SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PIDLIPPINES 
First Regular Session 
SENATE 
S. B.2090 
Introduced by Senator Poe 
EXPLANATORY NOTE 
14 
JAN 28 P 4 :20 
HECEI\Ti) 11\. 
According to its 2010 annual report "Land Bank of the Philippines continued to post higher 
profits with net income reaching P7.2 billion for the first nine months of the year, 12 percent or 
P735 million higher than the P6.4 billion registered for the same period last year." 
Much is left to be desired despite this reported "growth". 
By their own account, LANDBANK's total assets grew 12 percent to 591 billion from 
P527 billion in September 2010 with a 15 percent expansion of deposits to P460 billion from P399 
billion of the same period last year. Capital increased to 66 billion from 60 billion in September 
2010. 
Despite these, their records show that the bank's credit facility reached only about 661 ,000 
small farmers and fisher folk nationwide. This is a far-cry from the total number of small farmers 
and fisher folk in the country estimated at about 5.69 million in 2003 alone (ACPC Monitor June 
2003). Moreover, the bank's latest report reveals that loans were channelled roughly to only about 
4.435% of the country's more than 20,000 cooperatives. 
The upward movement however of the bank's assets is indicative of its viability and 
capability to expand and deepen support to the small farming and fishing sectors to enable them to 
rise above poverty. 
This measure is deemed as a more sustainable solution to the problems of inadequacies, 
and inaccessibility of financial support by redirecting the Bank's focus towards as institutionalize 
and strengthened credit, guarantee and insurance support to where it is needed most. 
Congress' moves at existing the Bank's life as it expires on August 2013 offers a great 
opportunity to revisit and re-direct its focus towards more strengthened support to agrarian reform 
beneficiaries, small farmers and fisher folk which requires the amendment of the Bank's mandate. 
This measure was filed before the 15th Congress as House Bill 5541 and hurdled Committee 
deliberation. This bill remains relevant and important in providing greater accessibility and 
financial support for small farmers, fisher folk, their organizations and associations. 
Thus, the passage of this piece of legislation is earnestly sought. 
dt£-fi~ 
-GrCEPOE 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
Introduced by Senator Poe 
AN ACT 
-Srnl1tl' 
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'14 
JAN 28 P 4 :20 
STRENGTHENING AND INSTITUTIONALIZING CREDIT, GUARANTEE AND 
INSURANCE SUPPORT OF THE LAND BANK OF THE PIDLIPPINES TO AGRARIAN 
REFORM BENEFICIARIES, SMALL FARMERS AND FISHERFOLK, AMENDING 
FOR THE PURPOSE, CHAPTER IV OF REPUBLIC ACT 3844 ALSO KNOWN AS THE 
AGRICULTURAL LAND REFORM CODE 
Be it enacted in Congress assembled, the follOWing amendments to Chapter IV and 
RepubliC Act 3844 also known as the Agricultural land reform Code; 
Chapter IV, Section 74 to read as follows; 
Section 74. Creation - To finance the acquisition by the government of landed estates for division 
and resale to small landholders, as well as the purchase of the landholding by the agricultural lessee 
from the landowner, there is hereby established a body corporate to be known as the "Land Bank 
of the Philippines", hereinafter called the "Bank", which shall have its principal place of business 
in Manila. The legal existence of the Bank shall be for a period of fifty years counting from the 
date of the approval hereof. The bank shall be subject to such rules and regulations as the Central 
bank may from time to time promulgate [AND, TO ALLOCATE, 50 PERCENT (50%) OF ITS 
NET EARNING FOR CREDIT, GUARANTEE AND INSURANCE SUPPORT TO AGRARIAN 
REFORM BENEFICIARIES, SMALL FARMERS, FISHER FOLK AND FARM WORKERS 
THROUGH THEIR ORGANIZA nON AND COOPERATIVES.] 
(a) [PURSUANT TO THIS, THE LAND BANK OF THE PHILIPPINES SHALL 
CREATE A SPECIAL WINDOW SOLELY FOR AGRARIAN BENEFICIARIES, 
SMALL FARMERS, AND FISHERFOLK TO CATER THE NEEDS OF THE 
SAME AT RATES THAT WILL NOT EXCEED 9 PERCENT.] 
SECTION 2. Chapter IV, Section 75, entitled, Power I General, add ... 
(7) [TO OFFER AND ISSUE COMMON AND PREFERRED SHARES OF STOCKS TO 
AGRARIAN REFORM BENEFICIARIES, SMALL FARMERS AND FISHER FOLK 
BANKS IN QUANTITIES TO BE DETERMIND BY THE BOARD OF TRUSTEES 
AND UNDERTAKEN CONSISTENT WITH THE LAWS OF BANGKO SENTRAL NG 
PILIPINAS.] 
SECTION 3. This Act shall take effect fifteen (15) days after publication in at least two (2) 
newspaper of general circulation. 
Approved.