Presidential Decree No. 584 (PD 584) — Establishing a Procedure for Acquisition by Small Farmers of Equity in Rural Banks.
WHEREAS, rural banks have been established primarily to meet
the normal credit needs of people living in the rural areas,
particularly the small farmers;
WHEREAS, in order to give these small farmers the
opportunity and privilege of self-development, social growth, and
economic independence under a truly just and democratic society, the
Samahang Nayons have been organized with certain rights and privileges;
WHEREAS, it is fitting that these small farmers, either
directly or through their Samahang Nayon, be further encouraged to
invest in the equities of rural banks with which they are closely and
directly involved;
WHEREAS, diffusion of ownership of equity in rural banks
will further ensure sound operation and progress of such rural banks;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order, as follows:
SECTION 1. The provisions of existing law or regulation to
the contrary notwithstanding, a rural bank shall make available for sale
to farmers who are clients of the bank and who are members of a
Samahang Nayon or to any Samahang Nayon of which said farmers are
members, common shares of stock of the rural bank representing in the
aggregate up to forty per cent (40%) of the voting stock of the bank, at
a price to be agreed upon between the parties: Provided, That,
where no agreement is reached on the price, the matter shall be
submitted to the Central Bank of the Philippines for determination:
Provided, further, That, the aforementioned acquisitions of shares
of stock in rural banks shall be subject to the limitations on
individual, family group, or corporate holdings established under
SEC. 2. The Central Bank of the Philippines shall prescribe
such rules and regulations necessary to carry out the provisions hereof.
SEC. 3. This Decree shall take effect immediately.
Done in the City of Manila, this 16th day of November, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Section 12 of Republic Act No. 337, as amended.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
