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This page features the full text of
Republic Act No. 7393
"Quedan
and Rural Credit Guarantee Corporation Act"
AN
ACT REORGANIZING THE QUEDAN GUARANTEE FUND BOARD, RENAMING IT AS QUEDAN
AND RURAL CREDIT GUARANTEE CORPORATION, ENLARGING ITS POWERS AND
RESOURCES
TO SUPPORT FARMERS AND RURAL ENTERPRISES, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7393AN
ACT REORGANIZING THE QUEDAN GUARANTEE FUND BOARD, RENAMING IT AS QUEDAN
AND RURAL CREDIT GUARANTEE CORPORATION, ENLARGING ITS POWERS AND
RESOURCES
TO SUPPORT FARMERS AND RURAL ENTERPRISES, AND FOR OTHER PURPOSES.
Section
1. Title. — This Act shall be
known as the "Quedan and Rural Credit Guarantee Corporation Act."
chanrobles virtuallaw libraryred
Sec.
2. Declaration of Policy. — It
shall be the policy of the State to accelerate the flow of investments
and credit resources into the countrywide so as to trigger the vigorous
growth and development of rural productivity, employment and
enterprises
thereby generating more livelihood and income opportunities for the
disadvantaged
rural populace. Pursuant to this policy, there shall be set up a
convenient
credit-support mechanism and reliable guarantee system that shall
effectively; chanrobles virtuallaw libraryred
(a) Improve
the bankability of and access by rural workers, their cooperatives and
small rural enterprises to formal credit institutions;
chanrobles virtuallaw libraryred(b) Provide
incentives for the banking sector to focus upon and enlarge the flow of
credit funds and investments into the rural areas;
(c) Institutionalize
the quedan or warehouse receipt and other negotiable instruments,
evidencing
stored agri-aqua produce in bonded warehouses, as the more convenient
collateral
for obtaining credit financing;
(d) Prioritize
financing support to agrarian reform beneficiaries and their
cooperatives
for their production inputs and labor costs and their acquisition of
farm
equipment and post-harvest facilities; chanrobles virtuallaw libraryred
(e) Support
dynamic cooperativism, capital formation and savings mobilization among
the rural populace;
(f) Increase
farm income by promoting a system that by-passes unnecessary layers of
middlemen and links producers more closely to end-users through auction
markets, trading centers, consumer cooperatives and the like; and
(g) Harmonize
and coordinate with all government institutions, nongovernmental
organizations,
private voluntary organizations, self-help groups and other
aggrupations
involved in providing support services to rural inhabitants.
Sec.
3. Definition of Terms. — The
following terms as used in this Act shall mean:
(a) "Corporation"
— The Quedan and Rural Credit Guarantee Corporation; chanrobles virtuallaw libraryredchanrobles virtuallaw libraryred(b) "Farmer"
— Any natural person whose primary livelihood is cultivation of land or
the production of agricultural crops, livestock and aquaculture
products,
in small or commercial scale, either by himself or primarily with the
assistance
of his immediate farm household or workers, whether the land is owned
by
him or by another person, under a leasehold tenancy agreement or
arrangement
with the owner thereof;
(c) "Fisherfolk"
— Refers to any natural person whose primary livelihood is fishing or
the
catching and/or gathering of other marine products, in small or
commercial
scale, either by himself or with the assistance of his immediate
household
or workers, whether the vessel, banca, and other equipment used is
owned
by him or by another person under lease or other arrangement with the
owner
thereof and there is no employer-employee relationship; and
(d) "Cooperative"
— Refers to a duly registered association of persons, with a common
bond
of interest, who have voluntarily joined together to achieve a lawful
common
social or economic end, making equitable contributions to the capital
required
and accepting a fair share of the risks and benefits of the undertaking
in accordance with universally accepted cooperative principles.
Sec.
