WHEREAS,
rural banks have been established primarily to meet the normal credit
needs of people living in the rural areas, particularly the small
farmers;chanroblesvirtualawlibrary
WHEREAS, in order to give these small farmers the opportunity and
privilege of self-development, social-growth, and economic independence
under a truly just and democratic society, the Samahang Nayon have been
organized with certain rights and privileges; chanroblesvirtualawlibrary
WHEREAS, it is fitting that these small farmers, either directly or
through their Samahang Nayon, be further encouraged to invest in the
equities of the rural banks with which they are closely and directly
involved;chanroblesvirtualawlibrary
WHEREAS, diffusion ownership of equity in rural banks will further
ensure sound operation and progress of such rural banks;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, as follows:cralaw:red
Section 1. The provisions of existing law or
regulation to the contrary notwithstanding, a rural bank shall make
available for sale to farmers who are clients of the bank and who are
members of a Samahang Nayon or to any Samahang Nayon of which said
farmers are members, common shares of stock of the rural bank
representing in the aggregate up to forty per cent (40%) of the voting
stock of the bank, at a price to be agreed upon between the parties:
Provided, That were no agreement is reached on the price, the matter
shall be submitted to the Central Bank of the Philippines for
determination: Provided, further, That the aforementioned acquisitions
of shares of stock on rural banks shall be subject to the limitations
on individual, family group, or corporate holdings established under
Section 12 of Republic Act No. 337, as amended.
Section 2. The Central Bank of the Philippines shall
prescribe such rules and regulations necessary to carry out the
provisions hereof. chanroblesvirtualawlibrary
Section 3. This Decree shall take effect immediately.
DONE in the City of Manila,
this 16th day of November, in the year of Our Lord, nineteen hundred
and seventy-four.
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