EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SEN ATP
S. No. 1740
Introduced by Senator Grace Poe
FILED
TIME
ElLtG
AN ACT
MANDATING BANKING INSTITUTIONS TO STRENGTHEN THEIR 
RESPECTIVE FINANCING SYSTEMS FOR AGRICULTURAL, FISHERIES AND 
RURAL DEVELOPMENT IN THE PHILIPPINES
Explanatory Note
The Constitution envisions "a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free the people from poverty through 
policies that provide adequate social services, promote full employment, a rising 
standard of living, and an improved quality of life for all."1 It Is likewise a 
constitutionally enshrined policy of the State to "promote comprehensive rural 
development and agrarian reform."2
Rural development has the potential to drive economic growth. As published in 
the Journal of Philippine Development (Number 38, Volume XXI, Nos. 18i 2, First and 
Second Semesters 1994), Romeo M. Bautista, in his article entitled, "Dynamics of Rural 
Development: Analytical and Policy Issues":
"The "dynamics of rural development" represents a key element of the 
overall development process that can provide the basis for a self-sustaining 
and equitable economic growth. Rural development as such is not an end 
in itself but a means to an end. The same can be said of agricultural growth 
which almost necessarily is a precondition to rural development."
Indeed, rural agriculture and/or rural development are pre-conditions to "overall 
development process"towards a "self-sustaining and equitable economic growth".
In 2010, RA No. 10000, otherwise known as the "Agri-Agra Reform Credit Act", 
was enacted "to ensure the availability of more credit to farmers, fisherfolks and 
agrarian reform beneficiaries", among others.
Fast forward to 2020, no less than the Bangko Sentral ng Pilipinas (BSP) proposes 
the "overhaul" of RA No. 10000 "to strengthen rural development by providing fora 
holistic approach that addresses the root causes of the challenges faced by the
1 Section 9, Article 2,1987 Constitution.
2 Section 21, Article 2,1987 Constitution.


agricultural and fisheries sector and takes into account the broader agricultural 
financing ecosystem and rural community development requirements."
Geared to boost rural development and rural agricultural and fisheries financing, 
this legislative measure has three (3) main components:
First component refers to amendments that shall enable access of rural 
communities to private sector financing;
Secondcomponentrefexs to the creation of a special Agribusiness Management 
Capacity and Institution-Building Fund for purposes of financing agricultural-related 
activities as well as capacity and institution-building programs of rural cooperatives 
and other duly-registered organizations of rural and agricultural households to improve 
their viability and productivity; and
Third componentxe\dX.es to the establishment of the Agricultural and Fisheries 
Finance and Capacity-Building Council (AFFCC) which shall be responsible for the 
management of the special fund as well as the identification of eligible activities and 
programs to be financed by the said fund.
In view of the foregoing, the immediate enactment into law of this measure is 
hereby earnestly sought.
* n GRACE POE


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
)
)
S E N ATP 
S. No. 1740
Introduced by Senator Grace Poe
FLED
DATE
¥
blLLG
rTXTFX
AN ACT
MANDATING BANKING INSTITUTIONS TO STRENGTHEN THEIR 
RESPECTIVE FINANCING SYSTEMS FOR AGRICULTURAL, FISHERIES AND 
RURAL DEVELOPMENT IN THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
ARTICLE I
2 
GENERAL PROVISIONS
3 
Section 1. Short Title. - This Act shall be known as "The Rural Agricultural and
4 
Fisheries Financing Enhancement System Act"
5 
Sec. 2. Deciaration ofPoiicy. - It is hereby declared the policy of the State to
6 
promote inciusive and broad-based economic growth by ensuring equal access to
7 
opportunities under an environment of sustained growth and expanding productivity
8 
as the key to raising the quality of life for ali. Towards this end, the State shall promote
9 
rural development by enhancing access of rural communities and agricuitural and
10 
fisheries households to financial services and programs that increase productivity,
11 
enhance market efficiency, promote modernization and improve the welfare and
12 
economic prospects of beneficiaries in rural communities through active participation
13 
of banking institutions.
1


