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PRESIDENTIAL DECREE NO. 699
PRESIDENTIAL DECREE NO. 699 -
AMENDING PRESIDENTIAL DECREE NUMBER FOUR, ENTITLED "PROCLAIMING THE
CREATION OF THE NATIONAL GRAINS INDUSTRY DEVELOPMENT ADMINISTRATION AND
PROVIDING FUNDS THEREFOR"
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WHEREAS, it
is the declared policy of the state to promote the integrated growth
and development of the grains industry so as to provide adequate and
continuous food supply to the nation and contribute to the national
economy;chanroblesvirtualawlibrary
WHEREAS, to carry out and implement the foregoing policy, Presidential
Decree No. 4 was promulgated creating the National Grains Industry
Development Administration, otherwise known as the National Grains
Authority, hereafter referred to as the Authority; chanroblesvirtualawlibrary
WHEREAS, despite the various measure adopted to attain self-sufficiency
in rice, corn and other grains, it appears that the private sector is
somewhat lukewarm or slow to engage in the production of such grains,
especially so in the light of the problems and difficulties arising
from the large-scale production of such grains and the development of
virgin and undeveloped lands;chanroblesvirtualawlibrary
WHEREAS, the government spends a big sum of money every year in the
importation of rice and/or corn, which amount could be used to
accelerate the integrated growth and development of the grains industry
in the country;chanroblesvirtualawlibrary
WHEREAS, it is deemed necessary that the Authority take a more active
and dynamic part in the current national effort to attain
self-sufficiency in rice, corn and other grains; and chanroblesvirtualawlibrary
WHEREAS, recent developments and continuing scientific and
technological studies on grains production, processing and marketing
have revealed that the foregoing policy will best be attained by
vesting the Authority with supplementary responsibilities and powers;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree that Presidential Decree No. 4 be amended as follows:cralaw:red
Section 1. Section 5, sub-section (b) paragraph (XI)
is hereby amended to read as follows: XI. Performs such other functions
as may be necessary to carry into effect the provisions of this Act,
including but not limited to, the development, culture or production of
grains, and the establishment, acquisition and/or operations of grains
processing, handling, storage and transport facilities."
Section 2. Section 6, subsection (a) paragraph III,
is hereby amended to read as follows: III. To own, lease operate or
otherwise hold buildings, equipment and such other immovable properties
as may be necessary to carry out its functions." chanroblesvirtualawlibrary
Section 3. Section 6, subsection (a) is hereby
further amended to incorporate the following new paragraph:cralaw:red
"(XVIII) Whenever the Authority determines that to accomplish its
production, processing, marketing and other incidental functions, it is
necessary to contract indebtedness, it shall by a resolution, stating
the purpose for which the indebtedness is to be incurred and citing the
project study designed for the purpose, so declare and authorize the
Authority's execution or issuance of, and establish the terms and
conditions to be contained in such bonds, loan agreements, or other
evidences of indebtedness necessary thereof. Such resolution shall
become valid and effective upon approval by the President of the
Philippines and prior recommendation of the Secretary of Finance.
"With respect to domestic indebtedness to be incurred by the Authority,
the bonds for other evidences of indebtedness issued for the purpose
shall contain such terms, conditions, privileges, exemptions and
guarantees as are specified below.
"(1) Such bonds or other evidences of indebtedness a)
shall be registered form and transferable at the Central Bank of the
Philippines; b) shall not be sold at less than par; c) shall be payable
ten years or more from date of issue, as may be determined by the
Secretary of Finance before their issuance, but shall be redeemable,
upon the election of the council, after five years from such date of
issue; and d) shall bear interest at an annual rate to be determined
before their issuance by the Secretary of Finance. The interest may be
payable quarterly, semi-annually or annually, as determined by the
Secretary of Finance in consultation with the Monetary Board of the
Central Bank of the Philippines before date of issuance, and both the
principal and interest shall be payable in legal tender of the
Philippines;chanroblesvirtualawlibrary
"(2) The bonds or other evidences of indebtedness
shall be exempt from the payment of all taxes by the Republic of the
Philippines, or by any authority branch, division or political
sub-division thereof, which fact shall be stated upon their faces; and
by virtue of this Decree are hereby made securities in which all public
offices, political subdivisions, commercial banks, insurance companies
and associations, investment houses, financing companies, savings banks
and savings institutions, including savings and loan associations,
executors, administrators, guardians, trustees and fiduciaries in the
Philippines may properly and legally invest their own funds or the
funds within their control, and the same shall be receivable as
collateral in any transaction with the government, its agencies and
instrumentalities, including government-owned or controlled
corporations and government banking and financial institutions in which
such collateral is required. Said instruments may be made payable both
as to principal and interest in Philippine currency or any readily
convertible currency;chanroblesvirtualawlibrary
"(3) A sinking fund shall be established by the
National Grains Authority in such manner that the total annual
contribution thereto, accrued at such rate of interest as may be
determined by the Secretary of Finance in consultation with the
Monetary Board, shall be sufficient to redeem at maturity the bonds
issued under this sub-section. The sinking fund shall be under the
custody of the Central Bank of the Philippines, which shall invest the
same, subject to the approval of the council and the Secretary of
Finance in consultation with the Monetary Board: Provided, That the
proceeds thereof shall accrue to the Authority; chanroblesvirtualawlibrary
"(4) The Republic of the Philippines hereby
guarantees the payment by the Authority of both the principal and the
interests of the bonds or other evidences of indebtedness, and shall
pay such principal and interest in case the Authority fails to do so;
and there are hereby appropriated out of the general funds in the
National Treasury not otherwise appropriated the sums necessary to make
the payments so guaranteed; Provided, That the sums so paid by the
Republic of the Philippines shall be refunded by the Authority: and
Provided, That the Authority, to assure such refunding, shall establish
reserves or sinking funds and comply with such other restrictions and
conditions as the Secretary of Finance may prescribe and establish for
that purpose.
