Providing An Agrarian Reform Credit And Financing System For Agrarian Reform Beneficiaries Through Banking Institutions

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 717 May 29, 1975

PROVIDING AN AGRARIAN REFORM CREDIT AND FINANCING SYSTEM FOR AGRARIAN REFORM BENEFICIARIES THROUGH BANKING INSTITUTIONS

WHEREAS, it is a declared national policy to give first priority to measures for the adequate and timely financing of the Agrarian Program;

WHEREAS, government and private banking institutions are in best position to extend adequate agrarian reform credit to agrarian reform beneficiaries;

WHEREAS, there is a need of flexibility of government policy on agrarian reform credit and for a realistic approach to the credit needs of agrarian reform beneficiaries;

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 to be part of the laws of the land the following:

Section 1. There shall be evolved an agrarian reform credit and financing system for the beneficiaries of agrarian reform, namely: tillers, tenant-farmers, settlers, agricultural lessees, amortizing owners, owner-cultivators, farmers cooperatives and compact farms, through government and...

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Providing an Agrarian Reform Credit and Financing System for Agrarian Reform Beneficiaries Through Banking Institutions

- Evolution of an agrarian reform credit and financing system for beneficiaries (Section 1):
    - Beneficiaries include tillers, tenant-farmers, settlers, agricultural lessees, amortizing owners, owner-cultivators, farmers cooperatives, and compact farms.
    - Agrarian reform credit includes loans for acquisition of work animals, farm equipment, seeds, fertilizers, livestock, land acquisition, construction/acquisition of production facilities, and merchandising of agricultural commodities.

- Credit may be extended based on project feasibility, paying capacity, estimated production, and securities provided (Section 2).

- Banking institutions must set aside (Section 3):
    - At least 25% of loanable funds for agricultural credit.
    - At least 10% of loanable funds for agrarian reform credit to beneficiaries.
    - Percentages may be adjusted by the National Economic and Development Authority based on recommendations.

- Central Bank of the Philippines to promulgate rules and regulations (Section 4):
    - Banking institutions may invest in eligible government securities for unused agrarian reform credit funds, with provisions for monetization or repurchase (Section 4a).
    - Banking institutions may rediscount eligible agrarian reform credit paper with the Central Bank (Section 4b).

- Inconsistent laws, decrees, rules, and regulations are repealed or modified (Section 5).

- Decree takes effect immediately (Section 6).