Credit Line certificate

Gud pm

sa revised IRR kailangan ang credit line certificate ay issued by a universal or commercial bank. kung issued by a multipurpose cooperative acceptable ba?

tnx

nenette

good afternoon nanette..

If the Multipurpose Cooperative has a certification from the BSP that it is to be considered as a bank then it can be accepted..

mmp wrote:good afternoon nanette..

If the Multipurpose Cooperative has a certification from the BSP that it is to be considered as a bank then it can be accepted..

Sorry, mmp, but I believe the revised IRR is already very clear.

The general rule is that the Credit Line Commitment has to be issued by either a Commercial Bank or the Universal Bank. The only exception is in th case of LGUs (which nanette is not from as she is from UP Open University). In which case, a CLC coming from an institution, other than a Universal Bank or a Commercial Bank, may be accepted provided it is accompanied by a certification from the BSP that it is authorized to issue that CLC (not a certification that it is considered a bank.)

A particular rural bank, for example, is definitely a bank (and the BSP could issue a certification that it is a bank) but it will not satisfy the requirement of the revised IRR because the certification has to be that that particular rural bank is authorized by the BSP to issue a CLC (or a Letter of Credit, a bank guarantee in the case of bid/performance securities, for another example).

I agree with RDV that provisions provided that CLC should be issued by a commercial or universal bank but reading further the revised IRR under

Section 23.5.1.4. and Section 23.5.2.6 provides that

For biddings conducted by LGUs, the prospective bidder may also submit CLC from other banks certified by the BSP as authorized to issue such financial instrument.

Therefore if a certification is issued by the BSP authorizing the Coop to issue CLC under this rule is permitted.

I agree to RDV and mmp

Good morning!

May I know if the bidder can submit the credit line certificate instead of the credit line commitment as its eligibility requirement? will it render the bidder "failed" if what is submitted is the CL certificate instead of the CL commitment?

Do banks have a standard format for both? or is the gppb coming out with the standard format for both?

thank you.

I believe Credit Line Certificate is diff. from Credit Line Commitment.
CL Certificate is a credit line itself.
CLC is a commitment from a bank that the bank will extend a CL to the bidder.

CLC is issued by the Banks. No GPPB is not coming out with the standard format for both because i believe that only banks can issue such documents.

thank you for the reply.

as to my second question, since they - cl commitment and cl certificate - are not the same, it means that the bidder will not be eligible. am i right?

Let me clarify;

1. CLC issued by a universal bank or commercial bank or

2. CLC issue by other Banks + Certification of BSP that they are authorized to issued such financial document.

If a Bidder only pass a CLC issued by a universal bank or commercial bank = eligible

If bidder only pass a CLC issued by other Banks = ineligible

If Bidder pass a CLC issued by other Banks + Certification of BSP that they are authorized to issued such financial document = eligible

I hope this answer your question.

Hmmm... I am learning a lot from you guys.. Thanks.

GPPB-TSO,

For the purposes of information for everyone: may we know if there is a consolidated list of all Universal and Commercial Bank that the GPPB may issue for this purpose. In case of doubt, where can we verify if the bank is whether universal or commercial?

Please comment if the link below is reliable.

•List of Banks in the Philippines•

The BSP is the proper agency to verify whether or not a bank is a universal or commercial bank.

engrjhez wrote:

WormaixJr wrote:I agree with RDV that provisions provided that CLC should be issued by a commercial or universal bank but reading further the revised IRR under

Section 23.5.1.4. and Section 23.5.2.6 provides that

For biddings conducted by LGUs, the prospective bidder may also submit CLC from other banks certified by the BSP as authorized to issue such financial instrument.

Therefore if a certification is issued by the BSP authorizing the Coop to issue CLC under this rule is permitted.

I agree to RDV and mmp

I would like to clarify the issue. The question raised by nenette was from the view of SUC (State Universities and Colleges) and not from LGU (Local Government Unit). Hence, the only acceptable CLC for the purpose must come from a Universal Bank or a Commercial Bank - no more, no less.

I agree to RDV but not with mmp.

Peace...

No info in the facts that the Procuring Entity is a SUC thus such answer. We only give our opinion based on the facts presented.

Sorry for double posting

engrjhez wrote:

WormaixJr wrote:
No info in the facts that the Procuring Entity is a SUC thus such answer. We only give our opinion based on the facts presented.

Ah ok. I thought unless specifically mentioned, it is therefor by default, that the question raised by an identified member (bearing his/her profile details) pertains to the question applicable to his/her affiliation in the same Procuring Entity.

Sorry po i mean no disrespect.