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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3785

Introduced by Representatives Agapito H. Guanlao, Teddy Brawner Baguilat Jr,
Magnolia Rosa C, Nadres, Fernando V. Gonzales, Fernando L. Hicap, Noel 1.
Villanueva, Sharon 8. Garin, Lilia M. Nufio, Carlos M. Padilla, Anthony M. Bravo,
Jonathan A. dela Cruz, Victor J. Yu and Edcel “Grex"B. Lagman

AN ACT STRENGTHENING AND INSTITUTIONALIZING DIRECT. CREDIT
SUPPORT OF THE LAND BANK OF THE PHILIPPINES TO AGRARIAN
REFORM BENEFICIARIES, SMALL FARMERS AND. FISHERFOLK,
FURTHER AMENDING REPUBLIC ACT NO. 3844, OTHERWISE. KNOWN AS
THE AGRICULTURAL LAND REFORM CODE, as amended

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 74 of Republic Act No. 3844, as amended by Republic Act
No. 10374, otherwise known as the Agricultural Land Reform Code is hereby further
amended to read as follows

“SEC. 74. Creation. - To finance the acquisition by the Government of landed
estates for division and resale to small landholders, as well as the purchase of the
landholding by the agricultural lessee from the landowner, there is hereby established a

body corporate to be known as the “Land Bank of the Philippines,” hereinafter called the

“Bank,” which shall have its principal place of business in Manila. ‘The legal existence of
the Bank is extended for a period of fifty (50) years from the expiration of its original

term on 08 August 2013, renewable for another fifty (50) years. The Bank shall be


subject to such rules and regulations as the Central Bank may from time to time
promulgate.

THE BANK SHALL ALLOCATE 5% OF ITS REGULAR LOAN PORTFOLIO
(NET OF LOANS TO THE BANGKO SENTRAL NG PILIPINAS, INTERBANK
LOANS AND AVAILMENTS FROM DOMESTIC BILLS PURCHASE LINE),
WHICH IS MAINTAINED IN A SEPARATE SPECIAL WINDOW FOR
SOCIALIZED CREDIT TO QUALIFIED SMALL FARMERS, FISHERFOLK AND
AGRARIAN REFORM BENEFICIARIES (ARBs). THIS FACILITY SHALL SOLELY

FINANCE AGRICULTURAL PROJECTS PURSUANT TO THE PROVISIONS OF

JON 4 OF REPUBLIC ACT 10000, OTHERWISE KNOWN AS THE AGRI-
AGRA LAW, THIS SPECIAL SOCIALIZED CREDIT WINDOW SHALL BE
EXEMPT FROM THE STANDARD RULES ON LENDING OF THE BANGKO
SENTRAL NG PILIPINAS AND OF THE COMMISSION ON AUDIT.

ALL LOANS EXTENDED THROUGH THIS SPECIAL CREDIT WINDOW

SHALL QUALIFY AS PART OF THE BANK’S C 2 WITH THE AGRI-
AGRA LAW.

CREDIT UNDER THIS SPECIAL SOCIALIZED WINDOW SHALL BE
EXTENDED THROUGH THE FOLLOWING CONDUITS:

a) FARMERS’ AND FISHERFOLK’S COOPERATIVES

b) FARMERS’ AND  FISHERFOLK’S ORGANIZATIONS OR
ASSOCIATIONS

c) NON-AGRICULTURAL COOPERATIVES (CREDIT & MULTI-

PURPOSE),



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d) COOPERATIVE BANKS

e) RURAL BANKS.

f) THRIFT BANKS

8) AGRI-BUSINESS FIRMS OR ANCHOR FIRMS PROVIDING CREDIT
SUPPORT TO AGRARIAN REFORM BENEFICIARIES, AND SMALL FARMERS
AND FISHERFOLK

h) NON-GOVERNMENT ORGANIZATIONS

i) FOUNDATIONS WITH LENDING AUTHORITIES, AND

i) ALL OTHER CONDUITS THAT WILL BE DEEMED QUALIFIED BY
THE BANK.

LOANS UNDER THIS CREDIT WINDOW SHALL HAVE AN INTEREST
RATE EQUIVALENT TO NOT MORE THAN 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.

CRITERIA FOR ELIGIBILITY UNDER THIS SPECIAL CREDIT WINDOW
SHALL BE DETERMINED BY THE BANK AND SHALL BE REFLECTED IN THE
IMPLEMENTING RULES AND REGULATIONS.”

SEC.

vi ion 75 of Republic Act No. 3844, as amended, is hereby further
amended by adding a new subsection (15) to read as follows:

“(15) TO O)

R AND ISSUE COMMON AND PREFERRED SHARES OF

STOCKS TO AGRARIAN REFORM BENEFICIARIES, SMALL FARMERS AND.


FISHERFOLK THROUGH THEIR ORGANIZATIONS, COOPERATIVES,
FEDERATIONS AND COOPERATIVE BANKS; DEVELOPMENT PARTNERS
AND STRATEGIC INVESTORS SUCH AS MULTILATERAL AND BILATERAL
INSTITUTIONS; RURAL BANKS AND THEIR ASSOCIATIONS, IN QUANTITIES
TO BE DETERMINED BY 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 TWO-THIRDS OWNERSHIP OF THE TOTAL OUTSTANDING
COMMON SHARES OF THE BANK.

PREFERRED SHARES OF STOCKS SHALL BE NON-VOTING, OTHER

FEATURES OF PRE!

ERRED SHARES SHALL BE DETERMINED BY THE
BOARD OF DIRECTORS.

LOANS TO COOPERATIVES, FEDERATIONS, COOPERATIVE BANKS,
RURAL BANKS AND THEIR ASSOCIATIONS WHICH OWN COMMON SHARES

OF STOCK IN THE BANK SHALL NOT

COVERED BY RULES ON LOANS TO
DIRECTORS, OFFICERS, STOCKHOLDERS AND RELATED INTERESTS
(DOSRD.”

SEC. 3. Repealing Clause. - All laws, executive orders, rules and regulations or
parts thereof inconsistent with any provision hereof are hereby repealed or modified
accordingly.

Ss

“4, Separability Clause. « If any provision or part hereof is held invalid, the
other provisions not affected thereby shall remain and continue in full force and effect

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days upon its

&


1 publication in the Official Gazette or in any newspaper of general circulation.

2 Approved,