WHEREAS, SRA Circular Letter No. 15 Series of 1991-1992, dated October 23, 1991 authorized the imposition and collection by mill companies of a P0.50 lien per picul of sugar produced by all planters and millers from the start of the milling of the 1991-1992 crop and to continue indefinitely until otherwise revoked and to remit such liens collected on mill share sugar to the Philippine Sugar Millers Association, Inc. (PSMA), the duly appointed Trustee of the MSMDF Fund;

WHEREAS, in order to systematize and expedite the collections and remittance of the P0.50 MSMDF Lien, PSMA has executed and signed a Memorandum of Agreement with the Philippine National Bank and pursuant to such agreement PNB has authorized designated PNB Main Branches in sugar producing areas to accept payment of the P0.50 MSMDF lien;

WHEREAS, the Philippine Sugar Millers Association, Inc. has made official representation with the Sugar Regulatory Administration for the issuance of a Sugar Order to effect and enforce the above mentioned Memorandum of Agreement between PSMA and PNB;

NOW, THEREFORE, pursuant to the powers vested in the Sugar Regulatory Administration, it is hereby ordered that:

SECTION 1. The Philippine National Bank through its authorized main branches is hereby authorized to collect the P0.50 per picul lien on sugar quedans of the mill share and to credit the same to the main current account in the name of the Philippine Sugar Millers Association, Inc., and to service the withdrawals from such main account in accordance with applicable banking rules and regulations.

SECTION 2. Receipt of deposit/payment of the P0.50 per picul MSMDF lien shall be evidenced by PSMA ™s Official Receipt and the Abstract of Official Sugar Warehouse Receipt (AOSWR) which shall be accomplished in triplicate.  Copies of the official receipts and AOSWR shall be distributed as follows:

Original         -        Planter/Trader
Duplicate      -        PNB Ayala Avenue Branch
Triplicate       -        PNB Servicing Branch

SECTION 3. The List of Sugarmills and Servicing PNB Branches are those listed in œANNEX A ^* attached hereto.  œANNEX A  already includes the additional PNB Branches authorized to receive payments of the SRA liens and the MSMDF lien.

SECTION 4. The applicable provisions of SRA Sugar Order No. 2, Series of 1991-1992 dated September 6, 1991 and those of various Circular Letters issued by the Sugar Regulatory Administration prescribing the guidelines for the collection and remittance of the SRA liens shall in substance be applicable and enforced in the collection and remittance of the MSMDF lien except for the modifications enumerated under this Order.

SECTION 5. No Mill Company shall allow the withdrawal of the mill share without the MSMDF lien having been paid to the authorized PNB Servicing Branch; otherwise the MSMDF lien shall be the liability of the mill company concerned.

SECTION 6. This Order shall take effect September 1, 1992 on all mill share quedans of the previous crop years with the MSMDF lien and which have remained unwithdrawn; the mill share sugar of Crop Year 1992-1993; and shall continue in effect in succeeding crop years until otherwise amended, modified or revoked by subsequent sugar orders.

SECTION 7. Provisions of sugar orders, circular letters, rules and regulations contrary to or inconsistent with this Order are hereby amended, modified or revoked accordingly.

Adopted: 17 Sept. 1992

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^* Available upon request at the Office of the National Administrative Register (ONAR), U.P. Law Center, Diliman Quezon City.