APPROVING THE CREDIT POLICY FOR THE COCONUT INDUSTRY AS RECOMMENDED BY THE PHILIPPINE COCONUT AUTHORITY AND PROVIDING FUNDS THEREFOR.

• Number: Presidential Decree No. 755
• Sections: 6

Preamble

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:

Section 1 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.

Section 2 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.

Section 3 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.

Section 4 Repealing Clause.

SEC. 4. Repealing Clause.—Any provision of law in

conflict herewith is revoked or amended accordingly.

Section 5 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