Agrikulturang Makamasa Sugar Farm Modernization Program

RA 7393 mandates Quedancor to establish credit support and guarantee systems for farmers.
RA 8435 designates Quedancor as credit guarantee institution for agri-fishery sector.
Memorandum of Agreement among Department of Agriculture, Quedancor, and Sugar Regulatory Administration defines cooperative implementation.

Sugar production: cultivation of sugarcane in open fields.
Sugar farmer/planter: individual whose primary livelihood is sugarcane cultivation.
Cooperative: group of farmers organized as a business enterprise sharing economic benefits.
Sole proprietor, partnership, and corporation defined as respective business entities.
Quedan Operations Officer (QOO): Quedancor field personnel authorized to implement the program.
Lending Bank (LB): accredited banking institutions participating in the program.
Sole Guarantee Mode (SGM): lending mode where loans are fully funded by LB but guaranteed by Quedancor.

Targets farmers, business proprietors, cooperatives, partnerships, or corporations intending to purchase tractors or implements for sugarcane production.

Loan purpose limited to financing purchase of tractors/implements.
Eligibility requires SRA endorsement and Quedancor accreditation.
Applicants must provide 20% down payment; loans cover up to 80% of total cost.
Lending bank sets interest rates, generally favorable compared to commercial rates.
Term: 1 to 5 years, payment modes flexible; grace periods may be allowed.
Guarantee fee: 2.5% per annum paid by Lending Bank.
Guarantee coverage ranges from 30% to 100% of outstanding principal plus accrued interest.
Total guarantee exposure of Quedancor limited to 5 times its guarantee fund.
Lending banks may use participation as compliance for Agri-Agra law.

Program promotion by Quedancor, Department of Agriculture, and SRA through meetings and materials.
Lending banks must be accredited with board resolutions, financial documents, and fees.
Client accreditation requires submission of applications, fees, photos, financial statements, and specific corporate or cooperative documents.
Quedan Operations Officer conducts background, credit investigations, and evaluates applications.
Loan applications require project proposals, collateral documentation for real estate or chattel.
Thorough verification and approval processes involving multiple university and bank authorities.
Lending Bank reviews credit evaluations and exercises final loan approval discretion.
Preparatory clearance by Quedancor required before loan release to ensure guarantee fund limits.
Loan proceeds credited directly to borrowers' accounts; documentation and registration responsibilities rest with Lending Bank.
Borrowers must make scheduled amortization payments directly to Lending Bank.
Ongoing project monitoring by QOO with periodic reports.
Loan restructuring governed by separate circular.

Lending Banks must apply for guarantee cover within 30 days of loan release with fee payment.
Guarantee cover valid until loan maturity, not exceeding Quedancor recommended term.
Lending Bank options on borrower default include foreclosure and legal action.
Claims for guarantee payments allowable under arrears or maturity non-payment, subject to document submission.
Claims processed through Quedancor with timelines and possible correction notices.
Guarantee payments require subrogation of the bank's claim rights to Quedancor.
Recoveries remitted to Quedancor.
Grounds for cancellation/nullification of guarantee include fraud, collusion, misinformation, improper loan release, and partial non-payment.

Periodic consultations among Quedancor, SRA, Lending Banks, and clients to enhance program effectiveness.
Quedancor can issue additional rules and measures to achieve program objectives.