OFFICE OF THE

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG BAYAN OF CUYAPO, , HELD ON MAY 12, 2008 AT THE SANGGUNIANG BAYAN SESSION HALL.

Present: Hon. Vice Mayor John D. Diego– Presiding Officer Hon. SBM Cinderella E. Ramos Hon. SBM June Paul A. Mendoza Hon. SBM Mussolini B. Agpalo Hon. SBM Jaime DL. Hon. SBM Dominador C. Sumalbag Hon. SBM David Roy N. Delo Hon. SBM Bernardo D. Diaz Hon. SBM Antonio V. Ysmael Hon. SBM Jaime B. Duro, Jr. Hon. SBM Larah Pastora C. Dar

Absent: None.

RESOLUTION NO. 38, s-2008

RESOLUTION AUTHORIZING THE LOCAL CHIEF EXECUTIVE OF CUYAPO, NUEVA ECIJA, HON. AMADO R. CORPUS, JR., TO ENTER INTO A CONTRACT OF LOAN WITH THE LAND BANK OF THE , BRANCH, AND RATIFYING AND/OR CONFIRMING ALL TERMS AND CONDITIONS OF THE LOAN AGREEMENT EXECUTED AND ENTERED INTO BY AND BETWEEN THE MUNICIPAL GOVERNMENT OF CUYAPO, NUEVA ECIJA AND THE LAND BANK OF THE PHILIPPINES IN THE AMOUNT OF SIXTEEN MILLION FOUR HUNDRED FORTY THOUSAND FIVE HUNDRED (P16,440,500.00) PESOS WHICH SHALL BE USED TO FINANCE THE RENOVATION OF THE CUYAPO GOVERNMENT CENTER, CONSTRUCTION OF FRONTAGE OF CUYAPO TRADING CENTER, ACQUISITION OF ONE (1) UNIT BRAND NEW SERVICE VEHICLE, ONE (1)UNIT RECONDITIONED PAY LOADER AND TWO (2) UNITS RECONDITIONED GARBAGE COMPACTOR

WHEREAS, pursuant to the Item (VI), sub paragraph (1), paragraph (b) of Section 444 of the Local Government Code of 1991, the Local Chief Executive, Hon. AMADO R. CORPUS, JR., upon the authorization by the Sangguniang Bayan is mandated to represent and sign for and in behalf of the Municipal Government of Cuyapo, Nueva Ecija, the loan agreement, deed of assignment of Internal Revenue Allotment and loan credit line agreement with the Land Bank of the Philippines (LBP) in connection with the Sixteen Million Four Hundred Forty Thousand Five Hundred (P16,440,500.00) Pesos which shall be used to finance the renovation of the Cuyapo Government Center, construction of frontage of Cuyapo Trading Center, acquisition of one (1) unit brand new service vehicle, one (1)unit reconditioned Pay Loader and two (2) units reconditioned Garbage Compactor;

WHEREAS, pursuant to and on the basis of the request for loan, the Municipal Mayor has submitted a loan application with the Land Bank of the Philippines, a P16,440,500.00 Term Loan which the LBP approved, subject to the following terms and conditions;

LOANED AMOUNT

Up to P16,440,500.00 or the final amount of winning bidder whichever is lower.

PURPOSE

To finance the acquisition of the following;

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TL DESCRIPTION AMOUNT 4 a. Major renovation of Cuyapo Government Center 10,250,000.00 b. Construction of Frontage of Cuyapo Trading Center/Public Market Office 2,190,000.00 Building 5 c. Acquisition of brand new service vehicle – one (1) unit Toyota Innova G 940,500.00 2.5 Liter Diesel Engine, Manual Transmission 6 d. Acquisition of reconditioned heavy equipment as follows: i. One (1) unit Pay Loader, Komatzu brand with six (6) cylinders and 1,500,000.00 2.5 cubic meter bucket size ii. Two (2) units of Garbage Compactor, Isuzu Forward brand 1,560,000.00 TOTAL 16,440,500.00

INTEREST

At prevailing LBP Prime rate plus minimum spread of 3%, subject to quarterly repricing or at applicable special financing rate.

