Section 2
SEC. 2. A new section, to be known as Section 3-B, is hereby inserted to read as follows: "SEC. 3-B. Coconut Industry Development Fund. — There is hereby created a permanent fund to be known as Coconut Industry Development Fund which shall be deposited with, and administered and utilized by, the Philippine National Bank through it subsidiary the National Investment and Development Corporation for the following purposes: To finance the establishment, operation and maintenance of a hybrid coconut seednut farm under such terms and conditions that may be negotiated by the National Investment and Development Corporation with any private person, corporation, firm or entity as would insure that the country shall have, at the earliest possible time, a proper, adequate and continuous supply of high yielding hybrid seednuts; To purchase all of the seednuts produced by the hybrid coconut seednut farm which shall be distributed, for free, by the Authority to coconut farmers in accordance with, and in the manner prescribed in, the nationwide coconut replanting program that it shall devise and implement; Provided, That farmers who have been paying the levy herein authorized shall be given priority; To finance the establishment, operation and maintenance of extension services, model plantations and other activities as would insure that the coconut farmers shall be informed of the proper methods of replanting their farms with the hybrid seednuts. As the initial funds of the Coconut Industry Development Fund, the Authority is hereby directed to pay to the Coconut Industry Development Fund the amount of One Hundred Million Pesos (P100,000,000.00) out of its collections of the coconut consumers stabilization levy and thereafter the Authority shall pay to the said Fund an amount equal to at least twenty centavos (P0.20) per kilogram of copra resecada or its equivalent out of its current collections of the coconut consumers stabilization levy. In the event that the coconut consumers stabilization levy is lifted, a permanent levy of twenty centavos (P0.20) is thereafter automatically imposed on the first sale of every kilogram of copra or its equivalent in terms of other coconut products which shall be collected and paid to the Coconut Industry Development Fund by the Authority in accordance with the mechanics presently followed in the collection of the coconut consumers stabilization levy. The Philippine National Bank is hereby authorized to invest any unutilized portion of the Fund in easily convertible investments and all earnings therefrom shall form part of the Fund. The sale or transfer of the hybrid coconut seednuts herein authorized to be acquired is hereby declared exempt from the payment of the coconut consumers stabilization levy and any and all taxes and fees of whatever kind and nature."