EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
(SKicf of tiji' giftrrtarp
20 
FEB 18 
P3 :06
S E N A T E
Senate Bill No. 1361
RECEI." DBV
Introduced by SENATOR SONNY ANGARA
AN ACT
MANDATING BANKING INSTITUTIONS TO STRENGTHEN THE FINANCING 
SYSTEM FOR AGRICULTURAL, FISHERIES, AND RURAL DEVELOPMENT IN 
THE PHILIPPINES AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The agricultural sector plays a significant part in promoting inclusive and broad 
based economic growth. Notwithstanding this critical role, the sector faces persistent 
challenges in accessing formal credit owing to issues on bankability of projects, lack 
of technical expertise of financial institutions in agriculture financing, and the high 
levels of risk exposures of the sector.
The mandated credit quota, under RA 10000 (Agri-Agra Reform Credit Act of 
2009), may appear to be a straightforward approach to channeling resources to the 
sector but it does not address the underlying issues that make the sector unattractive 
to credit providers.
The proposed amendments aim to promote sustainable financing in rural 
communities that can truly improve the welfare and economic prospects, not only of 
agriculture workers, but also of their households and their enterprises. This demands 
a holistic approach that takes into consideration the broader agriculture financing 
ecosystem and rural community developmental requirements. 
In this respect, the 
proposed amendments expand coverage of activities that are eligible for financing to 
include, not only agricultural activities, but also other activities that complement and 
augment income of people in rural communities. 
These include, off-farm/fishery 
activities, agricultural mechanization/ modernization, agri-tourism, green finance 
projects, public rural infrastructure, and livelihood, skills enhancement, and other 
capacity-building activities of the rural community beneficiaries.


In addition, the proposed amendments include the creation of an Agribusiness 
Management Capacity And Institution-Building Fund (Special Fund), to finance 
agricultural- and fishery-related activities as well as organizational-, capacity-, and 
institution-building programs of cooperatives and other duly-registered organizations 
of rural agricultural and fisheries households. 
The Special Fund, shall consist of 
contributions from the banking industry as well as penalties from non-compliance with 
the mandatory credit requirement. 
The Special Fund, shall be managed by the 
"Agricultural and Fisheries Finance and Capacity-Building Council (AFFCC)" which is 
composed of representatives from the private and public sector. In this scheme, both 
the private and public sector become active partners in the upliftment of the welfare 
of rural communities and not just act as credit providers.
These amendments are critical 
in addressing the broader ecosystem 
requirements that can support viability and sustainability of rural agriculture financing.
In view of the foregoing, the passage of this bill is earnestly sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate Bill No. 1361
V^ -  
of ii)v ff>i'crrtarp
20 FEB 18 P3 ;06
REC[,l;-r'SV
Introduced by SENATOR SONNY ANGARA
AN ACT
MANDATING BANKING INSTITUTIONS TO STRENGTHEN THE FINANCING 
SYSTEM FOR AGRICULTURAL, FISHERIES, AND RURAL DEVELOPMENT IN  
THE PHILIPPINES AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
ARTICLE I
GENERAL PROVISIONS
1 
SECTION 1. Title. -  This Act shall be known as " The Rural Agricultural and
2 
Fisheries Financing Enhancement System Act.
3 
SEC. 2. Declaration o f Policy. -  It is hereby declared the policy of the State
4 
to promote inclusive and broad-based economic growth by ensuring equal access to
5 
opportunities under an environment of sustained growth and expanding productivity
6 
as the key to raising the quality of life for all. Towards this end, the State shall promote
7 
rural development by enhancing access of rural communities and agricultural and
8 
fisheries households to financial services and programs that increase productivity,
9 
enhance market efficiency, promote modernization and improve the welfare and
10 
economic prospects of beneficiaries in rural communities through active participation
11 
of banking institutions.
12 
SEC. 3. D efinition o f Terms. -  As used in this Act, the following terms shall
13 
mean:


