Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10818 
Introduced by Representative WOWO FORTES 
___________________________________________________________________ 
EXPLANATORY NOTE 
The strengthening and modernization of the Land Bank of the Philippines (LBP) 
shall improve its operations and functions, especially in advancing the socio-economic 
development agenda of the national government. 
Through Republic Act No. 3844 or the Agricultural Land Reform Code, LBP was 
established on August 8, 1963. It is a government financial institution that plays a 
critical role in our country’s agricultural and rural development. Its services are focused 
on broad-based support for small farmers, fisherfolk, micro, small, and medium 
enterprises, 
rural 
financial 
institutions, 
government-owned 
and 
controlled 
corporations, and agrarian reform beneficiaries. 
The LBP is instrumental in improving the quality of life in communities through 
its financing interventions on funding infrastructure and social service projects. Their 
initiatives include the provision of farm-to-market roads, hospitals, schools, and 
housing developments. The Bank also supports the improvement of communication 
systems, transportation networks, clean water access, and household electrification.  
It is high time that LBP revisits and amends its charter to be able to maximize 
its role in national development. This bill aims to help and fortify Land Bank of the 
Philippines’ role in empowering rural communities and being a catalyst of a 
progressive agricultural economy. 
Immediate approval of this bill is earnestly sought. 
ATTY. WOWO FORTES 
  Representative 
 Second District, Province of Sorsogon 
August 27, 2024
2:23 pm


Nineteenth Congress of the 
Republic of the Philippines 
Third Regular Session 
HOUSE OF REPRESENTATIVES 
H.B. No. 10818 
Introduced by Representative WOWO FORTES 
AN ACT PROVIDING FOR A NEW CHARTER FOR THE LAND BANK OF THE 
PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION. 1. Short Title. – This Act shall be known as “Land Bank of the Philippines Charter 
of 2024”. 
SEC. 2. Purpose and Domicile. – The Land Bank of the Philippines, hereinafter referred to as 
the "Bank", operating under the provisions of Republic Act (RA) No. 3844, as amended, 
otherwise known as the "Agricultural Land Reform Code", shall henceforth operate under the 
provisions of this Act as a government financial institution responsible for broad-based 
agricultural, rural and industrial development while promoting accelerated financial inclusion. 
It shall provide accessible and innovative solutions to deliver timely and responsive financial 
and support services to rural financial institutions as well as small farmers, fisherfolk and 
agrarian reform beneficiaries (ARBs) as well as provide banking services principally to service 
the medium- and long-term needs of agricultural and industrial enterprises. The Bank shall 
remain to be a body corporate and shall have perpetual existence. It shall be supervised by 
the Bangko Sentral ng Pilipinas (BSP), taking into account its mandated roles of spurring 
countryside development and supporting the country's financial inclusion objectives. 
The principal office and place of business of the Bank shall be in Metro Manila. It may, 
however, open and maintain branches, agencies or other offices at such places in the 
Philippines as its Board of Directors may deem advisable, with the prior approval of the 
Monetary Board of the BSP. 
Subject to applicable laws, rules and regulations, the Bank shall provide banking services with 
a social mission of spurring countryside development by granting loans to finance the 
agricultural projects and national government’s developmental projects, including but not 
limited to the following: 
(a) off-farm/fishery entrepreneurial activities;
(b) agricultural mechanization/ modernization;
(c) agri-tourism;
(d) sustainable projects;
(e) digitalization/automation of farming, fishery, and agri-business activities and
processes, including related financial and management information systems;
(f)
public rural infrastructure;
(g) home-building or home-financing projects;


 
 
