QuestionsQuestions (PRESIDENTIAL DECREE NO. 755)
PD 755 approves the credit policy for the coconut industry and provides funds to address coconut farmers’ perennial credit problems, primarily by supporting the acquisition of a commercial bank for the benefit of coconut farmers.
Under Presidential Decree No. 232, as amended. PD 755 states that PCA formulated and recommended the credit policy consistent with its duty regarding production, marketing, and processing of coconut and other palm oils.
Ownership by coconut farmers of a commercial bank, through the implementation of the “Agreement for the Acquisition of a Commercial Bank for the benefit of the Coconut Farmers.”
The State’s policy is to provide readily available credit facilities to coconut farmers at preferential rates.
The “Agreement for the Acquisition of a Commercial Bank for the benefit of the Coconut Farmers,” executed by the Philippine Coconut Authority.
PCA is authorized to distribute, for free, the shares of stock of the bank it acquired to the coconut farmers under rules and regulations it may promulgate.
PCA is directed to draw and utilize the collections under the Coconut Consumers’ Stabilization Fund authorized to be levied by PD 232, as amended.
No. Deposits made pursuant to PD 755 are to be deposited interest-free with the coconut farmers’ bank.
Such deposits shall not be withdrawn until the Board of Directors of the bank and the Governing Board of PCA jointly ascertain that the bank has sufficient equity capital to service in full the credit requirements of the coconut farmers.
Except for approved budgetary requirements of PCA, PD 755 provides that collections under the Coconut Consumers’ Stabilization Fund Levy and fifty percent (50%) of collections under the Coconut Industry Development Fund shall not be considered, construed, or treated as special and/or fiduciary funds and do not form part of the general funds of the national government within the contemplation of PD 711.
Delivery to, and receipt by, the parties of the shares of stock of the bank pursuant to the Agreement are declared exempt from taxation, notwithstanding the National Internal Revenue Code and other laws.
Any provision of law in conflict with PD 755 is revoked or amended accordingly.
Immediately, as stated in the Effectivity clause of the decree.
Withdrawal of deposits is conditioned upon joint ascertainment by the Board of Directors of the bank and the Governing Board of PCA that the bank has sufficient equity capital to service the credit requirements in full.
It will accelerate the growth and development of the coconut industry and achieve a vertical integration where coconut farmers become participants in, and beneficiaries of, such growth and development.