Law Summary
Role of Financial Institutions in Agricultural Credit
- Rural banks and other financial institutions must actively participate in providing financial resources.
- This participation aims to augment loans or credits available to tenants or farmers' cooperatives.
- The involvement supports the implementation of a supervised credit program, promoting accessibility to financial support.
Agricultural Guarantee Fund and Coverage
- The Agricultural Guarantee Fund created under RA No. 6390 encompasses guarantees to financial institutions involved in the program.
- Guarantee coverage applies to participating rural banks under the same terms as the rural banking system.
- Existing agricultural guarantee loan funds funded entirely or partly by government agencies are to be integrated into the Agricultural Guarantee Fund.
- These funds will be governed by the rules promulgated by the Agricultural Guarantee Fund Board established under RA 6390.
Modification of Inconsistent Acts, Orders, Rules, and Regulations
- All existing laws, orders, rules, and regulations inconsistent with this decree are considered amended or modified accordingly.
- The Decree takes immediate effect upon issuance, ensuring swift implementation of its provisions.