4. Reorganization. — The Quedan
Guarantee Fund Board is hereby reorganized in accordance with the
provisions
of this Act, renamed as the Quedan and Rural Credit Guarantee
Corporation
and hereafter referred to as the Corporation. The Corporation is hereby
attached to the Department of Agriculture pursuant to Administrative
Order
No. 59 (1988), but subject to the regulatory powers of the Securities
and
Exchange Commission insofar as allowed under Sections 9, 10 and 13
hereof. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
Sec.
5. Place of Business. — The Corporation
shall have its principal place of business in Metro Manila and may
establish
as many branches or smaller units of organization in any part of the
Philippines
as may be necessary in carrying out efficiently and effectively its
operations.chanrobles virtual law library
Sec.
6. Term of Existence. — The term
of existence of the Corporation shall be fifty (50) years from the date
of effectivity of this Act.
Sec.
7. Authorized Capital Stock.
— The authorized capital stock of the Corporation shall be Two billion
pesos (P2,000,000,000) to be divided into two billion common and voting
shares, with the par value of One peso (P1.00) per share, sixty percent
(60%) thereof to be subscribed solely by the National Government and/or
government-owned or -controlled corporations and forty percent (40%)
thereof
solely by small farmers, fisherfolk, their cooperatives and other
private
investors: Provided, however, That the shares of the National
Government
and government-owned or-controlled corporations may be sold to one
another
but not to private investors.cralaw:red
Sec.
8. Subscription by National Government.
— Upon the effectivity of this Act, the National Government shall be
deemed
to have subscribed to such number of shares of the Corporation
equivalent
in par value to, and considered paid for by, the net assets of the
Quedan
Guarantee Fund Board, as determined and certified by the Commission on
Audit within three (3) months from the effectivity hereof. Additional
subscriptions,
insofar as allowed by this Act, may be made by the National Government
with the profits of the Corporation upon the majority vote of its
governing
Board in a meeting specially called for that purpose. The Secretary of
Agriculture of his representative duly authorized in writing shall vote
the shares owned by the National Government. The Chief Executive
Officers
of the government institutions referred to in Section 23 shall vote
their
respective shareholdings. chanrobles virtuallaw libraryred
Sec.
9. Subscription by Private Investors.
— No private person, natural or juridical, shall directly or
indirectly,
by interlocking directorate or other forms of combinations, by trust,
subscription,
purchase, lease, mortgage, pledge, or other means of acquisition or
encumbrance,
own at any one time more than ten percent (10%) of the portion of the
Corporation's
authorized capital stock that can be subscribed solely by small
farmers,
fisherfolk, their cooperatives and other private investors. The
Corporation
in consultation with the Securities and Exchange Commission shall
prescribe
within sixty (60) days from the effectivity of this Act, implementing
rules
and regulations which will assure strict observance of the herein
section
by private investors and stock exchanges, stock-brokers, traders and
personnel
thereof, if the Corporation is listed in such exchanges for the trading
of its shares therein under Section 10 hereof. Violation of any
provision
of the herein section or its implementing rules and regulations shall
be
punishable under Section 185 of the Revised Penal Code or, whenever
applicable,
the Anti-graft and Corrupt Practices Act.cralaw:red
Sec.
10. Listing in Stock Exchanges.
— The Corporation shall comply with all the requirements and shall
apply
for listing in stock exchanges for the purpose of trading its shares
within
one (1) year and six (6) months from the effectivity of this Act.
Failure
to comply with the provisions herein shall be prima facie evidence of
bad
faith on the part of the Corporation's personnel responsible
therefor.cralaw:red
Sec.
