Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Rep. WOWO FORTES 
EXPLANATORY NOTE 
On August 8, 1963, through Republic Act No. 3844, otherwise known as the 
Agricultural Land Reform Code, the Landbank of the Philippines (LandBank) was 
established as a means to support agrarian reform and promote rural development. As 
the second-largest bank in the country and its largest government-owned bank, 
LandBank’s role in the country's socio-economic development cannot be overstated. 
Providing services similar to those of a traditional universal bank, LandBank also offers 
services tailored to sectors typically underserved by private banks, including rural 
development, fisheries, healthcare, environmental protection, tourism, and agrarian 
reform, among others. 
LandBank has proven itself as a vital institution among the Filipino people, 
particularly those in rural communities. Playing a critical role in improving the quality of life 
of millions of Filipinos, farmers, fisherfolk, and agricultural workers are provided accessible 
financing, assisting in the increase of their productivity and income. The bank also 
supports the enhancement of public service delivery by enabling local government units 
and public institutions to access affordable credit for community-based development. 
Through its programs, LandBank manages to bridge the gap between the rural and larger 
economy. 
However, LandBank’s existing charter no longer reflects the current economic and 
financial landscape. In the decades since its enactment, the banking industry has 
undergone significant changes. LandBank’s mandate, structure and operationalization 
must be updated to meet the current needs of its stakeholders to fully maximize its role in 
national development. Therefore, this bill seeks to revisit and modernize LandBank’s 
charter to align it with the present day. Through this new charter, LandBank can continue 
to serve as a dependable partner for every Filipino and contribute to the country’s pursuit 
of inclusive and sustainable development. 
In view of the foregoing, the passage of this bill is earnestly sought. 
ATTY. WOWO FORTES 
  Representative 
 Second District, Province of Sorsogon 
August 4, 2025
8:00 am
2867


Twentieth Congress of the  
Republic of the Philippines 
First Regular Session 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Rep. WOWO FORTES 
AN ACT PROVIDING FOR A NEW CHARTER FOR THE LAND BANK OF THE 
PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION. 1. Short Title. – This Act shall be known as “Land Bank of the Philippines 
Charter of 2025”. 
SEC. 2. Purpose and Domicile. – The Land Bank of the Philippines, hereinafter 
referred to as the "Bank", operating under the provisions of Republic Act (RA) No. 
3844, as amended, otherwise known as the "Agricultural Land Reform Code", shall 
henceforth operate under the provisions of this Act as a government financial 
institution responsible for broad-based agricultural, rural and industrial development 
while promoting accelerated financial inclusion. It shall provide accessible and 
innovative solutions to deliver timely and responsive financial and support services to 
rural financial institutions as well as small farmers, fisherfolk and agrarian reform 
beneficiaries (ARBs) as well as provide banking services principally to service the 
medium- and long-term needs of agricultural and industrial enterprises. The Bank shall 
remain to be a body corporate and shall have perpetual existence. It shall be 
supervised by the Bangko Sentral ng Pilipinas (BSP), taking into account its mandated 
roles of spurring countryside development and supporting the country's financial 
inclusion objectives. 
The principal office and place of business of the Bank shall be in Metro Manila. It may, 
however, open and maintain branches, agencies or other offices at such places in the 
Philippines as its Board of Directors may deem advisable, with the prior approval of 
the Monetary Board of the BSP. 
Subject to applicable laws, rules and regulations, the Bank shall provide banking 
services with a social mission of spurring countryside development by granting loans 
to finance the agricultural projects and national government’s developmental projects, 
including but not limited to the following: 
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(a) off-farm/fishery entrepreneurial activities; 
(b) agricultural mechanization/ modernization; 
(c) agri-tourism; 
(d) sustainable projects; 
(e) digitalization/automation of farming, fishery, and agri-business activities 
and processes, including related financial and management information 
systems; 
(f) public rural infrastructure; 
(g) home-building or home-financing projects;  
(h) programs that shall: (a) promote the health and wellness of farmers, 
fisherfolk and ARBs, including members of their households, such as water 
and sanitation projects for rural communities; and/or (b) address the 
developmental needs of rural communities, such as, but not limited to, 
projects that promote the livelihood, skills enhancement, financial literacy, 
including digital financial literacy, and other capacity-building activities of 
the rural community beneficiaries; 
(i) activities identified under the Agro-industry Modernization Credit and 
Financing Program (AMCFP) under Title l, Chapter 3, Section 23 of R.A. 
No. 8435, otherwise known as the "Agriculture and Fisheries Modernization 
Act of 1997, as follows: 
 
