WHEREAS, it
is a declared national policy to give first priority to measures for
the adequate and timely financing of the Agrarian Program; chanroblesvirtualawlibrary
WHEREAS, government and private banking institutions are in best
position to extend adequate agrarian reform credit to agrarian reform
beneficiaries;chanroblesvirtualawlibrary
WHEREAS, there is a need of flexibility of government policy on
agrarian reform credit and for a realistic approach to the credit needs
of agrarian reform beneficiaries;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order to be part of the laws of the land the
following: chanroblesvirtualawlibrary
Section 1. There shall be evolved an agrarian reform
credit and financing system for the beneficiaries of agrarian reform,
namely: tillers, tenant-farmers, settlers, agricultural lessees,
amortizing owners, owner-cultivators, farmers cooperatives and compact
farms, through government and private banking institutions.
Agrarian reform credit, as used herein, shall include production or
other types of loans for acquisition of work animals, farm equipment
and machinery, seeds, fertilizers, poultry, livestock, feeds and other
similar items; acquisition of lands authorized under the Agrarian
Reform Code of the Philippines and its amendments; construction and/or
acquisition of facilities for production, processing, storage and
marketing; and efficient and effective merchandising of agricultural
commodities stored and/or processed by the facilities aforecited in
domestic and foreign commerce. chanroblesvirtualawlibrary
Section 2. The credit mentioned in the next
preceding Section may be extended to the beneficiaries named therein
based on the feasibility of the project and their paying capacity,
their estimated production, and/or securities they can provide as well
as such assets as may be required by them from the proceeds of
the loan.
Section 3. All banking institutions, whether
government or private, shall set aside at least twenty-five per
cent (25%) of their loanable funds for agricultural credit in general,
of which at least ten per cent (10%) of the loanable funds shall be
made available for agrarian reform credit to beneficiaries mentioned in
Section 1 hereof: PROVIDED, however, that loanable funds as used in
this Section shall refer to funds generated from the date of
effectivity of this Decree; PROVIDED, FURTHER, that the national
Economic and Development Authority may increase or decrease such
percentages whenever so recommended by the Department of Agrarian
Reform and Central Bank of the Philippines taking into consideration
the magnitude of the credit needs of the beneficiaries of agrarian
reform.
Section 4. The Central Bank of the Philippines, in
consultation with and/or upon the recommendation of the
Department of Agrarian Reform, shall promulgate such rules and
regulations as may be necessary to implement the provisions of this
Decree. Subject to such rules and regulations, banking institutions may
be allowed to:cralaw:red
a) Invest, in such government securities, as may be
declared eligible by the Central Bank of the Philippines, any portion
of the amount set aside for agrarian reform credit not actually loaned
out; PROVIDED, however, that the issuing government entity shall stand
ready to monetize, encash or repurchase such securities whenever funds
are needed by the banks holding the said securities, for lending to the
beneficiaries of agrarian reform; and
b) Rediscount with the Central Bank of the
Philippines eligible paper covering agrarian reform credits.
Section 5. All laws, decrees, rules and regulations,
or parts thereof, as may be inconsistent herewith are hereby
repealed or modified accordingly. chanroblesvirtualawlibrary
Section 6. This Decree shall take effect immediately.
Done in the City of Manila,
this 29th day of May, in the year of Our Lord, nineteen hundred and
seventy-five.
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