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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

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Twentieth Congress
First Regular Session

HOUSE BILL nol01 2

Introduced by MAGBUBUKID PARTY-LIST Representative FERDINAND “B1” L. BELTRAN

EXPLANATORY NOTE

Alinsunod sa Artikulo II, Seksyon 9 ng Saligang Batas ng 1987, tungkulin ng Estado
na itaguyod ang isang makatarungan at dinamikong kaayusang panlipunan na magtitiyak
ng kaunlaran, kasarinlan, at pag-ahon mula sa kahirapan ng sambayanang Pilipino.
Kabilang sa mga pangunahing sektor na dapat bigyan ng ganitong suporta ay ang mga
magsasaka, na siyang bumubuhay sa sektor ng agrikultura at sa seguridad sa pagkain ng
bansa.

Sa kabila ng kanilang mahalagang papel, matagal nang kinakaharap ng mga
magsasaka ang suliranin ng usurious lending o mapang-abusong pagpapautang, kung saan
sila ay napipilitang umutang sa mataas na interes, dala ng kakulangan sa akses sa pormal
na institusyong pampinansyal. Ang ganitong sistema ay nagiging dahilan ng pagkabaon sa
utang ng maraming magsasaka, at humahadlang sa kanilang pag-unlad at pagiging
produktibo.

Sa kabuuan, ang panukalang batas na ito ay isang kongkretong hakbang upang
protektahan ang kabuhayan ng mga maliliit na magsasaka, wakasan ang
mapagsamantalang sistema ng pautang, at tiyaking ang sektor ng agrikultura ay patuloy na
lalago sa ilalim ng isang makatarungan at makataong sistema ng pinansyal na suporta.

‘Ang panukalang ito ay hinain ni Hon, Faustino Michael T. Dy III ng ika-5 distrito ng
Isabela noong ika-18 na Kongreso at taimtim na sinusuportahan ng kinatawan na ito ang
naturang hakbangin na makatutulong na maiangat ang buhay ng mga Pilipinong
magbubukid sa bansa.

Sa kadahilanang ito, ang agarang pagsasabatas ng panukalang ito ay taos-pusong
isinusulong.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

1912

HOUSE BILL NO.— =

Introduced by MAGBUBUKID PARTY-LIST Representative FERDINAND “B1” L. BELTRAN

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AN ACT
TO PROHIBIT USURIOUS LENDING TO FARMERS, APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

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 “Anti-Usury Against
Farmers Act.”

SECTION 2. Declaration of Policy. - Article II, Sec. 9 of the 1987 Constitution
states, "The State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through
policies that provide adequate social services, promote full employment, arising standard
of living, and an improved quality of life for all.” In support of this policy, the State further
shall ensure that our farmers shall not become victims of usurious lenders and practices.

SECTION 3. Interest Rate. - Interest on loans to farmers whose landholding
does not exceed seven (7) hectares, whether with collateral or without, shall not exceed
an effective interest rate of six per cent (6%) per annum. The same rate shall likewise
apply to forbearance of any money, good or credit, and in judgments. Any figure above
this shall be considered usurious and illegal.

SECTION 4. Retroactive Effect. - The balance of existing loans shall
automatically be restructured applying an interest rate not exceeding an effective
interest rate of 6% per annum, effective upon effectivity of this Act.

SECTION 5. Determination of Loanable Amount. - The Bangko Sentral ng
Pilipinas and the Monetary Board shall determine the amount, or the percentage of
loanable amounts to farmers in the portfolio of banks, public or private.

SECTION 6. Implementing Rules and Regulations. - The Department of
Finance shall formulate the rules and regulations of this Act within ninety (90) days of


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its effectivity.

SECTION 7. Penal Provision. - Any natural person, not a government official or
employee, who violates any provision of this Act shall be punished with imprisonment of
one (1) year and/or a fine not exceeding PhP 100,000.00.

Any government employee or official who violates any provision of this Act shall
be punished with imprisonment of two (2) years and/or a fine not exceeding PhP
200,000.00.

Any juridical person who violates any provision of this Act shall be punished
with a fine of PhP 500,000.00. Its directors and/or officers may also be punished with
imprisonment of six (6) months to one (1) year if found liable of a violation under this
Act.

SECTION 8. Repealing Clause. - All acts, decrees, letters of instruction, issuances,
orders, or parts thereof inconsistent with any provision of this Act are hereby deemed
repealed or modified accordingly.

SECTION 9. Separability Clause. - If any part of this Act is declared
unconstitutional, the rest of the provisions shall remain in force and effect.

SECTION 10. Effectivity. - This Act shall take effect 15 days after its publication
in two newspapers of general circulation or in the Official Gazette.

‘Approved.