1. Agriculture and fisheries production including processing of fisheries 
and Agri-based products and farm inputs; 
2. Acquisition of work animals, farm and fishery equipment and 
machineries; 
3. Acquisition of seeds, fertilizers, poultry, livestock, feeds and other 
similar items; 
4. Procurement of agriculture and fisheries products for storage, 
trading, processing and distribution; 
5. Acquisition of water pumps and installation of tube wells for 
irrigation; 
6. Construction, acquisition and repair of facilities for production, 
processing, storage, transportation, communication, marketing and 
such other facilities in support of agriculture and fisheries; 
7. Working capital for agriculture and fisheries graduates to enable 
them to engage in agriculture and fisheries-related economic activities; 
8. Agribusiness activities which support soil and water conservation 
and ecology-enhancing activities; 
9. Privately funded and Local Government Unit (LGU)-funded irrigation 
systems that are designed to protect the watershed; 
10. Working capital for long-gestating projects; and 
11. Credit guarantees on uncollateralized loans to farmers and 
fisherfolk. 
(j) industrial development projects; and 
(k) other projects on productive enterprises. 
SEC. 3. General Powers. – The Bank shall have the power to: 


 
 
(a) Prescribe, repeal and alter its own by laws, to determine its operating 
policies, and to issue such rules and regulations as may be necessary; 
(b) Adopt, alter and use a corporate seal; 
(c) Hold, purchase, acquire and own real and personal property, introduce 
necessary improvements thereon to enhance and develop their social and 
economic value, and to sell, mortgage or otherwise dispose of the same; 
(d) Sue and be sued, make contracts, negotiate and secure loans from both 
local and foreign sources. Before undertaking any such credit operation, 
the Bank, through the Secretary of Finance, shall request the opinion, in 
writing, of the Monetary Board on the monetary implications of the 
contemplated action. All loans from foreign sources shall be subject to 
approval by the President of the Philippines and shall be fully guaranteed 
by the Philippine Government; 
(e) Grant short, medium and long-term loans and advances against security of 
real estate or other acceptable assets for the establishment, development 
or expansion of agricultural, industrial, home building or home financing 
projects and other productive enterprises; 
(f) Grant loans to farmers’ cooperatives and associations to facilitate farm 
production, marketing of crops and acquisition of essential commodities; 
(g) Underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or 
otherwise invest or reinvest in stocks, bonds, debentures, securities and 
other evidences of indebtedness and ownership of other corporations and 
the government or its instrumentalities which are issued for or in connection 
with any project or enterprise; 
(h) Guarantee acceptances, credits, loans, transactions or obligations of any 
person, co-partnership, association or corporation in favor of any financing 
or banking institution, whether foreign or domestic: Provided, That the 
proceeds of such acceptances, credits, loans, transactions or obligations 
are utilized or earmarked for the development and/or expansion of 
agriculture and industry, the provision of any law to the contrary 
notwithstanding; 
(i) Obtain from the Government Service Insurance System (GSIS) or other 
reputable insurance companies duly accredited by the appropriate 
regulatory body, directors, officers and liability insurance coverage, without 
prejudice to the right of the Bank, as may be determined by its Board of 
Directors, to put up its own legal insurance fund; 
(j) Borrow from, or rediscount notes, bills of exchange and other credit 
instruments with the BSP subject to the provisions of Chapter IV of RA No. 
7653, as amended by RA No. 11211, otherwise known as “The New Central 
Bank Act”, and relevant BSP rules and regulations; 
(k) Act as a trustee, or administer any trust or hold property in trust in 
accordance with the provisions of law governing trust corporations; 
(l) Act as an official government depository with full authority to maintain 
deposits 
of 
the 
government, 
its 
branches, 
subdivisions 
and 
instrumentalities, and of government owned or -controlled corporations 
which deposits shall be subject to liquidity floor or reserve requirements as 
may be imposed by the Monetary Board upon other commercial banks; 
(m)Provide continuing assistance through credit and capacity building to 
farmers and fishers cooperatives, associations and organizations 
nationwide; 


 
 
(n) Offer and issue common and preferred shares of stocks in such manner 
and in such quantities as approved by the Secretary of Finance upon the 
recommendation of the Board of Directors and in accordance with 
applicable laws, rules and regulations; 
 
The holders of preferred shares of stock shall be nonvoting. Other features 
of preferred shares shall be determined by the Board of Directors in 
accordance with applicable laws and regulations; and 
(o) Exercise the general powers provided for in RA No. 11232, otherwise 
known as the “Revised Corporation Code of the Philippines”, insofar as they 
are not inconsistent or incompatible with this Charter. 
 
