FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
S E N A T E  
Senate Bill No. 1 
.! 
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, ' .,\ 
Introduced by Senator Francis N. Pangilinan 
EXPLANATORY NOTE 
The University of the Philippines Charter is 96 years old. It was enacted in 1908. 
As we live in a fast changing world, with humankind advancing radically in terms of 
science and technology, many changes have taken place since 1908. Centuries old 
monarchies crumbled, colonies gained independence, and dissimilar cultures came 
together through convenient continental unions. Likewise, globalization broke barriers 
in communications, trading and finance, and even personal relationships. 
Such 
sweeping changes taking place, and while all else is changing, the University of the 
Philippines Charter has remained the same, in largely its original form, for 96 long 
years. 
Said to be the bastion of academic freedom and academic excellence, the 
University of the Philippines nevertheless needs a revised charter to become more 
competitive in promoting, fostering, nurturing and protecting the right of all citizens to 
quality education. There is need for legislation to modernize, update and revise the 
organizational structure, rights and responsibilities of the University of the Philippines as 
an educational institution. 
An update charter therefore will allow the University of the Philippines to continue 
to perform its basic functions of teaching, research and service to the nation. Also, it 
will allow the University to effectively perform its role as a standard-setter and innovator 
in higher education, as a major center for the sciences and the professions, as the 
foremost graduate university in the country, as a leading university on research and 
public service, and as a recognized regional and international university, 
urged. 
In view of the foregoing considerations, immediate approval of the bill is earnestly 


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CONGRESS OF THE PHILIPPINES) 
Firsf Regular Session 
FOURTEENTH CONGRESS 
) 
AN ACT 
TO STRENGTHEN THE UNlVESlTY OF THE PHILIPPINES AS THE NATIONAL 
UNIVERSITY 
Be if enacted by the Senate and House of Representatives of the Philippines in Congress assembled. 
SECTION 1. 
Title. - This Act shall be known as "The University of the 
Philippines Charter of 2007." 
SEC. 2. Declaration of Po/icy. - The State shall promote, foster, nurture and 
protect the rights of all citizens to quality education. Toward this end, it is the policy of 
the State to strengthen the University of the Philippines as the National University. 
SEC. 3. Purpose of fhe Universify. - As the National University, a public and 
secular institution of higher learning, and a community of scholars dedicated to the 
search for truth and knowledge, the University of the Philippines shall carry out its 
unique and distinctive leadership in higher education and national education 
development through its combined functions, as follows: 
(1) Lead in setting academic standards and initiating innovations in teaching, 
research and faculty development in philosophy, the arts and humanities, the 
social sciences, the professions and engineering, natural sciences, mathematics, 
and technology; and maintain centers of excellence in such disciplines and 
professions; 
(2) 
Serve as a graduate university by providing advanced studies and 
specialization for scholars, scientists, writers, artists and professionals, 
especially those who serve on the faculties of state and private colleges and 
universities: 


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(3) 
Serve as a research university in its various fields of expertise and 
specialization by conducting basic and applied research and development, and 
promoting research in the various colleges and universities, and contributing to 
the dissemination and application of knowledge; 
(4) Lead as a public service university by providing various forms of community, 
public , and volunteer service, and scholarly and technical assistance to the 
government, the private sector, and civil society while maintaining its standards 
of excellence; 
(5) Protect and promote the professional and economic rights and welfare of its 
academic and non-academic personnel; 
(6) Provide opportunities for training and learning in progressive leadership, 
responsible citizenship, and the development of democratic values, institutions 
and practice through academic and non-academic programs, jncluding sports 
and national identity; and 
(7) Serve as a regional and global university in cooperation with international 
and scientific unions with networks of universities and scholarly and professional 
associations in the Asia-Pacific region and around the world. 
SEC. 4. The University System. - The University of the Philippines, hereinafter 
referred to as the "University," is a university system and shall be composed of 
constituent universities established solely by its Board of 
Regents upon the 
recommendation of the President of the University. 
SEC. 5. Academic freedom. - The University shall have the right to enjoy and 
the responsibility to exercise academic freedom. 
SEC. 6. 
Academic Excellence. - The University has the responsibility to 
maintain and enhance its high academic standards in the performance of its functions of 
instructions, research, and extension and public service. 
