A RESOLUTION AUTHORIZING THE CITY MAYOR, HON. ALLAN L. RELLON, DPA, Ph.D. TO EXECUTE A letter waiver to bangko sentral ng pilipinas, AS ONE OF THE REQUIREMENTS FOR THE RELEASE OF LOAN PROCEEDS pertaining to the term loan of the city government of Tagum to the development bank of the philippines amounting to SIX HUNDRED EIGHTY million (P 680,000,000.00) pesos.

 

Republic of the Philippines
Province of Davao del Norte
CITY OF TAGUM

 

BEFORE THE 7th CITY COUNCIL

EXCERPT FROM THE MINUTES OF THE 66th REGULAR SESSION OF THE 7th CITY COUNCIL OF TAGUM, PROVINCE OF DAVAO DEL NORTE HELD ON OCTOBER 18, 2017 AT THE SP SESSION HALL.

 

PRESENT:

Hon. EVA LORRAINE E. ESTABILLO,                   Member
Hon. AGRIPINO G. COQUILLA, JR., CE,           Member           (Temporary Presiding Officer)
Hon. MACARIO A. BERMUDEZ, II,                     Member
Hon. RONALD S. ELIOT,                                                Member
Hon. REY CYRIL T. ALBA                                   Member
Hon. TRISTAN ROYCE R. AALA, MDMG,           Member
Hon. ESTER L. ANGOY,                                     Member
Hon. JOSE JOEDEL T. CAASI, MDMG,              Member
Hon. PROSPERO E. ESTABILLO, JR.,                   Member                       (ABC Representative)
Hon. DAMIANO L. CIPRO,                               Member                       (IP Representative)

ON OFFICIAL BUSINESS:

Hon. GETERITO T. GEMENTIZA, MDMG,             City Vice Mayor

ON VACATION LEAVE:

Hon. ROBERT L. SO,                                          Member

ON SICK LEAVE:

Hon. JAN DMITRI S. SATOR,                              Member

 

RESOLUTION NO. 743, s-2017

A RESOLUTION AUTHORIZING THE CITY MAYOR, HON. ALLAN L. RELLON, DPA, Ph.D. TO EXECUTE A letter waiver to bangko sentral ng pilipinas, AS ONE OF THE REQUIREMENTS FOR THE RELEASE OF LOAN PROCEEDS pertaining to the term loan of the city government of Tagum to the development bank of the philippines amounting to SIX HUNDRED EIGHTY million (P 680,000,000.00) pesos.

 

WHEREAS, the City Government of Tagum has availed of a Term Loan with the Development Bank of the Philippines (DBP) amounting to Six Hundred Eighty Million (P 680,000,000.00) Pesos to fund the Acquisition of Heavy Equipment, Acquisition of Service Vehicles, Acquisition of Various Equipment for Environmental Programs, Development of Sanitary Landfill, Acquisition of Police Patrol Cars, Traffic Signalization Projects and Various Multi – Sectoral Vertical Projects;

WHEREAS, the said borrowing of the City Government is authorized through City Ordinance No. 820, series of  2017, “AN ORDINANCE ENTERING INTO A LOAN AGREEMENT WITH THE DEVELOPMENT BANK OF THE PHILIPPINES, IN THE AMOUNT OF SIX HUNDRED EIGHTY MILLION PESOS (P 680,000,000.00) TO FUND THE ACQUISITION OF HEAVY EQUIPMENT, ACQUISITION OF SERVICE VEHICLES, ACQUISITION OF VARIOUS EQUIPMENT FOR ENVIRONMENTAL PROGRAMS, DEVELOPMENT OF SANITARY LANDFILL, ACQUISITION OF POLICE PATROL CARS, TRAFFIC SIGNALIZATION PROJECTS AND VARIOUS MULTI – SECTORAL VERTICAL PROJECTS AND THEREBY AUTHORIZING THE LOCAL CHIEF EXECUTIVE TO SIGN FOR AND IN BEHALF OF THE CITY GOVERNMENT OF TAGUM”;