(h) programs that shall: (a) promote the health and wellness of farmers, 
fisherfolk and ARBs, including members of their households, such as water and 
sanitation projects for rural communities; and/or (b) address the developmental 
needs of rural communities, such as, but not limited to, projects that promote the 
livelihood, skills enhancement, financial literacy, including digital financial literacy, 
and other capacity-building activities of the rural community beneficiaries; 
(i) activities identified under the 
Agro-industry Modernization Credit and 
Financing Program (AMCFP) under Title l, Chapter 3, Section 23 of R.A. No. 8435, 
otherwise known as the "Agriculture and Fisheries Modernization Act of 1997, as 
follows: 
 
1. Agriculture and fisheries production including processing of fisheries and 
Agri-based products and farm inputs; 
2. Acquisition of work animals, farm and fishery equipment and machineries; 
3. Acquisition of seeds, fertilizers, poultry, livestock, feeds and other similar 
items; 
4. Procurement of agriculture and fisheries products for storage, trading, 
processing and distribution; 
5. Acquisition of water pumps and installation of tube wells for irrigation; 
6. Construction, acquisition and repair of facilities for production, processing, 
storage, transportation, communication, marketing and such other facilities 
in support of agriculture and fisheries; 
7. Working capital for agriculture and fisheries graduates to enable them to 
engage in agriculture and fisheries-related economic activities; 
8. Agribusiness activities which support soil and water conservation and 
ecology-enhancing activities; 
9. Privately funded and Local Government Unit (LGU)-funded irrigation 
systems that are designed to protect the watershed; 
10. Working capital for long-gestating projects; and 
11. Credit guarantees on uncollateralized loans to farmers and fisherfolk. 
 
(j) industrial development projects; and 
(k) other projects on productive enterprises. 
SEC. 3. General Powers. – The Bank shall have the power to: 
(a) Prescribe, repeal and alter its own by laws, to determine its operating policies, and 
to issue such rules and regulations as may be necessary; 
(b) Adopt, alter and use a corporate seal; 
(c) Hold, purchase, acquire and own real and personal property, introduce necessary 
improvements thereon to enhance and develop their social and economic value, 
and to sell, mortgage or otherwise dispose of the same; 
(d) Sue and be sued, make contracts, negotiate and secure loans from both local and 
foreign sources. Before undertaking any such credit operation, the Bank, through 
the Secretary of Finance, shall request the opinion, in writing, of the Monetary 
Board on the monetary implications of the contemplated action. All loans from 
foreign sources shall be subject to approval by the President of the Philippines 
and shall be fully guaranteed by the Philippine Government; 
(e) Grant short, medium and long-term loans and advances against security of real 
estate or other acceptable assets for the establishment, development or 
expansion of agricultural, industrial, home building or home financing projects and 
other productive enterprises; 
(f) Grant loans to farmers’ cooperatives and associations to facilitate farm production, 
marketing of crops and acquisition of essential commodities; 


 
 
(g) Underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or otherwise 
invest or reinvest in stocks, bonds, debentures, securities and other evidences of 
indebtedness and ownership of other corporations and the government or its 
instrumentalities which are issued for or in connection with any project or 
enterprise; 
(h) Guarantee acceptances, credits, loans, transactions or obligations of any person, 
co-partnership, association or corporation in favor of any financing or banking 
institution, whether foreign or domestic: Provided, That the proceeds of such 
acceptances, credits, loans, transactions or obligations are utilized or earmarked 
for the development and/or expansion of agriculture and industry, the provision of 
any law to the contrary notwithstanding; 
(i) Obtain from the Government Service Insurance System (GSIS) or other reputable 
insurance companies duly accredited by the appropriate regulatory body, 
directors, officers and liability insurance coverage, without prejudice to the right of 
the Bank, as may be determined by its Board of Directors, to put up its own legal 
insurance fund; 
(j) Borrow from, or rediscount notes, bills of exchange and other credit instruments 
with the BSP subject to the provisions of Chapter IV of RA No. 7653, as amended 
by RA No. 11211, otherwise known as “The New Central Bank Act”, and relevant 
BSP rules and regulations; 
(k) Act as a trustee, or administer any trust or hold property in trust in accordance with 
the provisions of law governing trust corporations; 
(l) Act as an official government depository with full authority to maintain deposits of 
the government, its branches, subdivisions and instrumentalities, and of 
government owned or -controlled corporations which deposits shall be subject to 
liquidity floor or reserve requirements as may be imposed by the Monetary Board 
upon other commercial banks; 
(m) Provide continuing assistance through credit and capacity building to farmers and 
fishers cooperatives, associations and organizations nationwide; 
(n) Offer and issue common and preferred shares of stocks in such manner and in 
such quantities as approved by the Secretary of Finance upon the 
recommendation of the Board of Directors and in accordance with applicable laws, 
rules and regulations; 
The holders of preferred shares of stock shall be nonvoting. Other features of 
preferred shares shall be determined by the Board of Directors in accordance with 
applicable laws and regulations; and 
(o) Exercise the general powers provided for in RA No. 11232, otherwise known as 
the “Revised Corporation Code of the Philippines”, insofar as they are not 
inconsistent or incompatible with this Charter. 
 
