An Ordinance Imposing Two Percent (2%) Service Charge to Credit or Lending Institutions, Banks and Similar Business Establishments Utilizing the Services of the City Treasurer's Office in Deducting Loans by Way of Salary Deduction from Loans Contracted by the City Government Employees

July 23, 2002 Regular Session Held on July 23, 2002. PRESENT: Hon. Lawrence Ll. Cruz, City Vice Mayor, Presiding Officer Hon. Ariel P. Anghay, Member Hon. Wilfredo R. Bacareza, Member Hon. Bienvenido V. Badelles, Member Hon. Alfredo R. Busico, Member Hon. Leobert B. Pairat, Member Hon. Providencio P. Abragan, Sr., Member Hon. Ronaldo D. Espina, Member Hon. Emmanuel V. Engracia, Member Hon. Orlando M. Maglinao, Member Hon. Esperidion L. Sagrado, Member Hon. Bernard Antonio Y. Palafox, Member ABSENT: (NONE) RESOLUTION NO. 02-611 WHEREAS, presented to the body for deliberation, was a proposal to impose a TWO PERCENT (2%) service charge to credit, lending institutions, banks and similar business establishments which deduct by way of salary deductions course through the City Treasurer's Office from loans contracted by Iligan City Government employees; WHEREAS, there are employees in the city Government of Iligan in their times of financial needs that will resort to borrowing from loan sharks, lending, credit institutions and banks; WHEREAS, capitalizing these employees immediate need of money, loan sharks impose mind-boggling exorbitant interest rates, thereby deeply immersing these employees in debts; WHEREAS, a number of legal credit and lending agencies and banks provide and offer low interest rate loans to the City Government employees; WHEREAS, said credit and lending agencies by way of salary deduction and utilizing the personnel of the City Treasurer's Office deduct loans contracted by the City Government employees without paying service charge for the services rendered by the City Treasurer Office personnel; WHEREAS, Section 458 (a) (3) (1) of the Local Government Code empowers the Local Government Units (LGU's) to fix and impose reasonable fees and charges for all services rendered by the city government to private persons or entities; WHEREAS, inasmuch that said credit and lending agencies earned profit in the course of this transaction, it is but proper and appropriate for the City Government of Iligan to impose service charge to those loans in order to generate more funds for the city government; WHEREFORE, on motion of Member Wilfredo R. Bacareza, duly seconded by Members Ronaldo D. Espina, Leobert B. Pairat, Alfredo R. Busico and Bienvenido V. Badelles; TCAScE BE IT RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod of Iligan City, that the following City Ordinance be, as it hereby adopted and approved: ILIGAN CITY ORDINANCE NO. 02-4183 AN ORDINANCE IMPOSING TWO PERCENT (2%) SERVICE CHARGE TO CREDIT OR LENDING INSTITUTIONS, BANKS AND SIMILAR BUSINESS ESTABLISHMENTS UTILIZING THE SERVICES OF THE CITY TREASURER'S OFFICE IN DEDUCTING LOANS BY WAY OF SALARY DEDUCTION FROM LOANS CONTRACTED BY THE CITY GOVERNMENT EMPLOYEES Be it ordained by the Sangguniang Panlungsod of Iligan in its session assembled, that: SECTION 1. Policy. It is the policy of the City Government of Iligan to impose a two percent (2%) service charge to credit or lending institutions, banks and similar business establishments which by way of salary deductions utilizes the services of the City Treasurer's Office in deducting loans contracted by the City Government employees; SECTION 2. Basis of the Two Percent (2%) Service Charge. The two percent (2%) service shall be based on the gross remittance of the City Government to a particular credit, lending institution or bank in a given time. SECTION 3. Remittance of Collection. The City Treasurer's Office shall compute the total remittance of disbursing officers every 15th and 30th of the month. The amount due to credit or lending institutions and banks minus the two percent (2%) of the City Government shall be remitted in the form of cash. The cash shall then be picked up by lending agencies or authorized representatives not later than five days every after payroll deduction has been made. SECTION 4. Limitation of Loans. The loans to be granted to the City Government employees shall be subject to not more than 4 percent (4%) interest rate per month, payable in six (6) months. No additional charges of any kind, whatsoever, shall be imposed to the borrowers. SECTION 5. Effectivity. This ordinance shall take effect ten (10) days after the publication of local newspaper. (VOTING BY ROLL CALL: ANGHAY, "Yes",BACAREZA, "Yes",BADELLES, "Yes",BUSICO, "Yes",PAIRAT, "Yes",ABRAGAN, "Yes",ESPINA, "Yes",ENGRACIA, "Yes",MAGLINAO, "Yes",SAGRADO, "Yes",and PALAFOX, "Yes".) CARRIED unanimously. The undersigned hereby attests to the adoption of the foregoing as verified to by the member-author. cTDaEH ATTY. ARTHUR LL. PADILLA City Secretary VERIFIED: WILFREDO R. BACAREZA Member-Author ATTESTED: LAWRENCE LL. CRUZ Vice-Mayor, Presiding Officer APPROVED:________________ FRANKLIN M. QUIJANO City Mayor