11. Corporate Powers. — The Corporation,
as a body corporate, shall have the following powers and purposes:
(a) Establish
a credit-support mechanism for the benefit of farmers, fishermen, rural
workers, cooperatives, retailers, wholesalers and primary processors of
agricultural and aquatic commodities; chanrobles virtuallaw libraryredchanrobles virtuallaw libraryred(b) Implement
a guarantee system to promote inventory financing of agri-aqua
commodities;
establishment of production and post-production facilities; acquisition
of farm and fishery machineries, equipment and implements; and
investments
in production inputs and labor;
(c) Set
up a system for accrediting the participation in the Corporation's
various
programs by borrowers, lending banks, financing institutions, bonding
and
insurance companies;
(d) Franchise-bonded
warehouses intended for quedan inventory financing, issue and enforce
rules
and regulations therefor;
(e) Print
and provide uniform negotiable quedan or warehouse receipt forms for
the
purpose of quedan financing which shall be serially numbered, on
security
notepaper, in specific quantity denominations of such unit of
measurement
of subject commodities; and shall contain the name and business address
of the warehouseman, the variety, classification, moisture content and
quality of the commodity deposited, the warranties of the warehouseman
as prescribed by existing laws, rules and regulations, the charges and
authorized liens on the stocks in deposit;
(f) Prescribe
fees and charges for the Corporation's services; fix interest and
penalty
charges for delinquent accounts; and impose fines and sanctions for
violations
of its rules and regulations;
(g) Acquire
by purchase or otherwise ownership of and invest in, hold, sell or
otherwise
dispose of stocks or bonds of any interest in either or any obligation
or evidence or indebtedness of any person, firm or corporation; and as
owner of such stocks, bonds or interest therein, or other obligations
or
evidences of indebtedness, exercise the rights, powers and privileges
or
ownership, including the right to vote thereon or consent in respect
thereto
for any and all lawful purposes;
(h) Purchase
or otherwise acquire, sell, lease, convey, mortgage or encumber and
otherwise
deal with any property, real or personal, or any interest therein;
(i) Act
as a receiver; chanrobles virtuallaw libraryred
(j) Adopt
and use a corporate seal;
(k) Sue
and be sued; chanrobles virtuallaw libraryred
(l) Prescribe,
repeal and alter its own bylaws; determine its operating policies and
issue
such rules and regulations as may be necessary and incidental to
implement
its various policies, programs and projects; and
(m) Carry
on any lawful business whatsoever and do everything suitable,
convenient
and proper for the exercise of any of the foregoing powers and promote
the interests of the Corporation or its properties.
Sec.
12. Governing Board. — The affairs
and business of the Corporation shall be directed, its properties
managed
and preserved, and its corporate powers exercised, unless otherwise
provided
in this Act, by a governing Board consisting of fifteen (15) members
composed
initially of the following: the Secretary of Agriculture, the Secretary
of Agrarian Reform, the Governor of the Central Bank, the Administrator
of the National Food Authority, the Chairman of the Cooperative
Development
Authority, the President of the Corporation and three (3) other
members:
a small farmer, a fisherfolk and an agricultural worker to be endorsed
by the Department of Agriculture, the Department of Agrarian Reform and
by the Cooperative Development Authority and approved by the other
members
of the governing Board after having been nominated by a nationally
organized
association of farmers, fisherfolk and farm workers, respectively. Said
representatives shall serve for a term of one (1) year. Members of the
governing Board who would proportionately represent the private
investments
in the Corporation shall be decided upon by the initial members of the
governing Board. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
The
Secretary of Agriculture and the President of the Corporation because
of
some governmental functions of the Corporation, shall be permanent ex
officio
Chairman and Vice-Chairman, respectively.chanrobles virtual law library
The
Chairman shall preside over the meetings of the governing Board where
aside
from voting regularly he shall vote to break a tie. He shall likewise
preside
over the stockholder's meetings.cralaw:red
The
President of the Corporation, as Vice-Chairman of the Board, shall
assist
the Chairman and act in his stead in case of the latter's absence or
incapacity.
In case of incapacity or absence of both the Chairman and
Vice-Chairman,
the governing Board shall designate a temporary Chairman from among its
members. chanrobles virtuallaw libraryred
The
governing Board shall prescribe the rules and regulations governing its
deliberations and other official actions.cralaw:red
Sec.
