(NAR) VOL. 10 NO. 1 / JANUARY - MARCH 1999
SECTION 3. Sanctions. — Appropriate sanctions as provided under existing laws, rules and regulations shall be imposed on banks which fail to comply with the mandatory allocation of funds for agrarian reform and agricultural credit under P.D. No. 717.
- Development Loans Incentive — Pursuant to Sections 8 and 9 of R.A. No. 7721 (An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines and for Other Purposes), loans extended by banks incorporated under the laws of the Philippines, whether Philippine or foreign-owned, to finance educational institutions, cooperatives, hospitals and other medical services, socialized or low-cost housing and to local government units, without national government guarantee, shall be included for purposes of determining compliance with the provisions of P.D. No. 717, as amended.
- Loans for high-value crops projects — Pursuant to Section 8 of R.A. No. 7900, a bank participating in the High Value Crop Development Program that shall lend a minimum of five percent (5%) of its loanable funds, without alternative compliance, directly to farmers' associations or cooperatives for high-value crops projects shall be exempted from, or shall be deemed to have complied with the requirement of P.D. No 717.
- Unused agri-agra funds to be utilized for socialized and low-cost housing — As a source of non-budgetary funding to augment the Comprehensive and Integrated Shelter and Urban Development Financing Program under R.A. No. 7835, all unused agri-agra allocation funds of banks in the preceding year shall be invested in socialized and low-cost housing: Provided, That the utilized portion of the agri-agra funds of said banks was solely devoted to agricultural and agrarian reform credit.