SEC. 4. Issuance of Bonds. – The Bank shall, upon the approval of the Board of Directors, 
issue all kinds of bonds, debentures, securities, collaterals and other evidence of indebtedness 
and/or the renewal or refunding thereof; at such terms, rates and conditions as the Bank may 
determine, up to an aggregate amount not exceeding, at any one time, ten times its paid-in 
capital and surplus, subject to compliance with the provisions of applicable law, and rules and 
regulations promulgated by the Monetary Board. 
These bonds and other obligations shall be redeemable at the option of the Bank at or before 
maturity and in such manner as may be stipulated therein and shall bear such rate of interest 
as may be fixed by the Bank. Such obligations shall be secured by the assets of the Bank 
including the stocks, bonds, debentures, and other securities underwritten, purchased or held 
by it under the provisions of this Charter. Such obligations may be issued in payment or 
replacement of certain assets transferred to the Bank or offered for sale at such price or prices 
as the Bank may determine, and may, subject to the approval of the President of the 


 
 
Philippines, be fully guaranteed by the Government of the Republic of the Philippines, and 
such guarantee shall be expressed on the face thereof. 
These instruments of indebtedness shall be negotiable and may be mortgaged in accordance 
with established banking procedures and practices with government institutions, their existing 
charters and existing law to the contrary notwithstanding, to enable the holders of such bonds 
to make use of them in investments in productive enterprises. The Board of Directors shall 
have the power to prescribe rules and regulations for the issuance, reissuance, servicing, 
placement and redemption of the bonds herein authorized to be issued as well as the 
registration of such bonds at the request of the holders thereof. 
SEC. 5. Investment by Government-Owned or -Controlled Corporations. – The provisions of 
their respective charters to the contrary notwithstanding, all government owned or controlled 
corporations, including government financial institutions, are authorized to invest in shares of 
stock of the Bank. 
SEC. 6. Capital. – The authorized capital stock of the Bank shall be ONE TRILLION PESOS 
(₱1,000,000,000,000.00) to be divided into Ten Billion (10,000,000,000) shares with par value 
of ONE HUNDRED PESOS (₱100.00) per share. The Board shall determine the classification 
of shares, their corresponding rights, privileges, or restrictions: Provided, That, the National 
Government shall own, at all times, seventy percent (70%) of the total outstanding capital 
stock of the Bank.  
TWO HUNDRED BILLION PESOS (₱200,000,000,000.00) or twenty percent (20%) of the 
authorized capital stock of the Bank shall be subscribed and One Hundred Sixty-Three Billion 
SEVEN HUNDRED EIGHTY-SEVEN MILLION SEVEN HUNDRED ELEVEN MILLION 
THREE HUNDRED EIGHT PESOS (₱163,787,711,308.00) or at least eighty one and 89/100 
percent (81.89%) of the total subscription shall be paid up by the National Government.  
When dividends are declared for stockholders, the dividend due to the National Government 
shall at all times be in proportion to its ownership of the Bank. The Board, upon the 
recommendation of the Secretary of Finance and with the approval of the President of the 
Philippines, may increase the capitalization of the Bank up to such an amount as may be 
necessary to attain the objectives of this Charter, and may allocate part or all of the Bank's 
unrestricted retained earnings towards paying for the increase in capital. 
SEC. 7. Preferred Shares. – All preferred shares of stock issued under this Charter shall be 
entitled to the income earned by the Bank on its investment and other operations: Provided, 
That the holders of such preferred shares of stock shall not bring derivative suits against the 
Bank. 
SEC. 8. Voting of Shares. – The voting power of all the common shares of stock of the Bank 
owned and controlled by the government shall be vested in the President of the Philippines or 
in any ex officio member of the Board of Directors of the Bank or their respective alternates, 
as may be designated by the ex officio member. 
SEC. 9. The Board of Directors and Membership. – The powers and functions of the Bank 
shall be vested in and exercised by a Board of Directors which shall be composed of nine (9) 
members as follows: 
(a) Secretary of Finance who shall be the ex-officio Chairperson of the Board, without 
compensation; 