TENOR

a. Term Loan No. 4 – Major renovation of Cuyapo Government Center and Construction of Frontage of Cuyapo Trading Center/Public Market Office Building – Ten (10) years with six (6) months grace period on principal payment.

b. Term Loan No. 5 – Acquisition of Brand New Service Vehicles – Seven (7) years without grace period on principal payment.

c. Term Loan No. 6 – Acquisition of Reconditioned Heavy Equipment – Three (3) years without grace period on principal payment.

REPAYMENT TERMS

a. Term Loan No. 4 – Major renovation of Cuyapo Government Center and Construction of Frontage of Cuyapo Trading Center/Public Market Office Building

Principal – Payable in one hundred fourteen (114) equal principal monthly amortizations to start at the end of the seventh (7th) month from the date of release. Interest - Payable in one hundred twenty (120) monthly amortizations to start at the end of the first (1st) month from date of release.

b. Term Loan No. 5 – Acquisition of Brand New Service Vehicles

Principal – Payable in eighty four (84) equal principal monthly amortizations to start at the end of the first (1st) month from the date of release.

Interest - Payable in eighty four (84) monthly amortizations to start at the end of the first (1st) month from date of release.

c. Term Loan No. 6 – Acquisition of Reconditioned Heavy Equipment

Principal – Payable in thirty six (36) equal principal monthly amortizations to start at the end of the first (1st) month from the date of release.

Interest - Payable in thirty six (36) monthly amortizations to start at the end of the first (1st) month from date of release.

Excerpts, Resolution No. 38, s-2008 Page 3

PENALTY

Penalty rate of Twenty Four (24%) percent per annum, in case of non-payment, shall be charged to start on the day after the due date of loan amortization/credit accommodation up to date of settlement.

MODE OF RELEASE

I. Term Loan No. 4 – Major renovation of Cuyapo Government Center and Construction of Frontage of Cuyapo Trading Center/Public Market Office Building

a. Major renovation of Cuyapo Government Center

Tranche Amount Conditions First (1st) 1,537,500.00 Mobilization fee equivalent to 15% of the contract price Second 3,500,000.00 After 30% physical accomplishment as validated by LBP (2nd) representative First (1st) 3,500,000.00 After 70% physical accomplishment as validated by LBP representative First (1st) 1,712,500.00 After 100% physical accomplishment as validated by LBP representative Total 10,250,000.00

b. Construction of Frontage of Cuyapo Trading Center/Public Market Office Building

Tranche Amount Conditions First (1st) 328,500.00 Mobilization fee equivalent to 15% of the contract price Second 700,000.00 After 30% physical accomplishment as validated by LBP (2nd) representative First (1st) 700,000.00 After 70% physical accomplishment as validated by LBP representative First (1st) 461,500.00 After 100% physical accomplishment as validated by LBP representative Total 2,190,000.00

II. Term Loan No. 5 – Acquisition of Brand New Service Vehicles Loan proceeds shall be released directly to the supplier or winning bidder or credited to the LGU’s deposit account with LBP with simultaneous debit or on-us check of LGU payable to the supplier.

III. Term Loan No. 6 – Acquisition of Reconditioned Heavy Equipment Loan proceeds shall be released directly to the supplier or winning bidder or credited to the LGU’s deposit account with LBP with simultaneous debit or on-us check of LGU payable to the supplier.

OTHER TERMS AND CONDITIONS

1. Certification of Pre-test and Acceptance of Service Vehicle and Heavy Equipment by the Municipal Engineer and attested by the Local Chief Executive. 2. The LGU shall not sell, convey, dispose and mortgage the object of financing as long as the loan is standing. 3. Interim financing thru LBP regular fund at LBP prevailing rate shall be allowed pending enrollment of the project to a Special Financing Program (SFP). 4. The LGU will not contract any loan or investment which may impair its paying capacity without prior clearance from the Bank. 5. Cost overrun shall be for the account of the LGU.

