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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
House Bill No. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT  
PROVIDING FOR A NEW CHARTER  
OF THE LAND BANK OF THE PHILIPPINES 
EXPLANATORY NOTE 
The Republic Act (R.A.) No. 3844, or the Agricultural Land Reform Code established 
the Land Bank of the Philippines (LANDBANK), a government financial institution, to finance 
primarily the acquisition and distribution of agricultural estates for division and resale to small 
landholders as well as the purchase of the landholdings by agricultural lessees. In accordance 
with Presidential Decree (PD) No. 251, LANDBANK was given more authority and became 
the country's first universal bank. 
Along with the social objective of promoting rural development, the Bank's expanded 
commercial banking powers include lending to agricultural, industrial, home finance projects, 
and other productive enterprises. The Comprehensive Agrarian Reform Law, also known as 
R.A. No. 6657 (Comprehensive Agrarian Reform Law), as amended by R.A. No. 9700 
(CARPER), names LANDBANK as a financial intermediary of the National Government for 
the Comprehensive Agrarian Reform Program. 
Through the years, LANDBANK increased in terms of assets, rising to the position of 
second-largest full-service commercial bank in the country. Given the rise in the use of 
electronic banking channels during the pandemic, LANDBANK has likewise hastened its 
digital transformation to aid in bringing more Filipinos into the formal banking system. 
To complete its modernization and digitalization, the Bank has a need for a renewed 
and stand-alone legal and operational framework to boost the LANDBANK’s institutional and 
financial capacities. The stand-alone charter of the Bank will effectively support the National 
Government's policy objectives for small farmers and fisherfolk, micro, small and medium 
enterprises (MSMEs), countryside financial institutions (CFIs), local government units 
(LGUs), and government agencies for a more robust, sustainable, and inclusive economic 
growth with the help of the stand-alone charter and the constantly changing Philippine financial 
landscape. 
August 22, 2022
8:00 am
3844


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Among the salient features of the proposed bill is the creation of a stand-alone charter 
which aligns LANDBANK's mandate to its present activities as a bank which is not only a 
financial intermediary for activities concerning agrarian reform but as a financial institution 
that is responsible for broad-based agricultural and rural development and accelerated financial 
inclusion. 
The bill also aims to authorize LANDBANK to issue shares of stocks to all private 
individuals and entities. This will no longer be subject to the restrictive conditions under 
Republic Act No. 10878 that, other than to the government, LANDBANK can only issue shares 
to private entities which represent organizations of agrarian reform beneficiaries (ARBs and 
small farmers and fisherfolk, strategic investors and rural banks). 
To strengthen the priority being placed on the interest of the general public, rather than 
the private entities, LANDBANK will require at least three-fourths (3/4) ownership by the 
National Government of the total outstanding capital stock to protect the bank's stake and 
maintain the function of the bank as a development arm of the government. It will also dispense 
with the prior consultation with the NEDA and the approval by the President of the Philippines 
in the issuance by LANDBANK of any form of debt security. 
Another feature of this proposed measure is to allow LANDBANK to use part or all of 
its unrestricted retained earnings to pay for increases in authorized capital stock. From nine (9) 
seats provided to the Board, it will have two (2) additional members, increasing the number to 
eleven (11). The NEDA Secretary will be added as an ex-officio member as well as another 
representative from the private sector. It also aims to align the foreclosure of mortgages over 
movable collaterals with what is allowed under Republic Act 11057 or the Personal Property 
Security Act. 
It will also allow other modes of disposal of acquired real estate and other properties in 
addition to public bidding and authorizes the Bank to sell its acquired real estate and other 
properties to a Financial Institutions Strategic Transfer Corporation under Republic Act No. 
11523 (Financial Institution Strategic Transfer Act), and to take possession of foreclosed 
properties during the period of redemption, as well as to enjoy its civil fruits with no obligation 
to account or post bond for the purposes of possession. 
Lastly, it will aim to remove the authority of the Board to fix compensation of 
LANDBANK employees and align the same with the requirements of RA No. 10149 or the 
GOCC Governance Act for 2011. 
The proposed amendments not only emphasized the advantages for all entities involved 
in agriculture, the entire agribusiness value chain, and all other economic sectors, but also the 
advantages at the national level for promoting fiscal sustainability and fortifying the financial 
system of the nation. 
In view of the foregoing, the passage of this bill is earnestly sought. 
JOEY SARTE SALCEDA 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
House Bill No. __________ 
__________________________________________________________________________ 
Introduced by Representative JOEY SARTE SALCEDA 
__________________________________________________________________________ 
AN ACT 
PROVIDING FOR A NEW CHARTER  
OF THE LAND BANK OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION. 1. Short Title. – This Act shall be known as the “New Land Bank of the 
Philippines Act”. 
SEC 2. Purpose and Domicile. – The Land Bank of the Philippines, hereinafter referred 
to as the “Bank”, operating under the provisions of Republic Act 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 and rural development and 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). 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 BSP. 
In line with its mandate, the Bank shall allocate five percent (5%) of its regular loan 
portfolio (net of loans to the BSP, interbank loans and availment from domestic bills purchase 
line), for socialized credit to qualified small farmers, fisherfolk and ARBs. This facility shall 
solely finance agricultural projects pursuant to the provisions of Section 4 of Republic Act No. 
10000. otherwise known as “The Agri-Agra Reform Credit Act of 2009”. 
3844


