Republic Act No. 10000: Providing Agricultural and Agrarian Reform Credit

RA 10000 aims in providing agriculture, fisheries and agrarian reform credit, insurance and financing system to improve the productivity of the agriculture and fisheries sectors.

The Act consists of loans to support activities and purposes pertaining to agriculture as stipulated under the Agriculture and Fisheries Modernization Act (AFMA) and the Agrarian Reform Code of the Philippines.

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Certification Of Eligibility Of Bonds And Other Debt Securities And Accreditation Of Non-Bank Rural Financial Institutions Under R.A. 10000

  • The Agricultural Credit Policy Council (ACPC) is the duly authorized agency of the Department of Agriculture (as per DA Special Order 605) in the certification of eligibility of bonds and other debt securities, and accreditation of non-bank rural financial institutions under RA 10000 (Agri-Agra Reform Credit Act of 2009) and its IRR;
  • Investment in these bonds/debt securities, and investment in preferred shares of stock or wholesale lending to non-bank rural financial institutions by banks can be used as alternative modes of compliance under RA 10000;
  • The eligible instruments and non-bank RFIs shall be issued with corresponding accreditation reference number (ARN) by the ACPC.
Criteria for Bonds and Other Debt Securities

A. Eligibility Criteria for Bonds and other Debt Securities

The following criteria shall be applied in determining the eligibility of bonds and other debt securities as alternative compliance:

1. Date of issuance

Only bonds and other debt securities issued after 20 April 2010 are eligible.

2. Authenticity

Any public bond issued by Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LBP) must bear a unique reference identification number.

In the case of debt securities issued by the National Government or by the Bureau of the Treasury (BTr), i.e. Treasury bills and Treasury bonds, the instrument must bear International Securities Identification Number (ISIN).

Other debt securities issued by the private sector, registered with the Securities and Exchange Commission (SEC), and bear a unique reference identification number.

3. Eligible use/Purpose of proceeds of a bond or a debt security

Proceeds of a bond or a debt security used by banks for compliance to the law must be used solely for on-lending to the agriculture and agrarian reform sector in the case of DBP or LBP issued bonds; and for financing agriculture-related activities and purposes identified under Section 23 of R.A. No. 8435 (Agriculture and Fisheries Modernization Act of 1997) in the case of other debt securities.

B. How To Apply and Documentary Requirements

The bond or debt security issuer applicant should send a letter of application to:

Jocelyn Alma R. Badiola
 Executive Director
 Agricultural Credit Policy Council
 28F One San Miguel Ave. (OSMA) Bldg., San Miguel Ave.
 corner Shaw Blvd., Ortigas Center, Pasig City 1605
 Tel. (632) 634-3320 to 21/ Fax (632) 634-3319
 Email: [email protected]

 

Together with a letter of application, the bond or debt security issuer is required to submit the following documents, as applicable:

(i) Certified true copy of bond or debt security certificate with issuance date and reference identification number or International Securities Identification Number (ISIN);

(ii) Certified true copy of certificate of security registration or exemption from security registration from SEC;

(iii) Certification from the bond or debt security issuer detailing the issuance date, maturity date, serial number, face amount, outstanding balance, name of bond holder, etc.;

(iv) Certification from the bond or debt security issuer as to the nature and purpose of the debt security (if not stated in the bond certificate) duly signed by its President, or officer of equivalent rank, or authorized signatory; and

(v) Other pertinent documents as may be required by the ACPC.

Criteria for Non-Bank Rural Financial Institutions

A. Accreditation Criteria for Non-Bank Rural Financial Institutions.

For NBRFIs (e.g. cooperatives, farmers associations, non-government organizations (NGOs), ARB associations, people’s organizations (POs), corporations, and other similar entities as may be determined by ACPC), the following minimum criteria shall be applied in accrediting an NBRFI:

1. Registered with the proper government authority. In particular, cooperatives must be registered with the Cooperative Development Authority (CDA); NGOs, SMEs and corporations with the Securities and Exchange Commission (SEC); etc;

2. Has a lending business and at least 1 year in operation prior to the submission of request for accreditation as evidenced by the minutes of meetings conducted for the said period;

3. The NBRFI is allowed by existing laws to issue preferred shares of stock (e.g. stock entities registered with SEC) in the case of investee NBRFI, provided that, minimum loan portfolio of said NBRFI using investments by a bank in preferred shares shall be 10%;

Item 3 can be stated in a Memorandum of Agreement between the lending bank and the NBRFI.

B. How to Apply and Documentary Requirements

An NBRFI should send a letter of request for accreditation to:

Jocelyn Alma R. Badiola
 Executive Director
 Agricultural Credit Policy Council
 28F One San Miguel Ave. (OSMA) Bldg., San Miguel Ave.
 corner Shaw Blvd., Ortigas Center, Pasig City 1605
 Tel. (632) 634-3320 to 21/ Fax (632) 634-3319
 Email: [email protected]

 

The NBRFI must submit the following documents together with the letter stating its intent to apply for accreditation:

(i) Certified true copy of registration papers from CDA, SEC or other government registering body, and other document/s showing proof of legal personality such as Articles of Incorporation and By-Laws;

(ii) Minutes of Board meetings held within one (1) year prior to the submission of request for accreditation;

(iii) Business plan for the next 3-5 years;

(iv) Notarized certificate of commitment of NBRFI to invest/relend banks’ investments/
wholesale fund to agri-agra or Memorandum of Agreement between the lending bank and the NBRFI stating conditions, as may be applicable;

(v) Accomplished information sheet for NBRFI; and

(vi) Other pertinent documents as may be required by ACPC.