"With respect to foreign indebtedness to be incurred by the Authority,
such may be contracted, in the forms of loans, credit convertible
foreign currencies, or other forms of indebtedness, from foreign
governments or any international financial institution or fund sources,
including foreign private lenders, the total outstanding amount of such
indebtedness, exclusive of interest, shall not exceed five hundred
million United States dollars (US$500M) or the equivalent thereof in
other currencies. The President of the Philippines, by himself or
through his duly authorized representative, is hereby authorized to
negotiate and to so contract with foreign governments or any
international financial institution or fund source in the name and on
behalf of the Authority; and is further authorized to guarantee,
absolutely and unconditionally, as primary obligor and not merely as
surety, in the name and on behalf of the Republic of the Philippines,
the repayment of any indebtedness thereby contracted and the payment
thereon of any due interest charge, up to the limited amount authorized
by the foregoing, which shall be over and above the amounts which the
President is authorized to guarantee under Republic Act No. 6142, and
also to guarantee the performance of all or any of the obligations
undertaken by the Authority in the territory of the Republic of the
Philippines pursuant to loan agreements entered into pursuant to this
paragraph. Any indebtedness contracted under this paragraph and the
payment of the principal thereof and of any interest or other charges
thereon, as well as the importation of machinery, equipment, materials,
supplies and services by the Authority, paid from the proceeds of any
such contracted indebtedness, shall also be exempt from all direct and
indirect taxes, fees, imposts, other charges and restrictions,
including import restrictions, by the Republic of the Philippines, or
by any authority, branch, division or political subdivision thereof.
"Investment in bonds, promissory notes, debentures and other evidences
of indebtedness of the Authority acquired by financial institutions,
subject to the provisions of Republic Act No. 6389, as amended,
including its implementing regulations, shall be considered sufficient
compliance with the requirements of said Act and its implementing
regulations. chanroblesvirtualawlibrary
"All funds so acquired and realized by virtue of this power to contract
indebtedness, interests and other income incidental thereto and income
from other operations, projects or activities of the Authority shall be
administered by it except such other funds the administration of which
is specifically provided for by other provisions of Presidential Decree
No. 4.
"(XIX) To purchase, lease or otherwise acquire lands whether public or
private, for the cultivation and production of rice, corn and other
grains;chanroblesvirtualawlibrary
"In the exercise of this power, the Authority shall have the authority
to engage and retain any person, firm or corporation, private or
public, to render technical services in the development, cultivation or
operation of such lands as it may have acquired by purchase, lease, or
other means. Moreover, the Authority shall have also the power to
effect advance payment of the stipulated fees.
"(XX) To sell, lease, mortgage, pledge or otherwise dispose of the
property, assets or undertaking of the Authority or any part thereof as
the Authority may deem fit.
"(XXI) to adopt, alter, and use a corporate seal which shall be
judicially noticed, to sue and be sued; and otherwise to do and perform
any and all acts, and to exercise any and all powers as may be
necessary to carry into effect the provisions of this Act or as are
essential to the proper conducts of its operations. chanroblesvirtualawlibrary
"(XXII) In order to immediately implement the programs envisioned in
this Decree, an initial sum of ten million pesos (P10,000,000) is
hereby set aside from the Authority's corporate funds and for this
purpose, the Administrator is hereby authorized to dispose the said
amount as he may deem fit, subject to the usual accounting and auditing
requirements."
Section 4. Any provision of Presidential Decree No. 4
and of any law inconsistent with this Decree are hereby repealed,
amended or modified accordingly.
Section 5. This Decree shall take effect immediately.
Done in the City of Manila,
this 12th day of May, in the year of Our Lord, nineteen hundred and
seventy-five.
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