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Credits extended to the beneficiaries named therein under this facility shall be based on 
the feasibility of the project and their paying capacity, their estimated production, and securities 
they can provide as well as assets as may be acquired by them from the proceeds of the loan. 
 
This facility will be funded through the operations of the Bank itself and will not require 
additional government funding. All loans extended through this special socialized credit 
facility shall qualify as part of the Bank's compliance with the Agri-Agra Law. 
 
Credit under this special socialized credit facility shall be extended through the 
following conduits: 
 
(a) Farmers' and fisherfolk's cooperatives; 
 
(b) Farmers' and fisherfolk's organizations or associations; 
 
(c) Nonagricultural cooperatives (credit and multipurpose); 
 
(d) Cooperative banks; 
 
(e) Rural banks; 
 
(f) Thrift banks; 
 
(g) Agri-business firms or anchor firms providing credit support to ARBs, and small 
farmers and fisherfolk; and 
 
(h) Duly accredited microfinance nongovernment organizations by the Microfinance 
NGO Regulatory Council. 
 
Loans under this special socialized credit facility shall have an interest rate equivalent 
to not more than seventy-five percent (75%) of the Bank's prevailing rates for loans to 
cooperatives: Provided, That these conduits shall have an interest spread of not more than five 
(5) percentage points. The interest spread shall exclude crop insurance premiums and guarantee 
fees: Provided, further, That a conduit cannot lend to another conduit. Criteria for eligibility 
under this special socialized credit facility shall be determined by the Bank and shall be 
reflected in the implementing rules and regulations. 
 
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 


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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 
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) Borrow from, or rediscount notes, bills of exchange and other credit instruments 
with the BSP subject to the provisions of Chapter IV of Republic Act No. 7653 as amended by 
Republic Act No. 11211, otherwise known as the New Central Bank Act and relevant BSP 
rules and regulations; 
 
(j) Act as a trustee, or administer any trust or hold property in trust in accordance with 
the provisions of law governing trust corporations; 
 
(k) 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; 
 
(l) Strengthen the capital base of the Bank, to establish a national marketing federation 
of farmers and fisheries cooperatives to attract massive capital formation from savings deposits 
of the cooperative members nationwide; 
 
(m) 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: Provided, however, 
That the National Government shall maintain, at all times, at least three-fourths (3/4) ownership 
of the total outstanding capital stock of the Bank. 
 
The holders of preferred shares of stock shall be non-voting. Other features of preferred 
shares shall be determined by the Board of Directors in accordance with applicable laws and 
regulations; and 
 


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(n) Exercise the general powers provided for in Republic Act No. 11232, otherwise 
known as the “Revised Corporation Code of the Philippines”, and the universal banking powers 
under Republic Act No. 8791. otherwise known as “The General Banking Law of 2000”, 
insofar as they are not inconsistent or incompatible with this Charter. 
 
SEC. 4. Issuance of Bonds. – The Bank, shall, upon the approval of the Secretary of 
Finance, 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-m 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 shall 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 preferred shares of the Bank or accept those shares in exchange for any of their assets or 
properties under such terms and conditions as shall be agreed upon between the corporations 
or institutions concerned and the Bank. 
 
SEC. 6. Capital. – 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 authorized capital stock. 
 
