ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
Search for
www.chanrobles.com
:
LETTER OF INSTRUCTIONS
PLEASE CLICK HERE FOR THE LATEST ➔ PHILIPPINE LAWS, STATUTES & CODES
|
|
|
|
|
LETTER OF INSTRUCTIONS NO. 704 |
The Commissioner, Budget Commission
The Chairman, Presidential Committee on Agricultural
Credit
The Administrator, National Grains Authority
WHEREAS, the country's successful attainment of surplus rice production brings about the need for more massive procurement of the farmers' produce by private traders, millers and warehouse operators so as to complement government efforts to stabilize ex-farm price, strengthen the Masagana 99 credit program and thereby sustain increased productivity and hasten the upliftment of livelihood in the rural areas;
WHEREAS, financing of grains quedan or warehouse receipts is a convenient means to augment the operating capital of the private sector and consequently trigger more extensive palay procurement;
WHEREAS, banking institutions, particularly commercial banks, possess the capability and resources to provide adequate financing for grains quedans as a type of agricultural lending under the purview of Presidential Decree No. 717; and
WHEREAS, a system of guarantee to strengthen further the integrity and acceptability of grains quedan is necessary in order to encourage banking institutions to expedite the channeling of their loanable funds to grains businessmen-a set up which ultimately shall redound to spreading economic support to Filipino farmers:
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct:
1.
That, a portion of the ninety-five million pesos
(P95M) provided for in Letter of Instructions No. 696 shall be set
aside as a start-up fund to guaranty grains quedan pledged by grains
businessmen for commodity loan with banks;
2. That, said
fund shall guaranty the existence of palay deposit covered by quedan up
to an amount equivalent to 66 2/3% of outstanding loan;
3. That, NGA
shall undertake to purchase the palay stocks equivalent to the
outstanding loan covered by quedan at the option of lending bank upon
maturity of the loan;
4. That, by
virtue of the guarantee system, and the NGA licensing and supervision
of all bonded warehouse operators, financing of grains quedan shall be
considered as supervised credit under existing policies of the Central
Bank.
5. That, a
board composed of the NGA administrator as chairman with the Central
Bank Governor and Budget Commissioner or their duly authorized
representatives as members shall administer the guarantee fund and
evolve a program to augment the amount of the said fund;
6. That, such
rules and regulations as may be necessary to effectively implement and
achieve the objective of this Letter of Instruction shall be
promulgated by the addressed institutions.
All provisions of other Letter of Instructions inconsistent with this order are hereby repealed or modified accordingly.
This Letter of Instruction shall take effect immediately.
Done in the City of Manila this 9th day of June, in the year of Our Lord, nineteen hundred and seventy-eight.
chanrobles virtual law library
Back to Main
Since 19.07.98.