1 
a. Agrarian Reform Beneficiary (A R B )-refers to a farmer who was granted
2 
land under Presidential Decree No. 27, the Comprehensive Agrarian Reform
3 
Law and Republic Act No. 9700 or the "Comprehensive Agrarian Reform
4 
Extension with Reforms" and a regular farm worker who is landless,
5 
irrespective of tenurial arrangement, who benefited from the redistribution of
6 
land, regardless of crops or fruits produced, to include the totality of factors
7 
and support services designed to lift the economic status of the beneficiary
8 
and all other alternative arrangements to the physical distribution of lands,
9 
such as production or profit sharing, labor administration, and the distribution
10 
of shares of stock which will allow the beneficiary to receive a just share of
11 
the fruits of the lands one works. The term shall also include registered
12 
agrarian reform beneficiaries' cooperatives, associations, and other farm
13 
groups, respectively endorsed as comprising of agrarian reform beneficiaries
14 
by the nearest office of the DAR, as well as ARB households.
15 
b. Agrarian Reform Com m unity (ARC) -  refers to a barangay or a cluster of
16 
barangays primarily composed and managed by agrarian reform beneficiaries
17 
who shall be willing to be organized and undertake the integrated
18 
development of an area and/or their organizations or cooperatives.
19 
c. Agri-Business -  refers to agriculture and fishery-related activities that put
20 
farmers, fisherfolk processors, distributors, and consumers within a system
21 
that produces, processes, transports, markets, and distributes agricultural and
22 
fishery products. 
It encompasses input production, farm and fishery
23 
operations and 
management, equipment and supplies manufacturing,
24 
food/non-food processing, trading, and retailing.
25 
d. Agri-Tourism  -  also referred to as "Farm Tourism" under Republic Act No.
26 
10816, refers to the practice of attracting visitors and tourists to farm areas
27 
for production, educational and recreational purposes. It involves any
28 
agricultural- or fishery-based operation or activity that brings to a duly-
29 
accredited farm tourism camp, visitors, tourists, farmers and fisherfolk who
30 
want to be educated and trained on farming and its related activities.
31 
e. A g ricultural Lessee -  refers to any person who, with or without help from
32 
his/her immediate farm household, cultivates the land owned by another for
33 
a certain price in money, in produce, or in both.


1 
f. A g ricultural o r Fisheries Household- refers to a household is considered
2 
to be an agricultural or fisheries household when at least one member of the
3 
household is a farmer, a fisherman, an agrarian reform beneficiary, a settler,
4 
an agricultural lessee, an amortizing owner, a farmworker, a fishworker, an
5 
owner-cultivator, a compact farmer, or a tenant farmer.
6 
g. A gricultural Value Chain (A VC) -  refers to a set of actors or players, such
7 
as 
producers 
(farmers, 
fisherfotks), 
traders, 
suppliers, 
processors,
8 
aggregators, who conduct linked sequence of value-adding activities involved
9 
in converting an agricultural product from its raw material to final form and
10 
bringing it to consumers.
11 
h. A gricultural Value Chain Financing (AVCF) -  refers to financing to an
12 
AVC following the identification and analysis of AVC and the design of
13 
appropriate financial products and services for actors or players that form part
14 
of the AVC.
15 
i. 
A gro-Industry 
M odernization 
C redit 
and 
Financing 
Program
16 
(AMCFP) -  refers to the umbrella credit or financing program of the
17 
government for the agriculture and fisheries sector created under Republic Act
18 
No. 8435.
19 
j. 
A m ortizing Owners -  refer to landowners who amortize payment for the
20 
land to a private individual or to the State.
21 
k. Compact Farmers -  refer to those farmers with adjoining farms operating
22 
as a single unit under one management, farm plan and budget.
23 
I. 
F a rm e r- refers to a natural person whose primary livelihood is cultivation of
24 
land or the production of agricultural crops, agroforest products, or livestock,
25 
either by oneself, or primarily with the assistance of their immediate farm
26 
household, whether the land is owned by them or by another person under a
27 
leasehold or share tenancy agreement or arrangement with the owner thereof.
28 
m. Farm w orker -  refers to a natural person who renders service for value as
29 
an employee or laborer in an agricultural enterprise or farm regardless of
30 
whether their compensation is paid on a daily, weekly, monthly or "pakyaw"
31 
basis. The term includes an individual whose work has ceased as a
32 
consequence of, or in connection with, a pending agrarian dispute who has
33 
not obtained a substantially equivalent and regular farm employment.


