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CvSU MANUAL OF OPERATIONS
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6. Captive Market – All food stalls and canteens are obliged
to purchase from MTC all items available at competitive
price hence they are considered “captive market”.

Article 5. Policies and Guidelines for Business Operations

Section 1. Legal Basis for State Universities and Colleges to
Undertake Income Generating Projects

1. LOI No.872 (08 June 1979)
a) Encouraged Agricultural Schools, Colleges, and
Universities to participate in food production project
b.) Authorized schools to establish Revolving Fund (RF) from
the income and food production program.

2. NBC 33 (27 November 1980)
a) Authorized the establishment of Revolving Fund for
agricultural school

b) Provided guidelines to implement LOI 872
c) Prescribed rules and procedure concerning the creation of
RF out of the income realized from agricultural projects
d) Created Fund 161

3. LOI No.1026 (23 May 1980)
a.) Directed the acceleration of manufacturing operation of
national schools.

4. COA Circular No.84-239 (15 August 1984)
a) Prescribed uniform procedure of proper evaluation,
recording and reporting of products acquired or produced by
government agencies.

5. DBM Circular Letter No.92-8 (18 November 1992)
a.) Provided guidelines on the establishment of RF of SUC for

the operation of auxiliary services and Created Fund163.

6. DBM Circular Letter No.94-5

a.) Prescribed the rules and procedures in the granting of
honoraria to government offices and employees in various specific
projects.

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