Presidential Decree No. 717 (PD 717) — Providing an Agrarian Reform Credit and Financing System for Agrarian Reform Beneficiaries Through Banking Institutions.
WHEREAS, it is a declared national policy to give first
priority to measures for the adequate and timely financing of the
Agrarian Reform Program;
WHEREAS, government and private banking institutions are in
the best position to extend adequate agrarian reform credit to agrarian
reform beneficiaries;
WHEREAS, there is a need of flexibility of government policy
on agrarian reform credit and for a realistic approach to the credit
needs of agrarian reform beneficiaries;
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 to be part of the laws of the land the
following:
SECTION 1. There shall be evolved an agrarian reform credit
and financing system for the beneficiaries of agrarian reform, namely:
tillers, tenant-farmers, settlers, agricultural lessees, amortizing
owners, owner-cultivators, farmers cooperatives and compact farms,
through government and private banking institutions.
Agrarian reform credit, as used herein, shall include production or
other types of loans for acquisition of work animals, farm equipment
and machinery, seeds, fertilizers, poultry, livestock, feeds and other
similar items; acquisition of lands authorized under the Agrarian Reform
Code of the Philippines and its amendments; construction and/or
acquisition of facilities for production, processing, storage and
marketing; and efficient and effective merchandising of agricultural
commodities stored and/or processed by the facilities aforecited in
domestic and foreign commerce.
SEC. 2. The credit mentioned in the next preceding
Section may be extended to the beneficiaries named therein based on the
feasibility of the project and their paying capacity, their estimated
production, and/or securities they can provide as well as such assets as
may be acquired by them from the proceeds of the loan.
SEC. 3. All banking institutions, whether government or
private, shall set aside at least twenty-five per cent (25%) of their
loanable funds for agricultural credit in general, of which at least ten
per cent (10%) of the (loanable funds shall be made available for
agrarian reform credit to beneficiaries mentioned in Section 1 hereof: Provided,
however, that loanable funds as used in this Section shall refer
to funds generated from the date of effectivity of this Decree; Provided,
further, that the National Economic and Development Authority may
increase or decrease such percentages whenever so recommended by the
Department of Agrarian Reform and the Central Bank of the Philippines
taking into consideration the magnitude of the credit needs of the
beneficiaries of agrarian reform.
SEC. 4. The Central Bank of the Philippines, in
consultation with and/or upon the recommendation of the Department of
Agrarian Reform, shall promulgate such rules and regulations as may be
necessary to implement the provisions of this Decree. Subject to such
rules and regulations, banking institutions may be allowed to:
Invest, in such government securities as may be
declared eligible by the Central Bank of the Philippines, any portion of
the amount set aside for agrarian reform credit not
actually loaned out; Provided, however, that the
issuing government entity shall stand ready to monetize, encash or
repurchase such securities whenever funds are needed by the
banks holding the said securities, for lending to the
beneficiaries of agrarian reform; and
Rediscount with the Central Bank of the Philippines eligible
paper covering agrarian reform credits.
SEC. 5. All laws, decrees, rules and regulations, or parts
thereof, as may be inconsistent herewith are hereby repealed or modified
accordingly.
SEC. 6. This Decree shall take effect immediately.
Done in the City of Manila, this 29th day of May, in the year
of Our Lord, nineteen hundred and seventy-five.
(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).
