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Act
Approved June 18, 1960

Republic Act No. 2702

An act appropriating yearly seven million pesos from the net profits of the central bank paid into the general fund of the government to form part of the revolving rural banks trust fund

An Act Appropriating Yearly Seven Million Pesos from the Net Profits of the Central Bank Paid into the General Fund of the Government to Form Part of the Revolving Rural Banks Trust Fund

In plain language

The act appropriates 7 million pesos yearly from the Central Bank’s net profits into the General Fund to form part of the Revolving Rural Banks Trust Fund, providing funding for the Development Bank of the Philippines to subscribe to rural banks and grant loans, with priority for newly organized rural banks.

  • Appropriation of 7 million pesos yearly from Central Bank net profits
  • Creation of a revolving fund for the Development Bank of the Philippines
  • Use of fund to subscribe to preferred shares of rural banks and grant loans
  • Priority to newly organized rural banks
  • Act takes effect upon approval
Appropriation
Rural Banks
Central Bank
Government Funding
Philippines

REPUBLIC ACT No. 2702

An Act Appropriating Yearly Seven Million Pesos from the Net Profits of the Central Bank Paid into the General Fund of the Government to Form Part of the Revolving Rural Banks Trust Fund

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1

For the purpose of carrying out the objectives of Rural Banks Act (Republic Act Numbered Seven hundred twenty, as amended), which is to promote and expand the rural economy in an orderly and effective manner by the establishment of a system of rural banks which will place within easy reach and access of the people credit facilities on reasonable terms, the sum of seven million pesos is hereby appropriated yearly from the net profits of the Central Bank paid into the General Fund of the Government under Section forty-one (d) of the Central Bank Act (Republic Act Numbered Two hundred sixty-five), which sum together with the payments to the Rural Banks Trust Fund from the "Counterpart Fund" and "Special Accounts" authorized under Republic Act Numbered Six hundred and four, including the interest which will accrue thereon, shall constitute a revolving fund to be made available to the Development Bank of the Philippines to be used for the purpose of subscribing to preferred shares of stock of rural banks and of granting loans to such banks under Sections seven and twelve, respectively, of the Rural Banks Act (Republic Act Numbered Seven hundred twenty, as amended): Provided, However, That, in the grant or disposition of the government capital assistance, priority shall be given to newly organized rural banks.

Section 2

This Act shall take effect upon its approval.

Approved: June 18, 1960.

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.