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6. All insurable assets financed by LBP shall be insured and the proposed construction projects shall be covered by “Constructor’s All Risk Insurance” to be course through LIBI. Once completed, the building shall be covered by the fire insurance for the amount equivalent to the total appraised value of the improvement. Fire insurance is to subject annual renewal throughout the term of the loan. 7. Interest and principal payments shall be debited from the IRA deposit account of the LGU maintained at LBP Guimba Branch. LBP shall be the sole depository bank of the LGU for its IRA for as long as the loan remains outstanding. 8. Any excess payment on amortization shall be applied to the succeeding amortization due. 9. A 3% pre-termination fee based in outstanding obligations shall be charged if loan is taken-out by other bank/financing institutions or as required by the Special Financing Program (SFP). 10. A one time handling/processing fee of P50,000.00 shall be collected and GRT shall be for the account of the LGU. 11. The LGU shall course all Philhealth, taxes and other payments to the government through LBP. 12. The Bank reserves its right to withhold loan release/s should there be: a. A case filed against the LGU or its officials involving the project/s to be financed; b. An adverse finding on the project or object of financing; c. A withdrawal by the Sanggunian on the Authority given to the LGU’s Local Chief Executive to contract Loan. 13. Pre-release Conditions: a. Resolution passed by the Sangguniang Bayan authorizing its Local Chief Executive and approving and ratifying all terms and conditions of the loan. b. Certification by the Municipal Budget Officer, noted by the Municipal Mayor that the principal and interest repayments to the loan and other contractual and statutory obligations will be continuously appropriated in the annual budget of the LGU. c. Certification by the Municipal Treasurer noted by the Municipal Mayor that the proposed sources of loan repayments are available and not restricted by law or the LGU’s other obligations. d. Joint Certification by the Municipal Treasurer and Municipal Accountant noted by the Municipal mayor that the LBP loan shall be entered immediately upon release in the LGU’s book of accounts. e. Submission of LGU Certification signed by all members of the BAC and duly notarized that the bidding and/or alternative methods of procurement for the projects were in accordance with RA 9184 its IRR and related COA regulations or harmonized procurement guidelines. f. Certification from the supplier as to availability of spare parts in the local market. g. Certification by the Municipal Budget Officer noted by the Municipal Mayor that the repair and maintenance on the proposed projects will be continuously appropriated in the annual budget of the LGU. 14. Availability period shall be six (6) months from date of approval. If no availment is made during the period, the bank has the option to terminate the loan. 15. Partial release of collateral is subject to a fee of one-tenth of one percent (0.1%) of the appraise value of the collateral to be released provided that in no case shall the amount be lower than P1,000.00 or exceed P3,000.00 and the borrower shall shoulder the actual expenses in the documentation process, e.g. cancellation of mortgage. 16. Subject to other requirement that the field legal officer may impose for purposes of loan documentation and legal sufficiency. 17. All other terms and conditions of the previously approved Term Loans not inconsistent herewith shall remain in full force and effect.

Excerpts, Resolution No. 38, s-2008 Page 5

COLLATERAL

I. Chattel Mortgage on service vehicle to be acquired. a. One (1) unit reconditioned Nissan Terrano Wagon, Japan made, model 1992, diesel engine, black in color, bearing Plate No. SHH-809, with engine no. TD27-127795T and chassis no. LBYD21-000239, covered by Registration No. CR. 3637444-6. b. Two (2) units reconditioned Mitsubishi Space Gear Van, Japan made, 1995 model, diesel engine, bearing Plate Nos. SHH-823 and SHH-813, chassis nos. PA5W-0005554 and PA5W-0005620; and engine nos. 4DR56-G Y6485 and 4DR56-HA6030, covered by Registration Nos. CR. Nos. 3637452-0 and 3637453-1. c. One (1) unit reconditioned Mitsubishi Space Gear ambulance, Japan made, 1994 model, diesel engine, bearing Plate No. SHH-805, chassis no. PA5W-0000613; and engine no. 4DR56-GL5144, covered by Registration CR. No. 3637446-1 and complete with bed, stretcher, oxygen, wheelchair, and other necessary accessories. d. One (1) unit Yanmar excavator slightly used from Japan diesel engine, 0.2 cu. M. capacity with cabin. e. One (1) unit Mitsubishi Pay Loader, reconditioned and diesel engine.

II. Deed of Assignment of Internal Revenue Allotment (IRA) III. Deed of Assignment of Income from the Public Market and Slaughter House.