13. Election, Terms of Office
of Elective Board Members. — The additional members of the governing
Board
to be elected by the initial members of the governing Board shall serve
for a term of one (1) year each. The election shall be presided by the
Board Chairman, which shall be held in Metro Manila, in a place
accessible
to the public, and shall be in accordance with provisions of the
Corporation
Code of the Philippines and other pertinent laws. The first election
after
the effectivity of this Act shall be held when the initial members of
the
governing Board shall have been duly constituted and twenty-five
percent
(25%) of the counterpart shares for private investors shall have been
subscribed,
the exact date, time and place to be determined by the governing Board
then incumbent. The governing Board of the Corporation, in consultation
with the Securities and Exchange Commission, shall prescribe the rules
and regulations for the efficient and effective implementation of this
section.cralaw:red
Sec.
14. Specific Duties and Powers
of Governing Board. — The governing Board shall have the following
specific
duties and powers:
(a) Determine
the general policies of the Corporation within the scope of its powers,
objectives and financial resources; chanrobles virtuallaw libraryred(b) Approve
and adopt annually the Corporation's budget at least three (3) months
before
the start of the fiscal period in conformity with the guidelines
prescribed
by the Department of Budget and Management, the Department of Finance
and
the Government Corporate Monitoring and Coordinating Committee; the
Corporation's
plan of operations for the year, as well as its medium- and long-term
plans,
programs and projects;
(c) Monitor
the implementation of the Corporation's general policies, plans,
budgets,
and projects;
(d) Upon
the recommendation of its President, approve, reorganize or otherwise
alter
the position structure, staffing pattern, qualifications, powers and
functions
of the Corporation's officers and employees in consultation with the
Civil
Service Commission and the Department of Budget and Management; chanrobles virtuallaw libraryred
(e) Rationalize
the rates of salaries, wages, allowances, per diems, consultant's fees,
overtime pay and other forms of compensation, including gratuities and
fringe benefits, which shall be determined in accordance with the
position
classification and compensation scheme or policy formulated under
existing
laws, rules and regulations and in consultation with the Civil Service
Commission and the Department of Budget and Management, without
prejudice
to the compensation, fringe benefits and gratuities enjoyed by or
provided
for incumbent personnel at the effectivity of this Act;
(f) Approve,
upon the recommendation of its President, the appointment of senior
corporate
officials in accordance with the pertinent provisions of the Civil
Service
Law, rules and regulations;
(g) Evaluate
the financial reports of the Corporation and the comments of the
Auditor
thereon and, after approval of such financial reports, consider each
item
thereof in respect of which the Auditor has expressed a reservation, or
made an observation, or has refrained from expressing an opinion;
and chanrobles virtuallaw libraryred
(h) Submit
to the President of the Philippines, the Congress of the Philippines,
the
Department of Finance, the Department of Budget and Management, the
Department
of Agriculture, and the Government Corporate Monitoring and
Coordinating
Committee, an annual report of the Corporation's operations which shall
include the following audited financial statements: balance sheet or
statement
of assets and liabilities; income statement or statement of income and
expenditures; and statement of sources and application of funds. Such
reports
shall also include an analysis of any surplus or deficit of the
Corporation
and other additional statements and information necessary to make known
the financial conditions and operations of the Corporation such as the
outstanding domestic and foreign borrowings, the amount of government
capital
and/or dividend that will be credited to the Bureau of Treasury during
the fiscal year, and appropriations needed to restore capital
impairments,
if any, subject to pertinent laws, rules and regulations; and such
other
reports and statements that the Government Corporate Monitoring and
Coordinating
Committee may prescribe.
Sec.
15. President. — The management
of the day-to-day operations of the Corporation shall be vested in the
President as its Chief Executive Officer.chanrobles virtual law library
chanrobles virtuallaw libraryred
No
person shall be appointed President by the governing Board unless he is
in the government career service, is at least thirty-five (35) years of
age and has expertise in banking, finance, economics, law, agriculture,
business management, or public administration.
