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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
S.B. No. 17708 
Introduced by SENATOR COMPANERA PIA S. CAYETANO 
EXPLANATORY NOTE 
It has been ninety-nine (99) years since the Charter of the University of the 
Philippines was approved in 1908. A lot of changes have taken place since then. 
Advancements in science and technology, communication, trade, and finance 
have remarkable contributions to the society. 
However, despite these 
developments, the Charter of the University of the Philippines has not been 
updated to adapt to the changing and fast-paced times. 
This bill will enable the country's premier institution of higher learning to 
adapt to the positive changes to ensure the improvement in the learning 
institution's performance. This will also enable the University to update its 
organizational structure and renew its functions and responsibilities as a center 
for academic excellence, and retain its status as the foremost source of not just 
great minds and talent but also of people with dedication and heart to serve this 
nation. 
For these reasons, approval of this Bill is urgently sought. 


FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
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S E N A T E  
Introduced by SENATOR COMPANERA PIA S. CAYETANO 
AN ACT TO STRENGTHEN THE 
UNIVERSITY OF THE PHILIPPINES AS THE NATIONAL UNIVERSITY 
Be if enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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Charter of 2007." 
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functions, as follows: 
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SECTION 1. Title. - This Act shall be known as "The University of the Philippines 
SEC. 2. Declaration of Policy. -The State shall promote, foster, nurture and protect the 
right 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 the University. - 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 
(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, including 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 instruction, 
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 the primary 


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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 disability, 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. 10. 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. lnsfitutional Autonomy as the Nafional 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. 
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SEC. 12. The Board of Regents. - 


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(I) 
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: 
The Chairperson of the Commission on Higher Education as Chairperson; 
The President of the University of the Philippines System as Vice-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 tenured 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; 
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 
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 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. 


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(2) 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. 
(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; 
(d) To approve the graduation of students and grant of honors, as recommended by 
their respective University Councils through the President of the University; 
(e) 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 
(b) 
(c) 


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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; 
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(9) To create, organize, reorganize, merge or abolish constituent universities, 
colleges, institutes, and other academic and administrative units of the University; 
(h) To establish professorial chair awards; 
(i) 
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; 
(k) 
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 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 
(j) 
(I) 


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endorsement of the President of the University, whenever their services are 
especially needed; 
(m) 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 interests that shall accrue 
therefrom shall form part of the same funds for the use of the University. 
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; 
(n) 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 in the manner it 
may, in its discretion, determine to carry out the purposes and functions of the 
University; 
(0) 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; 
(p) 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; 
(9) 
Notwithstanding any provision of law to the contrary, to authorize its faculty and 
staff to travel abroad to study, deliver papers, attend conferences and 


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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. 
SEC. 14. The President of the University. - The President of the University is the chief 
academic officer, head of the University Faculty and the chief executive officer of the 
University. The President of the University shall exercise the powers specifically provided for 
in this Act, those determined 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 University and of the Board of Regents. - There shall 
be a Secretary of the University appointed by the Board of Regents, who shall also be the 


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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 powers: 
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 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 of procedure consistent with the provisions of this Act. 
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, 


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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 Requisites 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 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, 


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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. - 
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 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, finally, That such 


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mechanisms and arrangements shall not conflict with the academic mission of the 
University. 
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; 
(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 a negotiated transaction is 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 Associations 
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 


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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 P50,000,000, 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 shall 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. Management 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 Associations of the Philippines (TOAP) and the 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 Exemptions. - The provisions of any general or special law to the 
contrary notwithstanding: 
(1) 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; 


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(2) 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; 
(3) 
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 
(4) All academic awards shall be exempt from taxes. 
SEC. 26. Reportorial 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 


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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 be 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. 
SEC. 31. Repealing Clause. - Act No. 1870, as amended, and all laws, decrees, 
orders, rules, and regulations or other issuances or parts thereof inconsistent with the 
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 Philippines. 
Approved, 
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