Section 8Sec./Art. 8

Nature and Capitalization of the Trust Fund. - The Coconut Farmers and Industry Trust Fund is separate and distinct from the regular funds appropriated to the PCA through the annual General Appropriations Act (GAA). As such, the PCA shall continue to pursue its mandate of implementing programs and projects from the regular GAA appropriations and from funds under the Trust Fund.

The proceeds from the redemption of the Converted SMC Series 1 Preferred Shares, dividends declared, paid, or issued on the Converted SMC Series 1 Preferred Shares, and all income or interest derived therefrom as the effectivity of this Act, and any other cash Coconut Levy Asset, that are held by the BTr as a special account in the general fund and as an escrow account, and cash held by UCPB as administrator of the CIIF, shall form part of the initial Trust Fund Principal of the Trust Fund.

Immediately upon the enactment of this Act, the BTr shall transfer Ten billion pesos (P10,000,000,000.00) to the Trust Fund, and for the succeeding years, according to the following schedule:

Second year, Ten billion pesos (P10,000,000,000.00);

Third year, Fifteen billion pesos (P15,000,000,000.00);

Fourth year, Fifteen billion pesos (P15,000,000,000.00);

On the Fifth year, Twenty-five billion pesos (P25,000,000,000.00); and any amount accruing, including interest, in the special account in the general fund to the Trust Fund.

The Trust Fund shall thereafter be augmented with all proceeds of privatization or disposition of the Coconut Levy Assets remitted directly by the BTr, Privatization and Management Office (PMO), or other DDE in accordance with this Act, including any and all forms of income, interests, earnings, yields, or any monetary benefit derived prior to the privatization or disposition of any Coconut Levy Assets, and any and all forms of income, interests, earnings, yields, or any monetary benefit derived from retained Coconut Levy Assets.

All Coconut Levy Assets in the name of the Philippine Government shall be sold within the period of five (5) years after the effectivity of this Act, and all other Coconut Levy Assets that may hereafter be recovered shall likewise be disposed of within five (5) years from the time it is declared as belonging to the government, and the proceeds shall be transferred to the Trust Fund for the benefit of the coconut farmers.

Any amount of the Trust Fund Income shall be available for disbursement by the implementing agencies, which shall be utilized in accordance with the Development Plan for a period of fifty (50) years: Provided, That the amount in the Trust Fund account for disposition by the designated government implementing agencies under the Development Plan, which shall be released directly to them, shall not be lower than Five billion pesos (P5,000,000,000.00) for any given year.