Loans to the Fishery Industry.
Section 11
SEC. 11. Loans to the Fishery Industry. — Upon approval of the Fishery Industry Development Program, the Development Bank of the Philippines, the Philippine National Bank, rural banks and Veterans Bank and other government-owned or controlled lending or banking institutions concerned shall make available loans to eligible borrowers as are provided in their respective charters and all articles of incorporations and by-laws, and policies of the Central Bank of the Philippines: Provided, That: It shall be mandatory for the Development Bank of the Philippines, the Philippine National Bank, rural banks and Veterans Bank and other government-owned or controlled lending institutions dealing with medium and long-term lending to: Grant loans for the development of fishponds and the acquisition of fishing boats including fishing paraphernalia; To extend loans for production, handling, refrigerating plants and cold storage, processing and marketing; Grant, loans to leaseholders of public lands for development of fishponds: Provided, however, That the term of the lease contract shall be longer than the period of repayment of the loan: Provided, finally, That holders of ordinary fishpond permits who have additional collaterals to offer may be granted loans at the discretion of the bank management and/or lending institutions; and To give preferential loans at concessionary rates of interest given to any borrower during a given period to be set by the Council, except for special rates of interest granted by GSIS and SSS to its members, for the development of fish and fishery products, For this purpose, eligible papers shall be given preference in the rediscounting policy of the Central Bank of the Philippines and that the rediscounting rate shall be the lowest preferential rate extended to private banks and the Development Bank of the Philippines, the Philippine National Bank, rural banks and Veterans Bank and other government-owned or controlled lending or banking institutions. All loans under this Program shall be extended under supervised credit as prescribed under Republic Act Numbered Sixty-three hundred and ninety or under project supervision.