1 
n. Z:a/777er5, C oi?/7eraf/Ve5-refer to organizations composed primarily of small
2 
agricultural producers, farmers, farmworkers, or other agrarian reform
3 
beneficiaries who voluntarily organize themselves for the purpose of pooling
4 
land, manpower, technological, financial or other economic resources, and
5 
operate on the principle of one member, one vote. A juridical person may be
6 
a member o f a cooperative, with the same rights and duties as a natural
7 
person.
8 
0 . Farm er's and Fisherfolk's Organizations o r Associations -  refer to
9 
farmer's and fisherfolk's cooperatives, associations or corporations duly
10 
registered with appropriate government agencies and which are composed
11 
primarily of small agricultural producers, farmers, farmworkers, agrarian
12 
reform beneficiaries, fisherfolk who voluntarily join together to form business
13 
enterprises or non-business organizations which they themselves own, control
14 
and patronize.
15 
p. Farm -To-M arket R oad- refers to a road linking the agriculture and fisheries
16 
production sites, coastal landing point and post-harvest facility to the market
17 
and arterial road and highway.
18 
q. Financial Services -  refer to services extended by banks or financial
19 
institutions such as, but not limited to, credit or lending, deposits,
20 
rediscounting, and insurance.
21 
r. F ish e rfo lk- refers to people directly or personally and physically engaged in
22 
catching and/or culturing and processing fishery and/or aquatic resources.
23 
s. Fishw orker -  refers to a person whether or not regularly employed in
24 
commercial fishing and related industries, whose income is either from wages,
25 
profit sharing or stratified sharing basis, including those working in fish pens,
26 
fish corral or traps, fishponds, prawn farms, sea farms, salt beds, fish ports,
27 
fishing boat or trawlers, or fish processing and/or packing plants, but
28 
excluding administrators, security guards and overseers.
29 
t. 
Green Finance -  refers to financial services and products designed to
30 
promote the flow of finance towards green economic activities and projects.
31 
Aside from financing to promote climate change adaptation and mitigation,
32 
green finance also covers environmental 
improvement and efficiency
33 
improvement in natural capital preservation and resource mobilization.


1 
u. Micro, Small, and Medium Enterprise (M S M E )- refers to any business
2 
activity or enterprise defined as such under existing laws.
3 
V. Newly-Established Bank -  refers to a domestic or foreign bank without
4 
banking presence in the Philippines prior to the issuance of its certificate of
5 
authority to operate. It shall not include banks that have been formed through
6 
the acquisition, purchase of ownership of the voting stock of an existing
7 
domestic bank or the merger or consolidation of banks.
8 
w. O w ner-C ultivators -  refer to natural persons who own lands by purchase,
9 
inheritance, or land distribution by the State. Owner-Cultivators can operate
10 
the farm themselves, supervise wage labor or delegate operations to farmers.
11 
X. Philippine Crop Insurance Corporation (P C IC )- refers to a government-
12 
owned and 
-controlled corporation which provides insurance protection to
13 
the country's agricultural producers, particularly the subsistence farmers
14 
against crop losses arising from natural calamities such as typhoons, rising
15 
sea levels, floods, drought, earthquakes, volcanic eruptions, plant diseases
16 
and pest infestation, and non-crop agricultural asset losses due to perils for
17 
which the asset has been insured against.
18 
y. Post-Harvest A ctivities -  refer to threshing, drying, milling, grading,
19 
storing, and handling of produce and such other activities of a similar nature
20 
such as stripping, winnowing, chipping and washing.
21 
z. Post-Harvest Facilities -  refer to threshers, moisture meters, dryers,
22 
weighing scales, milling equipment, fish ports, fish landings, ice plants and
23 
cold storage facilities, processing plants, warehouses, buying stations, market
24 
infrastructure and transportation facilities, and such other facilities, supporting
25 
post-harvest activities.
26 
aa. Public R ural Infrastructure -  refers to infrastructure in rural communities
27 
such as highways, streets, bridges, tunnels, railways, railroad, transport
28 
systems, ports, airports, hydropower projects, canals, dams, irrigation,
29 
government buildings and housing projects, public schools, public hospitals,
30 
public health centers, public markets, slaughterhouses, warehouses, 
solid
31 
waste management, sewerage, flood control, 
drainage, dredging 
and other
32 
similar infrastructure projects.