1 
Sec. 3. Definition of Terms. - As used in this Act, the following tenns shall mean:
2 
(A) Agrarian Reform Beneficiary (ARB) refers to a fanner who was granted land
3 
under Presidential Decree No. 27, the Comprehensive Agrarian Reform Law and
4 
Republic Act No. 9700 or the "Comprehensive Agrarian Reform Extension with
5 
Reforms" and a regular farm worker who is landless, irrespective of tenurial
6 
arrangement, who benefited from the redistribution of land, regardless of crops or
7 
fruits produced, to include the totality of factors and support services designed to lift
8 
the economic status of the beneficiary and all other alternative arrangements to the
9 
physical distribution of lands, such as production or profit sharing, labor
10 
administration, and the distribution of shares of stock which will allow the beneficiary
11 
to receive a just share of the fruits of the lands one works. The term shall also include
12 
registered agrarian reform beneficiaries' cooperatives/associations/otherfarm groups,
13 
respectively endorsed as comprising of agrarian reform beneficiaries by the nearest
14 
office of the DAR, as well as ARB households.
15 
(B) Agrarian Reform Community (ARC) refers to a barangay or a cluster of
16 
barangays primarily composed and managed by agrarian reform beneficiaries who
17 
shall be willing to be organized and undertake the integrated development of an area
18 
and/or their organizations/cooperatives.
19 
(C) Agri-Business refers to agriculture and fishery-related activities that put
20 
farmers, fisherfolk processors, distributors, and consumers within a system that
21 
produces, processes, transports, markets, and distributes agricultural and fishery
22 
products. It encompasses input production, farm and fishery operations and
23 
management, equipment and supplies manufacturing, food/non-food processing,
24 
trading, and retailing.


1 
(D) Agri-Tourism, also referred to as Farm Tourism under Republic Act No.
2 
10816, refers to the practice of attracting visitors and tourists to farm areas for
3 
production, educational and recreational purposes. It involves any agricultural- or
4 
fishery-based operation or activity that brings to a duly-accredited farm tourism camp,
5 
visitors, tourists, farmers and fisherfolk who want to be educated and trained on
6 
farming and its related activities.
7 
(E) Agricultural Lessee refers to any person who, with or without help from
8 
his/her immediate farm household, cultivates the land owned by another for a certain
9 
price in money, in produce, or in both.
10 
(F) Agricultural or Fisheries Household refers to a household with at least one
11 
member of the household is a farmer, a fisherman, an agrarian reform beneficiary, a
12 
settler, an agricultural lessee, an amortizing owner, a farmworker, a fishworker, an
13 
owner-cultivator, a compact farmer, ora tenant farmer.
14 
(G) Agricultural Value Chain (AVC) refers to a set of actors/players, such as
15 
producers (farmers, fisherfolks), traders, suppliers, processors, aggregators, who
16 
conduct linked sequence of value-adding activities involved in converting an
17 
agricultural product from Its raw material to final form and bringing it to consumers.
18 
Agricultural Value Chain Financing (A VCF)refers to financing to an AVC following
19 
the identification and analysis of AVC and the design of appropriate financial products
20 
and services for actors/ players that form part of the AVC.
21 
(H) Agro-Industry Modernization Credit and Financing Program (AMCFP) refers
22 
to the umbrella credit/financing program of the government for the agriculture and
23 
fisheries sector created under Republic Act No. 8435.
24 
(I) Amortizing Owners refer to landowners who amortize payment for the land
25 
to a private individual or to the State.


1 
(J) Compact Farmers refer to those farmers with adjoining farms operating as a
2 
single unit under one management, farm plan and budget.
3 
(K) Fa/merrefers to a natural person whose primary livelihood is cultivation of
4 
land or the production of agricultural crops, agroforest products, or livestock, either
5 
by oneself, or primarily with the assistance of their immediate farm household,
6 
whether the land is owned by them or by another person under a leasehold or share
7 
tenancy agreement or arrangement with the owner thereof.
8 
(L) Farmworkerrefers to a natural person who renders service for value as an
9 
employee or laborer in an agricultural enterprise or farm regardless of whether their
10 
compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The term includes
11 
an individual whose work has ceased as a consequence of, or in connection with, a
12 
pending agrarian dispute who has not obtained a substantially equivalent and regular
13 
farm employment.
14 
(M) Farmers' Cooperatives refer to organizations composed primarily of small
15 
agricultural producers, farmers, farmworkers, or other agrarian reform beneficiaries
16 
who voluntarily organize themselves for the purpose of pooling land, manpower,
17 
technological, financial or other economic resources, and operate on the principle of
18 
one member, one vote. A juridical person may be a member of a cooperative, with
19 
the same rights and duties as a natural person.
20 
(N) Farmer's and Fisherfolk's Organizations or Associations refer to farmer's and
21 
fisherfolk's cooperatives, associations or corporations duly registered with appropriate
22 
government agencies and which are composed primarily of small agricultural
23 
producers, farmers, farmworkers, agrarian reform beneficiaries, fisherfolk who
24 
voluntarily join together to form business enterprises or non-business organizations
25 
which they themselves own, control and patronize.
4


