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SEC. 101. Reorganization of ACCFA to Align Its Activities.&mdashThe administrative machinery of the Agricultural Credit and Cooperative Financing Administration created under Republic Act Numbered Eight hundred twenty-one, as amended by Republic Act Numbered Twelve hundred and eighty-five, shall be reorganized to enable it to align its activities with the requirements and objectives of this Code and shall be known as the Agricultural Credit Administration.
SEC. 102. Financing.&mdashTo finance the additional credit functions of the Agricultural Credit Administration as a result of the land reform program laid down in this Code, there is hereby appropriated the sum of one hundred fifty million pesos out of funds in the National Treasury not otherwise appropriated in addition to existing appropriations for the Agricultural Credit and Cooperative Financing Administration.
SEC. 103. Privilege of Rediscounting.&mdashThe Agricultural Credit Administration is hereby granted the privilege of rediscounting with the Central Bank of the Philippines, the Development Bank of the Philippines and the Philippine National Bank eligible evidence of indebtedness acquired by it in carrying on its authorized activities, at an interest rate equal to the lowest charged by the above financing institutions on any private person or entity.
SEC. 104. Power to Obtain Additional Funds.&mdashNothing in this Section shall limit the power of the Agricultural Credit Administration to obtain from the Central Bank of the Philippines, the Development Bank of the Philippines, the Philippine National Bank and other financing institutions, such additional funds as may be necessary for the effective implementation of this Act: Provided, That such additional funds are to be utilized as loans to farmers and/or farmers' cooperatives.
SEC. 105. Loaning Activities.&mdashLoaning activities of the Agricultural Credit Administration shall be directed to stimulate the development and operation of farmers’ cooperatives. The term "Farmers' Cooperatives" shall be taken to include all cooperatives relating to the production and marketing of agricultural products and those formed to manage and/or own, on a cooperative basis, services and facilities, such as irrigation and transport systems, established to support production and/or marketing of agricultural products. Under such rules and regulations in accordance with generally accepted banking practices and procedures as may be promulgated by the Agricultural Credit Administration, Rural Banks and Development Banks may, in their respective localities, be designated to act as agents of the Agricultural Credit Administration in regard to its loaning activities.
SEC. 106. Credit to Small Farmers.&mdashProduction loans and loans for the purchase of work animals, tillage equipment, seeds, fertilizer, poultry, livestock, feeds and other similar items, may be extended to small farmers as defined in Republic Act Numbered Eight hundred twenty-one, based upon their paying capacity and such securities as they can provide, and under such terms and conditions as the Agricultural Credit Administration may impose, provided the amount thereof does not exceed two thousand pesos, or such amount as may be fixed by the President, but in no case shall the amount of loan exceed eighty per centum of the value of the collateral pledged. In instances where credit is extended for items which are not consumed in their use, such items may be pledged as security therefor. The Agricultural Credit Administration shall promulgate such rules and regulations as may be necessary in the extension of the loans herein authorized so as to assure their repayment: Provided, That such rules and regulations shall follow and be in accordance with generally accepted financing practices and procedures.
SEC. 107. Security for Loans.&mdashThe production of the borrower, after deducting the lease rental and/or liens thereon, shall be accepted as security for loans: Provided, That said production is pledged to the Agricultural Credit Administration with appropriate safeguards to insure against its unauthorized disposition: Provided, further, That the amount of loan shall not exceed sixty per centum of the value of the estimated production.
SEC. 108. Loans to Cooperatives.&mdashThe Agricultural Credit Administration is hereby authorized to extend such types of loans as it may deem necessary for the effective implementation of this Code, to eligible farmers' cooperatives as herein defined, under such terms and conditions as it may impose and with such securities as it may require. A farmers' cooperative that has been registered with the Securities and Exchange Commission and affiliated with the Agricultural Credit Administration shall be eligible for loans if, in the judgment of the latter, its organization, management and business policies are of such character as will insure the safety and effective use of such loans.
SEC. 109. Loans for Construction or Acquisition by Purchase of Facilities.&mdashLoans for the construction or acquisition by purchase of facilities of farmers' cooperatives may be granted by the Agricultural Credit Administration.
SEC. 110. Interest on Loans.&mdashThe total charges including interest and insurance fees on all kinds of loans shall not be more than eight per centum per annum: Provided, That if an impairment of the capitalization of the Agricultural, Credit Administration is imminent by reason of the limitation of the interest rate herein provided, there is automatically appropriated out of the unappropriated funds in the National Treasury such amounts as is necessary to cover the losses of the Agricultural Credit Administration, but not exceeding six million pesos for any one year.
SEC. 111. Institution of Supervised Credit.&mdashTo provide for the effective use of credit by farmers, the Agricultural Credit Administration may institute a program of supervised credit in cooperation with the Agricultural Productivity Commission.
SEC. 112. Guidance to Cooperatives.&mdashThe Agricultural Credit Administration shall have the power to register and provide credit guidance or assistance to all agricultural cooperatives including irrigation cooperatives and other cooperative associations or fund corporations.
SEC. 113. Auditing of Operations.&mdashFor the effective supervision of farmers' cooperatives, the head of the Agricultural Credit Administration shall have the power to audit their operations, records and books of account and to issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books, documents and records in the conduct of such audit or of any inquiry into their affairs. Any person who, without lawful cause, fails to obey such subpoena or subpoena duces tecum shall, upon application of the head of Agricultural Credit Administration with the proper court, be liable to punishment for contempt in the manner provided by law and if he is an officer of the association, to suspension or removal from office.
SEC. 114. Prosecution of Officials.&mdashThe Agricultural Credit Administration, through the appropriate provincial or city fiscal, shall have the power to file and prosecute any and all actions which it may have against any and all officials or employees of farmers' cooperatives arising from misfeasance or malfeasance in office.
SEC. 115. Free Notarial Service.&mdashAny justice of the peace, in his capacity as notary ex-officio, shall render service free of charge to any person applying for a loan under this Code either in administering the oath or in the acknowledgment of instruments relating to such loan.
SEC. 116. Free Registration of Deeds.&mdashAny register of deeds shall accept for registration, free of charge any instrument relative to a loan made under this Code.
SEC. 117. Writing-off Unsecured and Outstanding Loans.&mdashSubject to the approval of the President upon recommendation of the Auditor General, the Agricultural Credit Administration may write-off from its books, unsecured and outstanding loans and accounts receivable which may become uncollectible by reason of the death or disappearance of the debtor, should there be no visible means of collecting the same in the foreseeable future, or where the debtor has been verified to have no income or property whatsoever with which to effect payment. In all cases, the writing-off shall be after five years from the date the debtor defaults.
SEC. 118. Exemption from Duties, Taxes and Levies.&mdashThe Agricultural Credit Administration is hereby exempted from the payment of all duties, taxes, levies, and fees, including docket and sheriff's fees, of whatever nature or kind, in the performance of its functions and in the exercise of its powers hereunder.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).