 
 
(b) President of the Bank as Vice Chairperson, who shall be appointed by the 
President of the Philippines from a shortlist prepared by the Governance 
Commission on GOCCs (GCG) pursuant to RA No. 10149, otherwise known as 
the “GOCC Governance Act of 2011”;  
(c) Secretary of Agriculture as an ex-officio member; 
(d) Secretary of Agrarian Reform as an ex-officio member; 
(e) Secretary of Labor and Employment as an ex-officio member,  
(f) Secretary of the National Economic and Development Authority as an ex-officio 
members; and 
(g) Three (3) independent directors to be appointed by the President of the Philippines 
with the appointment process under RA No. 10149, wherein one (1) shall represent 
the agricultural sector and two (2) shall represent the private sector, preferably with 
expertise in finance, economics, and banking.  
The ex-officio directors may each designate an alternate, who shall be an official with a rank 
not lower than Assistant Secretary. 
The annual stockholders' meeting shall be held at any date in May, as may be determined by 
the Board of Directors, unless it falls on a legal holiday, in which case, the meeting shall be 
held on the next succeeding business day. 
The appointive members of the Board shall hold a term of office for one (1) year and shall 
continue to hold office until their successor shall have been qualified and appointed. The Board 
shall convene as often as necessary to discharge its responsibilities properly, but shall meet 
at least once every month. The Board may be convoked either by the Chairperson or in one's 
absence, the Vice Chairperson. 
The majority of the board members shall constitute a quorum. All decisions of the Board shall 
require the concurrence of at least the majority of its members. 
No person shall be elected or appointed director of the Bank unless such person is a Filipino 
citizen, of good moral character, and has attained proficiency, expertise and recognized 
competence in one or more of the following:  banking, finance, economics, law, agriculture, 
agrarian reform, business management, governance, sustainability, digital transformation, 
rural economy, banking, co-operation, small-scale industry, information technology, and 
information security.  
The compensation, per diems, allowances, incentives, and other benefits for Board Members 
shall be subject to the provisions of RA No. 10149.  
SEC. 10. Powers and Responsibilities of the Board. – The Board of Directors shall have the 
following specific powers and responsibilities:  
(a) Formulate policies, rules and regulations for the effective operation of the Bank 
and issue such rules and regulations as it may deem necessary to effectively 
implement the provisions of this Charter;  
(b) Decide on matters concerning loans, as well as fix the rates of interest thereon, 
guarantees, investments, borrowings by the Bank, furnishing of technical 
assistance and other operations of the Bank; 
(c) Establish such branches and agencies as may be deemed necessary and 
convenient;  
(d) Appoint and remove such personnel as may be necessary for the expeditious 
conduct of the business of the Bank; 


 
 