Sec.
16. Powers and Duties of President.
— The President of the Corporation shall have the following powers and
duties:
(a) Direct
and manage the affairs and business of the Corporation; chanrobles virtuallaw libraryred(b) Implement
the budget, policies, programs and projects approved by the governing
Board; chanrobles virtuallaw libraryred
(c) Enter
into and execute, in behalf of the Corporation, all contracts and
authorized
transactions;
(d) Appoint,
promote, remove, suspend or otherwise discipline for cause, any
subordinate
officer or employee of the Corporation pursuant to the Civil Service
Law,
rules and regulations: Provided, however, That with respect to officers
and with rank equivalent to or higher than Vice-President, such action
shall be subject to the approval of the governing Board;
(e) Ensure
that the officers concerned prepare the annual and financial reports,
including
the analysis required in Section 14 hereof on or before the time fixed
therein;chanrobles virtuallaw libraryred
(g) Perform
such other powers or duties as may be appropriately and reasonably
assigned
to him by the governing Board from time to time.
Sec.
17. Solicitation of Grants. —
The Chairman or President of the Corporation is hereby authorized,
subject
to the approval of the governing Board, to directly solicit, negotiate
for and receive grants from any source, domestic or foreign, public or
private, in accordance with existing laws.chanrobles virtual law library
chanrobles virtuallaw libraryred
For
the purposes of this Act, grants shall include legacies, devises,
gifts,
donations, endowments and other transfers from any source, domestic or
foreign, public or private, or the ownership and/or possession of real
or personal properties, which transfers are free from any monetary
considerations,
it being understood that counterpart funding for such grants shall not
be deemed as such consideration.chanrobles virtual law library
With
respect to such grants, the following are hereby prescribed: chanrobles virtuallaw libraryred
(a) No
grant shall be accepted if its terms and conditions are disadvantageous
to the Corporation or the Government; chanrobles virtuallaw libraryred(b) The
disbursement or use by the Corporation of any cash grant shall be,
pursuant
to a special budget approved by the governing Board, in consultation
with
the Department of Budget and Management, and subject to accounting and
auditing laws, rules and regulations;
(c) The
Bureau of Customs shall give priority for the expeditious, safe,
efficient
and effective release from its premises of grants given to the
Corporation
under this Act;
(d) The
Chairman or President of the Corporation may, in his sound discretion,
deputize members of the Integrated Police, Philippine Constabulary and
other security forces of the Government to escort and/or guard the
grants
given to the Corporation under this Act in order to ensure their safe
and
speedy transportation, delivery and custody by the Corporation's
representatives;
(e) Grants
given to the Corporation under this Act shall be accorded utmost
priority
in transportation by national flag carriers and domestic common
carriers;
and chanrobles virtuallaw libraryred
(f) Not
later than forty (40) days from the start of or receipt thereof, the
President
shall submit to the Director General of the National Economic and
Development
Authority a report about the grants being negotiated for and/or
received
by the Corporation, specifying therein the peso value, general
descriptions,
sources, summaries of terms and conditions, purposes, and date of start
of negotiation or receipt of such grants.
Sec.