1 
(0) Fami-To-Market Road refers to a road linking the agriculture and fisheries
2 
production sites, coastal landing point and post-harvest facility to the market and
3 
arterial road and highway.
4 
(P) Financial Services refer to services extended by banks/financial institutions
5 
such as, but not limited to, credit/lending, deposits, rediscounting, and insurance.
6 
(Q) Fisherfoik refers to people directly or personally and physically engaged in
7 
catching and/or culturing and processing fishery and/or aquatic resources.
8 
(R) Fishworker refers to a person whether or not regulariy employed in
9 
commercial fishing and related industries, whose income is either from wages, profit
10 
sharing or stratified sharing basis, including those working in fishpens, fish
11 
corral/traps, fishponds, prawn farms, sea farms, salt beds, fish ports, fishing boat or
12 
trawlers, or fish processing and/or packing plants, but excluding administrators,
13 
security guards and overseers.
14 
(S) Green Finance refers to financial services and products designed to promote
15 
the flow of finance towards green economic activities and projects. Aside from
16 
financing to promote climate change adaptation and mitigation, green finance also
17 
covers environmental improvement and efficiency improvement in natural capital
18 
preservation and resource mobilization.
.19 
(T) Micro, Small And Medium Enterprise (MSME) refers to any business activity
20 
or enterprise defined as such under existing laws.
21 
(U) Newiy-Estabiished Bank refers to a domestic or foreign bank without banking
22 
presence in the Philippines prior to the issuance of its certificate of authority to
23 
operate. It shall not Include banks that have been formed through the acquisition,
24 
purchase of ownership of the voting stock of an existing domestic bank or the merger
25 
or consolidation of banks.


1
2
3
4
5
6 
7
(V) Owner-Cultivators refer to natural persons who own lands by purchase, 
inheritance, or land distribution by the State. Owner-Cultivators can operate the farm 
themselves, supervise wage labor or delegate operations to farmers.
(W) Philippine Crop Insurance Corporation (PCIC) refers to a government-owned 
and -controlled corporation which provides insurance protection to the country's 
agricultural producers, particularly the subsistence farmers against crop losses arising 
from natural calamities such as typhoons, rising sea levels, floods, drought,
8 
earthquakes, volcanic eruptions, plant diseases and pest infestation, and non-crop
9 
agricultural asset losses due to perils for which the asset has been insured against.
10 
(X) Post-Harvest Activities refer to threshing, drying, milling, grading, storing,
11 
and handling of produce and such other activities of a similar nature such as stripping,
12 
winnowing, chipping and washing.
13 
(Y) Post-Harvest Facilities refer to threshers, moisture meters, dryers, weighing
14 
scales, milling equipment, fish ports, fish landings. Ice plants and cold storage facilities,
15 
processing plants, warehouses, buying stations, market Infrastructure and
16 
transportation facilities, and such other facilities, supporting post-harvest activities.
17 
(Z) Public Rural Infrastructure refers to infrastructure in rural communities such
18 
as highways, streets, bridges, tunnels, railways, railroad, transport systems, ports,
19 
airports, hydropower projects, canals, dams, irrigation, government buildings and
20 
housing projects, public schools, public hospitals, public health centers, public
21 
markets, slaughterhouses, warehouses, solid waste management, sewerage, flood
22 
control, drainage, dredging and other similar infrastructure projects.
23 
(AA) Rural Community refers to areas that are defined as such by the Philippine
24 Statistics Authority (PSA).


