QuestionsQuestions (Republic Act No. 6260)
To accelerate the development of the coconut industry by providing adequate medium and long-term financing for capital investment, through a Coconut Investment Fund capitalized and administered by coconut farmers via the Coconut Investment Company.
A corporation called the “Coconut Investment Company,” with principal place of business and domicile in the Greater Manila area.
To tap the potential of coconut planters; accelerate growth from raw to finished products; improve and expand marketing system; and ensure stable and better incomes for coconut farmers.
Medium and long-term loans to Filipino citizens or enterprises with at least 70% Filipino-owned capital stock, for financing establishment, development, and expansion of profitable or high-potential coconut agricultural/industrial/productive enterprises.
Priority to bona-fide coconut farmers or associations owned or controlled by such farmers.
Not less than 60% of the total loanable funds to coconut farmers must be allocated for loans to coconut farmers owning not more than ten (10) hectares.
By levying P0.55 on the first domestic sale of every 100 kilograms of copra (or its equivalent in other coconut products); for every P0.55 collected, P0.50 is set aside to constitute the Coconut Investment Fund.
The levy continues until the authorized capital stock of P100,000,000 is fully paid, but collection may not continue longer than ten (10) years from the start of the levy.
PHILCOA acts as collection agent and trustee of the fund—collecting the levy and depositing proceeds in an interest-earning account, then transferring deposits to the Company upon its establishment, and setting up the legal/administrative structure for collection and issuance of receipts.
Operational expenses are limited to and charged against the earnings and/or profits of the Fund.
One-tenth (1/10) of such earnings each year must be used to finance technical and economic research studies, promotional programs, scholarship grants, and industrial manpower development programs for the coconut industry.
Receipts and/or certificates are non-transferable except to coconut farmers only and to the company.
Upon full payment of the authorized capital stock (as evidenced by receipts for levies paid) or upon termination of a ten-year collection period from the start of collection, whichever comes first—then shares are transferred according to rules and procedures of the Company.
P100,000,000 divided into ten million common shares with par value of P10 each.
No Board member, official, or employee shall have any financial interest in or connection with enterprises invested in by the Company.
Fine of not less than P1,000 nor more than P2,000, or imprisonment of not less than two months nor more than two years, or both, at the discretion of the court.