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    Document 81

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    | Lending Act: A . belle te boone al mel ayant ay gatem © ae ot ag REPUBLIC ACT No. 3765 ‘aN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES IN AN NECTION WITH EXTENSIONS OF CREDIT. section 1. This Act shall be known asthe “Truth in Lending Act.” national economy. RA. 3765 (Truth in Lending Act) requires a creditor (or seller) to fally disclose to the debtor (or buyer) the true cost of credit "witha view of preventing theuninformed use of ret to the detriment ofthe national econo” Not disclosing the true finance charges in connection with the extensions of credit is a form of deception which the Supreme Court cannot | Countenance. It is against the policy of the State as stated in the Truth in and the lending institutions do not deal on an equal was intended to protect the public from hidden or iarges on their loan obligations, requiring a full disclosure snder.? Section 3, As used in this Act, the term (1) “Board” means the Monetary Board of the Central Bank of the Philippines, (2) "Credit" means any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract; any contract to sell, or sale or contract of sale of property or services, either for Present or future delivery, under which part or all of the arrangement for the hire, bailment, or leasing of property; any option, demand, lien, pledge, or other claim against, or i — RA.No.3765/Truth in Lending json Shugaton of cl any transaction purpose or effec, discounts, an Board may by regulation prescribe. ofcreditas the Sears Tngaged in the business off (4) “creditor” mete (including any person who as a regular caeeehyactice make loans or sells or rents property or mastces on a time, credit, or installment basis, either as sineipalor as agent) who requires as an incident to the Prrension of credit, the payment of afinance charge. (5) "Person" means any individual, corporation, partnership, association or other organized group of persons, or the legal Successor or representative of the foregoing, and includes} the Philippine Government or any agency thereof, or any other government, or of any of its political subdivisions, or any agency of the foregoing. Section 4 Any creditor shall furnish to each person to whom credit is e accordance with rales and regulations prescril following information: (1) The cash price or delivered price of the property or service tobe acquired; (2) The amounts, if any, to be credited as down payment and/or trade-in; (3) The difference between the amounts set forth under clauses (1) and (2); (4) The charges, individually itemized, which are paid or to be aid by such person in connection with the transaction but Which are not incident to the extension of credit; (5) The total amount to be financed; (6 The finance charge expressed in terms of pesos and centavos; and a it Percentage thatthe finance bears to the total amount to Sinanced expressed as a simple annual rate on the ‘outstanding unpaid balance of the obligation. on Central ek, No.3765, thie, sti CiFCular No. 158 defines the detalls mentioned in RA. i ‘or money; any purchase, oy for the delivery of Py credit upon the security of any ‘arising out of any of the foregoing; ang ‘or series of transactions having a simllay purport. charge" includes Interest, fees, service charged - a We saher charges incident tothe extensiof 2 RA. No. 3765/Truth in Lending Act “Cash Price or Delivered Price," in case of trade transactions, is the amount of money which would constitute full payment upon delivery of the property (except money) or service purchased at the business. In the case of financial transactions, cash price amount of money received by the debtor upon consummation of the credit. noes ‘net of finance charges collected atthe time the credit s extended (ifany). "Down Payment” represents the amount paid by the debtor at the time of the transaction in partial payment for the property or service purchased. "Trade-in" represents the value of an asset, agreed upon by the creditor and debtor, given at the time of the transaction in partial payment for the property or service purchased. ‘Non-finance Charges” correspond to the amounts advanced by the creditor for items normally associated withthe ownership ofthe property or of the avallment of the service purchased which are not incident to the extension of credit. For example, inthe case ofthe purchase of an automobile advance the insurance premium as well as the tof the debtor. “Amount to be Financed” consists of the cash price plus non-finance charges less the amount ofthe down payment and value of the trade-in, “Finance Charge” represents the amount to be paid by the debtor incident to the extension of credit such as interest or discounts, collection total finance charge represents the difference between (1) the aggregate consideration (down payment plus installments) on the