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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 691 - AMENDING
THE LAST PARAGRAPH OF LETTER OF IMPLEMENTATION NO. 53 DATED DECEMBER
27, 1976
WHEREAS, production loans obtained
by farmer-members of Samahang Nayons are subject to a compulsory 3
percent deduction as contribution to the Barrio Savings Fund;
WHEREAS, the principal source of equity capital of cooperative rural
banks is the Barrio Savings Fund;
WHEREAS, there is a need to increase the equity capital of existing
cooperative rural banks and to accelerate the establishment of new ones
throughout the Philippine countryside;
WHEREAS, under present regulations, withdrawals from the Barrio Savings
Fund are not allowed if such withdrawals will endanger the liquidity
position of the rural banks concerned;
NOW, THEREFORE, pursuant to the provisions of Sec. 11 of PD 175, the
proviso of the last paragraph of LOI No. 53 dated December 27, 1976 is
hereby amended to read as follows:
“Provided,
That the withdrawal of the Barrio Savings Fund as herein specified
shall be unrestricted: Provided further, That in the case of a Samahang
Nayon member who has an outstanding loan with the depository rural
bank, withdrawal shall be allowed only up to the extent of 50% of the
Samahang Nayon deposit with the rural bank for the account of such
member: Provided, further, That in cases where liquidity position of
the depository rural bank is endangered, the banking institutions
concerned shall borrow from and the Central Bank of the Philippines
shall lend under its emergency Credit Operation such amounts of the
Barrio Savings Fund as are herein defined, and such emergency Loan
shall be granted after the Monetary Board has ascertained that the bank
is not insolvent and has clearly realizable assets to secure the
emergency advances; Provided finally, That the proceeds of the
withdrawal of the Barrio Savings Fund deposit shall be directly
remitted or deposited with the existing cooperation rural bank or
deposited in the name of Samahang Nayon concerned with the nearest
branch of the Philippine National Bank in Provinces where no
cooperative rural bank has not yet been established.”
Done in the City of Manila, this 15th day of May in the Year of Our Lord 1981.
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