WHEREAS, Bangko Sentral ng Pilipinas Circular No. 926, Series of 2016, providing the Guidelines in Processing Requests for Monetary Board opinion on the Monetary and Balance of payments implications of proposed Domestic Borrowings by Government Entities pursuant to section 123 of Republic Act No.7553, states that aside from the submission of the borrowing Local Government Unit of the Monetary Board Opinion, lending institutions may release the loan proceeds only upon receipt from the LGU of the following documents/information:

1.       Ordinance approving the proposed loan terms and conditions as well as the specific purpose and corresponding amount/s of the project/s to be funded;
2.       Other applicable requirements under Republic Act No. 7160, such as the provincial/city/municipal validation of the ordinance, as applicable; and
3.       Waiver on the confidentiality of investment and bank deposits, whether in peso or foreign currency, duly executed by the governor/mayor/ barangay chairman, as the case may be, and supported by a “waiver resolution”.

WHEREAS, the City Government already complied with the required Borrowing Ordinance and currently processing the validation of the said legislation;

WHEREAS, the letter waiver is the only requirement left to comply, which will authorize DBP and all financial institutions which the City Government has transactions with to disclose to BSP all information pertaining to the deposits, investments, loans or other transactions including the history or status of the City Government dealings with said banks and financial institutions and for the BSP to make all inquiries as may be necessary regarding the said Term Loan;

NOW THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, by the 7th City Council of Tagum, to authorize the City Mayor, Hon. Allan L. Rellon, DPA, Ph.D. to execute a letter waiver to Bangko Sentral ng Pilipinas, as one of the requirements for the release of loan proceeds pertaining to the Term Loan of the City Government of Tagum to the Development Bank of the Philippines amounting to Six Hundred Eighty Million    (P 680,000,000.00) Pesos.

RESOLVED FURTHER, that the full text of the letter waiver shall be read as follows;

 

 

HON. NESTOR A. ESPENILLA, JR.
Governor
Bangko Sentral ng Pilipinas
A. Mabini St. Cor. P. Ocampo St.,
Malate Manila, Philippines 1004

 

 

Dear Hon. Espenilla:

 

This has reference to our request for the opinion of the Monetary Board (MB) on the probable effects on monetary aggregates, price level and balance of payments of the proposed term loan amounting to SIX HUNDRED EIGHTY MILLION (P 680,000,000.00) PESOS by the City of Tagum.

 

Pursuant to the provisions of Section 2 and 3 of Republic Act No. 1405 and other laws relating to the secrecy of bank deposits, Resolution No. ______ dated ________________ (certified true copy attached) was passed by the City of Tagum waiving our right to confidentiality of information by authorizing the Development Bank of the Philippines (DBP), our lending/trustee bank and all banks or financial institutions with which we have transactions to disclose to the Bangko Sentral ng Pilipinas (BSP) all information pertaining to the deposits, investments, loans or other transactions including the history or status of our dealings with said banks or financial institutions and for the BSP to  make   all inquiries   as   may   be   necessary   regarding the same.

The BSP is likewise authorized to disclose and share any such information furnished or obtained from said banks or financial institutions to the Department of Finance in relation to the performance by said Department of its functions.

 

Thank you.

 

 

Very truly yours,

 

 

 

ALLAN L. RELLON, DPA, Ph.D.
City Mayor

 

RESOLVED FURTHERMORE, that copies of this resolution shall be furnished to all offices concerned.

 

CARRIED AND APPROVED.

I HEREBY CERTIFY to the correctness of the foregoing.
REY A. BUHION
Secretary to the Sanggunian

 

 

ATTESTED AND CERTIFIED
TO BE DULY ADOPTED:

 

 

AGRIPINO G. COQUILLA, JR., CE
SP Member/Temporary Presiding Officer