Experience Effortless Banking

OBJECTIVES

The program aims to:

1. Support the LGUs in times of extraordinary events that have unprecedented multi-dimensional effects on the health sector, on the economy, on productive capacity and, especially, on poor Filipinos; and

2. help prop up local economies, improve delivery of health services and provide humanitarian supports to the most adversely affected sectors by the LGUs. 

LENDING POLICIES 

1. Eligibility Criteria

a. Eligible Borrowers

LGUs (Provincial, City and Municipal) including those whose Internal Revenue Allotment (IRA) are not yet with LANDBANK

b. Eligible Projects/Loan Purpose

Permanent working capital as additional source of fund for the provision of goods and services. 

2. Loan Features

3. Other Terms and Conditions

a. The Bank has the option to debit the borrower's deposit account to cover any loan payment as they fall due.

b. The Bank reserves the right to withhold loan releases should there be:

1) A case filed against the LGU or its officials involving the projects to be financed;

2) Adverse findings on the project or object of financing; or Withdrawal of the Sanggunian on the authority of the Local Chief Executive (LCE) to contract this loan. 

DOCUMENTARY REQUIREMENTS 

a. Pre-processing

1) Sanggunian Resolution

a) Authorizing the LCE to borrow funds, negotiate and enter into a loan agreement with LBP;

b) Authorizing the LCE to sign, endorse loan documents, mortgages, deed of assignments, agreements, notes and other documents pertaining to the loan obtained from LBP; and

c) Approving the projects to be financed 

2) Approved/supplemental budget for the current year; and

3) List of elected officials and key officers, if not yet available on file 

b. Pre-release

1) Sanggunian Ordinance

a) Approving all previous representations, acts, warranties and all other terms and conditions of the loan;

b) Authorizing the assignment of the 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 obligations (if not yet on file and for LGUs whose IRAs are not yet with LANDBANK);

c) Directing the LGU Treasurer and Accountant to enter the loan in the appropriate books of the LGU; 

d) Designating the LBP as the LGU's official depository bank for IRA and major depository bank for its other deposits, revenue and collections which designation shall not be revoked while the loan obligations remain outstanding and directing the LGU Secretary to provide a copy of this Resolution to DBM or other IRA administering office (if not yet on file and for LGUs whose IRAs are not yet with LANDBANK); 

e) Appropriating the amount for loan repayment in the LGU's annual budget until the loan, interest and other charges are fully paid; 

f) Authorizing LBP to deduct for set-off and/or deduct amounts from general funds of the LGU with LBP 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 LBP; and 

g) Waiving the confidentiality

2) BLGF Certificate of NBC;

3) Monetary Board Opinion;

4) Provincial validation of the municipality/city ordinance, if applicable;

5) Certification by the Budget Officer, Accountant and Treasurer noted by the LCE that:

a) the amounts for the repayment on principal, interest, and other charges on the loan have been fully appropriated; 

b) the sources of repayment are available and not restricted by law or other obligations;

c) the contractual obligations shall be or has been entered into the appropriate books of accounts of the LGU;

d) the loan shall be used exclusively to finance the eligible purpose of the loan; and

e) the Municipal/City/Provincial Government of LGU shall annually submit to LANDBANK a certification on the said appropriation.

6) Joint Certification by the Bids and Awards Committee Chair and by the LCE that the LGU has complied with RA 9184 as well as Commission on Audit rules and regulations; and

7) Promissory Note with Deed of Assignment of the IRA

c. Post-release

The LGU shall submit annually a certification that the proposed sources of repayment are available and not restricted by law and its obligations are appropriated in their respective budget.