Presidential Decree No. 435 (PD 435) — Expanding the Guarantee Coverage of the Agricultural Guarantee Fund Created Under Republic Act No. 6390, as Amended, and Appropriating Additional Funds Therefor
WHEREAS, it is the concern of the Government to emancipate
the tillers of the soil from their bondage of tenancy and to encourage
them to raise their level of production and to attain self-sufficiency
immediately;
WHEREAS, self-sufficiency requires the employment of modern
farm implements and facilities as well as the promotion of essential
agricultural and cottage agro-industrial projects such as fishing,
poultry, livestock, woodcraft, etc.; and
WHEREAS, the guarantee prescribed by the Agricultural
Guarantee Fund created under Republic Act No. 6390, covers only losses
from production loans granted to farmer-tillers;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby order and decree the following:
SECTION 1. The guarantee coverage of the Agricultural
Guarantee Fund may, subject to the rules and regulations which may be
promulgated by the Agricultural Guarantee Fund Board created under R.A.
No. 6390, include the guarantee on medium- or long-term loans granted to
farmer-tillers to finance the following:
Purchase of farm machineries and equipment;
Establishment of farm support facilities;
Fisheries development;
Small-scale livestock farm development;
Cottage agro-industries; and
Other agricultural projects closely related to agrarian
reform.
SEC. 2. The sum of forty million pesos (P40,000,000) is
hereby appropriated to the Agricultural Guarantee Fund out of which ten
million pesos (P10,000,000) shall be programmed for Fiscal Year 1974-75
and the balance shall be programmed in like amounts annually thereafter
for three (3) years. The amount herein appropriated together with its
earnings shall be used solely to absorb guaranteed losses: Provided,
however, That amounts not immediately needed for the payment of
guaranteed losses shall be invested in high grade securities, preferably
government or government-guaranteed securities.
SEC. 3. The Agricultural Guarantee Fund Board shall
promulgate the rules and regulations necessary for the implementation of
this Decree.
SEC. 4. All laws, decrees, rules and regulations which
are inconsistent herewith are hereby amended and modified accordingly.
SEC. 5. This Decree shall take effect immediately.
Done in the City of Manila, this 8th day of April, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E.
MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) ALEJANDRO
MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