SEC. 7. Commitment To National Development. - The University shall harness 
the expertise of the members of the University community and other individuals to 
regularly study the state of the nation in relation to its quest for national development in 


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the primary areas of politics and economics, among others, identify key concerns, 
formulate responsive policies regarding these concerns, and give advice and make 
recommendations to Congress and the President of the Philippines. 
SEC. 8. Social Responsibility. -The University is committed to serve the Filipino 
nation and humanity. While it carries out the obligation to pursue universal principles, it 
must relate its activities to the needs of the Filipino people and their aspirations for 
social progress and transformation. The University may provide venues for student 
volunteerism. 
SEC. 9. Democratic Access. - The University shall take affirmative steps which 
may take the form of an alternative and equitable admissions process to enhance the 
access of disadvantaged students, such as indigenous peoples and deserving students 
from depressed areas, to its programs and services. 
No student shall be denied admission to the University by reason solely of age, 
gender, nationality, religious belief, ethnicity, physical disabilify, or political opinion or 
affiliation. 
The University recognizes the separation of Church and State. It shall guarantee 
religious freedom and shall not discriminate on the basis of religion. 
SEC. I O .  Sports. - The University shall undertake and support comprehensive 
sports programs that promote physical education, uphold excellence in sports activities 
and encourage competitive participation on the same, instill school identity and 
solidarity, cultivate pride, self-discipline and teamwork which serves as a foundation for 
fostering active participation in the University, as well as in nation building. 
SEC. 11. Institutional Aufonomy as fhe National University. - To provide greater 
flexibility to the University, it shall be treated in a manner consistent with its institutional 
requirements as the National University by the service-wide agencies in the exercise of 
their respective jurisdiction. 
SEC. 12. The Board of Regents. - 
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(1) Composition - The governance of the University is vested in a board of 
regents known as the "Board of Regents of the University of the Philippines System," 
hereinafter referred to as the "Board," composed of: 
(a) 
(b) 
The President of the University of the Philippines System as Vice- 
The Chairperson of the Commission on Higher Education as Chairperson; 
Chairperson; 
The Chairperson of the Senate Committee on Education, Arts and Culture; 
The Chairperson of the House Committee on Higher and Technical 
Education; 
The President of the U.P. Alumni Association, to serve as Alumni Regent 
during his or her incumbency in that position; 
One Faculty Regent chosen by the full-time tenure faculty members of the 
University from their ranks, to serve for a term of two years; 
One Student Regent, to serve for a term of one year, chosen by the 
students from their ranks in accordance with rules and qualifications 
approved in a referendum by the students; 
( c) 
(d) 
(e) 
(f) 
(9) 
(h) 
One Staff Regent representing the full-time permanent research, 
extension, and professional staff (REPS) and administrative personnel 
and chosen by them from their ranks, to serve for a term of two years; 
and 
(i) 
Three other Regents who have distinguished themselves in their 
professions or fields of specialization, chosen from a list of five persons 
for every vacancy as recommended by a search committee constituted by 
the President of the University, based on standards and guidelines 
approved by the Board of Regents. At least two of these Regents should 
be alumni. All these Regents shall be appointed by the President of the 
Philippines considering the recommendation of the Board of Regents and 
shall serve for a term of two years: Provided, That the Regents holding 
office as members of the Board of Regents at the time of the effectivity of 
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this Act shall continue to serve until the expiration of their appointments 
as provided in Executive Order No. 204-A, 
issued by the President of the 
Philippines on July 15, 1987. 
Vacancy - In case of vacancy in the Board of Regents, except for the 
President of the University, such vacancy shall be filled in the same manner as provided 
for the predecessor, and such appointee shall hold office for the unexpired term. In the 
case of a sectoral Regent, membership in the Board ceases upon suspension, 
separation, or recall. 
(2) 
(3) 
Compensation - Members of the Board shall serve without compensation 
other than reimbursement for actual and necessary expenses incurred in attendance to 
meetings of the Board or other official business authorized by the Board. 
(4) Meetings; Quorum - The Board of Regents shall convene regularly. The 
Chairperson of the Board may call a special meeting whenever necessary: Provided, 
That members are notified in writing at least three days prior to said meeting. 
