WHEREAS,
under Presidential Decree No. 681, the Farm Systems Development
Corporation has been created to bolster the government efforts to
hasten rural development and to provide substantial opportunities to
Filipino farmers to attain economic well-being and to lead a dignified
life pursuant to the national policy declared under said Decree; chanroblesvirtualawlibrary
WHEREAS, in order to effectivity fulfill its purposes and to enable it
to undertake and implement special projects in the pursuit of its
objectives, it is imperative that the Farm Systems Development
Corporation be endowed with certain powers and conferred with certain
privileges to the end that its activities be undertaken with greater
vigor, resources and direction:cralaw:red
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:cralaw:red
Section 1. Section 2 of Presidential Decree No. 681
is hereby amended to read as follows:cralaw:red
"Sec. 2. Policy/Purpose. — The commitment of the
farmers to actively participate in the efforts to improve methods and
develop entrepreneurial capabilities in the areas of resource
management, farming, fishing, forestry, agro-industrial production,
processing, marketing, drainage, rural waterworks and land reclamation
for agricultural production is vital in the process of increasing food
production and hastening rural development. It is hereby declared to be
the policy of the State to pursue and foster, in an orderly and
expeditious manner, the attainment of this objective.
For this purpose, the FSDC shall promote the organization of and assist
association and other rural-based entities which are willing to pursue
diligently and the above purpose. chanroblesvirtualawlibrary
To become effectively established and operationally stable, the
associations and other rural-based entities shall be given every
tenable support and assistance by the national government, its
instrumentalities and agencies to the fullest extent of which they are
capable. Being by their nature substantially self-regulating and
Congress, having by the enactment of this Decree substantially covered
all phases of their organization and operation requiring or justifying
regulation, and in order to further encourage and promote their
development, they should be subject to minimal regulation by all
administrative agencies."
Section 2. The following definitions shall be
included in Section 3 of Presidential Decree No. 681:cralaw:red
"Sec. 3. Definitions. —.
(c) "NFAC" shall mean the National Food and
Agriculture Council.
(d) "Farmers" shall mean persons actively engaged in
agriculture, forestry, or fishing." chanroblesvirtualawlibrary
Section 3. Definitions. —.
(e) "Association" shall mean an organization of
farmers duly registered under the provisions of this Decree.
(g) "Service" shall mean services provided by the
association, including the providing of any auxiliary or related
services."
Section 4. The existing Section 3 (d), (e), (f), (g),
(h), (i), (j), and (k) of Presidential Decree No. 681 are hereby
relettered as Section 3 (e), (f), (g), (h), (i), (j), (k), and (l),
respectively
Section 5. "Irrigation associations" and
"farmer-associations" under Presidential Decree No. 681 shall read
"association(s)". "Irrigation services" shall read service(s)".
Farm-based entities" shall read "rural-based entities."
Section 6. Section 4 of the Presidential Decree No.
681 is hereby amended to read as follows:cralaw:red
"Sec. 4. FSDC Authorities, Powers and Directives. —
The FSDC is hereby authorized, empowered and directed to promote the
organization of, and assist associations to the end of achieving the
objectives of hastening rural development, and for such purpose, it is
hereby, without limiting the generality of the foregoing and in
addition to the authorization, powers and directives established by
this Decree, specifically authorized empowered and directed:cralaw:red
(a) to have a continuous succession under its
corporate name until otherwise provided by law;chanroblesvirtualawlibrary
(b) to prescribe and thereafter amend and repeal its
by-laws not inconsistent with this Decree;chanroblesvirtualawlibrary
(c) to adopt and use a seal and alter it at its
pleasure;chanroblesvirtualawlibrary
(d) to sue and be sued;chanroblesvirtualawlibrary
(e) to make contract of every name and nature, to
execute all instruments necessary or convenient for the carrying on of
its business;chanroblesvirtualawlibrary
(f) to make loans to associations or rural based
entities for the construction or acquisition, operation and maintenance
of irrigation and other water systems, cold-storage and warehousing
facilities, and all related properties such as equipment, buildings and
structures, machinery, fixtures and materials, and other support items
such as transportation equipment and pre and post-harvest facilities;
and thereafter, to make loans for the restoration, improvement or
enlargement of such facilities; chanroblesvirtualawlibrary
(g) to make short-term production loans to
associations or rural-based entities;chanroblesvirtualawlibrary
(h) to receive from associations all articles of
incorporation, amendments, consolidation, merger, conversion or
dissolution and all certificates of changes in location of principal
offices and of elections to dissolve, and, upon determining that such
are in conformity, with this Decree, to certify the same, to file them
in the records of the FSDC, and to maintain a registry of such filings,
the provisions of Act No. 1459, as amended, and Presidential Decree No.