BE IT RESOLVED, by the Sangguniang Bayan to authorize the Local Chief Executive, Hon. Amado R. Corpus, Jr., to sign, execute, endorse and deliver any and all promissory notes, deed of assignment, loan agreement and other documents which maybe necessary or required relative to whatsoever credit accommodations may be granted by Land Bank of the Philippines to the LGU;

BE IT RESOLVED, by the Sangguniang Bayan to designate LBP as the LGUs major depository bank for IRA and for its other deposits which designation shall not be revoked while the loan obligation remain outstanding and directing LGU’s Secretary to provide copies of this Resolution to the DBM or other IRA administering office and authorize the Department of Budget and Management to deposit and remit directly to LGU’s IRA to the Land Bank of the Philippines for the LGU’s account;

BE IT RESOLVED, by the Sangguniang Bayan, that for and during the duration of the loan agreement that maybe entered into pursuant to this resolution, the LGU will not contract other loans/credit facilities from any financial or other institution without the knowledge and written consent of the Land Bank of Philippines, as acknowledgment of its loan with the LBP. The foregoing loan transaction/s obtained from LBP shall be entered by the LGU Treasurer in its books as proof of the LGU’s contractual obligations with the LBP;

BE IT RESOLVED, by the Sangguniang Bayan to authorize the LGU to transfer a portion of its IRA deposit with the LBP proportionate or pro-rated with other loans obtained from other government banks and shall remain this pro-rated level IRA during and for so long as any portion of the loan herein authorized, including interest and other charges due remain outstanding;

BE IT RESOLVED, the Sangguniang Bayan agrees to comply will all the LBP’s loan pre-release requirements which form an integral part of this resolution;

BE IT RESOLVED, by the Sangguniang Bayan THAT THE LGU HEREBY AUTHORIZES AND EMPOWERS LBP without the need of notice to the LGU and irrespective of the date maturity of the loan, to deduct, set-off and apply any deposit, funds, securities or assets of the LGU with the LBP or any of its branches as payment to the loan or any other outstanding obligations of the LGU which maybe declared due and demandable by the LBP pursuant to a loan agreement that maybe executed by and between the LGU and LBP in connection with this resolution;

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BE IT RESOLVED, by the Sangguniang Bayan that in order to ensure the repayment of the loan, the LGU shall appropriate and/or include in its annual budget the amount needed to service its loan with the LBP until said loan and any interest thereon is finally paid and settled including repairs and maintenance of the project, insurance premium and other statutory obligations;

BE IT RESOLVED, by the Sangguniang Bayan that all previous representations, warranties, and all terms and conditions of the loan are hereby confirmed, approved and ratified;

BE IT RESOLVED FINALLY, that the Sangguniang Bayan Committee on Appropriation is authorized to furnish copies of this resolution to the President and Chief Executive Officer, Land Bank of the Philippines, through Ms. REGINA C. NIMES, DM/Head of Nueva Ecija Lending Center (NELC), City, for and in behalf of the Sangguniang Bayan of Cuyapo, Nueva Ecija;

UNANIMOUSLY APPROVED.

I HEREBY CERTIFY to the correctness of the foregoing resolution.

MERCIDITA A. CRISOLO Attested: Human Resource Management Officer (Acting SB Secretary) RC No.: 14829781 JOHN D. DIEGO Date Issued: February 15, 2008 Vice Mayor / Presiding Officer Place Issued: Cuyapo, Nueva Ecija RC No. : 14767355 Date Issued: January 9, 2008 Place Issued: Cuyapo, Nueva Ecija

Approved:

AMADO R. CORPUS, JR. Municipal Mayor RC No.: 14765614 Date Issued: January 2, 2008 Place Issued: Cuyapo, Nueva Ecija

Concurred:

SBM CINDERELLA E. RAMOS SBM JUNE PAUL A. MENDOZA

SBM MUSSOLINI B. AGPALO SBM JAIME DL. BATAC

SBM DOMINADOR C. SUMALBAG SBM DAVID ROY N. DELO

SBM BERNARDO D. DIAZ SBM ANTONIO V. YSMAEL

SBM JAIME B. DURO, JR. SBM LARAH PASTORA C. DAR