Section 10Sec./Art. 10

Financial and Loan Assistance from Government Banks.- Loan assistance for the commercial production of an invention, either locally or for export and duly certified by the Filipino Inventors Society and the Screening Committee created under Section 4, shall be extended by government banks:Provided,That said invention meets the criteria that would enhance the economy of the country such as profitability and viability, dollar-earning capacity, and generation of employment opportunities for Filipinos:Provided, further,That said loan shall be guaranteed by the ICF.

Loans under this Section of not more than Two Hundred Thousand Pesos (P200,000.00) shall be granted without need of real estate collateral: Provided, however, That an assignment of rights to the invention shall be executed in favor of the bank or financing institution, subject to other lending terms, conditions and availability of loanable funds by the bank.

No limit to the amount of loan applied for shall be granted to the inventor who can provide fifteenpercentum(15%) equity of the loan applied for:Provided,That acceptable collaterals can be presented to fully secure his loan.

However, when there is an existing foreign irrevocable letter of credit issued in favor of the inventor or the duly registered company producing his invention for export, all government banks, after verification of the commercial production and availability of such products covered by the letter of credit, shall grant up to eightypercentum(80%) of the peso value of the foreign letter of credit:Provided, however,That the inventor of the manufacturing company assigns the letter of credit to the bank where the loan is arranged and whatever goods that the inventor or his company will produce, or warehouse receipts, if any, to show evidence that the goods have been partially produced.