The Asian Development Bank (ADB) is a multilateral development finance institution
founded in 1966 to promote social and economic progress in its developing member
countries in Asia and the Pacific (see ADB’s website: http://www.adb.org/about/main).
2.2 ADB’s principal functions are
- lending funds,
- providing grants,
- providing technical assistance and advisory services,
- promoting investments for development purposes, and
- assisting in coordinating the development policies and plans of developing
member countries.
Inquiries
2.3 Loan disbursement is handled by the Loan Administration Division of the Controller’s
Department.
2.4 For loan service payments and billing matters, inquiries are addressed to the
Accounting Division of the Controller’s Department.
Loan or Grant Regulations
3.4 The regulations4
further set out conditions for the use of loan or grant proceeds
financed by ADB, or proceeds administered by ADB.
5
These documents are expressly
incorporated in the associated loan agreement, guarantee agreement, or grant
agreement. If any provision of a loan agreement, guarantee agreement, or grant
agreement is inconsistent with a provision of these regulations, the provision of the
loan agreement, guarantee agreement, or grant agreement governs.
Loan Documents
3.5 Loan documents
6
include the following documents and agreements:
ȕ Thereport and recommendation of the President to the Board of Directors
(RRP) presents the project proposal for consideration by the ADB Board.
ȕ Theproject administration manual (PAM)
7
includes all the information and
schedules describing project implementation and project readiness filters
covering major preproject implementation actions (e.g., government approvals,
procurement, and resettlement) to ensure a rapid start-up and enable early
disbursement. It is mandatory
8
that the PAM be referenced in the RRP and in
the loan (or facility) agreements, is presented as a stand-alone linked document
to the RRP, and serves as the main document describing implementation details.
The PAM is prepared in the course of loan processing and initially agreed with
the government at the loan fact-finding stage. At loan negotiations, the borrower
and ADB shall review and confirm the PAM agreed during loan fact-finding to
ensure consistency with the loan agreement, and such confirmation shall be
reflected in the minutes of the loan negotiations. The detailed cost estimate by
financier (one schedule included in the PAM) is prepared based on Section J6 of
the ADB Operations Manual (Appendix 3A).
9
Related illustrative tables are also
provided in this handbook (Appendix 3B).

Cost for $10,000 loan over 5 years?

10:28 AM    


Listed below are the criteria from the matrix that can be used to choose a bank. These criteria
may be modified to meet the needs and interests of your students.
Criteria for “Choosing A Bank” categories
1.  Proximity / Ease of Use / ATMs / Online Banking:
•  Have students determine if the locations of branches and ATMs to be considered
are those available in the community, across the state, or across the Southeast
region of the US.
2.  Personal Contact available
•  Can you contact a representative face-to-face, by telephone, or only
electronically?
3.  Types of Accounts offered? Minimum balance?
•  Choose the most relevant four types of accounts based on students’ financial
needs.
4.  Fee for typical services?
•  Have students select at least two servicesall of the institutions have in common
for the purpose of comparison.
5.  Savings Account interest rate? Amount earned on $10,000 over 5 years?
•  Students should be able to calculate compound interest.
6.  Interest rate for auto loan? Cost for $10,000 loan over 5 years?
•  Students should be able to calculate compound interest and include any loan
origination fees. Have students decide if the loan should be for a new or used car.
7.  Investment Instruments offered
•  Include CDs in this category.
For handouts and support information:
Choosing A Checking Account Overview Handout
Electronic Banking Overview Handout
Choosing a Savings Account
Credit Union ... Bank ... What's the Difference?
Step 5:As a homework assignment, each student will write a one-page essay in which he/she
explains which bank will be chosen and why. Students will cite at least 5 reasons from their
activity sheet for their choice. (Rubric attached.)
Step 6: Have students reveal their choices. Summarize some of the advantages and
disadvantages, costs and benefits of the different banks/financial institutions.
Enrichment/Differentiation Ideas:
Invite a guest speaker from a local financial institution to visit and discuss the services it
provides.
Have students schedule and conduct a face-to-face, phone, or email interview of a bank
representative regarding the institution’s services.
Middle and Secondary Division    Page 8 of 37
NC Department of Public Instruction
January 2008
Have students design a brochure for an ideal financial institution listing the services offered,
interest rates, fees, etc. If the institutions covered in this activity offer credit cards, compare the
rules, interest rates, and fees with those credit cards students or their families receive in the mail.
What issues or concernsmight students have with these “blind” offers?
Assessment:
Have students compare the financial institutions in this lesson to determine the best services and
rates available. Have students discuss why these services differ and why all of the agreed upon
best rates or featuresare not offered by one financial institution.
Sample Online Resources and Additional Resources for this activity:
BB&T - A traditional bank
State Employees' Credit Union- A credit union
E Bank- An online bank
First Federal Savings and Loan- A savings and loan
Personal Finance Information: For additional resources, lessons, and information, visit the
following sites:
moneyinstructor.com/art/bankaccount.aspThis site has info, forms, lesson plans, etc.
EconEdLink Banks and Credit Unions: MillionaireMinuteThis is a great activity for students.
Simple Interest Student ActivityResource for teaching interest costs.
Bank High SchoolInteractive website for students.