part of the debtor, and (2) the sum of the cash price and non-finance charges. “*Slmple Annual Rate" is the uniform percentage which represents the ratio, on an annual basis, between the finance charges and the amount to be financed? Section 4 of the Truth in Lending Act clearly provides that the disclosure statement must be furnished prior to the consummation of the transaction ending Act RA No, 3765 /Trath in Lending The rationale ofthis provision I banks are able to con es ier ‘deduction of inte om. sean oo open recat te recontracy and to properly decisions. Consol tion v. Court of Appea wed Bank and Trust Corporat The Cara the penalty charges that were stipulated in ruling declared ie the Court disallowed in that case was the collection erornndling charge that the promissory notes did not contain. ‘that financial charges are amply disclosed ‘The Court has affirmed wal meter lot Notes and signed a Credit Agreement. The & Promissory Notes contained a stipulation granting P Bank the Fett to increase or reduce interest rates “within the limits allowed by law at bbethe Monetary Board. * The Real Estate Me i fet at nate Moraes ‘agreement provided the same right t0 | Ravadet inte tre” i by the paren" 1991, an Amendment to Credit Agreement was execute) hep {htt wane ite oe: R.A. No. 3765/Truth in Lending Act Under this Amendment to Credit Agreement, H and W issued in favor of P Bank 18 Promissory Notes, which H and W settled ~ except the last (the note covering the principal). ‘The 9th up to the 17th promissory notes provide for the payment of interest at the “rate the Bank may at any time without notice, raise within the Jimits.allowed by law 200." = became past due, and despite repeated demands, H and W failed to make good on the note. Despite demand, H and W failed to pay. Thus, P Bank foreclosed on ‘the mortgage, and on January 14, 1999, TCTs T-14250 and T-16208 were sold toit More than a year later, or on March 24, 2000, H and W filed a case seeking annulment of the foreclosure sale and an accounting of the P Bank credit. lated the Truth in Lending Act or RA. 3765? It appears that by its acts, P Bank violated the Truth in Lending Act ‘or Republic Act No. 3765, which was enacted “to protect xc citizens from a lack of awareness ofthe true cost of credit to the user by using a full disclosure of such cost with a view of preventing the uninformed use of credit to the detriment of the national economy.” The law “gives a detailed enumeration of difference between the amounts set forth under clauses (1) i charges, individually terized, which are paid or to be paid (5) the total amount to be financed; 5 (6) the finance charge expressed in terms of pesos and centavos; ‘that the finance bears to the total amount to be con Lelipienady asa tole annual rate on the outstandi balance ofthe obligation. nde elon financecharge” represents the amount t id by the de the extension of credit such as interest ais investigation fees, attorney's fees, and othe, server charges ‘The total finance charge represents the difference bet {i) the aggregate consideration (down payment plus installments) on thq ; and (2) the sum of the cash price and non-finance art of the debtor, and (2) documents sna t obligations. In one case, which the Cout UCPB further argues that since the spouses Beluso were duly given copies of the subject promissory notes after their execution, then they were duly notified of the terms thereof, in substantial compliance with the Truth in Lending Act. Once more, the Court disagrees. Section 4 of the Truth in Lending Act clearly provides that the disclosure statement must be {furnished prior to the consummation ofthe transaction: ‘SEC. 4. Any creditor shall furnish to each person to whom credi extended, prior to the consummation of the transaction, a ‘statement in writing setting forth, to the extent applicable and in ‘accordance with rules and regulations prescribed by the Board, the {following information: (A) the cash price or delivered price of the property or service to be acquired: 2) the amounts, if any, to be credited as down payment and/or trede- in; o the difference between the amounts set forth under clauses (1) and (@) the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not ‘incident to the extension of credit: (3) the total amount to be financed; (6) the nance charge expressed in terms of pesos and centavos; and Cal, percentage that the finance bears to the total amount “a expressed asa simple annual rate on the outstanding wt balance of he obligation See The rationale of this provision is to cred protect users of ‘froma lack of awareness of the true’ ‘cost thereof: proceeding from the perience ‘that banks are able to conceal such true cost by hiddet 79¢S uncertainty of interest rates, deduction of interests from th 6 | RA. No. 3765/Truth in Lending Act loaned amount, and the lke. The law thereby seeks to protect debtors by permitting them to fully appreciate the true cost