1 
bb. R ural C om m unity- refers to areas that are defined as such by the Philippine
2 
Statistics Authority (PSA).
3 
cc. R ural Financial In s titu tio n  (R FI) -  refers to any financial institution
4 
established and is operating in a rural community.
5 
{^6..Settlers -  refer to persons who range from the forest-clearing pioneers,
6 
including indigenous people, with a subsistence economy to the better
7 
equipped and more experienced farmers.
8 
ee. Tenant F a rm e r- refers to one who cultivates another's land under a sharing
9 
or leasehold agreement.
10
11
ARTICLE I I
AGRICULTURAL FISHERIES AND RURAL FINANCING SYSTEM
12 
SEC. 4. Agriculture, Fisheries and Rural Financing System. -  There shall
13 
be an agricultural, fisheries and rural financing system to improve the welfare,
14 
competitiveness, income and productivity of the rural community beneficiaries,
15 
particularly the farmers, fisherfolk, agrarian reform beneficiaries, agrarian reform
16 
communities, 
settlers, 
agricultural 
lessees, 
amortizing 
owners, 
farmworkers,
17 
fishworkers, owner-cultivators, compact farmers, tenant farmers, and members o f
18 
their households and their MSMEs, as well as farmers' and fisherfolk's cooperatives,
19 
organizations and associations, through government and private banking institutions.
20 
Agricultural, fisheries and rural financing, as used herein, shall consist of loans,
21 
investments and grants to finance activities that shall enhance productivity and
22 
increase income of an agricultural and fisheries household, thereby promoting
23 
agricultural 
sector 
productivity and 
competitiveness, 
as well 
as 
sustainable
24 
development of rural communities. These shall include, but not be limited to, activities
25 
identified under the AMCFP as enumerated under Chapter 3 Section 23 of Republic
26 
Act No. 8435, off-farm/fishery activities, agricultural mechanization/modernization,
27 
agri-tourism, green finance projects, acquisition of lands authorized under the
28 
Agrarian Reform Code of the Philippines and its amendments, efficient and effective
29 
marketing, 
processing, 
distribution 
and 
storage 
of 
agricultural 
and 
fishery
30 
commodities, public rural infrastructure, as well as programs that shall address the
31 
developmental needs of rural communities, such as, but not limited to, projects that