1 
(BB) Rural Financial Institution (RFI) refers to any financial institution established
2 
and is operating in a rural community.
3 
(CC) Settlers refer to persons who range from the forest-clearing pioneers,
4 
including indigenous people, with a subsistence economy to the better equipped and
5 
more experienced farmers.
6 
(DD) Tenant Farmer refers to one who cultivates another's land under a sharing
7 
or leasehold agreement.
8 
ARTICLE II
9 
AGRICULTURAL FISHERIES AND RURAL FINANCING SYSTEM
10 
Sec. 4. Agriculture, Fisheries and Rural Financing System. - There shall be an
11 
agricultural, fisheries and rural financing system to improve the welfare,
12 
competitiveness, income and productivity of the rural community beneficiaries,
13 
particularly the farmers, fisherfolk, agrarian reform beneficiaries, agrarian reform
14 
communities, settlers, agricultural lessees, amortizing owners, farmworkers,
15 
fishworkers, owner-cultivators, compact farmers, tenant farmers, and members of
16 
their households and their MSMEs, as well as farmers' and fisherfolk's cooperatives,
17 
organizations and associations, through government and private banking institutions.
18 
Agricultural, fisheries and rural financing, as used herein, shall consist of loans,
19 
investments and grants to finance activities that shall enhance productivity and
20 
increase income of an agricultural and fisheries household, thereby promoting
21 
agricultural sector productivity and competitiveness, as well as sustainable
22 
development of rural communities. These shall include, but not be limited to, activities
23 
identified under the AMCFP as enumerated under Chapter 3 Section 23 of Republic
24 
Act No. 8435, off-farm/fishery activities, agricultural mechanization/ modernization,
25 
agri-tourism, green finance projects, acquisition of lands authorized under the
7


1 
Agrarian Reform Code of the Philippines and its amendments, efficient and effective
2 
marketing, processing, distribution and storage of agricultural and fishery
3 
commodities, public rural infrastructure, as well as programs that shall address the
4 
developmental needs of rural communities, such as, but not limited to, projects that
5 
promote the livelihood, skills enhancement, and other capacity-building activities of
6 
the rural community beneficiaries and all other activities consistent or analogous to
7 
the foregoing, as may be determined by the Agricultural and Fisheries Finance and
8 
Capacity-Building Council (AFFCC).
9 
Sec. 5. Rural Community Beneficiaries. - The financing mentioned in the
10 
preceding section shall be extended to the rural community beneficiaries named
11 
therein or to cooperatives, associations, MSMEs or organizations in good standing of
12 
such beneficiaries, regardless of capitalization based on the feasibility of the project
13 
and their paying capacity, their estimated production, and/or securities they can
14 
provide as well as such assets as may be acquired by them from the proceeds of the
15 
loan. Investments and grants.
16 
Sec. 6. Credit Quota. - All banking Institutions, whether government or private,
17 
except newly-established banks for a period of five (5) years from date of
18 
commencement of the banks'operations, shall setaside a credit quota, ora minimum
19 
mandatory agricultural and fisheries financing requirement of at least twenty-five
20 
percent (25%) of their total loanable funds.
21 
The total loanable funds generated by a banking institution shall be defined by
22 
the BSP. During the first year of effectivity of this Act, the total loanable funds
23 
generated shall be computed starting from 20 April 2010, the effectivity of Republic
24 
Act No. 10000, after which the bank's total loanable funds shall be determined based
25 
on funds generated starting from the second year of effectivity of this Act.
8


1 
Sec. 7. Modes of Compliance. Banks may comply with the mandatory credit
2 
requirement by lending to rural community beneficiaries, to finance agricultural and
3 
fishery-related activities identified under the AMCFP as enumerated under Chapter 3
4 
Section 23 of Republic Act No. 8435, off-farm/fishery activities, agricultural
5 
mechanization/modemization, agri-tourism, green finance projects, marketing,
6 
processing, distribution and storage of agricultural and fishery commodities, livelihood
7 
projects, skills enhancement or capacity-building programs.
8 
Banks may also comply with the mandatory financing requirement through other
9 
means as follows:
10 
(a) Invest in debt securities, including those issued by the Development Bank of
11 
the Philippines (DBP) and the Land Bank of the Philippines (LBP): Provided,
12 
That the proceeds from said debt securities shall be used to finance activities
13 
under Section 4 hereof: Provided, further. That the proceeds from debt
14 
securities issued by the DBP and the LBP shali be separately accounted for
15 
and shall not be considered for purposes of computing the loanable funds
16 
under Section 6 hereof of the said banks;
17 
(b)Open deposit accounts with rural financial institutions: Provided, That the
18 
deposit accounts shall be separately accounted for by the depository bank
19 
and shall not be considered for purposes of computing the loanable funds
20 
under Section 6 hereof of the said banks;
21 
(c) Rediscount with banks eligible paper covering agriculture, fisheries and
22 
agrarian reform credits: Provided, That rediscounted papershall no longer be
23 
eligible as compliance on the part of the originating bank;
24 
(d) Invest directly in shares of stock of rural financial institutions, subject to
25 
prevailing laws, rules or regulations or lend wholesale to rural financial
9


