70 OG No. 17, 3342-G (April 29, 1974)

[ PRESIDENTIAL DECREE NO. 435, April 08, 1974 ]

EXPANDING THE GUARANTEE COVERAGE OF THE AGRICULTURAL GUARANTEE FUND CREATED UNDER REPUBLIC ACT NO. 6390, AS AMENDED, AND APPROPRIATING ADDITIONAL FUNDS THEREFOR

WHEREAS, it is the concern of the Government to emancipatethe tillers of the soil from their bondage of tenancy and to encouragethem to raise their level of production and to attain self-sufficiencyimmediately;

WHEREAS, self-sufficiency requires the employment of modernfarm implements and facilities as well as the promotion of essentialagricultural and cottage agro-industrial projects such as fishing,poultry, livestock, woodcraft, etc.; and

WHEREAS, the guarantee prescribed by the AgriculturalGuarantee Fund created under Republic Act No. 6390, covers only lossesfrom production loans granted to farmer-tillers;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of thePhilippines, by virtue of the powers in me vested by the Constitution,do hereby order and decree the following:

SECTION 1. The guarantee coverage of the AgriculturalGuarantee Fund may, subject to the rules and regulations which may bepromulgated by the Agricultural Guarantee Fund Board created under R.A.No. 6390, include the guarantee on medium- or long-term loans granted to farmer-tillers to finance the following:

1. Purchase of farm machineries and equipment;
2. Establishment of farm support facilities;
3. Fisheries development;
4. Small-scale livestock farm development;
5. Cottage agro-industries; and
6. Other agricultural projects closely related to agrarianreform.

SEC. 2. The sum of forty million pesos (P40,000,000) ishereby appropriated to the Agricultural Guarantee Fund out of which tenmillion pesos (P10,000,000) shall be programmed for Fiscal Year 1974-75and the balance shall be programmed in like amounts annually thereafterfor three (3) years. The amount herein appropriated together with itsearnings shall be used solely to absorb guaranteed losses: Provided, however, That amounts not immediately needed for the payment ofguaranteed losses shall be invested in high grade securities, preferably government or government-guaranteed securities.

SEC. 3. The Agricultural Guarantee Fund Board shallpromulgate the rules and regulations necessary for the implementation of this Decree.

SEC. 4. All laws, decrees, rules and regulations whichare inconsistent herewith are hereby amended and modified accordingly.

SEC. 5. This Decree shall take effect immediately.

Done in the City of Manila, this 8th day of April, in the year of Our Lord, nineteen hundred and seventy-four.

Source: Supreme Court E-Library