Self liquidating bond
Finally, the borrower begins making the agreed loan payments.
Collateral and security The amount and type of loan security required depends on the borrower and the type of project financed.
The goal is to provide low-cost, long-term, fixed-rate financing incentives that promote projects that achieve the state´s long-term water management goals.
Application First, the loan officer conducts a pre-application conference with applicants to review the program and answer any of the applicant´s questions. Upon the recommendation of the Secretary of Finance, after consultation with the Monetary Board, the National Economic Council, and the Council of State, the President of the Philippines is authorized to issue, preferably in the Philippines, or abroad if necessary, in the name and behalf of the Republic of the Philippines, bonds in an amount not exceeding one billion pesos to finance public works and self-liquidating projects for economic development, which may be authorized by law, including expropriation of lands for subdivision and resale to individuals, or to repay or service bonded obligations of the Government incurred for such projects: Provided, however, That no single issue shall exceed two hundred million pesos and that no further issue shall be made if eighty per centum of the immediately preceding issue has not been sold: And provided, further, That no more than twenty per centum of any issue is spent for non-self-liquidating and non-revenue-producing projects.Investments in the self-liquidating projects, cities, and municipalities shall be limited by the paying capacity of the province, city or municipality to be certified by the Secretary of Finance: Provided, That the probable income from such projects shall be taken into consideration: Provided, finally, That not more than ten per centum of this bond issue shall be used to pay unserved government obligations, loans and advances, secured or unsecured, guaranteed by the National Government, made by government owned or controlled financial institutions other than the Central Bank, to government political subdivisions, offices and instrumentalities, and/or other loans committed by government owned and controlled financial institutions, other than the Central Bank, guaranteed by the Government.More information For more information and copies of the Water Development Loan Program application forms, contact Salem Opeifa.The Safe Drinking Water Revolving Loan Fund provides another alternative for that is available for drinking water system improvements needed to maintain compliance with the Safe Drinking Water Act.
The amount and type of loan security required depends on the borrower and the type of project.