(e) To create and establish a “Provident Fund” which shall consist of contributions, 
made both by the Bank and its officers or employees, to a common fund for the 
payment of benefits to such officers or employees, or their heirs, under such terms 
and conditions consistent with RA No. 10149 and Executive Order (EO) No. 150, 
s. 2021 otherwise known as the Compensation and Position Classification System 
(CPCS) and Index of Occupational Services, Position Titles, and Job Grades for 
GOCCs (IOS-G) Framework; 
(f) Notwithstanding any law to the contrary, adopt an organizational structure, staffing 
pattern and personnel qualification standards of the Bank and to reorganize, 
rationalize and restructure the same, or realign the various functions in the Bank 
to ensure effective accomplishment of its mandates and strategic goals, the 
alignment of its organizational structure and staffing pattern with industry 
standards, and its responsiveness to regulatory requirements, subject to the 
provisions of RA No. 10149.  
(g) Design, adopt and revise, as it may deem necessary, an early separation plan for 
employees of the Bank to ensure the availability of a human resource pool qualified 
and capable of implementing the Bank's authorities under this Charter in a manner 
responsive and attuned to market developments, and to provide incentives for 
those who shall be separated from the service, subject to the provisions of RA No. 
10149; 
(h) Approve the budget of the Bank for its operations;  
(i) Enter into compromise or release in whole or in part, any claim or liability 
whatsoever for or against the Bank, including interest, penalties, fees and other 
charges, under such terms and conditions as the Board may find acceptable and 
practicable in accordance with standard banking practices, subject to its best 
business judgment, and the best interest of the corporation; and 
(j) Perform other functions, duties and responsibilities necessary, related and 
incidental to the above-mentioned powers and functions. 
The Board shall exercise its powers in a manner consistent with the principles of transparency, 
fairness and accountability: Provided, That, the Board may delegate its powers to the 
President as may be deemed necessary. 
SEC. 11. Environmental, Social, and Governance Principles. – As an integral part of the 
National Government, the Bank is inherently mandated to be socially responsible, to act and 
operate as good corporate citizens. The Governing Board of the Bank shall recognize and 
perform obligations that the Bank has towards the National Government, its majority 
stockholder, as well as the minority stockholders when existing, together with the employees, 
suppliers, customers and other stakeholders, and the communities in which it operates. 
SEC. 12. Foreclosure of Collaterals and Disposal of Bank Acquired Properties. – The 
foreclosure of collaterals and disposal of bank acquired properties shall be governed by the 
following: 
(a) Foreclosure of Mortgage Collaterals - Foreclosure of mortgage collaterals to loan 
may be made either judicially or extrajudicially;  
(b) Deputization of Legal Staff - The Bank may, with the approval of the court, deputize 
any member of its legal staff to act as special sheriff in foreclosure cases, in the 
sale or attachment of debtor's properties and in the enforcement of court writs and 
processes in cases involving the Bank. The special sheriff of the Bank shall make 
a report to the proper court after any action has been taken by such special sheriff, 
which court shall treat such actions as if it were an act of its own sheriffs in all 
respect; 


 
 