1 
institutions: Provided, That the wholesale loans shall be credited as
2 
compliance of the bank acting as wholesale lender alone;
3 
(e) Lend for the construction and upgrading of infrastructure, including but not
4 
limited to, farm-to-market roads, as well as the provision of post-harvest
5 
facilities and other public RURAL infrastructure that will benefit the
6 
agriculture, fisheries and agrarian reform sector;
7 
(f) Lend to agri-business enterprises that maintain agricultural commodity
8 
supply-chain arrangements directly with rural community beneficiaries;
9 
(g) Undertake agricultural value chain financing to actors/ players in the AVC that
10 
benefits rural communities; and
11 
(h) Invest in shares of stock of the PCIC or in companies that primarily engage
12 
in activities under Section 4 hereof that benefit rural community beneficiaries:
13 
Provided That, the loans and investments that are counted as compliance are
14 
not funded by proceeds from the issuance of debt securities, and/or lending of other
15 
banks that have been counted as compliance with the mandatory credit: Provided
16 
Further, that loans to finance activities that shall generally benefit agrarian reform
17 
beneficiaries, agrarian reform communities, or other priority sectors, as may be
18 
determined by the AFFCC, shall be counted at not more than ten times (lOX) their
19 
outstanding amount, or as othen/vise prescribed by the BSP, for purposes of
20 
determining compliance with the mandatory agricultural and fisheries financing
21 
requirement.
22 
The above-enumerated modes of compliance shall be subject to review by the
23 
AFFCC after implementation to determine whether these are adequate to support the
24 
financing requirements of rural communities and recommend to Congress for
25 
appropriate action.
10


1
2
3
4
5
6 
7
Sec. 8. Annua! Reports. - The BSP shall furnish reports on the compliance with 
the mandatory agricultural and fisheries financing requirement to the Congress on a 
yearly basis. The BSP shall, as part of its regulatory functions, monitor the compliance 
by the banks with the requirements of this Act.
Sec. 9. Penalty Clause. - The BSP shall impose administrative sanctions and other 
penalties on the lending institutions for violation of any of the provisions of this Act 
Penalties on non-compliance or under-compliance with the mandatory agricultural and
8 
fisheries financing requirement shall be computed at one-half of one percent (0.5%)
9 
of non-compliance or under-compliance, or at rates prescribed by the BSP Monetary
10 
Board. Upon collection of the penalties, the BSP shall remit the same to the AFFCC for
11 
deposit to the special fund created under Article III of this Act. Ten percent (10%) of
12 
the penalties collected shall be retained by the BSP to cover administrative expenses.
13 
ARTICLE III
14 
AGRIBUSINESS MANAGEMENT CAPACITY AND INSTITUTION-BUILDING FUND AND
15 
PROGRAM
16 
Sec. 10. There shall be created an Agribusiness Management Capacity And
17 
Institution-Building Fund (Special Fund) to finance agricultural- and fishery-related
18 
activities as well as organizational-, capacity- and institution-building programs of
19 
cooperatives and other duly-registered organizations of rural agricultural and fisheries
20 
households. The special fund shall be sufficient to ensure effective implementation of
21 
the aforementioned activities and programs. For this purpose, banks may comply with
22 
the mandatory credit requirement by providing contributions to the Special Fund.
23 
Sec. 11. The initial amount of the Special Fund shall at least be PIO billion and
24 
shall include penalties due from banks on their non-compliance or under-compliance
25 
with the mandatory Agri-Agra credit requirement under Republic Act No. 10000,
11