of their loan, to enable them to give full consent to the contract, and to properly evaluate their options in arriving at business decisions. Upholding LUCPB's claim of substantial compliance would defeat these purposes of ‘the Truth in Lending Act. The belated discovery of the true cost of credit will too often not be able to reverse the ill effects of an already consummated business decision. Jn addition, the promissory notes, the copies of which were Presented to the spouses Beluso after execution, are not sufficient ‘notification from UCPB. As earlier discussed, the interest rate provision ‘therein does not suficiently indicate with particularity the interest rate ‘0 be applied to the loan covered by said promissory notes. However, the one-year period within which an action for violation of the Truth in Lending Act may be filed evidently prescribed long ago, or sometime in 2001, one year after H and W received the March 2000 demand letter which contained the illegal charges. ‘The fact that H and W later received several statements of account detailing its outstanding obligations does not cure P Bank's breach. To repeat, the belated discovery ofthe true cost of credit does not reverse the ill effects of an already consummated business decision * Problem: Atty. X was employed by the Z Bank in October 1981. Thereafter, he decided to avail ofa loan under the Individual Housing Project (IHP) of the bank. On Septe id, as well as the house to be constructed thereon, for . X borrowed the said amount from Z Bank for the the construction of a residential building thereon. He pay the loan in 25 years, with a monthly amortization of ‘9% interest per annum, to be deducted from his monthly Bank obliged itself to transfer the title of the property upon the payment of the loan, including any increments thereof. it was also agreed therein that if X availed of optional retirement, he could elect to continue paying the loan, provided that the loan/amount would be converted into a regular real estate loan account with the prevailing interest assigned on real estate loans, payable within the remaining term of the loan account. ‘X was notified of the periodic release of his loan. During the period of July 1984 to December 31, 1986, the monthly amortizations for the said account were deducted from his monthly salary, for which he was issued receipts. armament Pees Ts monthly. 1,468.92 in Novembe, The amortization was increased to P 1904 and t PL691S1 beginning January 1985. However, Xopied ta Fesipy from the bank in December 1986. Conformably with the ‘Conditions, 1987, amount of P186,364.15. He ‘However, X also agreed to the reservation by the Z Bank of its righy tw increase (with notice to him) the “rate of interest on the loan, as well a a 3765 and CB Circular No, 19787 one 158, Series of ‘Under Circular No. 156 of the Central Bank, the information required by BA Mo, 3765 shall be included in the contract nae debtor thas.” 207 other document to be acknowledged and signed by the The contract covering the credit transaction, or any other | | ta be acknoheiged and gned bythe debtor, shall nce ‘he above seven items of information. in addition, the contract or | 8 | RA. No. 3765/Truth in Lending Act document shall specify additional charges. if any, which will be collected in ase certain stipulations in the contract are not met bythe Furthermore, the contract or document shall specify additional charges. if any, which willbe collected in case certain ‘ipulations inthe contract are not met by the debtor. If the borrower is not duly informed of the data required by the law prior to the consummation of the availment or drawdown, the lender will (even if in the promissory note. However, such failure shall not affect the validity or ‘enforceability of any contractor transaction. In the present case, Z Bank failed to disclose the requisite information in the disclosure statement form authorized by the Central Bank, but did so in the loan transaction documents between it and X. There is no evidence on record that Z Bank sought to collector collected any interest. penalty or other 3 latter : 1994, or 4 years after the said notarial rescission. The Supreme Court finds and so holds that the following findings and ratiocinations of the CA are ‘correct: After a careful perusal ofthe records, the court finds that the ‘appellee had been sufictently informed ofthe terms and the requisite charges necessartly included in the subject loan. It must be stressed in Ne ri relating to appel lant's business and fully Pella business and ful cognizant of he terme ‘oan he applied for, including the charges that had to be pang’ 1% ___ It might have been different \f the borrower ordinary employee eager to buy his frst how the necessary charges and fully understood effects. Consequently, the trial court's annulmen ‘anchored on this ground was unjustified.” Section 5. The Board shall Prescribe such rules and Tegulations, be necessary or proper in carrying out the provisions of thie re rule or regulation prescribed hereunder may’ contain = Classifications and differentiations as inthe judgment of the Board Recessary or proper to effectuate the purposes ofthis Act or to prac” Circumvention or evasion, or to facilitate the enforcement ofthis art any rule or regulation issued thereunder. “| Section 6.(a) Any creditor who in connection with any credy transaction fails to disclose to any person any information in violation of this Act or any regulation issued thereunder shall be liable to such Person in the amount of P100 or in an amount equal to twice the finance! charged required by such creditor in connection with such transaction, whichever is the greater, except that such liability shall not exceed 2,000 on any credit transaction. Action to recover such penalty may be brought by such person within one year from the date of the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court costs as determined by the court. (b) Except as specified in subsection (a) of this section, nothing | contained in this Act or any regulation contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or transactions. (© Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be fined by not less than P1,000 or more than P5,000 or imprisonment for not Iess than 6 months | nor more than one year or both, me ae rg a Pp Me 44 06 10 i RA.No.3765/Truth in Lending Act inishment or penalty provided by this Act shall apply to the (© Peuippine Government or any agency or any pole subalvsion thereof. © yent hereafter rendered in any criminal proceeding (0) er this het othe elect that defendant ba willy violated this Act shall be prima facte evidence against such defendant in an action or proceeding brought by any other party against such defendant under this Act as to all matters respecting which judgment would be an estoppel as between the parties thereto. i li “Truth in Lending In enacting Republic Act No. 3765, known as the ‘Act.theStae seeks to protect its ctizens from alack ofwareness ofthe true cost of credit by assuring the full disclosure of such costs. Section 4, in connection with Section the said law, gives a detailed enumeration ns Taw Fe vto willy wolates these provisions Sanctions whigh include vl ability, and ain and/or imprisonment: {As can be gleaned from Section 6{a) and (¢) of the Truth in Lending id Act gives rise to both criminal and civil liabilities. said Act gi to ie. Act, the , i crimi anse the willful violation impo cero ine iprisonment or both. Section 6(a), on the ‘dvil cause of action for failure to dis red information to any person in ‘Act. The penalty therefor is an amount of P100 or in an twice the finance charge required by the creditor in such transaction, whichever is greater, except that the liability shall not exceed P2,000.00 on any credit transaction. The action to recover such penalty may be instituted by the aggrieved private person separately and independently from the criminal case for the same offense.’ Section 7. This Act shall become effective upon approval. Approved: June 22, 1963, Inthe iene iL RA. No, 3765/Truth im Lending °° } discl j Pre or Fale gee roqures2 reir (or seller) t0 fll disclose toy) Lo tthin 4 cdl alle deen (or baer the ae conection wth te een pot deal on an equal f0tIng 2, Not disclosing the true fnanes credit is not a form of deceP' sissado 3. The dear and th en gad to protect the public the Truh in erg her loan obligations: requiring ser protect debtors by permit « RISB es rey sane et nen i ron arn pe mata i a oe sce claconemet ee 3 A “Any loan, mortgage, deed of rust, advance, Clem ee Efren a per op See acre D. Allofthe above. 2 Inthe-Trath in Lending Act creditmeans: ta purchase contrac A Aayrena par nerrangement for the hire, ballment, or lasing rise to both criminal and cg 5. Jalech of propery or money; any purchase, o other acquisition of settee upon the security of any obligation of claim arising out of ay © ofthe foregoing D. Allofthe above. 4. Inthe “Truth in Lending Act” this includes interest, fees, service charges) discounts and such other charges incident to the extension of credit. ‘A Pance Charge 2 Dividend © Compound interest | D. Rebate | 4. Inthe Truth in Lending Act’ this means any person engaged i | Seedilhatibrne y Person engaged inthe busines A. Lender B. Creditor © Debtor 12 RA. No. 3765/Truth In Lending Act D. Guarantor 5, Any creditor shall furnish to each person to whom credit is extended, prior to the consummation ofthe transaction, a clear statement in writing setting. forth the following information: The cash price or delivered price of the property or service to be acquired, 1B. The amounts if any, to be credited as down payment and/or trade-in. ‘The charges, individually itemized, which are paid or to be paid by such jection with the transaction but which are not incident to jon of eredit. 6. Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of the transaction, a clear statement in writing setting forth the following information: A. The total amount to be financed. B._ The finance charge expressed in terms of pesos and centavos. . The percentage that the finance bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation. D. All ofthe above. 7. Im case of trade transactions, this is the amount of money which would constitute full payment upon delivery of the property (except money) or ‘service purchased at the creditor's place of business. C. Cash price or delivered price. D. Notes receivable 8. In the case of financial transactions, it represents the amount of money received by the debtor upon consummation of the credit transaction, net of finance charges collected at the time the credit is extended, if any. A. Accounts receivable B. Cash price Down payment D. Notes receivable It represents the amount paid by the debtor at the time of the transaction in partial payment for the property or service purchased. A. Cash price B. Accounts receivable C. Notes receivable D. Down payment —— RA.No, 3765/Truth in Lending Act 10, itrepresents the value ofan asset, agreed upon by the creditor an given a the time of the transaction in partial payment for the prog service purchased. Proper. Only !istrue A. Barter @ Botharetrue B. Tradedin 5. Both are false Finance charge D. Cash price 411. tecorresponds tothe amounts advanced by the creditor fo tems nor, associated with the ownership of the property or of the availment gf Service purchased which are not incident to the extension of credit. ‘A. Amount to be financed B. Finance charge C_Non-finance charges D. Simple annual rate 12, It consists of the cash price plus non-finance charges less the amount of ‘down payment and value ofthe trade-in. ‘A Non-finance charges B. Finance charge Simple annual rate D._ Amount to be financed 413, Itis the uniform percentage which represents the ratio, on an annual bast, between the finance charges and the amount to be financed. I A. Non-finance charges B. Finance charge ' Simple annual rate D. Amount to be financed 14, L The Truth in Lending Act was enacted "to protect citizens from a lack awareness of the true cost of credit to the user by using a full disclosure g) such cost with a view of preventing the uninformed use of credit to th detriment ofthe national economy. Il The Truth in Lending Act “gives a detailed enumeration of the speci information required to be disclosed, among which are the interest and other charges incident to the extension of credit.” D. Both are false | 15. 1. The violation of the Truth in Lending Act gives rise to criminal liabilities) isclosing the true finance charges in connection with the extensio) isa form of deception. A. Only istrue Philippine Procurement Law's ited States Philippine commission introduced the mere ace of oe bidding through Act No. 22, enacted on ‘October 15, 1900, by requiring a rl era Ider the contro of te then Miltary Governor, to advertise and ora competitive bg for the purchase ofthe necessary mater "Feet be used forthe construction of highways and bridges in ‘he Phiippne sands Act No. 74 enacted on January 21, 1901 by the Ptippine Commission, required che General Superintendent of Pubjc arian to purchase ofce supplies through competitive public Prading Act No. #2, approved on January 3, 190%, and Act No. a3, tpproved on February 6,190, required the municipal and provincgy Pervmments, respectively, to hold competitive public biddings in the king of contracts for public works and the purchase of office supplies. History of 146, created che Bureau of Supply and with its crea became a popular policy in the purchase of s materials and equipment for the use ofthe national government, its subdivisions and instrumentalties.On February 3, 1936, then President Manuel 1, ‘Quezon issued Executive Order No. 16 declaring as a matter of general policy that government contracts for public service or for furnishing ‘supplies, materials and equipment to the government should be subjected to public bidding. The requirement of public bidding was likewise imposed for pul to the Revised Administrative Code of 1917. Then Diasdado Macapagal, in Executive Order No, 40 dated june 1, 1963, reiterated the directive that no government contract for public service or for furnishing supplies, materials and ‘equipment to the government or any of its branches, instrumentalites, should be entered into without except for very extraordinary reasons to be detei Committee constituted thereunder. Then President Ferdi ‘issued PD 1594 prescribing guidelines for government infrastructure projects and Section 4 thereof stated that they should generally be Undertaken by contract after competitive public bidding. Then President Corazon Aquino issued Executive Order No. 301 (1987) prescribing guidelines for government negotiated ‘contracts. Pertinenty, Section 62 of the Administrative Code of 1987 reiterated the requirement of