Section 3. Coconut Industry Development Fund Levy. —

There is hereby created a permanent fund to be known as Coconut Industry Development Fund which shall be deposited, subject to the provisions of P.D. No. 755, with, and administered and utilized by, the Philippine National Bank through its subsidiary, the National Investment and Development Corporation for the following purposes:

  1. To finance the establishment, operation and maintenance of a hybrid coconut seednut farm under such terms and conditions that may be negotiated by the National Investment and Development Corporation with any private person, corporation, firm or entity as would insure that the country shall have, at the earliest possible time, a proper, adequate and continuous supply of high yielding hybrid seednuts and, for this purpose, the contract entered into by NIDC as herein authorized is hereby confirmed and ratified;

  2. To purchase all of the seednuts produced by the hybrid coconut seednut farm which shall be distributed, for free by the Authority to coconut farmers in accordance with, and in the manner prescribed in, the nationwide coconut replanting program; Provided, That farmers who have been paying the levy herein authorized shall be given priority;

  3. To defray the cost of implementing the nationwide replanting program;

  4. To finance the establishment, operation and maintenance of extension services, model plantations and other activities as would insure that the coconut farmers shall be informed of the proper methods of replanting; and

  5. The balance, if any, shall be utilized for investments for the benefit of the coconut farmers as prescribed in Section 9 hereof.