A majority of all members of the Board holding office at the time the meeting is 
called shall constitute a quorum for Board meetings. 
In no case shall any and all members of the Board appoint representatives to act 
on their behalf. 
SEC. 13. Powers and Duties of the Board of Regents. - The administration of 
the University and the exercise of its corporate powers are vested in the Board of 
Regents. 
The Board shall exercise the following specific powers and duties: 
(a) 
To define the thrusts of the University and adopt broad policy guidelines to 
ensure their implementation; 
To preserve the integrity of the University; 
To approve the institution, merger or abolition of academic programs, 
upon recommendation of the University Council of the Constituent 
University concerned through the President of the University; 
(b) 
(c) 
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To approve the graduation of students and grant of honors, as 
recommended by their respective University Councils through the 
President of the University; 
To confer honorary degrees upon persons in recognition of learning, 
statesmanship, or eminence in literature, science, or art, upon 
recommendation of a committee created by the President of the 
University: Provided, That such degrees shall not be conferred in 
consideration of any payment, gift or other valuable consideration; 
To approve the institutional programs and rules on student discipline, 
upon recommendation of the University Councils through the President of 
the University; 
To create, organize, reorganize, merge or abolish constituent universities, 
colleges, institutes, and other academic and administrative units of the 
University; 
To establish professorial chair awards; 
To provide fellowships, scholarships and grants, including athletic grants 
and to award the same to faculty, staff and students having special 
evidence of merit, especially those who are poor and deserving 
individuals; 
To elect the President of the University for a term of six years following a 
process of consultation with the University community based on 
standards and guidelines set by the Board of Regents. In the event of a 
vacancy, the Board of Regents shall elect a president who shall serve a 
full term within six months from the occurrence of the vacancy. 
To appoint faculty members and other officials and employees, to draw up 
a position classification and compensation plan for its faculty and staff, 
and to fix and adjust salaries and benefits of the faculty members and 
other employees: Provided, That salaries and other benefits of the 
faculties shall be comparable to those being received by their 
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counterparts in the private sector: to determine their hours of service, and 
such other terms and conditions of employment as it may deem proper; to 
grant leave of absence under such regulations as it may promulgate, any 
other provisions of law to the contrary notwithstanding; and to remove 
them for cause as provided by law after due investigation and proper 
hearing; 
To extend, with their consent, the tenure of faculty members of the 
University beyond the compulsory retirement age, on recommendation of 
the units upon endorsement of the President of the University, whenever 
their services are especially needed; 
To fix the tuition fees and other necessary school charges, as the Board 
may deem proper to impose, after due consultation with the students 
concerned. Such fees and charges, including government support and 
other income generated by the University, shall constitute special trust 
funds and shall be deposited in an authorized government depository 
bank. Any and all interest that shall accrue therefrom shall form part of 
the same funds for the use of the University. 
(I) 
(m) 
Notwithstanding any provision of law to the contrary, all incomes 
generated by the University or by its subsidiaries shall, upon their 
collection, be retained by the University and disbursed at the discretion of 
the Board for the professional growth and development, health, welfare, 
and other benefits of the students, faculty members and other personnel; 
for the acquisition, construction, maintenance and repair of urgently 
needed instructional and auxiliary facilities, equipment, buildings and 
other infrastructure; and for expenses necessary for the attainment of its 
purposes under its approved program of expenditures; 
To receive and appropriate all sums as may be provided by law for the 
support of the University to the ends specified by law, and all other sums 
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in the manner it may, in its discretion, determine to carry out the purposes 
and functions of the University; 
To authorize the construction, maintenance or repair of its buildings, 
machinery, equipment and other facilities, and the purchase and 
acquisition of real and personal properties, including necessary supplies, 
materials and equipment; 
To receive in trust legacies, gifts and donations of real and personal 
property of all kinds and to administer and dispose the same when 
necessary for the benefit of the University and subject to the instructions 
of the donor, if any; 
Notwithstanding any provision of law to the contrary, to authorize its 
faculty and staff to travel abroad to study, deliver papers, attend 
conferences and disseminate research: Provided, That the fellowship, 
scholarship or grant is authorized by the Board of Regents: Provided, 
finally, That research and other activities 'funded by the University shall 
likewise undertake fields or topics that have promising commercial 
applications, and that the faculty and staff involved in said research be 
allowed to participate in its financial or economic benefits; 
To exercise the general powers set out in the Corporation Code; 
To delegate any of its powers to the President of the University or other 
officials or officers as it may deem necessary; 
To prescribe rules for its own government and the discipline of the faculty 
and other personnel and to enact for the government of the University 
such general policies, rules and regulations, not contrary to law, as are 
consistent with the purposes of the University; and 
To exercise such powers as may be proper and necessary to carry out 
the objectives of this Act. 