(c) Disposal of Real Estate and Other Properties in the Collection of Debt - Real estate 
and other properties acquired by the Bank in the collection of debts or investment 
by way of foreclosure or other means shall be sold or disposed of in accordance 
with law, within five (5) years after their respective dates of acquisition.  
For this purpose, the Board of Directors shall be the appropriate regulatory 
authority and promulgate the necessary implementing rules and regulations; 
(d) Exemption from Attachment - The provisions of any law to the contrary 
notwithstanding, securities on loans and other credit accommodations granted by 
the Bank shall not be subject to attachment or execution or any other court process, 
nor shall they be included in the property of insolvent persons or institutions, unless 
all debts and obligations of the debtors to the Bank have been paid, including 
accrued interest, penalties, collection expenses, and other charges; and 
(e) Right of Redemption of Foreclosed Property, Right of Possession During 
Redemption Period - Within the redemption period provided for in Section 47 of the 
General Banking Law of 2000, the mortgagor shall have the right to redeem the 
property by paying all claims of the Bank against such mortgagor on the date of 
the sale including all the cost and other expenses incurred by reason of the 
foreclosure sale and custody of the property, as well as charges and accrued 
interest. The Bank may take possession of the foreclosed property during the 
redemption period. When the Bank takes possession during such period, it shall 
be entitled to the fruits of the property with no obligation to account for them, the 
same being considered compensation for the interest that would otherwise accrue 
on the account. Neither shall the Bank be obliged to post a bond for the purpose 
of such possession. Perform other functions, duties and responsibilities necessary, 
related and incidental to the above-mentioned powers and functions 
SEC. 13. Compensation of Executive Officers. – The President of the Bank shall be its Chief 
Executive Officer whose salary shall be subject to the provisions of RA No. 10149.  
The President shall be assisted by Vice Presidents and other officials whose appointment and 
removal for cause shall be approved by the Board of Directors upon recommendation of the 
President of the Bank. The salary of the Vice President and other officials shall also be subject 
to the provisions of RA No. 10149. During the absence or temporary incapacity of the 
President, or in case of vacancy or permanent Incapacity and pending appointment of a new 
President of the Bank, the Board of Directors shall designate the officer-in-charge of the Bank 
SEC. 14. Duties and Powers of the Bank President. – The President of the Bank shall execute 
the policies, measures, orders and resolutions promulgated by the Board of Directors and 
supervise and administer the operations of the Bank. The President shall be the legal 
representative of the Bank and shall make all contracts and enter into all necessary obligations 
on behalf of the Bank as required or permitted by this Charter. The President shall report 
periodically to the Board of Directors the main facts concerning the operations of the Bank, 
and recommended changes of policies which may seem best. The President shall furnish, 
upon the request of the President of the Philippines, any information regarding the operations 
of the Bank. 
SEC. 15. Qualifications of Executive Officers. – No person shall be appointed to any executive 
position in the Bank mentioned in the preceding section unless that person is of good moral 
character and of unquestionable integrity and responsibility, and who is of recognized 
competence in the field of economics, agriculture, industry, law, banking or finance, 
information technology, information security, and possessed of demonstrated administrative 
skill and ability. 


 
 