Eligible Bonds and Other Debt Securities

Republic Act No. 10000
BONDS AND OTHER DEBT SECURITIES
ELIGIBLE FOR ALTERNATIVE COMPLIANCE

1. Bond: Agrarian Reform 10-Year Bond (Those issued after 20 April 2010)

Issuer: Republic of the Philippines / Land Bank of the Philippines

Eligibility: 10% Agra (and/or 15% Agri)

For Inquiries regarding Agrarian Reform 10-Year Bonds, you may contact Land Bank of the Philippines at telephone number (02)405-7197

2. Bond: SL-Agritech Short-Term Commercial Paper (STCP)

Issuer: SL Agritech Corporation

Eligibility: 15% Agriculture

For inquiries regarding SL-Agritech’s STCP, you may contact SL-Agritech Corporation at telephone number (02)813-7828 local 532-533

 

Accredited Non-Bank Rural Financial Institutions

Republic Act No. 10000
ACCREDITED NON-BANK RURAL FINANCIAL INSTITUTIONS

Name of Organization:
1. Gata Daku Multi-Purpose Cooperative
Address:
Gata Daku, Clarin, Misamis Occidental
Name of Organization:
2. Tago Agro-Industrial Development Cooperative (TAGINDECO)
Address:
Pimentel St., Purisima, Tago, Surigao del Sur
Name of Organization:
3. Lagawe Multi-Purpose Development Cooperative (LMDC)
Address:
JP Rizal Ave, Dullagan, Poblacion West, Lagawe, Ifugao
Name of Organization:
4. Lumad sa Adgawan Farmers Multi-Purpose Cooperative (LAMPUFACO)
Address:
Purok 3, Poblacion, La Paz Agusan del Sur
Name of Organization:
5. Tam-An Multi-Purpose Cooperative
Address:
Gaddang St., Poblacion South, Solano, Nueva Vizcaya
Name of Organization:
6. Southern Iloilo Area Multi-Purpose Cooperative (SIAMPC)
Address:
B.O.T Building Bonifacio Street, Oton, Iloilo
Name of Organization:
7. Diffun Saranay and Development Cooperative (DISADECO)
Address:
National Highway, Andres Bonifacio, Diffun, Quirino
Name of Organization:
8. Ilocandia Seed Growers Multi-Purpose Cooperative
Address:
E. Rimando St., Ortiz, Naguilian, La Union
Name of Organization:
9. Roxas Hybrid Seed Growers Multi-Purpose Cooperative
Address:
Bantug, Roxas, Isabela
Name of Organization:
10. Bukang Liwayway Multi-Purpose Cooperative
Address:
Brgy. Ibud, Sablayan, Mindoro Occidental
Name of Organization:
11. Farmers Alternative for Self-Reliance Multi-Purpose Cooperative
Address:
Purok 5, San Vicente, Prosperidad, Agusan del Sur
Name of Organization:
12. Sentrong Ugnayan ng Mamamayang Pilipino Multi-Purpose Cooperative (SUMAPI-MPC)
Address:
#0216 Brgy. Calios, Sta. Cruz, Laguna
Name of Organization:
13. Kaagap Multi-Purpose Cooperative (KAAGAPMUCO)
Address:
Purok 4, Hubang, San Francisco, Agusan del Sur
Name of Organization:
14. Malapatan Multi-Purpose Cooperative
Address:
Poblacion, Malapatan, Sarangani
Name of Organization:
15. Kasibu Farmers Development Cooperative
Address:
Purok 4, Poblacion, Kasibu, Nueva Vizcaya
Name of Organization:
16. Cebu People’s Multi-Purpose Cooperative
Address:
50 C. Padilla Street, and T. Abella Sts., Cebu City-South, Cebu
Name of Organization:
17. Talisay Primary Multi-Purpose Cooperative
Address:
Brgy. Talisay, Matag-ob, Leyte
Name of Organization:
18. Ang Paglaum Multi-Purpose Cooperative
Address:
Carlos Hilado Memorial State College Compound, Talisay City, Negros Occidental
Name of Organization:
19. Diadi OFW Multi-Purpose Cooperative
Address:
Poblacion, Diadi, Nueva Vizcaya
Name of Organization:
20. Alima Multipurpose Cooperative
Address:
F. Murillo St., Poblacion, Compostela, Cebu
Name of Organization:
21. Nararagan Valley Multi-Puropose Cooperative
Address:
Nararagan, Ballesteros, Cagayan
Name of Organization:
22. Nueva Vizcaya Farmers and Livestock
Address:
San Fernando Road, Calaocan, Bambang, Nueva Vizcaya
Name of Organization:
23. Vizcaya Savings and Credit Cooperative
Address:
Bintawan Norte, Villaverde, Nueva Vizcaya

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