18. Operating Principles. — The
Corporation in the exercise of its powers shall be guided by the
following
operating principles:
(a) The
loanable value and guarantee cover under its various programs shall be
scaled progressively in favor of rural-based cooperatives and
micro-enterprises
vis-a-vis small and medium-size businesses; chanrobles virtuallaw libraryred(b) The
rate of guarantee fees and charges shall be commensurate to the risk
covered;
(c) Aggregate
contingent liability, that is, its outstanding guarantee obligation at
any given time, shall not exceed five (5) times its net worth;
(d) For
agri-aqua commodities stored in bonded warehouses, the guarantee shall
be their physical existence when covered by a quedan or warehouse
receipt,
chattel mortgage, deed of assignment, trust receipt, and other forms of
collateral instruments on said commodities; chanrobles virtuallaw libraryred
(e) For
production and post-production facilities, farm machineries, equipment
and implements, the guarantee shall be on the loan extended by a bank
or
lending institution on the basis of a mortgage thereon, without
prejudice
to the requirement for an additional or substitute collateral;
(f) For
production inputs and labor, the guarantee shall be on the loan,
provided
that it is granted to rural cooperatives, without prejudice to the
requirement
for a counter-guarantee from non-governmental organizations, or for
some
form of acceptable collaterals;
(g) The
credit-support mechanism, as contemplated herein, may be in the form of
assistance in client prospecting, credit evaluation, collateral
appraisal,
account monitoring, special time deposit, co-financing arrangement,
co-guarantee,
interest stabilization, liquidity access and other similar incentives
for
rural borrowers and lending institutions;
(h) The
guarantee and credit-support system shall be oriented to promote
capital
formation and savings mobilization in the rural areas; chanrobles virtuallaw libraryred
(i) Secondary
trading market and liquidity access for participating banks and lending
institutions, especially for those operating in small municipalities,
shall
be developed and promoted by the Corporation for its guaranteed loan
papers;
and
(j) Working
relationships shall be harmonized with other government institutions,
agencies
and instrumentalities engaged in agricultural or rural development.
Sec.
19. Sovereign Guarantee. — In
accordance with pertinent laws, rules and regulations, the Republic of
the Philippines shall answer for the payment of guarantee obligations
duly
incurred by the Corporation under the provisions of this Act: Provided,
however, That the Corporation's assets shall have been first fully
exhausted
to satisfy its guarantee obligations. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
Sec.
20. Compliance with Agri-Agra
Law. — Investment by any banking institution in the authorized capital
stock of the Corporation shall be considered compliance with
Presidential
Decree No. 717 (1975), otherwise known as the Agri-Agra Law, to the
extent
of its equity holdings in the Corporation. Likewise, loans extended by
banking institutions to farmers, fishermen, cooperatives, rural workers
and rural enterprises covered by the guarantees of the Corporation
shall
be deemed as compliance with the Agri-Agra Law. Rediscounting by
secondary
banks of originating banks' loan receivables having the guarantee cover
of the Corporation shall likewise be deemed compliance with the same
law.chanrobles virtual law library
Sec.
21. Protection for Corporation's
Guarantees and Other Accommodations. — The provisions of any local,
regional,
national, special or general law to the contrary notwithstanding,
securities
on guarantees and/or accommodations granted by, or subrogated to, the
Corporation
or its predecessors-in-interest shall not be subject to attachment,
execution
or any other court process, nor shall they be included in the property
of insolvent persons or institutions, unless all debts and obligations
of the debtor to the Corporation and its predecessors-in-interest shall
have been previously paid, including accrued interest, penalties,
collection
expenses, and other charges.cralaw:red
Sec.
22. Dividend for Government Shareholdings.
— The annual dividends that may be declared by the Corporations
pertaining
to the National Government shareholdings shall be in the form of stock
dividends in order to build up the capital base of the Corporation:
Provided,
however, That this provision shall not operate to prejudice the
declaration
of cash dividends to private stockholders.
Sec.
23. Investment by Other Government
Entities. — The Department of Agriculture, the Department of Agrarian
Reform,
the Technology and Livelihood Resource Center, the Philippine Amusement
and Gaming Corporation, the Philippine National Bank, the Development
Bank
of the Philippines, the Land Bank of the Philippines, the Government
Service
Insurance System, the Social Security System, other government agencies
and government-owned or-controlled corporations, are hereby authorized
to invest in the capital stock of the Corporation in conformity with
Sections
8, 10, and 12 hereof, and may, in a trust, provide the Corporation with
credit or guarantee fund to service particular clients, cooperatives
and
rural aggrupations, as may be specified by any of these institutions,
in
accordance with their respective charters. chanrobles virtuallaw libraryred
Sec.