competitive public bidding in government projects. In 1990, Congress passed RA 6957,which | ‘authorized the financing, construction, operation and maintenance of {infrastructure by the private sector. RA 7160 was likewise enacted by Congress in 1991 and it contains provisions governing the 16 the ChiefEngineer, United States Arm, | ‘On une 21, 1901, the Philippine Commission, through Act No, | public bidding | works of construction or repair pursuant —— ine: Procurement of goods and locally-funded civil works by the local ‘government units Then President Fidel Ramos issued Executive Order No. 302 (1996) providing guidelines or the procurement of goods and supplies ‘by the national government. Then President Joseph Ejercito Estrada ‘issued Executive Order No, 201 (2000) providing additional guidelines in the procurement of goods and supplies by the national government. Thereafter, he issued Executive Order No. 262 (2000) amending EO 302 (1996) and EO 201 (2000) ‘On October 8, 2001, President Gloria Macapagal-Arroyo issued EO 40, entitled Consolidating Procurement Rules and Procedures for All National Government Agencies, Government- ‘Owned or Controlled Corporations and Government Financial Institutions, and Requiring the Use of the Government Procurement ‘System. It accordingly repealed, amended or modified all executive ‘issuances, orders rules and regulations or parts thereof inconsistent therewith. On January 10, 2003, President Arroyo signed into law RA 9184. It took effect on January 26, 2004, or ffteen days after its publication in two newspapers of general circulation. It expressly repealed, among others, EO 40, £0 262 (2000), £0 302(1996) and PD 1594, as amended! REPUBLIC ACT No. 9184 AN ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES ARTICLE GENERAL PROVISIONS Section 1.Short Title.-This act shall be known as the "Government Procurement Reform Act.” Section 2. Declaration of Policy.-It is the declared policy of the State to promote the ideals of good governance in all its branches, departments, agencies, subdivisions, and instrumentalities, including government ‘owned and/or -controlled corporations and local government units. By its very nature and characteristic, competitive public bidding ims to protect the public interest by giving the public the best possible advantages through open competition, nee ac tar tmmih R.A. No. 9184/Government Procurement °°" ‘Three Principles in Public Bidding bidding are: Ithas been held that the three pri 1. The offer to the public: ition; and 2. Opportunity for compet a pees for te exact comparison of DS inciples in publi Note: The Supreme Court had occasion to declare in Nava v. “sndiganbayin the absence of «publi bidding may mean thatthe onernment was no abet secure the lowest bargin ints favor and ‘hay open the door to graft and corruption.? ‘section 3.Governing Principles on Government Procurement. ~All procurement of the ‘national government, its departments, bureaus, offices pes agencies including state universities and colleges, government -ownet ‘and/or-controlled corporations, government financial institutions and) local government units, shall, in all cases, be governed by these princi i ‘a) Transparency in the procurement process and in {Implementation of procurement contracts. 4) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in public bidding. ‘© Streamlined procurement process that will uniformly apply to) cg ge ane ‘The procurement process shall) simple and made adaptable to advances in moder#) technology in order to ensure an effective and efficient method, @) System of accountability where both the public officials directly ‘rndirecty Involved in the procurement process as well at Implementation of procurement contracts and the Sie se aan etna R.A. No. 9184/Government Procurement Reform Act rth rinse ial with government are, when warranted by ccuimssances, lnvestigated and held Mable for thelr actions €) Public monitoring of the process Implementation of awarded contracts withthe end in vew af suaranteeng tha these contracts are awarded pursuant tot rovisions of this Act and its Implementing. rules. and Fegulatons and that al thane contracts ae performed suiy according to specifications. nee Zs Note: Public bidding as a method of government procuremen oc tl pene of See meee. principles permeate the ‘awarded to the bidder ‘Transparency in the procurement process and in the implementation of procurement contracts through wide dissemination of bid opportunities and participation of pertinent non-government organizations.