EXECUTIVE ORDER NO. 327
EXECUTIVE ORDER NO. 327 -
IMPLEMENTING CERTAIN PROVISIONS OF EXECUTIVE ORDERS NOS. 714 SERIES OF
1981, 238 SERIES OF 1987 AND 314 SERIES OF 1987 AND FOR OTHER PURPOSES
WHEREAS,
all KKK Capital Funds/National Livelihood Support Funds and its
earnings were placed and consolidated under the control and supervision
of the Office of the President pursuant to Executive Order Nos. 715 and
38;
WHEREAS, the President conscious of the need to address the livelihood
concerns of the country issued Executive Order No. 314 creating and
constituting the BKKK Committee to formulate basic policies for the
Bagong Kilusang Kabuhayan at Kaunlaran, to redirect and refocus its
thrusts and objectives in line with the aims of the present
administration;
WHEREAS, the BKKK Committee recognizes the urgent need to address
immediately the Presidential directions and priorities in the delivery
of livelihood opportunities and services to the unserved and unattended
disadvantaged sectors of society;
WHEREAS, the government has enormous financial exposure that requires
immediate recovery to be made available for the delivery of livelihood
services;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. KKK Capital Funds Earnings and
Utilization. — All incomes of the KKK Capital Funds National Livelihood
Support Funds as consolidated under Executive Order No. 238 shall be
maintained in an account of the BKKK-Office of the President with the
Trustee Bank, or Trustee Banks so designated by the BKKK Committee in
accordance with Executive Order No. 238 and Executive Order No. 314.
Sec. 2. Utilization and disposition of Capital
Funds. — The foregoing guidelines, rules and procedures shall be
observed in the utilization and disposition of Capital Funds.
A.
DELIVERY SYSTEMS
1. All KKK Capital Funds already consolidated and
placed under the BKKK-Office of the President shall be maintained with
the Land Bank of the Philippines (LBP) Trust Department and such other
Trustee Banks or Banks named by the BKKK Committee and may be
transferred to other conduit banks as may thereafter be named by the
BKKK Committee.
2. KKK Capital Funds shall be utilized for the
promotion, generation and development of livelihood opportunities.
3. KKK Capital Funds shall be made available for
livelihood programs/projects of line government agencies, private
volunteer organizations (PVOs) or non-government offices (NGOs) which
shall now actively participate in the government concern of addressing
the livelihood needs of the unattended and unserved disadvantaged
sectors.
4 The BKKK Secretariat shall “wholesale” its funds or
complement these funds with other resources of government offices,
PVOs, NGOs (thereafter called the Program Participant) which shall
under-take the “retailing of funds”, administration, supervision and
monitoring of livelihood programs/projects.
5. The BKKK Secretariat shall evaluate the instituted
proposals for livelihood programs/projects of participating government
offices, PVOs and NGOs and shall monitor their programs/projects with
the objective of determining whether the funds released actually
reached the intended beneficiaries.
6. Interest charges on released funds to the Program
Participant shall be determined based on the proposal of the
participating institutions but in no case shall exceed twelve percentum
(12%) per annum.
B.
FUND RELEASE AND REPAYMENTS
1. Mode of Fund Release — Upon receipt of the program
action sheet and other pertinent documents from the BKKK Committee, the
Trustee Bank or other designated bank shall release the funds directly
to the Program Participant.
2. The Program Participant shall open an account with
the LBP or the designated bank where the loan proceeds shall initially
be deposited and maintained.
C.
COLLECTION AND REPAYMENTS
1. Responsibility for Collection
The Program Participant as retailer of the funds shall be responsible
for the collection of amortizations falling due and shall directly
remit the same to LBP or the designated bank for the account of BKKK.
2. Maturity Period
The maturity period of the fund released to the Program Participant
shall be based on the nature of the program/project duration, provided
that it shall not exceed a maximum period of five (5) years.
3. Grace Period for Amortization Payment
As a general rule, a grace period of not more than one year for the
principal payment shall be allowed from drawdown date to the Program
Participant.
