Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 755)
The main purpose of Presidential Decree No. 755 is to approve the credit policy for the coconut industry by providing readily available credit facilities to coconut farmers at preferential rates through the acquisition of a commercial bank owned by the coconut farmers.
The Philippine Coconut Authority (PCA) is responsible for formulating and recommending credit policies affecting production, marketing, and processing of coconut and other palm oils under Presidential Decree No. 232.
The PCA identified that ownership by the coconut farmers of a commercial bank is a permanent solution to their perennial credit problems.
Funding for the commercial bank will come from the collections under the Coconut Consumers' Stabilization Fund and fifty percent of the collections under the Coconut Industry Development Fund, as authorized under Presidential Decree No. 232 and No. 582, respectively.
The policy of the State is to provide readily available credit facilities to coconut farmers at preferential rates through the implementation of the Agreement for the Acquisition of a Commercial Bank for the benefit of the Coconut Farmers.
No, delivery to and receipt by the parties concerned of the shares of the bank pursuant to the Agreement are expressly declared to be exempt from taxation despite provisions of the National Internal Revenue Code or other laws.
Deposits from collections under the Coconut Consumers' Stabilization Fund Levy and Coconut Industry Development Fund shall not be withdrawn until the Board of Directors of the bank and the Governing Board of the Philippine Coconut Authority jointly ascertain that the bank has sufficient equity capital to service the credit requirements of the coconut farmers fully.
No, these collections and levies are not considered special or fiduciary funds and do not form part of the general funds of the national government under Presidential Decree No. 711.
Any provisions of law in conflict with this decree are revoked or amended accordingly as stated in the repealing clause (Section 4).
This decree took effect immediately upon its signing on July 29, 1975.