24. Corporate Secretary. — The
Corporate Secretary, who shall be a lawyer, appointed by the governing
Board and under the supervision of its Chairman, shall record the
deliberations
and other official actions of the governing Board and shall take
custody
of the records and other papers pertaining to it.cralaw:red
Sec.
25. Legal Affairs. — The Corporation
shall have its own Legal Affairs Department to be headed by the
Corporate
Legal Counsel who shall be appointed by the governing Board upon the
recommendation
of the President.cralaw:red
In
appropriate cases, the Corporation may also avail of the legal services
of any government legal office authorized to render such services to
government-owned
or-controlled corporations.cralaw:red
The
Corporation may, upon the recommendation of its Corporate Legal
Counsel,
deputize any member of its legal staff to act as special sheriff in
foreclosure
cases, in the sale or attachment of the debtor's properties, and in the
enforcement of court writs and processes in cases involving the
Corporation.
Such special sheriff of the Corporation shall make a report to the
proper
court on any action taken by him, which shall treat such action as if
it
were an act of its own sheriffs in all respects.cralaw:red
Sec.
26. COA Personnel and Expenditures.
— The number of personnel to be assigned by the Commission on Audit in
the Corporation and the concomitant expenses to be incurred in the
performance
of their duties shall be determined in such manner as to harmonize
equitably
the need of the Commission on Audit to undertake efficiently and
effectively
its constitutional powers and functions and the obligation of the
Corporation
to economize in the use of its funds, considering that it is the
Corporation
which shall defray the expenses for the audit of its operations. In
case
of disagreement between the Commission on Audit and the Corporation as
to the reasonableness of the number of such personnel and their
auditing
expenditures, the opinion of the former shall prevail. chanrobles virtuallaw libraryred
Sec.
27. Transitory Provisions. —
Upon the effectivity of this Act, the governing Board shall immediately
be constituted and convened. All incumbent officers and employees of
the
Quedan Guarantee Fund Board shall continue in office as personnel of
the
Corporation without demotion in rank nor diminution in compensation and
fringe benefits. The incumbent Executive Director of the Quedan
Guarantee
Fund Board shall be the President of the Corporation until a new
President
shall have been elected by the governing Board. The President shall, as
soon as possible, prepare and submit to the governing Board such plans
and programs which will ensure harmonious and effective transitional
activities
towards the full operations of the Corporation.cralaw:red
Sec.
28. Authority to Expand Personnel
Complement. — In view of the expanded scope of the operations of the
Corporation,
it is hereby authorized to reorganize and expand its personnel
complement,
in consultation with the Civil Service Commission and in accordance
with
Section 14 hereof, in order to achieve efficiency and effectiveness in
the delivery of its mandated services.cralaw:red
Sec.
29. Obligations and Liabilities.
— All rights, claims and interests of the Quedan Guarantee Fund Board,
upon the effectivity of this Act, shall be deemed transferred to the
Corporation
and all existing obligations and liabilities of the former shall be
assumed
by the latter.
Sec.
30. Suppletory Application of
Corporation Code. — Matters not provided for in this Act shall be
governed
by the Corporation Code of the Philippines in a suppletory character
insofar
as it is applicable. chanrobles virtuallaw libraryred
Sec.
31. Separability. — Any portion
or provision of this Act that may be unconstitutional or invalid shall
not have the effect of nullifying other portions or provisions hereof
as
long as such portions or provisions can still subsist and be given
legal
force and effect in their entirety.cralaw:red
Sec.
32. Repeal. — All laws, ordinances,
rules, regulations and other issuances or parts thereof, contrary to or
inconsistent herewith, are hereby repealed or modified
accordingly.cralaw:red
Sec.
33. Effectivity. — This Act shall
take effect upon its approval. chanrobles virtuallaw libraryred
Approved:
April 13, 1992
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