Section 57. Applicability. The foregoing provisions on EPR shall be observed in the processing of all EPR declarations, including those pending before Regional, Provincial and Service Centers. All EPR declarations officially endorsed/transmitted to the Ancestral Domains Office before or on the day of effectivity of this Guidelines shall continue to be processed in accordance with Administrative Order 01, series of 2006 until approved or denied by the Commission. PART VIII MANAGEMENT OF ROYALTIES & SIMILAR BENEFITS. Section 58. Nature of Royalties. Royalties shall not only be treated as economic benefits due ICCs/IPs but social justice measure, and in the management of the same, the intergenerational rights of ICCs/IPs must be recognized, promoted and protected. These are entitlements of ICCs/IPs as part of their guaranteed rights under domestic laws and international agreements, conventions or declarations. Section 59. Person Authorized to Manage. Only the duly organized, NCIP registered, IPO of the concerned ICCs/IPs shall be authorized to receive and manage the royalties. Protection of the royalties that are received by it shall be provided in its by-laws and manual of operation, provided that, the same shall be compliant, and not be contrary, to provisions of this Guidelines. Section 60. Release of Royalty Fees. The royalties may be released : a) directly to the account of the IPO of the ICCs/IPs duly established for the purpose, or b) to a Trustee Bank agreed upon which shall, in turn, be responsible for releases to the IPO account. In both cases, no release shall be made by the company to the IPO, or the trustee bank to the IPO, without the concurrence of the Commissioner from the Region and the Chairperson of NCIP duly secured by the IPO. The concurrence is intended to be a check on the use of the funds based on the CRDP. Section 61. Community Royalty Development Plan (CRDP). The ICC/IP receiving royalties and similar fees must formulate a development plan for the management and use of the same to be known as the CRDP. In the formulation of the said plan, the ADSDPP must be considered, and the ICCs/IPs can engage the services of a reputable public or private agency to provide consultancy and/or technical services. The CRDP shall be subject to confirmation by the Commission En Banc after verification and validation by the concerned field office. Section 62. Use of Royalty. The royalties must be used for programs and projects that will redound to the well-being and benefit of the ICCs/IPs entitled to it. It should have allocations for: Emergency concerns; Investments which may be short, medium or long term; Livelihood and social development projects which must be allocated not less than 30% of each and every release; Education and training of members, basic or professional; Capitalization for cooperative development; Credit facility; Salaries or wages of persons engaged to perform professional services; Mutual assistance, and the like. It must never be used as payment for damages caused by the proponent/company’s activities to the person and properties of an individual member, as this is a distinct obligation of the company and not part of royalties Section 63. Transparency Mechanism. The IPO shall prepare periodic financial reports, and annual financial statements duly audited, and furnish copies of the same to the NCIP. The same must also be reported to the general membership during the annual assembly that must be convened to tackle financial and other community or IPO concerns. Section 64. Monitoring and Visitorial Powers. In the exercise of its mandate to protect the well-being and promote the rights of ICCs/IPs, the NCIP may direct financial and management audits of IPOs managing royalties and other benefits or exercise its visitorial powers as provided for by law. PART IX PROHIBITED ACTS AND REMEDIES Section 65. Prohibited Acts. After the filing of the application and during the period that the application is pending, any of the following acts or omissions are hereby declared either as acts prejudicial to the interest of the IP community in the attainment of their consent or acts in circumvention of the intent of the law in requiring the free, prior and informed consent of ICC/IP community and are therefore prohibited: Page 18 of 22 NCIP AO 3 s. 2012 (The Revised Guidelines on Free and Prior Informed Consent and Related Processes of 2012)