Comprehensive Agricultural Loan Fund (CALF)
- Section 2 consolidates all existing and future loan funds that are agricultural and agriculture-related in nature under one fund called the “Comprehensive Agricultural Loan Fund” (CALF).
- Section 2 provides that the CALF is composed of:
- government-owned funds presently being administered by the Central Bank;
- loanable funds for agricultural commodities and activities administered by government agencies, corporations, and banks sourced from the National Treasury; and
- funding of foreign assisted projects, subject to negotiation with foreign institutions in consultation with the Central Bank and the National Economic and Development Authority.
- Section 2 excludes funds emanating from foreign sources where the Central Bank of the Philippines is the original or ultimate borrower; such funds together with their counterpart funds are not covered.
- Section 2 allows the CALF to be augmented through other sources such as general appropriations, loans, donations, and grants, within and outside the country.
Termination of Prior Administration Agreements
- Section 3 deems all agreements providing for the administration of government-owned and/or National Treasury-sourced funds being transferred to the CALF terminated upon the Executive Order’s effectivity.
- Section 3 directs all concerned government agencies, including the Central Bank of the Philippines, to take steps for the smooth and expeditious transfer no later than one (1) month from effective date.
- Section 3 requires the transfer to include not only the funds but also all assets and liabilities of such funds, including the funds listed in Annex “A”.
- Section 3 assigns to the Ministry of Agriculture and Food (MAF) the assumption of all rights and obligations relating to administration of the funds transferred to the CALF.
- Section 3 preserves the effect of obligations incurred by third parties: termination of agreements does not affect third-party obligations, which remain in force until fully liquidated.
- Section 3 permits the transfer of funds involved in foreign-assisted projects to the CALF subject to negotiations with the respective foreign institutions concerned.
CALF Control, Supervision, and Lending Limit
- Section 4 places the CALF under the control and supervision of the MAF.
- Section 4 makes the MAF directly responsible for management of the CALF and authorizes it to do all acts necessary for judicious and proper management.
- Section 4 authorizes designation of a Trustee Bank, which upon the MAF’s direction must invest the CALF’s unencumbered cash resources not required for current operating purposes for the account of the CALF in:
- bonds and other securities issued by institutions duly authorized to issue the same, and/or
- securities guaranteed by the Philippine Government.
- Section 4 directs that the MAF administers the CALF.
- Section 4 prohibits the MAF from lending any portion of the CALF directly to end-users and requires administration through the banking system, with exceptions for:
- the Guarantee Fund for Small and Medium Enterprises (GFSME), and
- the Quedan Guarantee Fund Board (QGFB),
while preserving the possibility of providing a guaranty system from an appropriate source.
- Section 4 allows any CALF earnings to be utilized by the MAF for agriculture projects and agriculture-related activities, including those of the Agricultural Credit Policy Council (ACPC), as the MAF deems necessary.
Creation and Role of the ACPC
- Section 5 establishes the Agricultural Credit Policy Council (ACPC), referred to as the “Council”, to replace the Presidential Committee on Agricultural Credit (PCAC) and the Technical Board for Agricultural Credit (TBAC).
- Section 5 sets the Council composition as:
- Minister, MAF — Chairman;
- Governor, Central Bank of the Philippines — Vice-Chairman;
- Director-General, National Economic and Development Authority — member;
- Minister, Ministry of Budget and Management — member; and
- Minister, Ministry of Finance — member.
- Section 5 authorizes the Council to call on government instrumentalities for assistance and support in human, technical, and financial resources to attain the State’s policy.
- Section 5 requires the Council to assist the MAF in synchronizing all credit policies and programs supporting the MAF’s priority programs covering:
- land development/improvement and farm production;
- farm mechanization;
- production and supply of agricultural inputs;
- transportation and storage;
- processing;
- marketing and other related activities;
- small farm financing; and
- resource mobilization.
- Section 5 mandates that the Council review and evaluate the economic soundness of all ongoing and proposed agricultural credit programs.
- Section 5 requires that all proposed agricultural credit programs receive the Council’s prior approval before submission to the approving or funding agency, whether domestic or foreign.
- Section 5 requires the Council to receive all reports and documents of all programs with agricultural credit and financing components.
- Section 5 authorizes the Council to undertake measures of increasing its fund base and adopting other liquidity, interest stabilization, and risk cover mechanisms for its various financing programs in consultation with the Monetary Board.
Council Officers and Staffing
- Section 6 gives the Chairman the power and responsibility for administering, directing, and managing implementation of Council policies.
- Section 6 requires appointment of an Executive Director by the Council, who must implement Council programs, projects, and decisions and prepare an organizational plan and plantilla of personnel subject to Council approval.
- Section 6 authorizes the Council to appoint one or more Directors to assist the Executive Director.
- Section 6 allows the Council to hire other personnel necessary for its basic functions.
- Section 6 subjects all positions to Civil Service rules and regulations and the Office of Compensation and Position Classification, except positions that are highly technical, policy determining, or primarily confidential.
Separability, Repeal, and Effectivity
- Section 7 provides a separability rule: unconstitutional portions do not invalidate the remaining provisions if the remaining provisions can still be given effect in their entirety to accomplish the Executive Order’s objectives.
- Section 8 repeals or modifies all laws, orders, issuances, rules, regulations, or parts that are inconsistent with any provisions of the Executive Order.
- Section 9 makes the Executive Order effective immediately.
Annex: Initial Funds for CALF Consolidation
- Annex “A” lists initial funds to be consolidated under the CALF, including: CB:BAI (DALL); CB:BAI (Guarantee); KASAKA:OSY; SARF; YCF:IRPP; YCF:MAF; NFAC:SFSCF; NFAC:ALF; FLGF; IAF:PVTA; ALF:PTA; ALF:PCC; and NGA:BPW.
- Annex “A” also includes NFA:ALF:NGA and CB:LLTF-BT.
- Annex “A” includes Pagkain ng Bayan-Ministry of Local Government.
- Annex “A” includes the Cooperative Development Loan Fund - Bureau of Cooperatives Development, Ministry of Agriculture and Food.
Issuance Details
- This Executive Order is Executive Order No. 113.
- It was issued by President Corazon C. Aquino on December 24, 1986.
- The Executive Order appears in 83 OG No. 9, 784 (March 2, 1987).
- Section 9 makes it effective immediately upon issuance.