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1
promote the livelihood, skills enhancement, and other capacity-building activities of 
the rural community beneficiaries and all other activities consistent or analogous to 
the foregoing, as may be determined by the Agricultural and Fisheries Finance and 
Capacity-Building Council (AFFCC).
SEC. 5. R ural Com munity Beneficiaries, -  The financing mentioned in the 
preceding section shall be extended to the rural community beneficiaries named 
therein or to cooperatives, associations, MSMEs or organizations in good standing of 
such beneficiaries, regardless of capitalization based on the feasibility of the project 
and their paying capacity, their estimated production, and/or securities they can 
provide as well as such assets as may be acquired by them from the proceeds of the 
loan, investments and grants.
SEC. 6. Credit Quota. -  All banking institutions, whether government or 
private, except newly-established banks for a period of five (5) years from date of 
commencement of the banks' operations, shail set aside a credit quota, or a minimum 
mandatory agricultural and fisheries financing requirement of at least twenty-five 
percent (25%) of their total loanable funds.
The total loanable funds generated by a banking institution shali be defined by 
the BSP. 
During the first year of effectivity of this Act, the total loanable funds 
generated shall be computed starting from 20 April 2010, the effectivity of Republic 
Act No. 10000, after which the bank's total loanable funds shall be determined based 
on funds generated starting from the second year of effectivity of this Act.
SEC. 7. Modes o f Compliance. -  Banks may comply with the mandatory 
credit requirement by lending to rural community beneficiaries, to finance agricultural 
and fishery-related activities identified under the AMCFP as enumerated under Chapter 
3 Section 23 of Republic Act No. 8435, off-farm/fishery activities, agricultural 
mechanization/modernization, agri-tourism, 
green finance projects, 
marketing, 
processing, distribution and storage of agricultural and fishery commodities, livelihood 
projects, skills enhancement or capacity-building programs.


1 
Banks may also comply with the mandatory financing requirement through
2 
other means as follows:
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a. Invest in debt securities, including those issued by the Development Bank of 
the Philippines (DBP) and the Land Bank of the Philippines (LBP): Provided, 
That the proceeds from said debt securities shall be used to finance activities 
under Section 4 hereof: Provided further, That the proceeds from debt 
securities issued by the DBP and the LBP shall be separately accounted for 
and shall not be considered for purposes of computing the loanable funds 
under Section 6 hereof of the said banks;
b. Open deposit accounts with rural financial institutions: Provided, That the 
deposit accounts shall be separately accounted for by the depository bank 
and shall not be considered for purposes of computing the loanable funds 
under Section 6 hereof of the said banks;
c. Rediscount with banks eligible paper covering agriculture, fisheries and 
agrarian reform credits: Provided, That rediscounted paper shall no longer 
be eligible as compliance on the part of the originating bank;
d. Invest directly in shares of stock of rural financial institutions, subject to 
prevailing laws, rules or regulations or lend wholesale to rural financial 
institutions: Provided, That the wholesale loans shall be credited as 
compliance of the bank acting as wholesale lender alone;
e. Lend for the construction and upgrading of infrastructure, including but not 
limited to, farm-to-market roads, as well as the provision of post-harvest 
facilities and other public RURAL infrastructure that will benefit the 
agriculture, fisheries and agrarian reform sector;
f. Lend to agri-business enterprises that maintain agricultural commodity 
supply-chain arrangements directly with rural community beneficiaries;
g. Undertake agricultural value chain financing to actors or players in the AVC 
that benefits rural communities; and
h. Invest in shares of stock of the PCIC or in companies that primarily engage 
in activities under Section 4 hereof that benefit rural community 
beneficiaries: Provided, That the loans and investments that are counted as 
compliance are not funded by proceeds from the issuance of debt securities,


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1
and/or lending of other banks that have been counted as compliance with 
the mandatory credit: Provided further, That loans to finance activities that 
shall generally benefit agrarian reform beneficiaries, agrarian reform 
communities, or other priority sectors, as may be determined by the AFFCC, 
shall be counted at not more than ten times (lOX) their outstanding amount, 
or as otherwise prescribed by the BSP, for purposes of determining 
compliance with the mandatory agricultural and fisheries financing 
requirement.
9 
SEC. 8. S ubject to Review. -  The modes of compliance enumerated in the
10 
preceding section shall be subject to review by the AFFCC after implementation to
11 
determine whether these are adequate to support the financing requirements of rural
12 
communities and recommend to Congress for appropriate action.
13 
SEC. 9. Annual Reports. -  The BSP shall furnish reports on the compliance
14 
with the mandatory agricultural and fisheries financing requirement to the Congress
15 
on a yearly basis. The BSP shall, as part of its regulatory functions, monitor the
16 
compliance by the banks with the requirements of this Act.
17 
SEC. 10. Penalty Clause. -  The BSP shall impose administrative sanctions
18 
and other penalties on the lending institutions for violation of any of the provisions of
19 
this Act. 
Penalties on non-compliance or under-compliance with the mandatory
20 
agricultural and fisheries financing requirement shall be computed at one-half of one
21 
percent (0.5%) of non-compliance or under-compliance, or at rates prescribed by the
22 
BSP Monetary Board. Upon collection of the penalties, the BSP shall remit the same to
23 
the AFFCC for deposit to the special fund created under Article III of this Act. Ten
24 
percent (10%) of the penalties collected shall be retained by the BSP to cover
25 
administrative expenses.
26 
ARTICLE I I I
27 
AGRIBUSINESS MANAGEMENT CAPACITY AND INSTITUTION-BUILDING
28 
FUND AND PROGRAM


1 
SEC. 11. Agribusiness M anagem ent Capacity and Institu tio n-B u ildin g
2 
Fund. -  There shall be created an Agribusiness Management Capacity And Institution-
3 
Building Fund (Special Fund) to finance:
4 
a. agricultural- and fishery-related activities as well as organizational-,
5 
capacity- and institution-building programs of cooperatives and other duly-
6 
registered organizations of rural agricultural and fisheries households; and
7 
b. educational grants, in the form of scholarship or research grants, to
8 
students of agriculture or agriculture-related degrees in both private and
9 
public higher education institutions: Provided, That the guidelines of the
10 
educational grants shall be formulated by the AAFFCC.
11 
The special fund shall be sufficient to ensure effective implementation of the
12 
aforementioned activities and programs. 
For this purpose, banks may comply with
13 
the mandatory credit requirement by providing contributions to the Special Fund.
14 
SEC. 12. Source o f Special Fund. -  The initial amount of the Special Fund
15 
shall at least be PIO billion and shall include penalties due from banks on their non-
16 
compliance or under-compliance with the mandatory Agri-Agra credit requirement
17 
under Republic Act No. 10000, collected after the effectivity of this Act, net of the ten
18 
(10) percent amount to be retained by the BSP.
19 
In case of a shortfall, the banks shall contribute a maximum amount of P2
20 
billion, which shall be chargeable against future penalties under this Act, and shall not
21 
be considered as a mode of compliance under Section 11 hereof.
22 
SEC 13. Fund Application fo r Capacity and In stitu tio n-B u ildin g
23 
Programs and A ctivities -  Banks, duly-registered training and capacity-building
24 
organizations, cooperatives and other duly-registered organizations of, or that support
25 
rural agricultural and fisheries households may apply with the AFFCC for funding for
26 
their capacity and institution-building programs and activities.
27 
ARTICLE IV
28 
AGRICULTURAL AND FISHERIES FINANCE AND CAPACITY-BUILDING
29 
COUNCIL (AFFCC)
10