SEC. 16. Withdrawal of Persons Having Personal Interest. – Whenever any member attending 
a meeting of the Board has a personal interest in the discussion or resolution of any given 
matter, or any of the relatives within the fourth degree of consanguinity or a second degree of 
affinity has such interest, said member shall disclose such interest to the Board and shall not 
participate in the discussion or resolution of the matter and must retire from the meeting during 
the deliberations thereon. The subject matter, when resolved, and the fact that a member had 
a personal interest in it, shall be disclosed to the public. The minutes of the meeting shall 
reflect the disclosure made and the recusal of the member concerned. 
SEC. 17. Prohibition on Persons with Personal/Pecuniary Interest. – No member of the Board, 
officer, attorney, agent, or employee of the Bank shall in any manner, directly or indirectly 
participate in the deliberation upon or the determination of any question affecting one’s direct 
personal interest or the personal interests of relatives within the second civil degree of 
consanguinity or affinity, or of any corporation, partnership, or association in which the 
member, officer, attorney, agent, or employee has a direct interest. 
SEC. 18. Borrowing by Directors, Officers and Employees; Restriction and Limitation. – No (1) 
director or officer or employee of the Bank; or (2) any corporation, partnership, or company 
wherein any member of the Bank’s Board of Directors, officer or employee, or their relatives 
within the first civil degree of consanguinity or affinity is a director, officer or controlling 
shareholder either directly or indirectly, for one’s self or as representative or agent of others, 
borrow any of the deposits of funds from the Bank, nor shall he become a guarantor, or in any 
manner be an obligor for money borrowed from the Bank or loaned by it: Provided, that this 
prohibition on loans to directors, officers and employees shall not include loans allowed in the 
form of fringe benefits granted in accordance with rules and regulations as may be prescribed 
by the Monetary Board: Provided, further, that this prohibition shall not apply to loans to 
corporations wherein the director, officer or employee of the Bank sits on the board of the 
borrower corporation to represent the interest of the Bank. 
SEC. 19. Rules and Regulations on Conflict of Interest. – The Board of Directors is hereby 
authorized to issue rules and regulations for the purposes of determining and resolving conflict 
of interest questions, which rules shall, in particular, include the requirement on all officers and 
employees of the Bank to disclose any shareholdings they, or their relatives within the second 
civil degree of consanguinity or affinity, may have in any corporation, partnership, or company 
in excess of two percent (2%) of the equity of said corporation, partnership, or company or in 
any related party transactions defined by the Monetary Board of the BSP and the Board of 
Directors of the Bank.  
SEC. 20. Prohibition on Officers and Employees of the Bank. – Except as required by law, or 
upon order of a court of competent jurisdiction, or the express order of the President of the 
Philippines or written permission of the client, no officer or employee of the Bank shall reveal 
nor allow to be examined, inquired or looked into, by any third person, government official, 
bureau or office any information relative to details of individual accounts or specific banking 
transactions, condition or business of any of its clients, or funds or properties in the custody 
of the Bank belonging to private individuals: Provided, That in respect to deposits or whatever 
nature, the provisions of existing law shall apply.  
This prohibition shall not apply to the exchange of confidential credit information among 
government financial institutions or among banks, in accordance with established banking 
practices or as may be allowed by law.  
SEC. 21. Exaction of Fee, Commission, Gift or Charge. – No unauthorized fee, commission, 
gift, or charge of any kind shall be exacted, demanded, or paid, for obtaining loans from the 
Bank, and any officer, employee, or agent of the Bank found guilty of exacting, demanding, or 


 
 
receiving any fee services in obtaining any service or transaction from the Bank, shall be 
punished by a fine of not less than FIFTY THOUSAND PESOS (P50,000) nor more than TWO 
MILLION PESOS (P2,000,000), imprisonment for not less than six (6) years and one (1) month 
nor more than fifteen (15) years, and perpetual disqualification from public office and 
confiscation or forfeiture in favor of the government of any prohibited interest and unexplained 
wealth.  
SEC. 22. Personnel. – The Board of Directors shall provide for an organization and staff of 
officers and employees of the Bank and upon recommendation of the President of the Bank, 
appoint and remove such officers and employees: Provided, That the Board shall have 
exclusive and final authority to promote, transfer, assign or reassign personnel of the Bank, 
any provisions of existing law to the contrary notwithstanding.  
All positions in the Bank shall be governed by the provisions of RA No. 10149 . 
The Bank officers and employees, including all members of the Board, shall not engage 
directly or indirectly in partisan political activities or take part in any election except to vote. 
No officer or employee of the Bank, subject to civil service law and regulations, shall be 
removed or suspended except for cause as provided for by law and after due process of law. 
SEC. 23. Legal Counsel. – Any provision of existing law or executive order to the contrary 
notwithstanding, the Bank shall have its own Legal Department which shall have the power to 
represent the Bank in cases filed before courts, tribunals, and quasi-judicial bodies, render 
opinions, prepare and review contracts/agreements. The Head and members of the Legal 
Department shall be appointed by the Board of Directors. 
In appropriate cases, the Bank may also avail of the legal services of external counsel, subject 
to the approval of the Board and the Office of the Government Corporate Counsel (OGCC): 
Provided, however, That the present Legal Services Group in the Bank shall serve as its in-
house legal counsel. 
The hiring of any external private counsel may be authorized by the President, upon the 
recommendation of the chief legal counsel and the approval of the Board and the OGCC. 
SEC. 24. Penalty for Violation of the Provisions of this Charter. – Any director, officer, 
employee or agent of the Bank who violates or permits the violation of any of the provisions of 
this Charter, or any person aiding or abetting the violation of any of the provisions of this 
Charter, shall be punished by a fine of not to exceed FIVE HUNDRED THOUSAND PESOS 
(P500,000.00) or by Imprisonment of not more than five (5) years, or both such fine and 
Imprisonment. 
SEC. 25. Other Liability of Guilty Officer or Employee. – Any member of the Board of Directors 
or officer or employee of the Bank who willfully violates any of the provisions of this Act shall, 
in addition to the criminal and administrative liability resulting from such act, be held liable for 
any loss or injury suffered by the Bank as a result of such violation.  
SEC. 26. Liability of Directors, Officers or Partners of Offending Corporation or Partnership. – 
If the violation of the provisions of this Act is committed by a corporation or partnership, the 
directors, officers or partners hereof who participated in the violation shall be criminally liable 
for such violation. 
SEC. 27. Applicability of Banking Laws. – The provisions of R.A. No. 7653, otherwise known 


