How to secure loans from the rehabilitation finance corporation.pdf

Media

Part of The Local Government Review

extracted text: HOW TO SECURE LOANS FROM THE REHABILITATION FINANCE CORPORATION Manila, •Philippines List of papers to be submitted in. connection with the application of Loans to Provinces, Municipalities and chartered cities for public markets, waterworks and electric plll'llts. · (R.F.C, G(IV't Loa.ns Form No. 5) 1. An application for loan patterned after the model resolutlion (R.iF .C . Gov't. Loans Form No. 1 or l·A) and signed by the members of that Council tir iBoard present at its adoption. 2. The approval of the application by the Provinoial Board· in c'ase of municipalities, or that of the Mayor, in case of Cities. 3. A finanoial statement (R.F.C. Gov't Loans Form No. 2) of the applicant municipality, province or city, showing its 1income and expenditures for the last five years, from 1939 to 1948, if available, Japanese occupation excluded. If not, thclse for the last prec'eding three years may be given. (a) A financial statement of market operations, (R.F.C. Gov't Loans Form No. 3) ; of water_ works operation (R.F .C. Gov't Loans Form No. 4) ; or of electric plans (R.F. C. Loans Form No. 6), as the project may be. 4,. Sketch plans of the site showing its dimensions, boundaries and ownership; township, indicatiing therein loca-· tion of main lines, etc. ; buildings to be consti-ucted. 5. The report of cnem.ical and biologieal analysis of the water, show.ing its portability, etc. in case of water· works loan. 6. The comments and recommendations of the following offices and officials: (a) The Provincial Treasurer on the paying capacity of the ap· pJ.icant; (b) The Distri<!t Engineer or the City Engneer on the feasibilPage 476 ity of the project, including detailed list of project and individual estimated cost. (c) The District Health Officer on sanitation; in case of ap• plications concerning waterworks, sewerage systems, etc. (d) The Director of Public Works. (e) (The Auditor General certification of the paying capa. city of the applicant. (f) The Director, National Urban Fllanning Commission, Malacafian, Manila (for an assurance that the site for the proposed building will be retainied in the new plans of the a p p I i cant municipaHty or city.) (g) The Secretary of the Interior for the approval of the site. (h) The Se<!retary of Finance. Suggestian: !Before the Provincial Board or any Municipal Council adopts the enclosed resolution which will serve as the contract for the loan that may be granted, we suggest that it conisult the District En1gineer regarding the estimated cost of the project to be constru<!ted, which should be the amount of the loan to be appHed for. In case of a loan for a market pro.iect, the applica'lion, tol!'ether with R.F.C. Gov't Loans .Forms Nos. 2 and 3, duly accomplis·hed ·by the Munici.pal Treasurer, should be courserl through the Provi·ncial Board for approval of the application, and the Provincial Treasurer for verification of the financial statement, (F'orm No. 2). In case of a loan for a wterworks system, Form No. 4, prepared by the District Engineer 8hould be submitted therewith instead of Form No. 3. All the papers :;hould 'then be sent to the General Auditir.ig Office for the certification of the paying capadity of the applicant, with the request to forward them after THE LOCAL GOVERNMENT REVIEW certification to the Department of Finance, thru the Department of the Interior, the National Urban 1 F1lanning Commission and the Biureau of Public 'Works. ? . .JI papers should be submitted in du· plicate to this Corporation, and to avoid delay in the transmission of the appli· cation through the foregoing offices, enough copies of the forms should be enclosed. RPG Gov't. Loans Form No. 1 A Application for Loan for the Construc·Uon of Market -Buildings, Republic Act. No. 85 Excerpt from the Miniutes of the Municipal Council of ........................... . in its meeting held on ................... . ............... , 194 .... - ' Present: ............................................... . -~bsent: Resolution No ................ . Whereas, the ·public interest so requiring, the Municipality of .............. . proposes to construct .......................... . on the site described as follows: ....... . (NOTE :-State if site is owmd by Municipa'.ity and whether it has been approved l:y .the Secr,tary of the Interior; or, in the absence of such approval, that steps a re being taken to secure it. Location plan to be attached.) Whe1·eas, the said Mu:nicipa!Hy does not have sufficient funds with which to carry out such project; Therefore, on motion,, duly seconded: Be it resolt•ed, That the Municipality of ······-·····················---·-··· hereby applies to the REHABILITATION FINANCE CORPORATION, in accordance with the nrnvisions of Republic Act No. 85, for a loan of ................................... . SEPTEMBER, 1949 (:£' ...............