Experience Effortless Banking

ELIGIBLE BORROWERS
Site developers of Economic Zones:
• Private Entities
• Local Government Units

ELIGIBLE LOAN PURPOSE
To finance Economic Zone Site Development

DOCUMENTARY REQUIREMENTS
Common Requirements:
• Duly filled out Loan Application Form
• Feasibility Study of the proposed eco-zone
• Project description with information on the financial capability of the proponent, present and proposed land uses, master development plan and schedule for the proposed economic zone
• Site development plan and vicinity map reflecting various land uses and important verifiable landmarks within one (1) kilometer radius of the project site
• Proof of land ownership or any perfected contract/document confirming the applicant’s authority to use the land for economic zone development
• Endorsement of the Sangguniang Bayan/Panlungsod for the development of the proposed economic zone
• Verified Survey Returns and Separate Narrative Technical Description of the proposed economic zone area
• Environmental Compliance Certificate (ECC) issued by the Department of Environmental and Natural Resources (DENR)
• Certification from NWRB or the local water provider that the identified source(s) of water for the economic zone shall not cause water supply and related problems in adjacent communities
• Proof of payment of registration fee to PEZA
• Other regularity permits/clearances as applicable
• PEZA approved documents on the proposed ecozone development

Additional Requirements for Specific Ecozone Types:

• Tourism Ecozones:
   - Endorsement of the LGU Council for Sustainable Development
   - Endorsement of the Department of Tourism
   - Endorsement of the National Ecotourism Steering Committee for Ecotourism Projects
• Medical Tourism Park/Center Ecozones:
   - For Medical Tourism Center: Endorsement from the Department of Health (DOH)
   - For Medical Tourism Park: Endorsement from the DOH and the Department of Tourism (DOT)
• Retirement Park/Center Ecozones:
   - Endorsement of the Philippine Retirement Authority
• Agro-Industrial Ecozones:
   - Endorsement from the Department of Agriculture (DA) for project/s engaged in specialized manufacturing activity of agricultural crops and eventual commercial processing resulting in the production of clean energy such as bio-fuels and the like activities

Additional Requirements for Private Entities:
• SEC Registration Certificate and Articles of Incorporation and By-Laws (including latest GIS)
• Audited Financial Statements during the last three (3) years of operation
• Board Resolution/Special Power of Attorney/Secretary’s Certificate designating the company’s authorized representative to secure loan from LANDBANK
• Board Resolution/Special Power of Attorney/Secretary’s Certificate designating the company’s authorized representative to PEZA

Additional Requirements for LGUs:
• City/Municipal Ordinance regarding LGU authority to borrow
• Names of public and key officials
• Schedule of LGU’s Internal Revenue Allotment (IRA) in the past two years
• Budget for the current year
• Ordinance approving Local Development Plan and Public Investment Program
• BLGF Certificate of Net Borrowing Capacity
• Monetary Board Opinion
• Other documents, permits and licenses as may be required by LANDBANK

LOANABLE AMOUNT

1. For Private Entities:
• Based on the projected cash flow of the proposed project/borrower but should not exceed the repayment capacity of the borrower
2. For LGUs:
• Based on the LGU’s Net Borrowing Capacity

LOAN TENOR
1. For Short Term Loan/Line:
• One (1) year
2. For Term Loan:
• Maximum of ten (10) years inclusive of grace period of up to three (3) years on principal

INTEREST RATE
Prevailing interest rate

REPAYMENT MODE
1. For Short Term Loan/Line:
• Up to maximum of 180-day PNs but should not exceed the remaining number of days prior to line expiration
2. For Term Loan:
• Payable in equal Monthly or Quarterly amortization (Principal + Interest)

COLLATERAL/SECURITY
• Any or combination of the following to provide 100% collateral cover based on the collateral’s loan value:
   1. Real Estate Mortgage (REM)
   2. Chattel Mortgage (CM)
   3. Hold-out on Deposits, Government Securities, Government-issued Bonds
   4. Assignment of Internal Revenue Allotment (IRA) for LGUs
• Credit/Security Enhancers:
   1. Issuance of post-dated check (PDC)
   2. Assignment of Insurance, Surety, and/or Guarantee Cover
   3. Assignment of Lease Rights
   4. Joint and Several Signatures (JSS) of principal or key officers/co-maker for private entities
   5. Contractor’s All Risk Insurance