Section 4
SEC. 4. For the purpose of this Act, the Development Bank of the Philippines shall set aside an adequate revolving fund for loan of at least fifty million pesos, which shall be lent to Filipinos with interest of not more than seven per cent per annum against secured collaterals for milling, processing, warehousing, and marketing of rice and/or corn: Provided, That rice mills or warehouses, after evaluation by the lending banks, may also be included and allowed as collateral for corresponding loans extended to Filipinos who may wish to construct or purchase rice mills or warehouses. Likewise, the Philippine National Bank shall set aside a similar adequate revolving loan fund of at least fifty million pesos for cultivation and production, including crop loans, and quedans which shall be lent to Filipinos with interest of not more than six per cent per annum against secured collaterals: Provided, That the Central Bank shall rediscount the commercial papers covering the loans contemplated in this section at the lowest possible rate in order to insure the maintenance of financial assistance to the rice and/or corn industry: Provided, further, That FaCoMas and other cooperatives, individual farmers, small landowners and tenants engaged in the production of palay, rice and/or corn shall be given priority in the grant of such loans. Producers or planters of rice and/or corn shall be allowed to organize, any provisions of law to the contrary notwithstanding, irrespective of whether or not there may be any existing FaCoMas or farmers cooperative association in their places of business and as duly organized associations shall likewise be entitled to the credit facilities that shall be available from the Development Bank of the Philippines and the Philippine National Bank therein contemplated: Provided, That the said associations of producers or planters of rice and/or corn shall not be entitled to the credit facilities provided for in Republic Act Numbered Eight hundred and twenty-one: Provided, further, That in areas where established FaCoMas cannot efficiently or fully take care of the volume of operations in the rice and/or corn production and/or marketing, as certified to that effect by the Agricultural Credit and Cooperative Financing Administration, the organization of another FaCoMas may be authorized, which FaCoMas shall likewise be entitled to all the rights and privileges provided for in Republic Act Numbered Eight hundred twenty-one.