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 bang 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 


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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 affairs and business of the 
Bank shall be directed and its property managed and preserved by a Board of Directors 
consisting of eleven (11) members to be composed of the Secretary of Finance as Chairperson, 
the President of the Bank as Vice Chairperson, the Secretary of Agrarian Reform, the Secretary 
of Labor, the Secretary of the National Economic and Development Authority and the 
Secretary of Agriculture as ex-officio members The President of the Philippines shall appoint 
two (2) members of the Board who shall represent the agrarian reform beneficiaries and three 
(3) members who shall represent the private sector in accordance with the appointment process 
under Republic Act No 10149. otherwise known as the “GOCC Governance Act of 2011”.  
 
The annual stockholders meeting shall be held on the first Tuesday of December. 
 
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 two (2) weeks. 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 
natural born citizen of the Philippines, not less than thirty-five (35) years of age, 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. 
 
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) Ensure the appointment and removal of such personnel as may be necessary for the 
expeditious conduct of the business of the Bank, except the President of the Bank, who shall 
also be exempt from the manner of appointment and removal provided under Section 18 of 
Republic Act No. 10149: Provided, That, the President and CEO of the Bank shall be subject 
to appointment and removal by the President of the Philippines, upon recommendation by the 
Secretary of Finance; 
 


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(e) Notwithstanding any law to the contrary, adopt and review the 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; 
 
(f) 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 a manner responsive and attuned to 
market developments, and to provide incentives for those who shall be separated from the 
service. Notwithstanding any law to the contrary, these incentives shall be in addition to all 
gratuities and benefits the employee is entitled under existing laws; 
 
(g) Approve the budget of the Bank for its operations; and 
 
(h) 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. 
 
SEC. 11. Corporate Social Responsibility 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: Provided, That movable collaterals may be 
foreclosed in its present condition or following any commercially reasonable manner in 
accordance with Republic Act No. 11057 otherwise known as the “Personal Property Security 
Act”; 
 
(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. 


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The Bank is also authorized to sell its acquired real estate and other properties to a 
Financial Institutions Strategic Transfer Corporation (FISTC), in accordance with the 
provisions of Republic Act No. 11523 or the “Financial Institutions Strategic Transfer (FIST) 
Act”. 
 
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 
m 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. 
 
SEC. 13. Compensation of Executive Officers. – The President of the Bank shall be its 
Chief Executive Officer whose salary shall be based on the Compensation and Position 
Classification System developed by the Governance Commission for Government-Owned or 
Controlled Corporations (GCG) and as approved by the President of the Philippines upon 
recommendation by the Secretary of Finance. The sum total of the salary allowances, benefits 
and other emoluments of the President of the Bank shall be higher than the compensation 
package of the next highest rank mg executive of the Bank. 
 
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 be based on the Compensation and Classification System established by the GG 
and as approved by the President of the Philippines upon recommendation of the Secretary of 
Finance. 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, enter into all necessary obligations on 
behalf of the Bank 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 


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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, and 
possessed of demonstrated administrative skill and ability. 
 
SEC. 16. Withdrawal of Persons having Personal Interest. – In addition to the 
requirements of Republic Act No. 6713. otherwise known as the “Code of Conduct and Ethical 
Standards for Public Officials and Employees”, whenever any member attending a meeting of 
the Board has a personal interest m 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 m 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. 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 the contrary notwithstanding. 
 
All positions in the Bank shall be governed by the Compensation and Classification 
System established by the GCG and as approved by the President of the Philippines upon 
recommendation by the Secretary of Finance. 
 
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. 18. 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 the Office of the 
Government Corporate Counsel: Provided, however, That the present Legal Services Group in 
the Bank shall serve as its in-house legal counsel. 
 
 
 
 


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TRANSITORY PROVISIONS 
 
SEC. 19. Reorganization of the Bank. – Within one hundred eighty (180) days after the 
effectivity of this Act, and whenever necessary thereafter, 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. 20. 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 (P 
500,000.00) or by imprisonment of not more than five (5) years, or both such fine and 
imprisonment at the discretion of the Court. 
 
SEC. 21. 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. 22. Repealing Clause. – Sections 74 to 100 of Republic Act 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 provisions hereof 
are hereby repealed or modified accordingly. 
 
SEC. 23. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation. 
 
Approved,