MUNICIPAL ORDINANCE NO. 2017-01

AN ORDINANCE AUTHORIZING THE PROPOSED BORROWING OF THE MUNICIPALITY OF LUPON, DAVAO ORIENTAL, IN THE TOTAL AMOUNT OF TWO HUNDRED SIXTY-TWO MILLION EIGHT HUNDRED FORTY THOUSAND (P 262,840,000.00) PESOS TO FUND THE CONSTRUCTION OF MUNICIPAL BUILDING IN THE AMOUNT OF ONE HUNDRED THIRTY MILLION (P 130,000,000.00) PESOS, ACQUISITION OF 2.5 HECTARES OF LOT IN THE AMOUNT OF SEVENTEEN MILLION EIGHT HUNDRED FORTY THOUSAND (P 17,840,000.00) PESOS, AND CONSTRUCTION OF OVERLAND TERMINAL COMPLEX IN THE AMOUNT OF ONE HUNDRED FIFTEEN MILLION (P 115,000,000.00) PESOS.

Be it enacted by the Sangguniang Bayan of Lupon, Davao Oriental, that:

SECTION 1. The Municipality of Lupon, represented by Honorable Erlinda D. Lim, Municipal Mayor, is hereby authorized to enter into a loan agreement with the Land Bank of the Philippines (LBP), in accordance with Section 297 of the Republic Act No. 7160, otherwise known as the Local Government Code of 1991, in the total amount of Two Hundred Sixty-two Million Eight Hundred Forty Thousand (P 262,840,000.00) Pesos, under the terms and conditions set forth therein, and subject to the requirements stated under Section 123 of Republic Act No. 7653, as implemented by the Bangko Sentral ng Pilipinas Circular No. 402. In this connection, the Municipal Mayor shall have full power and authority to represent the Municipality of Lupon in negotiating the terms and conditions for the said borrowing and in signing, executing and delivering such agreements, contracts, deeds, papers, and documents as may be necessary and proper for the full and total implementation of the authority herein granted.

SECTION 2. The said priority projects herein specified as the construction of municipal building, construction of overland terminal complex and acquisition of 2.5 hectares of lot are hereby certified to be local infrastructure and other socio-economic development projects in accordance with the approved Annual Investment Program for the years 2016 and 2017 and Local Development and Investment Plan for the period 2016 to 2020.

SECTION 3. Consistent with the covering loan contract, deeds and assignment, mortgage contracts, and such other agreements as maybe entered into by the Municipality of Lupon in connection with the borrowing; the features, terms and conditions shall be as follows and are hereby approved:

3.1 Project Name : Construction of Municipal Building, Construction of Overland

Terminal Complex and Acquisition of 2.5 Hectares of Lot

Borrower : LGU-Lupon, Davao Oriental

Amount : Loan 1 – P130.00 Million or winning bid whichever is lower

Loan 2 – P17.84 Million or appraisal values whichever is lower

Loan 3 – P115.00 Million or winning bid whichever is lower

Purpose/s : Loan 1 – To finance the construction of municipal building

Loan 2 – To finance the acquisition of 2.5 hectares of lot

Loan 3 – To finance the construction of overland terminal

complex

Term : Loan 1 and 3 – Fifteen (15) years, inclusive of eight (8) quarters

grace period on principal

Loan 2 – Five (5) years with no grace period on principal

Waiver of the following fees and charges:

1% Handling Fee
½% Commitment Fee based on unavailed amount
Inspection/Appraisal Fee
2% Pre-payment Fee based on outstanding balance, except in case of loan take out by other banks.
Mode of Release: Loan 1 and 3 – Progressive Billing

Loan 2 – Lumpsum release directly credited to the LGU Account

Manner of Payment: Loan 1 and 3

Principal – Payable in fifty-two (52) equal quarterly amortizations to

start at the end of the 9th quarter from initial drawdown.

Interest – Payable quarterly in arrears to start at the end of the 1st

quarter from initial loan drawdown.

Loan 2

Principal – Payable in twenty (20) equal quarterly amortizations to

start at the end of the 1st quarter from initial drawdown.

Interest – Payable quarterly in arrears to start at the end of the 1st

quarter from date of initial loan drawdown.

Collateral/Guarantee/Security: Loan 1, 2 and 3 – Assignment of 20% Internal

Revenue Allotment (IRA)

SECTION 4. The Municipality of Lupon hereby appropriate the entire proceeds of the borrowing exclusively to finance the construction of the municipal building, construction of overland terminal complex and acquisition of 2.5 hectares of lot and other financial obligations relative thereto.

SECTION 5. Any ordinance or parts thereof inconsistent with this enactment is hereby repealed or amended accordingly.

SECTION 6. This Ordinance shall take effect upon its publication and compliance with all procedures required under Republic Act No. 7160 of an ordinance for its validity, including the affixation of signatures of the Sangguniang Bayan members, in concurrence thereto, composing at least a majority thereof, out of the total eleven (11) members, on all the pages of this Ordinance.

ENACTED by the SANGGUNIANG BAYAN of the Municipality of Lupon this 6th day of February 2017.

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