•............ ); That in case said Joan or part thereof is granted, the Mun1icipality of ........... . ................... binds itself to comply with :he following conditions: 1. That the loan shall be paid in ten (10) annual amortizations including interest at four per centum ( 4 5'o) per annum, the first amortization to be paid one year after the date of completion of the project, which date shall be certified to the REH'ABILITATION FINANCE CORiPIQRATION by the Proyincial Treasurer having jurisdiction thereon ; 2. That the loan shall be released only upon receipt in the REHA!BILITATION FINANCE CORl:'ORATION of information that the site of the project has been ap:proved by 1the Secretary of the Interior, and as the loan is needed for the project, upon request of the District Engineer having jurisdiction thereon; 3 . That the loan. shall be paid from the gross income of '\.his project, and in case its income shall not l::e suffident to pay the annual amortization due, the Municipality of .................................... shall set aside .from its general f1.1nd annually an amount equal to the yearly amortization includin,g principa;I and interest at the rate of :1'123.29 per .Pl,000.00 applied· for until the loan herein requested and all interests due •thereon are er.itirely repaid: 4. That in case of default, the Collector of Internal Revenue and the Auditor General shall withhold from the ruext allotment of internal revenues of the Mun.icipalioty the amortizations due and remit the same to the REHABILITATION FINIANCE CORPORATION and shall continue to withhold 11uch amount until the arrearages shall have been fully paid; 5. That in case the amount of loan requested is not sufficient to finance the project P .................... will Page 477 immediately be appropriated from the municipal funds to be used for the purpose subject to the same restrictions as to expenditures as the Joan herein applied for; 6. That the whole amount of the loan, together with other loans or allotments granted to or received by, the Municipality of ............... . for the purpose herein specified, shall be deposited with the Provincial Treasurer of ................ .... to constitute a speeial fund to be known as ................................ ; 7. That it shall impose the maximum rate of lai;id tax for general purposes, and that no general reduction of assessment values for taxation purposes shall be authorized until this Joan and all in'terests due thereon are entirely repaid; 8. That the plans and specifications of the project shall be prepared by the Bureau ~f 1F1ublic Works after consultation with the authorities concerned and its construction shall be done under the supervision of the Director of Public Works and/or his authorized representative; 9. That the contract relative to said project shall not be awarded unless bids for the same are advertised in accordance with the provisions of Section 1917, as amended, of the Revised Administrative Code and the regulations of the Bureau of Public Works based thereon. All vouchers covering payments shall be subject to the approval of the Director of Public Works and/or the District Engineer and the Provincial Auditor; 10. That no part of the fund herein applied for shall be used except for the project for which the Joan is granted and the unexpected balance, if. there be any after the work is completed shall not be used for other purposes without the express authorization of the REHABILITATION FINANCE COR'PORATION; Page 478 11. That proceedings to register the real property under Act No. 496, as amended, shall be instituted at once; 12. That immediately upon c'ompletion, it shall have the structure insured, if insurable, under the provisions of Chapter 16 of ·the Revised Administrative Code, for the total amount of the loan invested therein and the insurance shall be kept in force until the loan and all interests thereon shall have been entirely repaid. The Municipal or Provincial Treasurer is hereby authorized to pay the premiums of the insurance from any unappropriated fund of the municipality; 13. That no recommendation shall be made for the reduction of the territory of the present municipality without