Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

Fifteenth Congress
First Regular Session

HOUSEBILLNO. 4621

Introduced by Honorable Cresente C. Paez and Honorable Jose R. Ping-ay

EXPLANATORY NOTE

The Land Bank of the Philippines, a Specialized Government Bank with universal
banking license, was created under Republic Act No. 3844 also known as the
Agricultural Land Reform Code on 08 August 1963 primarily to finance the acquisition
and distribution of agricultural estates for division and resale to small landholders as
well as the purchase of landholdings by the agricultural lessee as defined under the law.
This Body Corporate was granted legal existence for a period of Fifty (50) years
counting from the approval of the law. In 1977 the Bank was reorganized to form three
major sectors - Agrarian, Banking and Operations to strengthen operations and ensure
long-term viability. Several issuances and enactments were later on passed relative to its
organizational structure, operations and vested functions. Among which, on 23 February
1995, Republic Act No. 7907 made the LBP as an official government depository.

In its almost forty eight (48) years of corporate existence, LBP was a well
renowned government financial institution meritoriousty receiving scores of highly
acclaimed awards and citations from both local and international award-giving bodies
which is a testament to its sound management and profuse growth over the years. As a
matter of fact, as of 31 December 2010, LBP reported total assets of 565.72 Billion
pesos and total net income after tax of 8.108 Billion pesos translating to an annual
growth of 20%.

In the light of LBP’s impending corporate life expiration on 2013, this bill seeks
to extend the Bank’s life for another period of fifty (50) years with an optimistic
anticipation that it would continuously replicate with greater dedication and visibility
Past successes in countryside development and expand further, years of
accomplishments in the industry permeating all levels of the Filipino society to provide
excellent and responsive services especially to farmers, fisher folks and other priority
sectors and stakeholders (its avowed beneficiaries) towards economic prosperity.

Tn view of the foregoing, the approval of this bill is earnestly sought.

CRESRYTE PAEZ



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Repubtic of the Philippines
House OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session
4621
HOUSE BILL NO.

Introduced by Honorable Cresente C. Paez and Honcrable Jose R. Ping-ay

AN ACT EXTENDING THE LIFE OF THE LAND BANK OF THE
PHILIPPINES, FURTHER AMENDING REPUBLIC ACT 3844,
OTHERWISE KNOWN AS THE AGRICULTURAL LAND REFORM
CODE, AS AMENDED ~
Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:

SECTION 1. The Land Bank of the Philippines (LBP) franchise
granted under Republic Act No. 3844, also known as the “Agricultural Land

Reform Code”, is amended to read as follows:

(1) Sec. 74. Creation, is hereby amended to read as follows;

“Sec. 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 1S
HEREBY GRANTED FROM THE EXPIRATION OF ITS
ORIGINAL TERM ON 08 AUGUST 2013, ANOTHER
PERIOD OF FIFTY (50) YEARS OF LEGAL
EXISTENCE RENEWABLE FOR ANOTHER FIFTY (50)
YEARS. The Bank shall be subject to such rules and


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regulations as the Central Bank may from time to time
promulgate.”

SEC. 2. Repealing Clause. — All laws, presidential decrees, executive
orders in whole or in part, including the rules and regulations promulgated
thereunder inconsistent with the provisions of this Act, are hereby amended,
repealed or modified accordingly.

SEC. 3. 2ffectivity. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved,