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PRESIDENTIAL DECREE NO. 544
PRESIDENTIAL DECREE NO. 544 -
AMENDING RA NO. 6390 ENTITLED "AN ACT TO ACCELERATE THE IMPLEMENTATION
OF THE AGRARIAN REFORM PROGRAM BY CREATING AN AGRARIAN REFORM
SPECIAL ACCOUNT IN THE GENERAL FUND, PROVIDING THE NECESSARY FUNDS
THEREFORE, AND FOR THE OTHER PURPOSES"
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chanroblesvirtualawlibrary
WHEREAS, it
is the policy of Government to increase food production as well as the
income of agrarian reform beneficiaries; chanroblesvirtualawlibrary
WHEREAS, agrarian reform beneficiaries are now being encouraged to
engage in the production of multiple crop and in agricultural projects
in order to maximize the utilization of their available land and labor
resources;chanroblesvirtualawlibrary
WHEREAS, rural banks, the Philippine National Bank and other financing
institutions operating in rural areas are ideal outlets for the
granting under supervised credit of the necessary loans to finance the
multiple crops/projects of agrarian reform beneficiaries;chanroblesvirtualawlibrary
WHEREAS, under supervised credit, the amount of loans granted by rural
banks and other financing institutions to their borrowers is determined
by the actual needs and viability of the projects to be financed and
the repayment capacity of the borrowers; and
WHEREAS, the P5,000 maximum loan they may be granted at any one time to
a farmer-borrower as provided under Section 16 of Republic Act No.
6390, is no longer realistic in view of the rising cost of production
inputs such as fertilizers, feeds, pesticides, medicines, etc.
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers in me
vested by the Constitution and in order to help effect the desired
changes and reforms in the social and economic structure of our
society, do hereby order and decree the amendment of Republic Act No.
6390, as amended, as follows:cralaw:red
Section 1. The first paragraph of Section sixteen of
Republic Act Numbered Six Thousand Three Hundred Ninety, as
amended, is hereby amended to read as follows:cralaw:red
"Privileges and limitation of Rural Banks. — The total amount of loans
that may be granted at any one time to a single borrower under the
preceding section shall be determined by the actual need and viability
of the project to be financed and the capacity of the borrower to repay
the loan at interest not exceeding twelve per cent per annum, excluding
service fees and other charges."
Section 2. The same act is hereby amended by adding
the following section immediately after section seventeen thereof,
which shall read as follows:cralaw:red
"Sec. 17-A. Applicability to Other Financing
Institutions. — All privileges extended to rural banks under this Act,
including guarantee coverage under the Agricultural Guarantee
Fund, may likewise apply to the Philippine National Bank and other
financing institutions granting loans under supervised credit to
agrarian reform beneficiaries."
Section 3. All Acts and part of Acts inconsistent
with the provisions of this Decree are hereby repealed, amended or
modified.
Section 4. This Decree shall take effect
immediately. chanroblesvirtualawlibrary
DONE in the City of Manila,
this 22nd day of August, in the year of Our Lord, nineteen hundred and
seventy-four.
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