1
2
3
4
5
6 
7
10
11
12
collected after the effectivity of this Act, net of the ten (10) percent amount to be 
retained by the BSP. In case of a shortfail, the banks shali contribute a maximum 
amount of P2 biilion, which shall be chargeable against future penalties under this Act; 
and shall not be considered as a mode of compliance under Section 11 hereof.
Sec. 12. Banks, duly-registered training and capacity-building organizations, 
cooperatives and other duly-registered organizations of, or that support rural 
agricultural and fisheries households may apply with the AFFCC for funding for their
8 capacity and institution-building programs and activities.
ARTICLE IV
AGRICULTURAL AND FISHERIES 
FINANCE AND CAPACITY-BUILDING COUNCIL (AFFCC)
Sec. 13. Agricultural and Fisheries Finance and Capacity-Building Council
13 
(AFFCC). — There shall be created an Agricultural and Fisheries Finance and Capacity-
14 
Building Council (AFFCC) which shall be composed of the Heads, or their designated
15 
representatives, of the following agencies: the Department of Agriculture (DA), as
16 
Chair; the Bangko Sentral ng Pilipinas (BSP); the Department of Agrarian Reform
17 
(DAR); the Department of Trade and Industry (DTI); the Cooperative Development
18 
Authority (CDA); the Land Bank of the Philippines (LBP); the Development Bank of the
19 
Philippines (DBP); and nine (9) representatives from the private sector as members,
20 
one of whom shall be appointed as Vice-Chair. The private sector representatives
21 
shall include the heads, or their designated representatives, of: the Bankers
22 
Association of the Philippines (BAP), as Vice-Chair; the Rural Bankers Association of
23 
the Philippines (RBAP); the Chamber of Thrift Banks (CTB); the Cooperative Banks
24 
Federation of the Philippines (BANGKOOP); the Microfinance Council of the Philippines,
25 
Inc. (MCPI); the Philippine Chamber of Commerce and Industry (PCCI); and a
12


1 
representative each from the cooperative sector, the farmers, and the fisherfok
2 
sector.
3 
Sec. 14. Powers, Duties and Functions of the AFFCC — The AFFCC shall have
4 
the following powers, duties, and functions:
5 
(a) to set the target amount for the Special Fund to meet the organizational- and
6 
capacity-building requirements of cooperatives and other duly-registered
7 
organizations of rural agricultural and fisheries households over a period of
8 
ten (10) years;
9 
(b)to determine the annual requirement of the Special Fund;
10 
(c) to identify eligible recipients of the Special Fund;
11 
(d)to identify eligible agricultural- and fishery-related activities and capacity
12 
building programs that may be financed by the Special Fund;
13 
(e) to ensure the effective implementation and programs financed by the Special
14 
Fund and, for this purpose, to employ or outsource resources and expertise
15 
from the banking industry that can provide project coordination and fund
16 
management services;
17 
(f) to periodically assess the adequacy of the fund capital in financing the
18 
capacity-building requirements of rural cooperatives and other duly-
19 
registered organizations of rural agricultural and fisheries households; and
20 
(g) to ensure compliance with the reporting, monitoring, evaluation and audit
21 
requirements of the Special Fund and activities financed.
22 
ARTICLE V
23 
MISCELLANEOUS PROVISIONS
24 
Sec. 15. Audit. - The Special Fund shall be audited by the Commission on Audit
25 
(COA) in accordance with existing auditing laws, rules and regulations.
13


1 
Sec. 16. Oversight Committee. - There shall be an oversight committee
2 
composed of the following: the Chairperson of the Committee on Banks and Financial
3 
Intermediaries of the House of Representatives, Chairperson of the Committee on
4 
Banks, Financial Institutions and Currencies of the Senate, a representative from the
5 
Office of the President and a representative from the Commission on Audit (COA); to
6 
oversee the implementation of the provisions of this Act.
7 
Sec. 17. Sunset Provisions. The provisions related to the mandatory credit quota
8 
under Article II as well as the management and administration of the special fund
9 
under Article III shall cease to have effect, ten (10) years from approval of this Act.
10 
Sec. 18. Repeaiing Ciause. -The provisions of Republic Act No. 10000, Executive
11 
Order No. 113 and any other laws, presidential decrees, executive orders, rules and
12 
regulations, or parts thereof inconsistent with the provisions of this Act are hereby
13 
repealed or modified accordingly.
14 
Sec. 19. Separabiiity Ciause. - If any part, section or provision of this Act is held
15 
invalid or unconstitutional, other provisions not affected thereby shall remain in force
16 
and effect.
17 
Sec. 20. Transitory Provision. - The BSP shall promulgate such rules and
18 
regulations as may be necessary to implement Articles I and II of this Act within ninety
19 
(90) days after effectivity of this Act. Prior to the effectivity of the implementing ruies
20 
and regulations of Articles I and II of this Act, the provisions of Republic Act No. 10000
21 
shall remain in force.
22 
The BSP shall organize a Task Force which shall promulgate such rules and
23 
regulations as may be necessary to implement Articles III and IV of this Act within
24 
ninety (90) days after effectivity of this Act.
14


1 
Sec. 21. EffectMty. - This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
15