Preamble
WHEREAS, under the Presidential Decree No. 1467, the Philippine Crop Insurance Corporation was created to provide insurance protection to farmers against losses arising from natural disasters, as well as plant diseases and pest infestation; WHEREAS, it is the policy of the state to provide integration of the system of crop insurance into the country’s economic and social development and for this reason has made the participation therein compulsory for all farmers obtaining production loans for palay under the supervised credit programs; WHEREAS, the effective implementation of the compulsory requirement of the law requires the full support and cooperation of lending institutions participating in the government’s supervised credit programs; WHEREAS, to insure the attainment of the objective of the law, there is a need to strengthen Presidential Decree No. 1467 by defining therein the duties and obligations of the said lending institutions and providing penal sanctions for violation of the provisions of said decree; 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: