Disposition of Funds turned over to the Agricultural Guarantee Fund.
Section 11
SEC. 11. Disposition of Funds turned over to the Agricultural Guarantee Fund. — The Agricultural Guarantee Fund Board created in Section thirteen of Republic Act Numbered Six thousand three hundred ninety shall administer the Funds turned over to the Agricultural Guarantee Fund under Section seven of this Act. The Agricultural Guarantee Fund Board shall lay down, the policies governing the portion of the Agricultural Guarantee Fund contributed by this Act pursuant to the objectives stated therein. It shall promulgate such rules and regulations as may be necessary to insure the effective and efficient implementation of such policies. The portion of the Agricultural Guarantee Fund funded by this Act shall be kept in a separate account at all times and shall be applied to cover losses for production loans extended to producers of rice and corn and other grains, guaranteed pursuant to rules and regulations promulgated in accordance with this section: Provided, That seventy (70%) per cent of the losses for production loans extended by banks shall be absorbed by the Agricultural Guarantee Fund and thirty (30%) per cent of such losses shall be absorbed by the Banks. The Agricultural Guarantee Fund Board shall submit to the President of the Philippines not later than the end of February, an annual report regarding the portion of the Fund contributed by this Act.