902-A to the contrary notwithstanding;chanroblesvirtualawlibrary
(i) to assist associations and other rural-based
entities and coordinate with government agencies and corporations
having related functions and purposes in planning, developing,
establishing, operating, maintaining, repairing and renovating the
association's facilities and systems;chanroblesvirtualawlibrary
(j) to prepare feasibility studies, engineering plans
for integrating rural-based systems development including the
procurement of modern and improved facilities, devices and accessory
equipment;chanroblesvirtualawlibrary
(k) to provide managerial or administrative expertise
including the rendering of professional training services for the
association's staff and employee development;chanroblesvirtualawlibrary
(l) to cooperate, coordinate and exchange such
information, studies and reports with and to seek such cooperation and
coordination from other departments, agencies, and instrumentalities of
the National Government, including the National Irrigation
Administration (NIA), the National Grains Authority (NGA), the National
Electrification Administration (NEA), the Development Academy of the
Philippines (DAP), the National Power Corporation (NPC), and the
National Food Agriculture Council (NFAC), as will most effectively
conduce to the achievement of the purposes of this Decree; chanroblesvirtualawlibrary
(m) to borrow funds from any source, private or
government foreign or domestic, and to issue bonds or other evidence of
indebtedness;chanroblesvirtualawlibrary
(n) to appoint, through its Board of Administrators,
such officers and employees as are not otherwise provided in this
Decree, to define their duties, fix their compensation, and require
bonds of them;chanroblesvirtualawlibrary
(o) to investigate and study the feasibility of
using, and to use when feasible, irrigation equipment not only for
irrigation but also for small-scale power generation purposes;chanroblesvirtualawlibrary
(p) to investigate and study all available water
resources in the Philippines in coordination with the National Water
Resources Council and the National Irrigation Administration;chanroblesvirtualawlibrary
(q) to enter into agreements or relationships with
other institutions or organizations, both national and international,
in furtherance of the purposes and objectives of the Corporations;chanroblesvirtualawlibrary
(r) to acquire, by purchase or otherwise (including
the right of eminent domain, which is hereby granted to the FSDC, to be
exercised in the manner provided by law for the institution and
completion of expropriation proceedings by the national and local
governments), real and physical properties, together with all
appurtenant rights, easement, licenses and privileges, whether or not
the same be already devoted to public use, upon the determination of
the FSDC that such acquisition is necessary to accomplish the purposes
of this Decree and, if such properties be already devoted to public
use, that such use will be better served and accomplished by such
acquisition; Provided, that the power herein granted shall be exercised
by the FSDC solely as agent for and on behalf of one or more
associations, which entity or entities shall become borrowers from the
FSDC under subparagraph (f) of this section; and provided further, that
the costs of such acquisition, including the cost of any eminent domain
proceedings, shall be borne, either directly or by reimbursement to the
FSDC, whichever the FSDC shall elect, by the association or entities on
whose behalf the acquisition is undertaken; and otherwise to acquire,
improve, hold, transfer, sell, lease, rent mortgage, encumber or
otherwise dispose of the property to carry out the purposes for which
the FSDC was created;chanroblesvirtualawlibrary
(s) to prescribe rules and regulations in which its
general business may be conducted as well as to fix and implement terms
and conditions of loans;chanroblesvirtualawlibrary
(t) to establish branch offices;chanroblesvirtualawlibrary
(u) to invest its funds or other assets in such
undertakings as it may deem wise or necessary to carry its purposes and
objectives;chanroblesvirtualawlibrary
(v) to report to the President at least annually, not
later than June 30th, and when the same comes into existence, the Prime
Minister and the National Assembly, on the status of its operation in
the Philippines, including a comprehensive reporting of loans made
advanced, loans secured from other sources and the advance thereof, the
names and locations of the borrowers, and the number of farmers
receiving services as a result of such loans;chanroblesvirtualawlibrary
(w) to do and perform any other acts and things, and
to have and exercise any other powers which may be necessary,
incidental or appropriate to accomplish the purpose for which the FSDC
is organized, including the powers to establish and maintain
subsidiaries, and in general, to exercise all the powers of a
corporation under the Corporation Law, insofar as they are inconsistent
with the provisions of this Decree."
Section 7. Section 5(a) and (b) of Presidential
Decree No. 681 is hereby amended to read as follows:cralaw:red
"Sec. 5. FSDC Board of Administrators; Administrator.
—
(a) For the purpose of administering the provisions
of this Decree, there is hereby established a public corporation, to be
known as the FARM SYSTEMS DEVELOPMENT CORPORATION. All the powers of
the corporation shall be vested in and exercised by a Board of
Administrators, which shall be composed of: the Minister of Public
Works, Transportation and Communications, the NIA Administrator, the
NGA Administrator, the NEA Administrator, the DAP President, and the
NFAC Executive Director as regular members, and the FSDC Administrator
as ex-officio member. The term of the ex-officio member shall be
co-terminous with his term as the Administrator. The Chairman shall be
appointed by the President from among the regular members. The Chairman
and every member of the Board of Administrator be entitled to a per
diem of not more than P500.00 for such meeting actually attended by
them; Provided that the total of such per diems shall not exceed two
thousand five hundred pesos (P2,500) per month per member.
(b) The Board of Administrators shall meet regularly
at least twice a month and as often as the exigencies of the
Corporation's affairs demand. The presence at least four members shall
constitute a quorum which shall be necessary for the transaction of any
business. The affirmative votes of a majority of the members present
shall be necessary for the approval of any resolution, decision or
order, except when a greater number of votes is required as sometimes
hereinafter provided. When the Chairman is absent at a meeting duly
called, the Administrator as ex-officio member shall preside."
Section 8. A new section is hereby inserted after
Section 10 of Presidential Decree No. 681, to be designated as Section
11, which shall read as follows:cralaw:red
"Sec. 11. Special Annual Appropriations. — FSDC
shall be provided special annual appropriations from the Social Pricing
and Development Adjustment Fund of the Budget Commission to support its
yearly operating expenses. Expenses that are non-income-producing such
as customs duties on imported equipment, training of farmers and other
expenses directly related to the institutional development program of
FSDC shall be supported by contributions from the National Government."
Section 9. Section 15 of the Presidential Decree No.
681 is hereby amended to read as follows:cralaw:red
"Sec. 15. Supervision. — The FSDC shall be attached
to the Office of the MInistry of Public Works, Transportation and
Communications for purposes of policy direction and coordination."
Section 10. The existing Sections 11, 12, 13, 14 and
15 of Presidential Decree No. 681 are hereby renumbered as Sections 12,
13, 14, 15 and 16, respectively.
Section 11. A new chapter is hereby inserted after
the existing Section 15 of the Presidential Decree No. 681 to be
designated as Chapter III, which shall read as follows:cralaw:red
"CHAPTER III"
ASSOCIATIONS
"Sec. 17. Organization and Purposes. —
Non-stock, non-profit associations may be organized and registered, and
irrigators' associations heretofore formed or registered under Act No.
1459, as amended and Presidential Decree No. 902-A may be converted to
an association, under the provisions of this Decree to pursue
activities in line with the purposes and objectives provided for under
this Decree.
"Sec. 18. Powers. — An association is hereby vested
with all powers necessary or convenient for the accomplishment of its
corporate purposes. Such powers shall include, but not limited to, the
power:cralaw:red
(a) to sue and be sued in its corporate name;chanroblesvirtualawlibrary
(b) to have an existence for a period of fifty years;chanroblesvirtualawlibrary
(c) to adopt a corporate seal and alter the same;chanroblesvirtualawlibrary
(d) to construct, acquire, own, hold, manage,
control, operate, and maintain a canal irrigation system; to acquire
water rights; to acquire, hold, own, maintain and control water from
source; to do any and all things necessary in providing water for
irrigation and domestic use; or to pursue activities in line with the
purposes and objectives provided for under this Decree;chanroblesvirtualawlibrary
(e) to assist members of the association in improving
their methods of production and the marketing and distribution of their
products;chanroblesvirtualawlibrary
(f) to acquire, purchase, own, hold, develop, lease,
mortgage, pledge, exchange, sell, transfer, or otherwise invest, trade
or deal in any manner permitted by law, real or personal property as
may be necessary for the accomplishment of its purposes;chanroblesvirtualawlibrary
(g) to borrow money and otherwise contract
indebtedness and issue notes, bonds and other evidence of indebtedness
and to secure payment thereof by mortgage pledge or deed of trust of,
or any encumbrance upon, any or all of its then owned of after-acquired
real or personal property and assets; Provided, that any borrowing
from, or any encumbering of its properties as security in favor of any
lending source other than the FSDC shall require the prior approval of
the FSDC Administrator who shall certify that such is in furtherance of
the purposes and its consistent with the provisions of this Decree, and
that such borrowing and/or encumbering will not diminish the security
of, or of the ability of the association to repay any then-outstanding
indebtedness of the association to the FSDC or any other lending source
below the level of such security and ability were such additional
borrowing not being undertaken;chanroblesvirtualawlibrary
(h) to enter into contract for any lawful purpose;chanroblesvirtualawlibrary
(i) to adopt, amend and repeal its by-laws; chanroblesvirtualawlibrary
(j) to do and perform any other acts and things, and
to have and exercise any other powers which may be necessary,
convenient and appropriate to accomplished the purpose for which the
association is organized.
"Sec. 19. Incorporations. — Five or more persons may
form and organize an association.
"Sec. 20. Articles of Incorporation. — The articles
of incorporation shall recite that they are executed pursuant to this
Decree and shall state:cralaw:red
(a) the name of the association;chanroblesvirtualawlibrary
(b) the address of its principal office;chanroblesvirtualawlibrary
(c) the names and addresses of the incorporators;chanroblesvirtualawlibrary
(d) the names and addresses of its original directors
who shall constitute the board until the first election of the board by
the members. Such articles shall be signed by each incorporator and
acknowledged by at least two of the incorporators;chanroblesvirtualawlibrary
(e) such other provisions not inconsistent with the
provisions of this Decree necessary for the proper conduct of the
business of the association.
"Sec. 21. By-Laws. — The power to adopt and
thereafter amend or repeal by-laws shall be vested with the majority of
all the members of the association. The by-laws shall set forth the
basic rights and duties of members and board of directors and may
contain any other provisions for the regulation and management of the
affairs of the association not inconsistent with the articles of
incorporation or this Decree. chanroblesvirtualawlibrary
"Sec. 22. Members. — The by-laws shall prescribe the
qualifications and limitations with respect to membership not
inconsistent with the purposes and provisions of this Decree.
"Sec. 23. Meetings of Members. — An annual meeting of
the members of the association shall be held at such time and place as
may be provided for in the by-laws. Special meetings may be called as
may be provided for in the by-laws.