14. The Presidenf of fhe University. - The President of the University is 
the chief academic officer, head of the University Faculty and the chief executive officer 
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of the University. The President of the University shall exercise the powers specifically 
provided for in this Act, those determine by the Board of Regents, those which pertain to 
the office of the president of a university, and those which are related or necessary to its 
functions. The Board of Regents shall determine the compensation of the President of 
the University. 
The President of the University shall be appointed by the Board of Regents. He 
or she shall serve for a term of six years without prejudice to one reappointment after a 
determination of outstanding performance by a committee created by the Board of 
Regents: Provided, That the President of the University sought to be reappointed shall 
not vote or participate in the creation of such committee. 
SEC. 15. The Secretary of the Universify and of fhe Board of Regents. - There 
shall be a Secretary of the University appointed by the Board of Regents, who shall also 
be the Secretary of the Board, and .who shall keep such records of the University as 
may be designated by the Board. 
SEC. 16. The University Council. - There shall be in each constituent university 
a University Council consisting of the Chancellor as chairperson, and all faculty 
members in the constituent university holding the rank of assistant professor and higher 
as members. 
SEC. 17. Powers of the University Council. - The University Council shall be the 
highest academic body of each constituent university and shall exercise the following 
Fix the requirements for admission to any college or unit, graduation, and 
the grant of honors subject to the minimum system-wide requirements; 
Prescribe the academic programs including their institution, revision, 
abolition and merger, subject to the approval of the Board of Regents; 
Recommend to the Board of Regents the graduation of students and the 
grant of honors; 
Exercise disciplinary power over the students, through the Chancellors or 
their appropriate committees, subject to review by the President of the 
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University according to the limits prescribed by system-wide rules on 
student discipline; 
Undertake the periodic review of academic courses, programs, standards, 
thrusts and policies; and 
Adopt internal rules or procedure consistent with the provisions of this 
Act. 
(e) 
(f) 
SEC. 18. The Chancellor of the Constituent University. - The Administration of 
each constituent university is vested in the Chancellor insofar as authorized by the 
Board of Regents and the President of the University. The Chancellor of the constituent 
university shall be elected by the Board of Regents upon nomination of the President of 
the University, following a process of consultation with the constituents of the 
constituent university based on standards and guidelines set by the Board of Regents. 
The Chancellor shall report to the President OF the University, and shall perform the 
duties and functions elsewhere stated in this Act, and all the usual, necessary and 
related functions of the office of the chancellor, subject to the policies and rules 
prescribed by the Board of Regents. The Board of Regents shall determine the term 
and compensation of the Chancellor. 
SEC. 19. The Faculty. - The teaching staff of each college shall constitute its 
faculty. The College Faculty shall be presided over by a Dean. The Dean shall be 
elected by the Board of Regents upon nomination of the President of the University and 
upon recommendation of the Chancellor of the constituent university, following a 
process of consultation with the constituents of the college based on standards and 
guidelines set by the Board of Regents. 
SEC. 20. 
Appointment Requjsjfes and Practice of Profession. - 
Faculty 
members, as well as research, extension and professional staff 
(REPS) of the 
University, shall be exempt as such from any civil service examination or regulation as a 
requisite to appointment. The provisions of existing law to the contrary notwithstanding, 
licensing requirements for professional regulatory boards shall not affect appointments 
to faculty positions. In the appointment of faculty members, no religious test shall be 
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applied, nor shall the religious or political opinions or affiliations of the faculty members 
of the University be made subject of examination or inquiry. 
SEC. 21. Student Affairs. - (1) There shall be established in the University the 
following student councils: for every college and degree-granting institute, a college or 
institute student council; and for every constituent university, a university student 
council. Each student council shall advance the interests, welfare, and aspirations of its 
constituents. It shall have the power to adopt internal rules of procedure consistent with 
the provisions of this Act. 
