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 RA. 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

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

1. Date of purchase

Only bonds and other debt securities purchased 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 and / or International Securities Identification Number (ISIN).

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 and/ or International Securities Identification Number (ISIN).

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.

HOW TO APPLY AND DOCUMENTARY REQUIREMENTS

  1. Submission of application and documentary requirements

The bond or debt security issuer(or its authorized agent as may be applicable) applicant should send a letter of application:


 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: oed@acpc.gov.ph

Together with a letter of application, the bond or debt security issuer(or through its authorized agent as may be applicable) 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; 

(v) Letter of endorsement from the Department of Finance and / or National Economic and Development Authority, or from other appropriate government agency, for government-issued or with sovereign guarantee bond/ debt security;

(vi) Original and / or certified true copy of a receipt or transaction acknowledgement for the purchase of bond / debt security;

(vii) Report on the purchase and / or trading of a bond / debt security; and

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

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);  farmers’ or fisherfolks’ association with Department of Labor and Employment (DOLE); etc;

2. Has a lending business and at least 1 year in operation as evidence by the minutes of meeting conducted for the inclusive periods as of the date of application for accreditation; 

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%; Provide further that, only the actual amount using bank’s investment used for agri-agra activities / projects shall be eligible as compliance by the bank.

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

HOW TO APPLY AND DOCUMENTARY REQUIREMENTS

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


 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: oed@acpc.gov.ph

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, DOLE 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 under Section 10;

(v) Accomplished information sheet for NBRFI (Annex A); 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 after 20 April 2010)

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

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

2. Commercial Paper: SL Agritech Corporation Commercial Paper

Issuer:  SL-Agritech Corporation

Eligibility: 15% Agri

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

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

Name of Organization

Address

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

26. Pandan Multi-Purpose Cooperative

Centro Norte, Pandan, Antique

27. Basak-Layog Agricultural Multi-purpose Cooperative

Municipal Tenement, Roxas Street, Poblacion, Tabango, Leyte

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