I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972 and General Order
No. 1, dated September 22, 1972, as amended, do hereby order, decree and
make as part of the laws of the land the following measure:
SECTION 1. To further accelerate the attainment of
the objectives set forth in Presidential Decree No. 27, the following
provisions are hereby incorporated, to wit:
- The landowner shall be exempt from the capital gains tax on the
proceeds of the amortizations paid him by the tenant-purchaser and
likewise from income tax due on the accruing interests paid as an
addition to the total cost of the land.
- The active participation of rural banks and all other
financial institutions shall be required in order to provide immediate
source of funds to augment loans/credits to be made available to the
tenants and/or farmers cooperatives consistent with the asserted
implementation of the supervised credit program,
- The Agricultural Guarantee Fund constituted under Section
twelve of Republic Act No. 6390 for all its intent and purpose include
the guarantee coverage to the participating financial institutions under
the same terms and conditions allowed and applied to the rural banking
system.
- The existing agricultural guarantee loan funds wholly or
partly contributed and/or funded by government agencies shall be
integrated into the Agricultural Guarantee Fund, and shall be governed
by the rules and regulations promulgated by the Agricultural Guarantee
Fund Board established under Section thirteen of the mentioned Act.
SEC. 2. All acts, orders, rules and regulations, or parts thereof,
inconsistent herewith are amended or modified accordingly.
This Decree shall take effect immediately.
Done in the City of Manila, this 19th day of November, in the year of
Our Lord, nineteen hundred and seventy-two.
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(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines |
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By the President: |
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(Sgd.) ALEJANDRO B. MELCHOR |
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Executive Secretary |