WHEREAS,
the coconut farmers are perennially beset with credit problems which
hinder the growth and development of the coconut industry;chanroblesvirtualawlibrary
WHEREAS, under Presidential Decree No. 232, as amended, the Philippine
Coconut Authority (PCA) is enjoined to formulate and recommend for
adoption credit policies affecting production, marketing and processing
of coconut and other palm oils;chanroblesvirtualawlibrary
WHEREAS, in compliance with its prescribed duty, the Philippine Coconut
Authority has ascertained, in response to the appeal of coconut farmers
conveyed in a resolution of the Board of Directors of the Philippine
Coconut Producers Federation dated May 17, 1975, that ownership by the
coconut farmers of a commercial bank is a permanent solution to their
perennial credit problems; chanroblesvirtualawlibrary
WHEREAS, an operating commercial bank owned by the coconut farmers will
accelerate the growth and development of the coconut industry and
achieve a vertical integration thereof so that coconut farmers will
become participants in, and beneficiaries of, such growth and
development;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
decree and order as follows::cralaw:red
Section 1. Declaration of National Policy. — It is
hereby declared that the policy of the State is to provide readily
available credit facilities to the coconut farmers at preferential
rates; that this policy can be expeditiously and efficiently realized
by the implementation of the "Agreement for the Acquisition of a
Commercial Bank for the benefit of the Coconut Farmers" executed by the
Philippine Coconut Authority, the terms of which "Agreement" are hereby
incorporated by reference; and that the Philippine Coconut Authority is
hereby authorized to distribute, for free, the shares of stock of the
bank it acquired to the coconut farmers under such rules and
regulations it may promulgate. chanroblesvirtualawlibrary
Section 2. Financial Assistance. — To enable the
coconut farmers to comply with their contractual obligations under the
aforesaid Agreement, the Philippine Coconut Authority is hereby
directed to draw and utilize the collections under the Coconut
Consumers' Stabilization Fund authorized to be levied by Presidential
Decree No. 232, as amended, to pay for the financial commitments of the
coconut farmers under the said agreement and, except for the budgetary
requirements of the Philippine Coconut Authority as approved by its
Governing Board, all collections under the Coconut Consumers'
Stabilization Fund Levy and fifty percent (50%) of the collections
under the Coconut Industry Development Fund shall be deposited,
interest free, with the said bank of the coconut farmers and such
deposits shall not be withdrawn until the Board of Directors of the
said Bank and the Governing Board of the Philippine Coconut Authority
shall have jointly ascertained that the bank has sufficient equity
capital to be in a financial position to service in full the credit
requirements of the coconut farmers; and since the operations, and
activities of the Philippine Coconut Authority are all in accord with
the present social economic plans and programs of the Government, all
collections and levies which the Philippine Coconut Authority is
authorized to levy and collect such as but not limited to the Coconut
Consumers' Stabilization Levy, and the Coconut Industry Development
Fund as prescribed by Presidential Decree No. 582 shall not be
considered or construed, under any law or regulation, special and/or
fiduciary funds and do not form part of the general funds of the
national government within the contemplation of Presidential Decree No.
711.
Section 3. Exemptions. — To minimize the costs in the
acquisition and control by the coconut farmers of the Bank, the
provisions of the National Internal Revenue Code and other laws
notwithstanding, the delivery to, and receipt by, the parties concerned
of the shares of the Bank pursuant to the Agreement are hereby declared
to be exempt from taxation.
Section 4. Repealing Clause. — Any provision of law
in conflict herewith is revoked or amended accordingly.
Section 5. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 29th day of July, in the year of Our Lord, nineteen hundred and
seventy-five.
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