Each student council shall be composed of students of an academic unit of the 
University duly elected by the students of such unit. Each member of the student 
council shall serve for a term of one (1) year, without prejudice to re-election. 
(2) 
Every constituent university, college, institute, and department of the 
University shall have the right to organize and publish a student publication, funded by 
student fees, which shall enjoy unrestricted and immediate access to such funds, 
freedom of expression and autonomy in the formulation of editorial policies. 
SEC. 22. Land Grants and Other Real Properties of the University. - 
(a) 
The State shall provide subsidy to the University 'of the Philippines 
System as the National University in the form of lump sum amount, 
through general appropriations and other financial benefits, and in kind, 
through land grants and donations and use of other real properties. To 
carry out the intent of these grants, income derived from the development 
of all land grants and real properties shall be used to further the ends of 
the University, as may be decided by the Board of Regents; 
Such parcels of land ceded by law, decree or presidential issuance to the 
University of the Philippines, are hereby declared to be reserved for the 
purposes intended. The absolute ownership of the University over these 
landholdings, including those covered by original and transfer certificates 
of title in the name of the University of the Philippines and their future 
derivatives, is hereby confirmed. 
Where the issuance of proper 
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certificates of title is yet pending for these landholdings, the appropriate 
government office shall expedite the issuance thereof within six months 
from the date of effectivity of this Act: 
Provided, That all registration 
requirements necessary for the issuance of the said titles have been 
submitted and complied with; and 
The Board of Regents may plan, design, approve andlor cause the 
implementation of contracts, mechanisms, and financial instruments, such 
as 
joint 
ventures, 
long-term 
leases, 
fully-owned 
subsidiaries, 
securitization and, in exceptional cases, sale to give the University the 
flexibility to generate revenues and other resources from land grants and 
other properties: Provided, That such mechanisms and arrangements 
shall sustain and protect the environment in accordance with law, and be 
exclusive of the academic core zone of the campuses of the University of 
the 
Philippines: Provided, 
fina//y, 
That 
such 
mechanisms and 
arrangements shall not conflict with the academic mission of the 
University. 
(c) 
SEC. 23. Safeguards on Assets Disposition. - The preservation of the value of 
the assets of the University shall be of primordial consideration. 
The exclusive academic core zone of the campuses of the University shall not be 
sold, transferred, ceded, conveyed or assigned, encumbered, leased for purposes 
inconsistent with its academic mission or otherwise utilized for non-academic purposes. 
The provision of this Act or any other law to the contrary notwithstanding, the 
sale, transfer, conveyance, assignment, lease of more than five years, mortgage or 
encumbrance of the assets of the University and any transactions as referred to in 
Section 22 shall be subject to the following conditions and procedures: 
(a) 
It shall be based on a multi-year comprehensive development plan, 
crafted and developed by qualified urban planning professionals having at least five 
years experience, with prior consultations with and concurrence of third-party experts 
and duly approved by a majority vote of all the members of the Board of Regents; 
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(b) 
It shall be subject to competitive and public bidding as provided under 
Republic Act No. 9184, otherwise known as the Procurement Reform Law; 
(c) 
In the case of two failed biddings and negotiated transaction, if 
undertaken, the Board of Regents, when considering the approval of any such 
transaction, shall secure a fairness opinion report from an independent third-party body. 
The said body shall have five members, three of which shall be nominated by the 
Bankers Association of the Philippines (BAP), Investment Houses Association of the 
Philippines (IHAP), Trust Officers Association of the Philippines, or the Financial 
Executive Institute of the Philippines (FINEX). The members shall be entitled to a 
reasonable per diem as the Board may specify. 
The fairness opinion report shall contain a statement expressing the opinion of 
the body as to the fairness to the University of the terms of the proposed transaction, 
particularly its financial terms. The report shall include, but not limited to, a review and 
analysis of the proposed transaction, financial statements, industry information, 
economic conditions assumptions using management projections and the assumptions 
used therein and a comparison of similar transactions; and 
(d) 
If the contract or transaction involves an amount more than P50,000,00, it 
shall be approved by two-thirds of all the members of the Board of Regents: Provided, 
That the splitting of contracts, which is by breaking up a contract into smaller quantities 
or amounts or dividing contract implementation into artificial or arbitrary phases or 
subcontracts for the purpose of circumventing this provision, shall not be allowed. In all 
other contracts, the approval of the majority of all members of the Board shall be 
required. 
