Question & AnswerQ&A (EXECUTIVE ORDER NO. 620)
Palayan ng Bayan was originally created as a project involving the development and use of virgin public lands primarily for rice and secondarily for corn and other selected foodcrops.
Provincial Governors and City Mayors are authorized to participate in the Pagkain ng Bayan program.
All assets, liabilities, organization, and personnel of the Palayan ng Bayan are transferred to Pagkain ng Bayan.
The National Advisory Council has the authority to determine the maximum loan per hectare and other loan conditions based on project requirements.
Crop loans and operational loans shall not exceed one year, while loans for investment and capital requirements may be granted for more than one year subject to the approval of the National Advisory Council.
The National Advisory Council determines the interest rates and charges on loans, subject to existing rates and charges authorized by the Central Bank.
The Minister of Finance is authorized to issue and sell interest-bearing bonds, debentures, or certificates of indebtedness up to P200 million to fund the program.
If a province or city defaults, the Minister of Finance, upon request of Pagkain ng Bayan, shall withhold part of the revenues due to the province/city and apply it to payment of the obligation, without prejudice to enforcing the personal guarantee of the Provincial Governor or City Mayor.
Leasing of Pagkain ng Bayan areas or portions thereof by provincial or city governments to private sectors is not allowed, and any such lease contracts entered into in violation are null and void ab initio.