Scope and Coverage
- The Executive Order covers all proceeds from the stated non-sale transactions, including those agreements previously executed before the issuance of this Order.
Basis of Sharing and Expense Deductions
- Distribution is calculated based on net proceeds, which are the proceeds after deducting expenses directly incurred due to the transaction.
- "Direct expenses" are defined as costs solely attributable to the transaction that would not have been incurred otherwise.
- These direct expenses are to be jointly determined by representatives of BCDA and the Department of National Defense (DND).
Utilization of Proceeds
- BCDA's share is regarded as corporate income and its use shall be decided by BCDA's Board of Directors.
- AFP's share is designated for the AFP Modernization Program under Republic Act No. 7898.
- Proceeds received after the conclusion of the Modernization Program may still be used to cover multi-year obligations related to the program.
- After fulfilling such obligations, AFP’s share may then be allocated to other modernization projects approved by AFP and the Secretary of National Defense.
Remittance of AFP's Share
- BCDA must remit AFP's share to the Armed Forces of the Philippines Modernization Act Trust Fund (Fund 172) in the Bureau of the Treasury.
- Remittance should be made within two weeks after BCDA receives actual payment from the other party involved in the transaction.
Effectivity
- The Executive Order takes effect immediately upon issuance on November 3, 2000.