1 
SEC. 14. A gricultural A nd Fisheries Finance and Capacity-Building
2 
Council(AFFCC). — There shall be created an Agricultural and Fisheries Finance and
3 
Capacity-Building Council (AFFCC) which shall be composed of the Heads, or their
4 
designated representatives, of the following agencies: the Department of Agriculture
5 
(DA), as Chair; the Bangko Sentral ng Pilipinas (BSP); the Department of Agrarian
6 
Reform (DAR); the Department of Trade and Industry (DTI); the Cooperative
7 
Development Authority (CDA); the Land Bank of the Philippines (LBP); the
8 
Development Bank of the Philippines (DBP); and nine (9) representatives from the
9 
private sector as members, one of whom shall be appointed as Vice-Chair. The private
10 
sector representatives shall include the heads, or their designated representatives, of:
11 
the Bankers Association of the Philippines (BAP), as Vice-Chair; the Rural Bankers
12 
Association of the Philippines (RBAP); the Chamber of Thrift Banks (CTB); the
13 
Cooperative Banks Federation of the Philippines (BANGKOOP); the Microfinance
14 
Council of the Philippines, Inc. (MCPI); the Philippine Chamber of Commerce and
15 
Industry (PCCI); and a representative each from the cooperative sector, the farmers,
16 
and the fisherfolk sector.
17 
SEC. 15. Powers, Duties and Functions o f the AFFCC. — The AFFCC shall
18 
have the following powers, duties, and functions:
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a. to set the target amount for the Special Fund to meet the organizational- 
and capacity-building requirements of cooperatives and other duly- 
registered organizations of rural agricultural and fisheries households over a 
period often (10) years;
b. to determine the annual requirement of the Special Fund;
c. to identify eligible recipients of the Special Fund;
d. to identify eligible agricultural- and fishery-related activities and capacity 
building programs that may be financed by the Special Fund;
e. to ensure the effective implementation and programs financed by the 
Special Fund and, for this purpose, to employ or outsource resources and 
expertise from the banking industry that can provide project coordination 
and fund management services;
11


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f. 
to periodically assess the adequacy of the fund capital in financing the 
capacity-building requirements of rural cooperatives and other duly- 
registered organizations of rural agricultural and fisheries households; and
g. to ensure compliance with the reporting, monitoring, evaluation and audit 
requirements of the Special Fund and activities financed.
6
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ARTICLE V
MISCELLANEOUS PROVISIONS
8 
SEC. 16. A u d it -  The Special Fund shall be audited by the Commission on
9 
Audit (COA) in accordance with existing auditing laws, rules and regulations.
10 
SEC. 17. O versight Committee. -  There shall be an oversight committee
11 
composed of the following: the Chairperson of the Committee on Banks and Financial
12 
Intermediaries of the Flouse of Representatives, Chairperson of the Committee on
13 
Banks, Financial Institutions and Currencies of the Senate, a representative from the
14 
Office of the President and a representative from the Commission on Audit (COA); to
15 
oversee the implementation of the provisions of this Act.
16 
SEC. 18. Sunset Provisions. -  The provisions related to the mandatory
17 
credit quota under Article II as well as the management and administration of the
18 
special fund under Article III shall cease to have effect, ten (10) years from approval
19 
of this Act.
20 
SEC. 19. Repealing Clause. -The provisions of Republic Act No. 10000,
21 
Executive Order No. 113, and any other laws, presidential decrees, executive orders,
22 
rules and regulations, or parts thereof inconsistent with the provisions of this Act are
23 
hereby repealed or modified accordingly.
24 
SEC. 20. Separability Clause. -  If any portion or provision of this Act is
25 
subsequently declared invalid or unconstitutional, other provisions hereof which are
26 
not affected thereby shall remain in full force and effect.
12


1 
SEC. 21. Transitory Provision. -  The BSP shall promulgate such rules and
2 
regulations as may be necessary to implement Articles I and II of this Act within ninety
3 
(90) days after effectivity of this Act. Prior to the effectivity of the implementing rules
4 
and regulations of Articles I and II of this Act, the provisions of Republic Act No. 10000
5 
shall remain in force.
6 
The BSP shall organize a Task Force which shall promulgate such rules and
7 
regulations as may be necessary to implement Articles III and IV of this Act within
8 
ninety (90) days after effectivity of this Act.
9 
SEC. 22. Effectivity. -  This Act shall take effect fifteen (15) days after its
10 
publication in the Official Gazette or in at least two (2) national newspapers of general
11 
circulation.
Approved,
13