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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1024 -
AUTHORIZING THE QUEDAN GUARANTEE FUND BOARD CREATED UNDER LETTER OF
INSTRUCTION NO. 704 TO INCLUDE OTHER GRAINS AND OTHER FOOD COMMODITIES
IN ITS QUEDAN FINANCING PROGRAM, PRESCRIBING SPECIFIC POWERS AND
RESPONSIBILITIES AND FOR OTHER PURPOSES |
The Governor, Central Bank of the Philippines
The Administrator, National Grains Authority
The Chairman, Quedan Guarantee Fund Board
WHEREAS, Letters of Instruction Nos. 696 and 704, dated May 24 and June 9, 1978 respectively, provided for the implementation of the Grains Quedan Financing Program in order to encourage banking institutions to channel their loanable funds to grains businessmen thereby augment the latter's operating capital and trigger extensive private procurement of palay produce, stabilize ex-farm prices and hasten the uplift of income level in the rural areas;
WHEREAS, since the Grains Quedan Financing Program has proven its effectiveness in its limited coverage to palay only, there is now a felt need to expand the program to include corn, feedgrains and other food commodities;
WHEREAS, to more effectively pursue the objectives of this important financing program, it becomes necessary to bestow upon the Quedan Guarantee Fund Board and the National Grains Authority complementary powers and responsibilities.
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:
1.
That the Guarantee Fund set up under Letter of Instruction No. 704
shall guarantee not only the existence of palay deposit but also corn
and/or other feedgrains, such as but not limited to sorghum, soybean,
mongo and peanuts, covered by Quedan and/or Trust Receipt
collateralized by grains businessmen with the banks up to an amount
equivalent to 70% of outstanding loan;
2. That other
food commodities, as may be jointly recommended by the National
Grains Authority and Food Terminal, Inc., shall similarly be placed
within the purview of the Guarantee herein provided;
3. That the
National Grains Authority shall likewise undertake to purchase
not only palay stocks but also corn, other feedgrains, and/or other
food commodities equivalent to the outstanding loan covered by
Quedan subject to the terms and conditions that may be determined
by the Quedan Guarantee Fund Board;
4. That the
National Grains Authority shall be authorized to cause the printing of
negotiable warehouse receipts or Quedans for palay in 500 cavans
denomination or other denominations as the board may, from time to
time, determine and other negotiable warehouse receipts or Quedans for
corn and/or other feedgrains and/or other food commodities as may be
included in the program and said Quedans shall be printed and serially
numbered on security note paper and shall contain the name and
address of the businessmen, the variety, classification, moisture
content and quality of the commodities deposited, the warranties
of the warehouseman prescribed by existing laws and the
charges and authorized liens on the stocks in deposit;
5. That the
board shall establish the criteria under which marketing credit may be
extended under this program by any banking institution to
qualified farmers and businessmen as compliance to the Agrarian Reform
Credit required under Presidential Decree No. 717;
6. That the
board shall promulgate such rules and regulations and exercise
such other powers and authorities as may be incidental to, appropriate
and necessary for the attainment of the objective under this
instruction;
7. That the
Budget Minister shall immediately release to the board the sum of Fifty
Million Pesos (P50M) which represents the unreleased balance of the
Ninety-Five Million Pesos (P95 M) so provided in Letter of Instruction
No. 696;
8. That
corporate funds out of guarantee fee collections, investment earnings
and other income shall be budgeted by the Board for the payment of
salaries and wages, purchase of office equipment and materials, and for
operating and capital expenditures, subject to the usual
accounting and auditing requirements;
9. That the
board shall have the power to adopt, alter and use a corporate seal
which shall be judicially noticed; to enter into, make, perform and
carry out contracts; to sue and be sued; to lease or own real and
personal property, and to sell otherwise dispose of the same;
10. That the
board shall be constituted as a body corporate which, for policy and
programs coordination, shall be attached to the National Grains
Authority with the same compensation structure as the
Agriculture, Trading and Promotional Sector provided for under Letter
of Implementation No. 103, dated October 1, 1979; and
11. That the
Administration of the Board shall be headed by an Executive Director
who shall be assisted by a Deputy Executive Director, both of whom
shall be appointed by the Board. The Board shall establish such staff
and line units and appoint such officials and employees, as may
be necessary for its proper functioning and efficient
operations.
All Laws, Acts, Executive Orders, Letters of Instruction, Rules and Regulations or parts thereof inconsistent with this Order are hereby repealed, amended or modified accordingly.
This Letter of Instruction shall take effect immediately.
Done in the City of Manila, this 22nd day of May, in the year of Our Lord, nineteen hundred and eighty.
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