DOCUMENTARY REQUIREMENTS FOR THE ISSUANCE OF CERTIFICATE ON DEBT SERVICE CEILING (REGIONAL OFFICE)

1. Letter-request from the Local Chief Executive (Governor/Mayor/Punong Barangay) indicating (i) the selected lending institution; (ii) terms and conditions of the proposed loan (repayment period and interest rate); and (iii) the specific purpose of the loan;

2. Certification by the Local Treasurer of presence or absence of loan/s, duly certified with the following details: (i) types of loan/s and other obligations contracted; (ii) purpose of loan/s and other obligations contracted; (iii) name of the lending institution/s (iv) date of approval and maturity of loan/s; (v) terms and conditions (interest rate and number of years to pay); (vi) remaining balances of loan/s and other obligation/s; and (vii) annual amortization schedules (segregating the principal from the interest) issued by the lending institution/s;

3. Commission on Audit (COA) Annual Audit Certificate for the most recent year, which shall be supported by the year-end financial reports for the past three (3) years: (i) Pre-closing Trial Balance (General Fund); and (ii) Detailed Statement of Financial Performance. An Agency Action Plan and Status of Implementation (AAPSI) report on COA recommendations shall be required if the LGU has adverse findings; and

4. Certification issued by the lending institution stating that it shall not require LGU deposits as compensating balance for the loan, if such lending institution is (1) not an authorized government depository bank or (2) an authorized government bank required to obtain the prior approval of the DOF, as provided under the DOF Department Circular No. 002.2016 dated 8 July 2016.

DOCUMENTARY REQUIREMENTS FOR LGUs AFFECTED BY NATURAL AND/OR MAN-MADE DISASTERS

Local government that cannot in any way provide the full documentary requirements stated in Section 3 hereof due to natural and/or man-made calamities, and have been declared under state of calamity either by national or local authorities shall, for a period of one (1) year from the declaration of state of calamity, be required only to submit the documents required in Section 3.1 and 3.2 hereof, together with certified copy of such declaration.

1. Letter-request from the Local Chief Executive (Governor/Mayor/Punong Barangay) indicating (i) the selected lending institution; (ii) terms and conditions of the proposed loan (repayment period and interest rate); and (iii) the specific purpose of the loan;

2. Certification by the Local Treasurer of presence or absence of loan/s, duly certified with the following details: (i) types of loan/s and other obligations contracted; (ii) purpose of loan/s and other obligations contracted; (iii) name of the lending institution/s (iv) date of approval and maturity of loan/s; (v) terms and conditions (interest rate and number of years to pay); (vi) remaining balances of loan/s and other obligation/s; and (vii) annual amortization schedules (segregating the principal from the interest) issued by the lending institution/s;