"Sec. 24. Board of Directors. — The business of the
association shall be managed by a Board of Directors which shall not be
less than 5 nor more than 15 members. The by-laws shall prescribe the
number of directors, their qualifications, the manner of holding
meetings of the board, and electing successors to directors who shall
resign, die or otherwise be incapable of acting.
"Sec. 25. Officers. — The officers of the association
shall consist of a president, a secretary, a treasurer, an auditor and
a counsellor. The board may also elect or appoint such other officers,
agents or employees as it deems necessary or advisable and shall
prescribe their powers and duties. Any officer may be removed from
office and his successor elected in the manner prescribed in the
by-laws.
"Sec. 26. Amendments of Articles of
Incorporation. — An association may amend its articles of incorporation
by complying with the following requirements: The proposed amendment
shall be presented to a meeting of the members, the notice of which
shall set forth or have attached thereto the proposed amendment or an
accurate summary thereof. If the proposed amendment with any changes,
is approved by the affirmative vote of not less than two-thirds of all
the members, the articles of amendment shall be executed and
acknowledged on behalf of the association by its president and attested
by its secretary. The articles of amendment shall recite that they have
been executed pursuant to this Decree and shall state: chanroblesvirtualawlibrary
(a) the name of the association;chanroblesvirtualawlibrary
(b) the address of its principal office;chanroblesvirtualawlibrary
(c) the amendment to its articles of incorporation
The president executing such articles of amendment shall execute an
affidavit stating that the provisions of this section with respect to
the amendment set forth in such articles were duly complied with.
"Sec. 27. Consolidation. — Any two or more
associations each of which is hereinafter designated a ("consolidating
association") may be consolidated into a new association (hereinafter
designated as the "new association"), by complying with the following
requirements:cralaw:red
(a) the proposition for the consolidation of the
consolidating associations into a new association and proposed articles
of consolidation to give effect thereto shall be submitted to a meeting
of the members of each consolidating association, the notice of which
shall have attached thereto a copy of the proposed articles of
consolidation or an accurate summary thereof.
(b) if the proposed consolidation and the proposed
articles of consolidation, with any amendments, are approved by the
affirmative vote of not less than two-thirds of all the members, the
articles of consolidation in the form approved shall be executed and
acknowledged on behalf of each consolidating association by its
president and its seal shall be affixed thereto and attested by its
secretary. The articles of consolidation shall recite that they are
executed pursuant to this Decree and shall state:cralaw:red
(1) the name of each consolidating association and
the address of its principal office;chanroblesvirtualawlibrary
(2) the name of the new association and the address
of its principal office;chanroblesvirtualawlibrary
(3) a statement that each consolidating association
agrees to the consolidation;chanroblesvirtualawlibrary
(4) the names and addresses of the directors of the
new association; and
(5) the terms and conditions of the consolidation and
the mode of carrying the same into effect, including the manner in
which members of the consolidating association may become members of
the new association, and may contain any other provisions not
inconsistent with the Decree that are deemed necessary or advisable for
the conduct of the business of the new association.
The president of each consolidating association executing such articles
of consolidation shall make and annex thereto an affidavit stating that
the provisions of this section were duly complied with.
"Sec. 28. Merger. — Any one or more associations
(each of which is hereinafter designated a "merging association") may
merge with one or more other associations by complying with the
following requirements:cralaw:red
(a) The proposition for the merger of the merging
associations into the surviving association and proposed articles of
merger to give effect thereto shall be submitted to a meeting of the
members of each merging association and of the surviving association,
the notice of which shall have attached thereto a copy of the proposed
articles of merger or an accurate summary thereof.
