Republic of the Philippines

Department Of Finance
BUREAU OF LOCAL GOVERNMENT FINANCE

CONTRACT OF LOAN

KNOW ALL MEN BY THESE PRESENTS:

This a CONTRACT OF LOAN executed by and between the _________________

_________________________ hereinafter known as the PARTY OF THE FIRST PART
and the Republic of the Philippines, represented by the Executive Director of the Bureau
of Local Government Finance, Department of Finance, Administrator of the Assessment
Loan Revolving Fund, established by the virtue of Presidential Decree No. 464, as
amended by the Presidential Decree No. 1002, hereinafter known as the PARTY OF THE
SECOND PART.

-W I T N E S S E T H-

That the PARTY OF THE FIRST PART having accomplished the documents and
information required in the Assessment Regulations No. 4-77, dated May 23, 1977 of the
Department of Finance;

That the PARTY OF THE FIRST PART having submitted to the PARTY OF THE
SECOND PART all the required supporting papers incident to the application of loan;

NOW THEREFORE, for and in consideration of the foregoing premises, the

PARTY OF THE SECOND PART hereby grants and approves a loan in the amount of
__________________________________________________________ (___________)
Philippine Currency, out of the Assessment Loan Revolving Fund to the ____________
_____________ and that the PARTY OF THE FIRST PART hereby accepts said loan
subject to the following terms and conditions:

1. That the proceed of the loan shall be expended on the basis of the
estimated costs of the project as itemized in the Project Study and
Action Plan (PSAP) submitted by the borrower Province which Plan
is hereby made an integral part hereof as Annex “A”;

2. That the initial release of the proceeds of the loan shall be

approximately 50% thereof, the date of the release and the amount
thereof shall be scheduled and determined by the BLGF, Department
of Finance;
3. That the prosecution of the project shall be started not later that sixty
days from the date of receipt of the amount covering the first release of
the loan;

4. That the project shall not be let to any private person;

5. That the second and last releases of the portions of the loan, in addition
to what are provided for in paragraphs (b) and (c), Section 3 of
Assessment Regulations No. 4-77 of the Department of Finance, shall
be subject to a prior submission of the “progress report” to the
Executive Director, Bureau of Local Government Finance, duly
verified by the representative of the Bureau of Local Government
Finance who personally inspected the project;

6. That the period of repayment of the annual proceeds of the loan shall
be for three (3) years in equal annual amortizations, to commence on
or before the end of December of the year following the year of
completion of the project until the same have fully paid and liquidated;
Provided, however, that if the project is not finished even after the full
release of the loan, the repayment shall commence on or before the
end of December of the year following the year of the last release of
the loan;

7. That the date of completion of the project, for purposes of determining

the running of the period of repayment, shall be certified by the
Provincial Assessor concerned and duly attested to by the Bureau of
representative who inspected and evaluated the project;

8. That in case the borrower Province concerned fails to pay the annual
amortization when due, the same shall automatically be charged
against the Internal Revenue Allotment (IRA) of the borrower Province
which allotment is hereby made as a guaranty of the repayment of
whatever loan released, as embodied under Resolution No. ______
series of _______ of the Sangguniang _____________ which is made
an integral part hereof;

9. That the proceeds of the loan, or any portion thereof, shall in no case
be used, temporarily or otherwise, for any other purpose by the
borrower Province except for the financing and implementation of the
project described hereunder.

_______________________________________________
_________________________________________
____________________________________
 10. That the unexpended balance of the loan, after the project has been
certified completed shall be remitted to the BLGF within fifteen (15)
days from the date said Certification was issued;

11. That in case the prosecution of the project shall be stopped for any
reason, the unexpended balance of the amount already released shall
be remitted to the BLGF upon demand; and

12. That the PARTY OF THE SECOND PART reserves the right to rescind
this contract whenever public interest so demand.

IN WITNESS THEREOF, the parties have hereunto set their hands at Manila,
Philippines, on this _____________ day of ____________________, 20__.
 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES}

}S.S.
CITY OF MANILA }

Before me, a Notary Public for and in the City of Manila, personally appeared
Executive Director Ma. Presentacion R. Montesa, representing the Bureau of Local
Government Finance, Department of Finance with Community Tax Certificate No.
__________________ issued on _______________________, at
_____________________ and _________________________________________,
representing the __________________ with Community Tax Certificate No.
________________ issued on ___________________ at
____________________________, known to me and to me known the same persons
who executed the foregoing documents denominated as a “Contract of Loan” and
who acknowledged having executed the same of their own free will and deed.

The foregoing documents consisting of four (4) pages including this page herein
the acknowledgement appears are duly signed by the parties and their instrumental
witnesses on the left hand margin thereof.

IN WITNESS WHEREOF, I have hereunto set my hand and seal in the City of
Manila, this ___________________ day __________________________, 20__.