Authorizing the San Juan Medical Center to Pay 20% Collection Fee to its Agents on Promissory Notes/Account Receivables

July 7, 2008 SAN JUAN CITY ORDINANCE NO. 035-08 AN ORDINANCE AUTHORIZING THE SAN JUAN MEDICAL CENTER TO PAY A TWENTY PERCENT (20%) COLLECTION FEE TO ITS AGENTS ON PROMISSORY NOTES/ACCOUNT RECEIVABLES PAST DUE OVER NINETY (90) DAYS Sponsored by: Councilor Ramon G. Nakpil Co-sponsored by: Councilors Rolando M. Bernardo, Andoni Miguel L. Carballo, Angelino O. Mendoza, Vincent Rainier M. Pacheco, Francis Keith R. Peralta, Dante E. Santiago, Domingo M. Sese, Edgardo V. Soriano, Jannah A. Ejercito-Surla, Ferdinand A. Velasco, and Francisco Javier M. Zamora WHEREAS, the San Juan Medical Center is in need of funds to maintain its day-to-day operations and to upgrade its facilities to better serve the people of San Juan; WHEREAS, a substantial portion of its operating and capital funds amounting to over P29 million as of 2007 are perennially tied up in bad debts or promissory notes/account receivables past due over ninety (90) days; WHEREAS, the San Juan Medical Center has deemed it necessary to enlist the assistance of collection agents to reduce the amount of funds in above mentioned accounts and said agents require incentive and compensation. NOW THEREFORE, BE IT ORDAINED by the Sangguniang Panlungsod in a session duly assembled, that: SECTION 1. The San Juan Medical Center is hereby authorized to appoint collection agents and to pay a maximum of twenty percent (20%) collection fee to its duly authorized agents on the promissory notes/accounts receivables past due over ninety (90) days. TcCSIa SECTION 2. The qualification and appointment of collection agents, selection/identification of accounts for collection and schedule of payment of collection fees shall be subject to the implementing rules and regulations (IRR) of this Ordinance to be issued by the Office of the City Mayor upon the recommendations of the SJMC Administrator. SECTION 3. The collection agent to be appointed whether individuals or juridical entities shall be required to post a performance bond to ensure the faithful discharge of their functions. SECTION 4. The City Treasurer is hereby tasked to effect payments of collection fees to authorized collection agents for approval of the Office of the Mayor. SECTION 5. This Ordinance shall take effect upon approval. xxx xxx xxx I HEREBY CERTIFY THAT THIS ORDINANCE HAS BEEN DULY APPROVED BY THE SANGGUNIANG PANLUNGSOD ON JULY 7, 2008. (SGD.) EMMA RAY A. PANAGUITON Secretary to the City Council ATTESTED: (SGD.) HON. LEONARDO G. CELLES Presiding Officer City Vice-Mayor APPROVED: July 11, 2008 (SGD.) HON. JOSEPH VICTOR G. EJERCITO City Mayor