(b) If the proposed merger and the proposed articles
of merger, with any amendments, are approved by the affirmative vote of
not less than two-thirds of all the members, articles of merger in the
form approved shall be executed and acknowledged on behalf of each such
association by its president and its seal shall be affixed thereto and
attested by its secretary. The articles of consolidation shall recite
that they are executed pursuant to this Decree and shall state:cralaw:red
(1) the name of each merging association and the
address of its principal office;chanroblesvirtualawlibrary
(2) the name of the surviving association and the
address of its principal office;chanroblesvirtualawlibrary
(3) a statement that each merging association and the
surviving association agree to the merger;chanroblesvirtualawlibrary
(4) the names and addresses of the directors of the
surviving association; and
(5) the terms and conditions of the merger and the
mode of carrying the same into effect, including the manner in which
members of the merging association may or shall become members of the
surviving association and may contain any other provisions not
inconsistent with this Decree that are deemed necessary or advisable
for the conduct of the business of the surviving association. chanroblesvirtualawlibrary
The president of each association executing such articles of merger
shall make and annex thereto an affidavit stating that the provisions
of this section were duly complied with.
"Sec. 29. Effects of Consolidation and Merger. —
(a) In the case of consolidation, the existence of
the consolidating association shall cease and the articles of
consolidation shall be deemed to be the articles of incorporation of
the new association and in the case of merger, the separate existence
of the merging association shall cease and the articles of
incorporation of the surviving association shall be deemed to be
amended to the extent, if any, that changes therein are provided for in
the articles of merger without further act or deed;chanroblesvirtualawlibrary
(b) All rights, privileges, and immunities, and all
property, real and personal, including applications for membership all
debts due on whatever account and all other choses in action of each of
the consolidating or merging associations shall be deemed to be
transferred to and vested in the new or surviving association without
further act or deed;chanroblesvirtualawlibrary
(c) The new or surviving association shall be
responsible and liable for all the liabilities and obligations of each
of the consolidating or merging associations and any claim existing or
action or proceeding pending by or against any of the consolidating or
merging associations may be prosecuted as if the consolidation or
merger had not taken place, but the new or surviving association shall
be substituted in its place; and
(d) Neither the rights of creditors nor any liens
upon the property of any such association shall be impaired by such
consolidation or merger.
"Sec. 30. Conversion of Existing Corporation. — Any
irrigators' association heretofore organized or registered under Act
No. 1459, as amended, and Presidential Decree No. 902-A may convert
itself into an association under this Decree by complying with the
following requirements, and shall thereupon become subject to this
Decree with the same effect as if it were originally organized
hereunder:cralaw:red
(a) The proposition for the conversion of such
corporation and the proposed articles of conversion to give effect
thereto shall be submitted to a meeting of the members of such
corporation, the notice of which shall have attached thereto a copy of
the proposed articles of conversion of an accurate summary thereof.
(b) If the proposition for the conversion and the
proposed articles of conversion, with any amendments, are approved by
the affirmative vote of not less than a majority of all the members,
the articles of conversion in the form approved shall be executed and
acknowledged on behalf of such corporation by its president and its
seal shall be affixed thereto and attested by its secretary. The
articles of conversion shall recite that they are executed pursuant to
this Decree and shall state:cralaw:red
(1) the name of the corporation and the address of
its principal office prior to the conversion into an association;chanroblesvirtualawlibrary
(2) a statement that such corporation elects to
become an association, non-profit, membership corporation subject to
this Decree;chanroblesvirtualawlibrary
(3) its name as an association; chanroblesvirtualawlibrary
(4) the address of the principal office of the
association;chanroblesvirtualawlibrary
(5) the names and addresses of the directors of the
association; and
(6) the manner in which members of such corporation
may or shall become members of the association; and may contain any
other provisions not inconsistent with this Decree that are deemed
necessary or advisable for the conduct of the business of the
association.
The president executing such articles of conversion shall make and
annex thereto an affidavit stating that the provisions of this section
were duly complied with respect to such articles. The articles of
conversion shall be deemed to be the articles of incorporation of the
association.
