WHEREAS,
the Trust Agreement dated September 5, 1967 by and between the Republic
of the Philippines as Trustor, and the Philippine Veterans Bank as
Trustee over the P121,368,000.00 Veterans Claims Settlement Funds as
Trust Corpus, representing the $31,120,000.00 (at conversion rate of
P3.90 for every dollar) turned over by the United States of America to
the Republic of the Philippines to pay the two claims of Filipino
Veterans for services rendered during World War II expired as of July
7, 1972, as provided under paragraph 7 thereof, and was renewed by the
parties thereto, on April 5, 1974;chanroblesvirtualawlibrary
WHEREAS, P38,556,272.90 was already paid to settle 62,721 claims
adjudicated by the Philippine Veterans Affairs Office as of June 30,
1974;chanroblesvirtualawlibrary
WHEREAS, only P23,928,400.00 is still needed to settle in full the
remaining claims estimated to be only about 45,083 officers and
enlisted men entitled to backpay, and to the refund of erroneous
deductions from their backpay;chanroblesvirtualawlibrary
WHEREAS, the Philippine Veterans Assistance Commission (PVAC) was
created to render assistance to Philippine Veterans pursuant to PD No.
244 dated July 12, 1973, and the Philippine Veterans Investment
Development Corporation (PHIVIDEC) was also created pursuant to PD No.
243 dated July 12, 1973, as amended, as an investment arm of the
government to generate funds for PVAC, in order that the latter can
effectively provide and support its veterans projects;chanroblesvirtualawlibrary
WHEREAS, all banking institutions are required by a Central Bank
Memorandum-Letter dated April 23, 1973 to increase their individual
paid-up capital to at least P100 million pesos, which in the case of
the Philippine Veterans Bank is imperative in order to enable it to
effectively participate in the activities of the banking system and
serve as an instrument of economic development.
WHEREAS, in order to maximize the investment earnings of the Philippine
Veterans Investment Development Corporation (PHIVIDEC) and generate
more funds for the benefits of Philippine Veterans, it is necessary to
invest a large portion of the balance of the said Veterans Claims
Settlement Fund to worthwhile projects, in order to accelerate the
socio-economic development of the country, especially those which are
labor-intensive, and productive of high returns, and thereby prevent
the stagnation of aforecited funds, without prejudice to the settlement
of the claims remaining as yet unpaid;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081 dated September 21, 1972, and General Order
No. 1 dated September 22, 1972, as amended, and in order to effect the
desired changes and reforms in the social, economic, and political
structure of our society, do hereby order and decree the following:cralaw:red
1. That, P49 million of the balance of the
aforementioned Veterans Claims Settlement Fund be segregated and turned
over to the Philippine Veterans Bank as payment by the Government of
the Republic of the Philippines for 490,000 preferred shares of stock
with a par value of one hundred pesos each, for and in behalf of the
veterans, their widows, orphans, or compulsory heirs as provided under
Section 3, paragraph (a) of RA 3518, in order to increase its paid-up
capital to P100 million as required for all banking institutions
pursuant to a Central Bank Memorandum-Letter dated April 27, 1973
provided, however, that each veteran referred to under Section 3(b) of
said Republic Act 3518, as amended shall be entitled to one common
share and one preferred share;chanroblesvirtualawlibrary
2. That, P24 million of the balance of said Funds be
segregated and retained in trust with the Philippine Veterans Bank to
pay all the remaining claims still unadjudicated by the Philippine
Veterans Affairs Office under the same terms and conditions set forth
in the renewed Trust Agreement dated April 5, 1974;chanroblesvirtualawlibrary
3. That another P8 million of said funds be
segregated and turned over to the Philippine Veterans Investment
Development Corporation as the second partial payment by the Government
of the Republic of the Philippines, corresponding to the balance of its
unpaid subscription of the sixty percentum of the authorized capital of
said corporation; chanroblesvirtualawlibrary
4. That the remaining P2 million, more or less, of
said balance be segregated and turned over to the Philippine Veterans
Assistance Commission for the specific purpose of utilizing the same
for the medicare of the veterans, for the establishment and support of
veteran homes for the aged, and for small business loans not exceeding
P2,000.00 for each veteran-applicant, provided, however, that the
Philippine Veterans Assistance Commission enter into a Trust Agreement
with the Philippine Veterans Investment Development Corporation for the
investment of said funds, pursuant to its corporate powers under
paragraph 2(f) of Presidential Decree No. 353, to obtain maximum yield,
consistent with the safety and liquidity of the funds;chanroblesvirtualawlibrary
5. The provisions of all laws, decrees,
instructions, executive orders, proclamations, administrative orders,
rules and regulations or part thereof which are inconsistent with the
provisions of this decree are either repealed or modified accordingly;
and
6. That the President of the Philippine Veterans
Bank (PVB) the President of the Philippine Veterans Investment
Development Corporation (PHIVIDEC), the Administrator of the Philippine
Veterans Assistance Commission (PVAC), and the Administrator of the
Philippine Veterans Affairs Office (PVAO), shall make the necessary
coordination among themselves to effect immediately the implementation
of this decree.
This Decree shall take effect upon its promulgation.
DONE in the City of Manila,
this 21st day of January, in the year of Our Lord, nineteen hundred and
seventy-five.
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