the knowledge and consent of the REHABILITATION FINANCE CORPORATION until this loan and all interests due thereon are entirely repaid ; 14. Tha:t this Municipal Council, shall immediately, ·by ordinance, prohibit the erection of buildings for residential ,purpose on the market site and any structure of light materials within thirty meters of the curb line facing the market site, or any structure bounding such sitr.!, or within thirty meters of such site and not bounded by streets.and shall also prohibit the repair of such light material struc_ tures as are now erected within such limits ; and shall declare the market site and the land wiit:hin thirty meters of such site when not bounded by a street, a fire zone, within which light material buildings may not be erected ; 15. That unitil such time as the principal and interest of the loan shall have been fully repaid, the Provincial Treasurer, acting on behalf of the National Government, shall have full control and supervision of the operation of the market and slaughterhouse as well as the custody and the control of all land and all other buildings comprising THE LOCAL GOVERNMENT REVIEW the same, and all ordinances, resolution, orders and other regulations that may be promulgated by the Municipal Council or any municipal official in any manner pertaining to the operation or control the!"eof shall require the prior approval of the Provincial Treasurer and shall conform with the provisions of Republic Act No. 37 as well as with the rules promulgated thereunder. Appeal may be made by the corresponding council from a decision of. the Provincial Treasurer disapproving a proposed ordinance, resolution, order or regulation, to the Secretary of the Interior whose decision shall be final, provided, that in the event of difference of · opinion between the Treasurer and the Council as to the tariff to be charged for the use of the market and/or slaughterhouse, the tariff approved by both the Secretary of the Interior and the Secretary of Finance shall be adopted; We hereby certify that at a meeting by the Municipal Coun'cil, held on the ................ day of ........................ , 194. the foregoing resolution was approved by the affirmative vote of all or the majority of all the members of the Council. Mayor ........................................... . Councilor ............................................ . " I hereby certify that the sum of P................ mentioned in paragraph 5 .1ppropriated for ............................ has be.en deposited in this office, and is available for the construction above contemplated. Provincml Treasurer FRC .Gov't. Loans Form No. 1 B Application for Loan for the Construction of a Waterworks system, Republic Act No. 85 SEP.TEMBER, 1949 ;Excerpt from the Minutes of the Provincial Board-City-Municipal Coun" cil of ....... ·. . . . . . . in its Meeting held on ............................ , 194 .. .. Present: ........................................... .. Absent: Resolution No ............... .. Whereas, the public interest so requ!ring, the Province-City-Municipality of .... : ....................... proposes to construct ...................................................... .. on the site described as follows: ........ _______________________ .,. ______ ,. ________________________ _ (NOTE :-State if site is owned by ProvineeCity-Municipality and 'Vh<ther it has been approved by the See?"etary of the Interior; or, in the absencl of such approval, that steps are ·being taken to secure it. Location plan to be attached.) Whereas, the said PTovince-City-Municipality does not have suff.iCient funds with which to carry out such project; Therefore, on motion, duly seconded: Be it resolved, That the ProvinceCity-Municipality of .............................. .. hereby applies to the REHA!B.JLITATlON FINANCE CORPORATION, in accordance with the provisions of Republic Act No. 85, for a loan of ........... . ................ (IP ........................ ) ; That in case said loan or part theref) f is !!.'ranted, the Province-City-Municipality of ____ ....................... binds itself to comply with the following conditions: 1. That the loan shall be paid in. ten (10) annual amortizations including interest at four per centum ( 4 % ) per ann1um, the first amortization to be paid one year after the date of completion of the project, which date shall be certified to the REHABILITATION FINANCE CORIPORATION by the Page 479 District-City Engineer having jurisdiction thereon; 2. Tnat the loan shall be released only upon receipt in the REHABILITATION FINANCE CORPORA· TION of information 1that the site of the project has been approved by the Secretary of the Interior, and as the Joan is needed for the projec't, upon request of the Dis· trict-City Engineer having jurisdiction thereon ; 3. Tnat the loan shall be :paid from the gross income of this project, and in case iJ;s income shall not be sufficient to pay the annual amortization said Muniiaipality of ------------········ shall set aside from its general fund annually an amount equal to the yearly amort:ization including principal and interest at the rate P123.29 per Pl,000.00 applied for until the loan herein re· quested anid all interests due thereon are entirely repaid ; 4. That in case of default, the Collector of Internal Revenue and the Auditor General ·shall withhold from the neict allotment of inter· nal revenues of the Province·CityMurricipality the amortizat:ion d!ue and remit the same to the REHA.IlILIT ATION FINANCE COR1 PORATION and shall continue to withhold such amount until the arrearages shall have been fully paid; 5. That in case the amount of loan requested is not sufficient to fin· ance the project P ................ wil.J immediately be appropriated from the province-city-municipal f,,-- · to be used for the purpose subject to the same restric'tions as to expe.n ditures as the loan herein ap· plied for; 6. That the whole amount of the loan, together with other loans or allotments granted to or received· by. the Province-City-Municipality of .................... for the purpose her•in specified, shall be deposited with the Pro"incial·City Treasurer of ........................ , to constitute a sp:Page 480 eial fund to be known as ...•........ ; 7. That it shall il)l.pose the ma . .imum rate of land tax for genera1 purposes, and that no general reduc· tion of assessment values lor tax· ation purposes shall be authorized until this Joan and all interests due thereon are entirely repaid; 8. That the plants and speciiicaHons of the project shall be prepared by the Bureau of Public 'Works after consultation with the authorities concerned and its construction shall be done under the supervision of the Director of Public Works and/or his authorized representative; 9. That the contract relative to said project shall not be awarded unless bids for the same are adver· tised in accordance with the provisions of ~ection 1917, as amended, of the Revised Adminlistrative Code and the regulations of the Bureau of 'F!ublic Works based thereon. All vouchers covering payments shall be subject to the ap:proval of the Dire.ctor of Public \.Vorks and/or the District Engineer and the Provincial IA uditor; 11). That r.o part of the fur.d here·in applied for shall be used except for the project for which the loan is granted and the unexpected balance, if there be any, ·after the work is completed shall ·not be used for other purposes .without the express authorization of the RE· HABILTTATION FINANCE CORPORATION; 11. That no rec0mmendation shall be made for the reduct!on of the territory of the present municipality without the knowledge and consent of the REHAiBILITATIO~~ t<TNANCE CORPORATION until this loan and all interests due +hereon are entirely repaid; 12. That upon completion of the construction of the waterworks sys· tern, the same shall be ~il~;dster ed in accordance with the "General Regulations Governing the Admin_ istration, Operation, and MainteTHE LOCAL GOVERNMENT REVIEW nance of "Municipal and 1 P'rovincial Waterworks" jointly promulgated by the Director of Public Works and the Chief of the former Executive Bureau, pursuant to Executive Orqer No. 6, series of 1925, as amended by Executive Order No. 7, Series of 1926, of the Governor General, and section 1916 of the Administ_ra:tive Code as amended. . We hereby certify that at a meeting by th~ Provincial Board-City-M:un-icipal Council, heJ.d on the ............ day of.. ..... . ....... : ... ., 194 .... the i'oreaoing- re~olution was approved b:v the affirmative vote of all or the maioritv oi' all the memhPrs of the :Board-Council. Mayor ··························-·········.-·············· Councilor ........................................... . " " or Governor ....................................... . Member .......•..................................... Member ........•................... . .............. . I hereby cert.ifv tht the sum of P................ mentioned in paragraph 5 appropriated for ........................ - ....... . has been deposited in this office. and is available for the construction: above contemplated. Provineial-Citv Tr<asurer RFC Gov't. Loans Form No. 2 Finar,,•ial Statement of the ProvinceCity-Municipality of ....................... . in c(mnection with its Loan :Application of P ................... . APPLICANT: Province-City-Municipality Population Class Seven per cent (7%) of Amount :-!P ....................... . Purpose:- ................ . ...... . 1. Borrowing Capacity:Assessed value of taxable real property on June 30. 1948 ................ . ........... P ............... . SEPTEMBER, 1949 above ........ ........ . ........... :!' ............... . Deduct- outstanding loans and other indebtedness !P ............... . Legal lborrowing capac-ity ................ . ....... !P ............... . General Fund 2. Paying capacity:-· 1940 Gross revenue ... .!!' ............•••• Total budget charges (less sinking fund · installment., repayment of. loans and capital outlays) ·······-~---············· Excess .................... '!' ............... . 1941 Gross revenue ........ 'P Total budget c'har1?es (less sinking fund installment, repayment of loans and caPoital outlays) ........ P ............... . Excess ........ , ........... !!' ............... . 1945 Gross revenue .... P ............... . Total budget charg-es (less sinking fund installment, repayment of loans and caJ>ital outlays) ........ P ...............• Excess .................... P ............... . 1946 Gross revenue ........ :!' •............... Total bud·l!"et charges (less sinking fund installment, repavment of loans and c!anital outlays) ...... .JP •............... Excess .................... 9t ...............• 1947 Gross revenue ........ P ............... . Total bud!l!"et charl!"e~ (.less sinking fund installment, renayment of loans and capital outlays) ............ !!' ........... . Excess• .................... P .............. - 1948 Gross revenue ........ P ............... . Tota]. bud1ret charfle!'. ·o~ss sin1king fund installmenf, repayme11t of loal's and ca-pita! outlays) ........ P ....... . Excess .................... P ............... . a. Total excess in ........ years and months ............................ P .... ············ b. Average yearly excess (total ex.cess divided bv (-) ······--········ ............ IP ..•...........•. c. Gross paying capacity for Page 481. loans (average yearly excess divided by 14; loan payable in 10 years with interest at 4 % ) -------- P _______________ _ d. 60'.Yo of gross paying capacity -------- --------------------'1'---------------· e. Deduct total amount of outstanding loans and other indebtedness ________ P .... ___________ _ f. Net paying capacity for loans payable in 10 years with interest at 4% per annium ----·-------------------.... P---·--------,--·• Attested by: --------------------------------- -------------------····· Provincial Treasurer Date: -------·-----------------------------------Submitted by: City or Municipal Treasurer Date: ----···------------------------------------Submitted by: Provincial-City Treasurer Date: ··--····-·····-----------------------------· RFC Gov't. Loans Form No. 3 :!\farket and/or Slaughterhouse projects to be financed from the Rehabilitation fund, Republic Act No. 85 Fina:ncial Sta.tement 1. Province ---------------------------2. Municipality or City ------·········-···· 3. Estimated cost ---· .... P-----1 4. (a) Amount recommended from the Rehabilita· tion F'und ---·-··-·····-------····'P·---(b) Amount of City-Mun~ icipal F'unds for construction of project -··--·····..!P---5. 4'nnual Operating Expense and Reimbursement: -ia) Cost of operation and maintenance, including salary of ]'.ersornel ____________ P'----"b) R·pa"rs to the lui'dings ---------------- -----·-······-JP---(c) Annual amortization on the Joan inc1uding int'lrest of 4 % for 10 years /123.29 p:r 'Pl,000.00 ---~ - - - ' r]) Mis<'ellaneous ........ 1 .••• '!!l'--G. Fronos·d rates for market (a) Market tiendas, per door -·······---- ____ _ _____ JF'.----(b) Stqll spa~e per square Page 482 meter ---------·-··--· ----··-·---.!---( c') Slaughterhouse fees for hogs, cattle, etc. ___ jll- - - - ( d) Other space ___________ JP--7. Estimated annual income of the market and/or slaughterhouse based upon the proposed rates in Item 6: (a) From market tiendas @ !P--- per monith for t2 months ____________________ P - - (b) :From stall space @ P--- per sq. m. daily average, for 365 days, or per month, as the case may be -----··----- ____________ f---(c) From a v e r a g e slaughter of hogs per month P , for 12 months, etc., ----··-···--·-··-··_IP---From average slaughter of cattle per month tP---, for 12" months, etc. -··-··-····-----····--·-···-----P---8. Estimated Profit or Deficit (Item 7 minus Item 5) -··-------······----·······-··------P--(In case of deficit, give steps that would be taken to remedy same) 9. (a) Actual net income of market and/or slaughterhouse for the year 1945 !P--(b) Actual net income of market and/or slaughterhouse for the year 1946 P---llJ. Total amount of outstanding loans of l\foncipalityCity ................................ f'--11. Annual repayment on outstanding loans including interest ·········-·········-······--''---Attested by: Provjr;cial-City Treasurer Submitted by: Municipal Trz2rnrer NOTE:-Tho Provincial or City Treasurer shall certify whether the estimated income wodd be sufficient to cover the annual amortization and the expens<s for the (Continued on pape 484) THE LOCAL GOVERNMENT REVIEW Section 25. Every municipal tribunal, once constitu.ted in accordance with this provision, shall-with the presenee of .the delegates of the Principalia and of the Reverend Parish Priest-prepare a statement of the fixed sources of revenue with which it is to meet the current expenses of the town. In this statement no amount can be embodied when it accrues from the tax which may be placed upon- rural property, in accordance with Number 14 of the precedini; Section; as a separate account and statement must be kept of all the receipts relathe thereto, which shall be used exclusively· to defray the cost of local community public works. The statement of permanent ordinary sources of revenue, referred to in the preceding Section, shall be the budget of annual receipts of the town. It shall continue in force indefinitely, with the additions or alterations which may be introduced therein in a legitimate nrnnner and true and duly certified copies shall always be on file with the Municipal Tribunal and the Provincial Board. Every three years the estimate of the revenues appearing in the statement ~haJ.I be revised by the Board and each revenue item shall be -set down only to denote the amount collected aninually, in accordance with the average col· kctions calculated from the accounts of the previous years. Section 26. . The imposts and faxes which constitute the "Income or Funds of the Towns," with the exception of those which may be placed upon rural property, may be farmed out by 0 the municipal tribunals at a public auction, in the manner prescribed in Section 12 and for periods not exceeding three years. The imposts and taxes not farmed out shall be collected by 1the cabezas de barangay or by the other persons entrusted therewith who may be designiated in writing, and at the periods and intervals which rthe Municipal Tribunal may determine, under the personal responsibility of its members. At the end of the period of collection,the person in charge thereof shall Page 484 deposit with the Municipal Tri!bunal the receipts· which he may not have teen able to turn into specie. He shall not be held accountable for the failure lo make ~he collection, when such a failure is not due to negligence or bad faith. The Tribunal shall take such action as may be contributive to the payment by the delinquents of it he amounts which they ham come to owe. Section 27. To each taxpayer and for the amount collected, there shall be issued a receipt signed by the Capitain and by the person in charge of the collection. This person shall make his deposits weekly, during the period of the collection, with the Municipal Tribunal, the Captain giving him receipts for the amounts deposited wi.th a statement of the items to which they pertain. The Captain shall retain, at the time of the deposi.t, a duplicate of the receipt, with the signature of the collector, in order to make a record at the proper time of the deposit of ·the collection in the safe of the "Income of the Towns." The person in charge of the collection shall also prepare a detailed statement of rthe collections, by items, for transmi.ss.ion to the Provincial Board at the times specified in the regulations. ---oOoHow to Secure ... (Continued from page 482) administration, operation and maintenance of the market and/or slaughterhouse, and if the income is not sufficient to cover same, whether the· deficiency could be covered from the regular income of the applicant entity. Ruling of the (Cont. from page 459) In view of the foregoing, therefore, this Office believes that payment of 1he salary increase of Mr. Rafael L. Carranza may be allowed in audit. 3rd Ind., June 23, 7937, of Aud. Gen. to Prov'l Aud., Masbate, Masbate; G.A.O. File No. 390. THE LOCAL GOVERNMENT REVIEW
Date: 1949
Rights