"Sec. 31. Dissolution. — An association may be
dissolved by a resolution adopted by the affirmative vote of not less
than three-fourths of all the members at a regular or special meeting
called for the purpose. A certificate of dissolution shall be executed
by the president of the association under its seal, attested, by its
secretary, and duly acknowledged and sworn to before a notary public,
stating: (1) the name of the association; (2) the address of its
principal office; and (3) that the members of the association have duly
voted that the association be dissolved. Upon the filing of the
certificate as provided for in Section 32, the association shall cease
to carry on its business except to the extent necessary for the winding
up thereof, but is corporate existence shall continue until the
articles of dissolution shall have been filed. The board shall
immediately cause notice of the dissolution proceedings to be mailed to
each known creditor of and claimant against the association and to be
published once a week for two successive weeks in a newspaper of
general circulation in the territory in which the principal office of
the association is located. The board shall wind up and settle the
affairs of the association, collect sums owing to it, liquidate its
property and assets, and pay and discharge its debts, obligations and
liabilities, any remaining sums and/or unliquidated assets shall then
be distributed in such manner as provided in the association's articles
of incorporation or by-laws. The board shall thereupon authorize the
execution of the articles of dissolution which shall be executed and
acknowledged on behalf of the association by its president and attested
by its secretary. The articles of dissolution shall recite that they
are executed pursuant to this Decree and shall state:cralaw:red
(1) the name of the association;chanroblesvirtualawlibrary
(2) the address of it principal office;chanroblesvirtualawlibrary
(3) the date on which the certificate of election
dissolve was filed;chanroblesvirtualawlibrary
(4) that there are no actions or suits pending
against the association;chanroblesvirtualawlibrary
(5) that all debts, obligations, and liabilities of
the associations have been paid and discharged or that provision to the
extent possible has been made therefor; and
(6) that the provisions of this section have been
duly complied with.
The president executing the articles of dissolution shall make and
annex thereto an affidavit stating that the statements made therein are
true.
"Sec. 32. Filing of Articles and Certificates. —
Articles of incorporation, amendments, consolidation, merger,
conversion or dissolution and certificates of changes in the location
of principal offices and of elections to dissolve, when executed and
acknowledged and accompanied by such affidavits as may be required by
the applicable provisions of this Decree, shall be presented to the
Administrator for filing in the records of his office. If he shall find
that such conform to the requirements of this Decree, he shall so
certify and shall file the same in the records of his office. Upon such
certification and filing, the incorporation, amendment, consolidation,
merger, conversion, dissolution or certificate provided for therein
shall be in effect. chanroblesvirtualawlibrary
"Sec. 33. Approval of FS Board of Administrators. —
Any proposition by any association for consolidation, merger,
conversion or dissolution must have the prior approval of the FSDC
Board of Administrators. chanroblesvirtualawlibrary
"Sec. 34. Disposition of Property. — The association
may not otherwise sell, lease or, except in the case of consolidation
and merger, otherwise dispose of the property, unless such sale, lease,
or except in the case of consolidation and merger, other disposition is:cralaw:red
(1) authorized by the affirmative vote of not less
than two-thirds of all the members of the association; and
(2) consented by FSDC and any other lending source
which then holds a lien on any of the association's properties.
"Sec. 35. Exemption from the Securities and Exchange
Commission. —chanroblesvirtualawlibrary
(a) The association shall be exempt from regulation
by the Securities and Exchange Commission;chanroblesvirtualawlibrary
(b) The provisions of the Securities Act shall not
apply to any note, bond, or other evidence of indebtedness issued by
any association, or to any mortgage, deed or trust, indenture or other
instrument executed to secure the same. The provisions of said Act
shall not apply to the issuance of membership certificates by an
association."
Section 12. The existing Chapter III, Sections 16,
17, 18 and 19 of Presidential Decree No. 681 are hereby renumbered as
Chapter IV, Sections 36, 37, 38 and 39, respectively.
Section 13. All provisions of existing laws,
executive and administrative orders or parts thereof in conflict with
this Decree are hereby modified and/or repealed accordingly. chanroblesvirtualawlibrary
Section 14. This Decree shall take effect immediately.
DONE in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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