There shaff be a formally convened meeting for the purpose of approving the 
transaction and the Regents shall be provided with two weeks prior notice. 
SEC. 24. Managemenf of funds. - (1) There shall be an independent trust 
committee to be composed of one representative each nominated by the Bankers 
Association of the Philippines (BAP), the Investment House Association of the 
Philippines (IHAP), the Trust Officers Association of the Philippines (TOAP) and the 
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Financial Executive Institute (FINEX). The members shall be entitled to a reasonable 
per diem as the Board may specify. (2) The independent trust committee shall 
recommend to the Board five universal banks selected on a prudent basis whose trust 
departments shall manage the University's corporate and other funds through trust 
agreements on a non-directed basis: Provided, That any such agreement shall be for a 
period of not more than two years. (3) The independent trust committee shall provide 
the Board with direction on appropriate investment objectives and permissible 
investments with the view to preserving the value of the funds while allowing the 
University to earn a reasonable return thereon. 
SEC. 25. Tax Exempfions. - The provisions of any general or special law to the 
contrary notwithstanding: 
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(4) 
All revenues and assets of the University of the Philippines used actually, 
directly and exclusively for educational purposes shall be exempt from all 
taxes and duties; 
Gifts and donations of real and personal properties of all kinds shall be 
exempt from the donor's tax and the same shall be considered as 
allowable deductions from the gross income of the donor, in accordance 
with the provisions of the National Internal Revenue Code of 1997, as 
amended: Provided, That the allowable deductions shall be equivalent to 
150 percent of the value of such donation. Valuation of assistance other 
than money shall be based on the acquisition cost of the property. Such 
valuation shall take into consideration the depreciated value of property 
in case said property has been used; 
Importation of economic, technical, vocational, scientific, philosophical, 
historical and cultural books, supplies and materials duly certified by the 
Board, including scientific and educational computer and software 
equipment, shall be exempt from customs duties; and 
All academic awards shall be exempt from taxes. 
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SEC. 26. Repottorial Requirements and Auditing of Accounts. - The University 
shall submit an annual report to Congress containing the financial statements, 
statement of assets and liabilities, actual projected income from tuition fees and other 
revenue sources, contracts and investments entered into pursuant to Section 22 (c) 
hereof and programs of expenditure. All accounts and disbursements of the University 
shall be audited by the Commission on Audit. 
SEC. 27. Applicability of Procurement Laws, Rules and Regulations to the UP 
System. - In the procurement of infrastructure projects, goods and consulting services, 
the University of the Philippines shall comply with applicable procurement laws as well 
as their implementing rules and regulations. 
SEC. 28. Rules of Construction. - No statutory or other issuances shall diminish 
the powers, rights, privileges, and benefits accorded to the University under this Act or 
enjoyed at present by the University under other issuances not otherwise modified or 
repealed under this Act, unless subsequent legislation expressly provides for their 
repeal, amendment or modification. Any case of doubt in the interpretation of any of 
the provisions of this Charter shall be resolved in favor of the academic freedom and 
fiscal autonomy of the University of the Philippines. 
SEC. 29. Appropriations. - The amount needed to carry out the implementation 
of this Act shall charged against the current fiscal year's lump sum appropriation and 
other internal funds of the University. Thereafter, such lump sum representing the 
national government's responsibility for the continued growth, operation and 
maintenance of the University shall be included in the Annual General Appropriations 
Act. 
The University may use unexpended balances in any appropriation for purposes 
that the Board of Regents determines. 
SEC. 30. Separability Clause. - 
Should any provision herein be declared 
unconstitutional, the same shall not affect the validity of the other provisions of this Act. 
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SEC. 31, Repealing Clause. -Act No. 1870, as amended, and all laws, decrees, 
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orders, rules, and regulations or other issuances or parts inconsistent with the 
3 
4 
s 
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Philippines. 
provisions of this Act 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 any newspaper of general circulation in the 
Approved, 
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