Preamble
WHEREAS, under the present law, rural banks have to amend their Articles of Incorporation before private persons acquiring preferred shares of stock held by the government may enjoy the rights and privileges appertaining to common shares of stock; and WHEREAS, to make investments in rural banks attractive and to further stimulate the growth of such banks, there is need to provide for the automatic conversion of preferred shares of stock into common stock upon sale to private parties. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the amendment of Republic Act No. 720, as amended, as follows: