EXPANDING THE GUARANTEE COVERAGE OF THE AGRICULTURAL GUARANTEE FUND CREATED UNDER REPUBLIC ACT NO. 6390, AS AMENDED, AND APPROPRIATING ADDITIONAL FUNDS THEREFOR

• Number: Presidential Decree No. 435
• Sections: 6

Preamble

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

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.

Section 2

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.

Section 3

SEC. 3. The Agricultural Guarantee Fund Board shall

promulgate the rules and regulations necessary for the implementation of

this Decree.

Section 4

SEC. 4. All laws, decrees, rules and regulations which

are inconsistent herewith are hereby amended and modified accordingly.

Section 5

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