable) are now before the Sanggunian for its perusal, study, ratification and approval;

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

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

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

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

1. The City to maintain with DBP its existing Debt Servicing Account (DSA) and the applicable portion of the LGU’s IRA shall be deposited subject to continuing of assignment with hold-out provision equivalent to one (1) quarterly amortization under the loan agreement and other related documents, in favour of DBP and for the City Mayor to execute the covering Continuing Deed 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.

RESOLVED FURTHER, AS IT HEREBY FURTHER RESOLVED, that the Sanggunian undertakes, as it herby undertakes to appropriate in the LGU’s annual budget for the years 2009 to 2017 an amount sufficient to pay its loan from DBP including interest thereon and other charges.

RESOLVED FINALLY, AS IT HEREBY FINALLY RESOLVED, that this resolution shall remain valid and effective until the Loan with DBP has been fully settled and paid.

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

APPROVED, September 30, 2009.

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

(Opposed)

EDWIN J. PIANO ANGELITO W. BALOY

City Councilor City Councilor

(On Vacation Leave)

AQUILINO Y. CORTEZ, JR ANSELMO A. AQUINO

City Councilor City Councilor

*Out during votation

ELENA C. DABU JONATHAN G. MANALO

City Councilor City Councilor

CHEENEE F. HOYA

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