Coverage of the Executive Order
- The order applies to proceeds from all such transactions, including those executed prior to the issuance of this order.
Basis for Sharing Proceeds
- Distribution shall be based on net proceeds, i.e., proceeds after deducting direct expenses incurred for the transaction.
- "Direct expenses" are costs directly attributable and solely incurred due to the transaction, which would not have arisen otherwise.
- These direct expenses shall be jointly determined by representatives from BCDA and the Department of National Defense (DND).
Utilization of Proceeds
- BCDA's share shall be treated as corporate income, used as determined by its Board of Directors.
- AFP's share is designated for the AFP Modernization Program under Republic Act No. 7898.
- Proceeds received after the AFP Modernization Program's termination may cover multi-year obligations incurred under the program.
- Subsequent unused funds may be allocated by the AFP for other modernization projects with approval from the Secretary of National Defense.
Remittance Procedures for AFP's Share
- BCDA shall remit AFP's share to the Armed Forces of the Philippines Modernization Act Trust Fund (Fund 172) within two weeks from actual receipt of payment.
- Remittance is made directly to the Bureau of the Treasury.
Effectivity of the Executive Order
- The rules and regulations prescribed shall take effect immediately upon issuance.