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.

[ REPUBLIC ACT NO. 2702, June 18, 1960 ]

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 Philippines in 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 snares 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.

SEC. 2. This Act shall take effect upon its approval.

Approved, June 18, 1960.