Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
Section 2 of Republic Act No. 6657 states that the welfare of the landless farmers and 
farmworkers will receive the highest consideration to promote social justice and to 
move the nation toward sound rural development and industrialization. This means 
that the State must ensure the effective implementation of the agrarian reform program 
as a prime social justice measure of the government.  
However, data from the Philippine Statistics Authority shows that farmers, together 
with fishermen, and children belonging to families with income below the official 
poverty threshold posted the highest poverty incidences in 2018 at 31.6, 26.2, 24.5 
and 23.9 percent respectively. These three sectors have the highest poverty incidence 
in 2006, 2009, 2012, and 2015.  
Agrarian reform beneficiaries (ARBs) continue to incur farming losses due to disasters, 
insufficient government support services, and often, legal battles with corporations that 
threaten their homes, livelihood, and security. Considering the myriad of concerns 
faced by our agriculture sector, ARBs also find it difficult to comply with their 
responsibilities under the agrarian reform program that includes payment of loan 
amortizations, among others. This dilemma has been glaring over the years and in 
fact, during the first State of the Nation Address (SONA) of President Bongbong 
Marcos, he urged the Congress to pass a law condoning agrarian reform beneficiaries 
(ARBs) on their existing agrarian reform loans. He mentioned that the proposed 
condonation will cover Php 58.125 billion that will benefit around 654,000 ARBs 
involving 1.18 million hectares of awarded lands.1 
In line with the priorities of the Marcos administration, this bill seeks to lift the burden 
to our ARBs by condoning annual amortization and interests, including penalties or 
1 https://www.pna.gov.ph/articles/1179684 
September 29, 2022
2:36 pm
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surcharges on their agrarian reform loans. Through this, ARBs can allot more funds 
towards farm productivity and increased farm income. This bills also aims to reduce 
the administrative costs in collecting amortizations to ARBs.  
As a step in fulfilling the role of the State towards social justice, the immediate passage 
of this measure is earnestly sought.  
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.  


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
PROVIDING FOR THE CONDONATION OF 
ALL UNPAID PRINCIPAL, 
INTERESTS, PENALTIES OR SURCHARGES ON LOANS SECURED BY 
AGRARIAN 
REFORM 
BENEFICIARIES 
UNDER 
THE 
COMPREHENSIVE 
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Condonation of Unpaid Amortizations, Interest Payments, Penalties 
or Surcharges. – All unpaid principal and interests, including penalties or surcharges, 
if any, due from loans used for land acquisition secured under the Comprehensive 
Agrarian Reform Program are hereby condoned by the Government, thereby relieving 
all farmer-beneficiaries from the payment thereof: Provided, That the condonation of 
such all unpaid principal, interests, penalties or surcharges, shall be in conformity with 
the applicable banking laws and regulations of the Bangko Sentral ng Pilipinas: 
Provided, further, That upon the effectivity of this Act, the Land Bank of the Philippines 
(LBP) shall issue the certification necessary to facilitate the issuance of a certificate of 
land title ownership in favor of the agrarian reform beneficiary concerned: Provided, 
finally, That the condonation of all unpaid principal, interests, penalties or surcharges 
shall release all attached liens and encumbrances arising from the loans secured for 
land acquisition. 
SECTION 2. Implementing Rules and Regulations. – Within thirty (30) days from 
the effectivity of this Act, the Department of Agrarian Reform, in coordination with the 
Philippine Agrarian Reform Council, Department of Finance and the LBP, shall 
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promulgate the necessary rules and regulations to effectively implement the provisions 
of this Act. 
 
SECTION 3. Repealing Clause. – Section 26 of Republic Act No. 6657, as amended, 
otherwise known as the “Comprehensive Agrarian Reform Law of 1988” is hereby 
repealed. All laws, decrees, orders, rules and regulations or parts thereof inconsistent 
with any of the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
 
SECTION 4. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
 
Approved,