 
 
as the New Central Bank Act, as amended by R.A. No. 11211, R.A. No. 8791, and other 
applicable banking laws, insofar as they are not in conflict with any provision of this Act,  shall 
apply to the Bank.  
The penal provisions of Section 66 R.A. No. 8791, in relation to Sections 34, 35, 36 and 37 of 
R.A. No. 7653, as amended by R.A. No. 11211 shall be applicable to directors, officers, 
employees and borrowers of the Bank. 
SEC. 28. Control Over Subsidiaries and Dividends from Subsidiaries. – Pursuant to Section 
3(a) of this Act and notwithstanding any law, rule, regulation or practice to the contrary, the 
Bank, thru its President and CEO, shall have control over its subsidiaries and shall appoint the 
members of its board of directors based on the number of shares of stock standing in the 
Bank’s own name in the stock books of the subsidiaries: Provided, That the Bank may 
temporarily appoint directors to its subsidiaries in cases where urgent action is needed from 
the subsidiaries’ board and the present number of directors does not constitute a quorum.  
Every subsidiary shall declare and remit at least fifty percent (50%) of its annual net earnings 
as cash, stock or property dividends, without impairing its viability and the purposes for which 
it has been established, to the Bank as the parent corporation: Provided, That the percentage 
of annual net earnings that shall be declared by such subsidiary may be adjusted by the 
President and CEO. 
SEC. 29. Transitory Provision. – Nothing in this Act shall operate to abolish the Bank and 
affect the validity or legality of any right, duty, or obligation created by or in respect of the Bank 
prior to the effectivity this Act. 
Within one hundred eighty (180) days after the effectivity of this Act, the Bank is hereby 
authorized to reorganize  and/or rationalize  the  Bank's  organizational structure to attract 
fresh and critical talents to join the Bank's workforce in response to dynamic Industry trends, 
incentivize early separation of tenured employees and those with medical conditions who will 
be considered for retirement before the optional retirement age of sixty (60) years old, and 
improve headcount management and succession planning. 
All those who shall retire from the service or are separated therefrom on account of the 
reorganization of the Bank under the provisions of this Charter shall be entitled to all gratuities 
and benefits provided for under existing laws and/or supplementary retirement plans adopted 
by and effective in the Bank. 
SEC. 30. Separability Clause. – If any provision of this Act is subsequently declared invalid or 
unconstitutional, the other provisions hereof which are not affected thereby shall remain in full 
force and effect. 
SEC. 31. Repealing Clause. – Sections 74 to 100 of RA No. 3844, otherwise known as the 
Agricultural Land Reform Code, as amended, are hereby repealed. All laws, executive orders, 
rules and regulations, or parts thereof inconsistent with any provision hereof are hereby 
repealed or modified accordingly. 
SEC. 32. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation. 
Approved,