Presidential Decree No. 755 (PD 755) — Approving the Credit Policy for the Coconut Industry as Recommended by the Philippine Coconut Authority and Providing Funds Therefor.
WHEREAS, the coconut farmers are perennially beset with
credit problems which hinder the growth and development of the coconut
industry;
WHEREAS, under Presidential Decree No. 232, as amended, the
Philippine Coconut Authority (PCA) is enjoined to formulate and
recommend for adoption credit policies affecting production, marketing
and processing of coconut and other palm oils;
WHEREAS, in compliance with its prescribed duty, the
Philippine Coconut Authority has ascertained, in response to the appeal
of coconut farmers conveyed in a resolution of the Board of Directors of
the Philippine Coconut Producers Federation dated May 17, 1975, that
ownership by the coconut farmers of a commercial bank is a permanent
solution to their perennial credit problems;
WHEREAS, an operating commercial bank owned by the coconut
farmers will accelerate the growth and development of the coconut
industry and achieve a vertical integration thereof so that coconut
farmers will become participants in, and beneficiaries of, such growth
and development;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby decree and order as follows:
Declaration of National Policy.
SECTION 1. Declaration of National Policy.—It is
hereby declared that the policy of the State is to provide readily
available credit facilities to the coconut farmers at preferential
rates; that this policy can be expeditiously and efficiently realized by
the implementation of the "Agreement for the Acquisition of a
Commercial Bank for the benefit of the Coconut Farmers" executed by the
Philippine Coconut Authority, the terms of which "Agreement are hereby
incorporated by reference; and that the Philippine Coconut Authority is
hereby authorized to distribute, for free, the shares of stock of the
bank it acquired to the coconut farmers under such rules and regulations
it may promulgate.
Financial Assistance.
SEC. 2. Financial Assistance.—To enable the coconut
farmers to comply with their contractual obligations under the aforesaid
Agreement, the Philippine Coconut Authority is hereby directed to
draw and utilize the collections under the Coconut Consumers'
Stabilization Fund authorized to be levied by Presidential Decree No.
232, as amended, to pay for the financial commitments of the coconut
farmers under the said Agreement and, except for the budgetary
requirements of the Philippine Coconut Authority as approved by its
Governing Board, all collections under the Coconut Consumers'
Stabilization Fund Levy and fifty percent (50%) of the collections under
the Coconut Industry Development Fund shall be deposited, interest
free, with the said bank of the coconut farmers and such deposits shall
not be withdrawn until the Board of Directors of the said Bank and the
Governing Board of the Philippine Coconut Authority shall have jointly
ascertained that the bank has sufficient equity capital to be in a
financial position to service in full the credit requirements of the
coconut farmers; and since the operators and activities of the
Philippine Coconut Authority are all in accord with the present social
and economic plans and programs of the Government, all collections and
levies which the Philippine Coconut Authority is authorized to levy and
collect such as but not limited to the Coconut Consumers' Stabilization
Levy, and the Coconut Industry Development Fund as prescribed by
Presidential Decree No. 582 shall not be considered or construed, under
any law or regulation, special and/or fiduciary funds and do not form
part of the general funds of the national government within the
contemplation of Presidential Decree No. 711.
Exemptions.
SEC. 3. Exemptions.—To minimize the costs in the
acquisition and control by the coconut farmers of the Bank, the
provisions of the National Internal Revenue Code and other laws
notwithstanding, the delivery to, and receipt by, the parties concerned
of the shares of the Bank pursuant to the Agreement are hereby declared
to be exempt from taxation.
Repealing Clause.
SEC. 4. Repealing Clause.—Any provision of law in
conflict herewith is revoked or amended accordingly.
Effectivity.
SEC. 5. Effectivity.—This Decree shall take effect
immediately.
DONE in the City of Manila, this 29th day of July, 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).
