Establishing A Procedure For Acquisition By Small Farmers Of Equity In Rural Banks

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 584 November 16, 1974

ESTABLISHING A PROCEDURE FOR ACQUISITION BY SMALL FARMERS OF EQUITY IN RURAL BANKS

WHEREAS, rural banks have been established primarily to meet the normal credit needs of people living in the rural areas, particularly the small farmers;

WHEREAS, in order to give these small farmers the opportunity and privilege of self-development, social-growth, and economic independence under a truly just and democratic society, the Samahang Nayon have been organized with certain rights and privileges;

WHEREAS, it is fitting that these small farmers, either directly or through their Samahang Nayon, be further encouraged to invest in the equities of the rural banks with which they are closely and directly involved;

WHEREAS, diffusion ownership of equity in rural banks will further ensure sound operation and progress of such rural banks;

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

Section 1. The provisions of...

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Establishing a Procedure for Acquisition by Small Farmers of Equity in Rural Banks

- Allows rural banks to sell up to 40% of their voting stock to small farmer clients who are members of a Samahang Nayon or to the Samahang Nayon itself (Section 1)
- The price of the shares will be agreed upon between the parties, or determined by the Central Bank of the Philippines if no agreement is reached (Section 1)
- The acquisition of shares is subject to the limitations on individual, family group, or corporate holdings established under Section 12 of Republic Act No. 337, as amended (Section 1)
- The Central Bank of the Philippines shall prescribe necessary rules and regulations to implement the provisions of this Decree (Section 2)