Deferred-Payment Financing Schemes.
Section 5
SEC. 5. Deferred-Payment Financing Schemes.—Provincial, city and municipal governments may likewise acquire heavy equipment, plant machinery and such necessary accessories under a supplier's credit or deferred-payment plan, subject to the law on purchasing and such other rules and regulations that the Secretary of Finance may promulgate with the concurrence of the Chairman, Commission on Audit. No local government entity shall enter into a purchase contract under a deferred-payment plan unless previous loans secured elsewhere shall have been paid in full or are being paid in accordance with approved amortization schedules.