4. Default
The following instances shall constitute default and shall make the
entire loan due and demandable:
4.1
In the event of non-payment of loan fund amortization by Program
Participant, the unpaid balance shall automatically become due and
demandable in the following instances:
4.1.1
In case of monthly loan amortization payments the loan shall be deemed
due and demandable immediately after the third consecutive defaulted
loan amortization.
4.1.2 In case
of quarterly loan amortization payments, the loan shall be deemed due
and demandable, immediately after the second consecutive defaulted loan
amortization.
4.1.3 In case
of semi-annual loan amortization payments, the loan shall be deemed due
and demandable after the second consecutive defaulted loan
amortization.
4.1.4 In case
of annual/lump sum payments, immediately after one defaulted payment,
provided a 30-day grace period is given the borrower.
4.2
Mismanagement of the Program Participant or its officers and/or Board
of Directors as determined by the Credit Committee.
5. Notice of Default
A notice of loan arrearage shall be sent by the BKKK to the Program
Participant upon default, copy furnished Land Bank of the Philippines.
D.
RESTRUCTURING OF LOANS
If by reason of force majeure or fortuitous event directly affecting
the project site (such as fire, flood or earthquake), the Program
Participant if unable to pay its loan to the LBP may apply for
restructuring of the loan, provided such events and incidents have been
reported in writing to the Land Bank of the Philippines and the BKKK
for proper verification within fifteen (15) days from occurrence
thereof.
Sec. 3. Utilization and Disbursement of Fund
Earnings. — All interest accruing to the capital funds or income from
its use, either thru lending, placements on government securities or
with interest bearing bank accounts shall be known as earnings.
All earnings shall, subject to the approval of the BKKK Committee, be
utilized and disbursed in accordance with Executive Order No. 715,
Series of 1981 and this Executive Order.
Sec. 4. BKKK Organizations. —
1. The BKKK Committee created by virtue of Executive
Order No. 314 is composed of the following:
Executive
Secretary
— Chairman
Undersecretary, Presidential
Management Staff —
Vice Chairman
Dep. Executive Secretary — Member
Asst. Executive Secretary for
Budget and Corporate
Affairs — Member
Presidential Legal
Counsel — Member
2. The BKKK Committee shall continue to perform its
duties and discharge the responsibilities as provided for in Sec. 2
of Executive Order No. 314 S. 1987. In accordance with Executive Order
No. 238, the Committee shall be responsible in overseeing the
consolidation of all KKK Capital Funds National Livelihood Support Fund
and the collection of all outstanding accounts to be consolidated.
E.
BAGONG KILUSANG KABUHAYAN AT KAUNLARAN — EXECUTIVE COMMITTEE
A BKKK Executive Committee is hereby created composed of the Assistant
Secretary of the Presidential Management Staff as Chairman, and two
other members to be designated by the BKKK Committee.
Its functions are as follows:
1.
Review and recommend general policies and guidelines referred to it by
the BKKK Secretariat for BKKK Operations.
2. Perform
such other functions as may be assigned to it by the BKKK Committee
from time to time.
F.
BAGONG KILUSANG KABUHAYAN AT KAUNLARAN (BKKK) SECRETARIAT
The Kilusang Kabuhayan at Kaunlaran — National Secretariat, constituted
under Executive Order No. 715 and Memorandum Circular No. 001-03 and
attached to the Presidential Management Staff under Executive Order No.
130 and Memorandum No. 85 shall be responsible for the following:
1.
Implement the objectives and thrusts of the BKKK in promoting,
generating and developing livelihood opportunities and productive
enterprises as approved by the BKKK Committee.
2. Carry out
the consolidation of all BKKK Capital Funds/National Livelihood Support
Fund in accordance with Executive Order No. 238 and the collection of
all outstanding unpaid loans as directed by the BKKK Committee.
3.
Conceptualize, evaluate, market and monitor BKKK as a Fund and its role
in the delivery of livelihood opportunities and services to the
unserved, unattended displaced and disadvantaged sectors of society in
accordance with the priorities established by the BKKK Committee.
Sec. 5. Effectivity. — This Executive Order shall
take effect immediately upon signing.
DONE in the City of Manila,
this 9th day of June, in the year of Our Lord, nineteen hundred and
eighty-eight.
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