Financial Conduits.
Section 8
SEC. 8. Financial Conduits. - Remittance of the financial assistance to the countrywide industrialization projects authorized by the Countrywide Industrialization Office from the CIF shall be coursed to the accredited conduit bank branch selected by the LCIB for the projects. The three (3) depository/managing banks shall also serve as financial conduits for the CIF, namely: PNB, DBP, and LBP, and any private commercial or rural banks accredited by the CIO including private financial lending institutions authorized by the Central Bank. In cities and municipalities where the nearest PNB, DBP, and LBP branch is deemed not accessible, or for other reasons would not be available to satisfactorily service the countrywide industrialization projects therein, the LCIB may appoint as financial conduit a branch in the area of any private commercial or rural bank and other private financial lending institution, or in the absence thereof, in the adjacent municipality or city upon the recommendation of the LCIB. The fees to a conduit bank or private financial lending institution for its services shall be set percentage of outstanding loan amounts to the client countrywide industrialization enterprise served by such bank. The fee rate shall be uniform for all conduit banks and shall be established by the CIO in consultation with government conduit banks (PNB, DBP and LBP). The conduit banks shall perform the following functions: ensure completeness of the submitted loan applications and corresponding requirements; release the funding assistance to its client countrywide industrialization projects; collect the loan amortization and interest payments of borrower enterprises/project proponents; monitor and report to the LCIB the progress of local countrywide industrialization client enterprises and declare any loan in default based on specific criteria to be set by the CIO; in conjunction with the LCIB, plan and supervise rehabilitation of distressed client enterprises; and in behalf of the CIO, foreclose the assets of unsavable client projects, and assist the LCIB to auction the foreclosed assets.