* the broadest number of This is in line with the law's policy of during the entire bidding RA 9184 intends to reach participants to join the public bidding. promoting transparency and competitiveness process. fener seica aera eects a aati dea on ‘Sats nn rem = at Ret RA.No.9184/Government Procure! I short in the ate (AC sti fl Pie the nvtati se Faure en FO te nto Ia for Bt Be er has pubshed atonal. ato 0 mening uncovers thatthe BAC eae em noun of general atone co free PUD oun par_pinict was, below he pcre inerreaion ft = to requirement refers to contracts ir 5,000,000: vor impounding Project that are Blew Fn ine amauntf P9000 000 00 and eas Brame pds and avers Oy ce soe omnes me en ihe infrastructure project per teormger” sion-Tis Actshallapply tothe Procurement se rnc 2 yal res ec Or gene ieee me a came my ma ‘THE FOLLOWING ARE N ‘The following aren \oT PROCUREMENT ACTIVITIES ‘ot procurement activities under RA. 9184 an IRR pirect financial or material assistance given to beneficiarie existing laws, rules and regulations, ang the concerned agency; cor foreign scholarships, trainings continuing education, conferences, seminars or simil activities that shall be governed by applicable COA, CSC, ané re under the revised NEDA Guidelines (GOCC and Private Entities), and Joint Venture Agreements by LGU with and 6. Disposal of property and other assets of the government.® ‘wesc Nhe maa paar a 20 — —_ R.A. No, 9184/Government Procurement Reform Act Note: While mandating adherence to the general policy of the government that contracts for the procurement of civil works oF supply of goods and equipment shall be undertaken only after competitive public bidding, RA 9184 recognizes the country’s ‘commitment to abide by its obligations under any treaty or international or executive agreement. Section S. Definition of Terms.- For purposes of this Act, the following terms ‘or words and phrases shall mean or be understood as follows: (2) Approved Budget for the Contract (ABC) - refers to the budget forthe ihtract duly approved by the Head ofthe Procuring Entity, as provided for. in. the General Appropriations Act and/or continuing “appropriations, in the National Government Agencies; the Corporate Burlget for the contract approved by the governing Boards, pursuant to £-0.N0.518, series of 1979, inthe case of Government-Owned and/or - Controlled Corporations, Government Financial Institutions and State Universities and Colleges; and the Budget fo the contract approved by the respective Sanggunian, inthe case of Local Government Units. Note: ‘The above-cited provision of RA. No. 9184 demonstrate that the law requires the availability of funds before the procuring entity ‘commences the procurement of a government project. As early as the Conception of the ABC, the procuring entity is mandated by law to ‘ensure that its budget is within the General Appropriations Act (CAA) ‘and/or continuing appropriation. Inthe procurement planning stage, the procuring entity is again reminded that all procurement must be within its approved budget. Also, even before the issuance of the invitation to bid, the law requires a pre-procurement conference to ‘confirm the certification thatthe funds for the government project are indeed available? Approved Budget for the Contract (ABC) Ttrefersto the budget for the contract duly approved by the Head of the Procuring Entity (HoPE), as provided for in the General Appropriations Act (GAA), continuing, and automatic appropriations, in ‘the case of National Government Agencies (NGAs); the corporate budget for the contract approved by the governing board, pursuant to Executive Order (£.0), No.518, s.1979, in the case of GOCCs and GFls,and RA.8292 in the case of SUCs; the budget approved by the Sanggunian through an ‘ase of LGUs. For multi-year contracts, jonal Authority (MYOA) of an equivalent .corporated in the project 2 RA. No. 9184/Govermmemt Protr ‘cost reflected in the MYOA or equi For foreign-funded estimate prepared by the Proc government/foreign the Treaty or Internal refers to the Bids and ‘Awards committee established * Ba ase tn article V ofthis A. Bidding Documents refer to documents issued pagibesnien dre -refer to 0erng al information, necessa (On te ba or Bs me pd for the Goods, Inrastructy, Propet ing Series Be POMS 9 Doce docomens issued bythe Procuring Ey as ishing all information necessary for a prospec nt i mr ese ‘Consulting Services required by the Procuring Entity. | refers to a signed offer or proposal submitted by a suppl top ee on ae seen ‘Pd. refers to a signed offer or proposal to undertake a contra submitted by a bidder in response to and in consonance with the Tequirements of the Bidding Documents, The term “Bid” shall by cqutalet tand be used interchangeably with “Proposal” and “Tender’, Bidder i refers to a contractor, manufacturer, supplier, distributor ‘and/or consultant who submits a bid in response to the requirements o the Bidding Documents. Domestc Bidder Itreferstoany person or entity offering unmanufactured articles, ‘uefa or supplies ofthe growth or production of the Philippines, Pamapaure arties, materials, or supplies manufactured or to be apple of aye Pilppines substantially from articles, materials, ef tbePhinpyncs Production, or manufacture, as the case may be

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