QuestionsQuestions (Republic Act No. 1292)
Section 1 declares it to be a national policy to encourage Filipino retailers.
A revolving fund known as the “Filipino Retailers' Fund” was created under the administration of the Secretary of Commerce and Industry (or any other office designated by the President), with provincial, city, and municipal treasurers as deputies.
Importers must sell to Filipino retailers at the same mark-up as their sales through existing trade channels, at least thirty percent of their imports.
It may be used either (1) as a guarantee fund to underwrite loans made by any government financing institution to bona fide Filipino retailers, or (2) as a loan fund.
Not more than twenty percent of the Fund’s money may be given as cash loans, and loans not exceeding five thousand pesos each may be granted.
Any Filipino citizen who fully owns a retail store and personally manages it, or any Filipino citizen who wishes to be a retailer.
They are payable in five equal annual installments with interest at four percent per annum; interest cannot be collected in advance.
The assets of the retail store owned by the retailer or to be established by him must be mortgaged to the Filipino Retailers' Fund to secure payment.
It helps promote and develop Filipino retail trade by assisting retailers in securing credit facilities, extending technical assistance, teaching merchandising techniques and skills, and equipping them to compete more effectively with aliens in retail.
Applications must be made in writing and under oath.
(1) A statement that the retailer is of good moral standing and has not been previously convicted of estafa or any crime involving moral turpitude; and (2) a statement that loan proceeds will be used solely for purchasing items needed for the retail business and that the applicant will sell them directly to the public at his store.
It is unlawful to use the proceeds of the loan (or any part of it) for any purpose other than those set out in the application.
Violation is sufficient cause for rescission of the contract; the balance of the loan and interest then become immediately due and demandable.
Yes. The Secretary must extend technical information or assistance as deemed necessary, but it shall be without cost to the retail store.
It is created in the Department of Commerce and Industry to handle processing of loans and to help borrowers make their purchases without unnecessary loss of time and/or money.
Twenty million pesos is appropriated from funds in the National Treasury not otherwise appropriated to constitute the revolving fund.
All income or receipts derived from operations accrue to and form part of the same fund and are available for expenditure and/or investment for purposes of the Act.
It takes effect upon its approval.