Special Economic Development Fund.
Section 3
SEC. 3. Special Economic Development Fund.—The proceeds from the sale of reparations goods and utilization of services (excluding the sum referred to in Section two par. (d) hereof), together with interests earned, shall be constituted into a Special Economic Development Fund, out of which Congress may appropriate, from time to time, such amounts as may be necessary to constitute a Special Trust Fund which shall be available to the Rehabilitation Finance Corporation and the Philippine National Bank for loans for economic and industrial development projects as well as for construction, reconstruction, repair and/or improvement of public school buildings in amounts not exceeding eighty percent of the value of the securities and payable within a period not exceeding twenty years depending upon the kind of the loan and with interest at a rate not exceeding four percent per annum: Provided, That the Rehabilitation Finance Corporation and the Philippine National Bank shall charge for their services only the actual cost thereof and shall not make any profit therefrom: Provided, further, That fifty percent of such Special Trust Fund shall be available for industrial loans, thirty percent, for agricultural loans (but not more than twenty percent of such agricultural loans may be granted on any single agricultural crop), and the remaining twenty percent for public school building construction, reconstruction, repair and/or improvement, as Congress may provide from time to time. The sum of twenty million pesos shall likewise set aside from the said Special Economic Development Fund to constitute a revolving fund which shall be used exclusively to aid in the establishment of rural banks, subject to the provisions of Republic Act Numbered Seven Hundred twenty, otherwise known as the “Rural Banks Act", as amended; and the further sum of fifty million pesos for the purchase of landed estates provided for in the Land Tenure Act and such other landed estates as provided for by other special Acts.