SEC. 4. Issuance of Bonds. – The Bank shall, upon the approval of the Board of 
Directors, issue all kinds of bonds, debentures, securities, collaterals and other 
evidence of indebtedness and/or the renewal or refunding thereof; at such terms, rates 
and conditions as the Bank may determine, up to an aggregate amount not exceeding, 
at any one time, ten times its paid-in capital and surplus, subject to compliance with 
the provisions of applicable law, and rules and regulations promulgated by the 
Monetary Board. 
These bonds and other obligations shall be redeemable at the option of the Bank at 
or before maturity and in such manner as may be stipulated therein and shall bear 
such rate of interest as may be fixed by the Bank. Such obligations shall be secured 
by the assets of the Bank including the stocks, bonds, debentures, and other securities 
underwritten, purchased or held by it under the provisions of this Charter. Such 
obligations may be issued in payment or replacement of certain assets transferred to 
the Bank or offered for sale at such price or prices as the Bank may determine, and 
may, subject to the approval of the President of the Philippines, be fully guaranteed 
by the Government of the Republic of the Philippines, and such guarantee shall be 
expressed on the face thereof. 
These instruments of indebtedness shall be negotiable and may be mortgaged in 
accordance with established banking procedures and practices with government 
institutions, their existing charters and existing law to the contrary notwithstanding, to 
enable the holders of such bonds to make use of them in investments in productive 
enterprises. The Board of Directors shall have the power to prescribe rules and 
regulations for the issuance, reissuance, servicing, placement and redemption of the 
bonds herein authorized to be issued as well as the registration of such bonds at the 
request of the holders thereof. 
SEC. 5. Investment by Government-Owned or -Controlled Corporations. – The 
provisions of their respective charters to the contrary notwithstanding, all government 
owned or controlled corporations, including government financial institutions, are 
authorized to invest in shares of stock of the Bank. 
SEC. 6. Capital. – The authorized capital stock of the Bank shall be ONE TRILLION 
PESOS (₱1,000,000,000,000.00) to be divided into Ten Billion (10,000,000,000) 
shares with par value of ONE HUNDRED PESOS (₱100.00) per share. The Board 
shall determine the classification of shares, their corresponding rights, privileges, or 


 
 
restrictions: Provided, That, the National Government shall own, at all times, seventy 
percent (70%) of the total outstanding capital stock of the Bank.  
TWO HUNDRED BILLION PESOS (₱200,000,000,000.00) or twenty percent (20%) of 
the authorized capital stock of the Bank shall be subscribed and One Hundred Sixty-
Three Billion SEVEN HUNDRED EIGHTY-SEVEN MILLION SEVEN HUNDRED 
ELEVEN MILLION THREE HUNDRED EIGHT PESOS (₱163,787,711,308.00) or at 
least eighty one and 89/100 percent (81.89%) of the total subscription shall be paid up 
by the National Government.  
When dividends are declared for stockholders, the dividend due to the National 
Government shall at all times be in proportion to its ownership of the Bank. The Board, 
upon the recommendation of the Secretary of Finance and with the approval of the 
President of the Philippines, may increase the capitalization of the Bank up to such an 
amount as may be necessary to attain the objectives of this Charter, and may allocate 
part or all of the Bank's unrestricted retained earnings towards paying for the increase 
in capital. 
SEC. 7. Preferred Shares. – All preferred shares of stock issued under this Charter 
shall be entitled to the income earned by the Bank on its investment and other 
operations: Provided, That the holders of such preferred shares of stock shall not bring 
derivative suits against the Bank. 
SEC. 8. Voting of Shares. – The voting power of all the common shares of stock of the 
Bank owned and controlled by the government shall be vested in the President of the 
Philippines or in any ex officio member of the Board of Directors of the Bank or their 
respective alternates, as may be designated by the ex officio member. 
SEC. 9. The Board of Directors and Membership. – The powers and functions of the 
Bank shall be vested in and exercised by a Board of Directors which shall be 
composed of nine (9) members as follows: 
(a) Secretary of Finance who shall be the ex-officio Chairperson of the Board, 
without compensation; 
(b) President of the Bank as Vice Chairperson, who shall be appointed by the 
President of the Philippines from a shortlist prepared by the Governance 
Commission on GOCCs (GCG) pursuant to RA No. 10149, otherwise known 
as the “GOCC Governance Act of 2011”;  
(c) Secretary of Agriculture as an ex-officio member; 
(d) Secretary of Agrarian Reform as an ex-officio member; 
(e) Secretary of Labor and Employment as an ex-officio member,  
(f) Secretary of the National Economic and Development Authority as an ex-
officio members; and 
(g) Three (3) independent directors to be appointed by the President of the 
Philippines with the appointment process under RA No. 10149, wherein one 
(1) shall represent the agricultural sector and two (2) shall represent the 
private sector, preferably with expertise in finance, economics, and banking.  
The ex-officio directors may each designate an alternate, who shall be an official with 
a rank not lower than Assistant Secretary. 


 
 
The annual stockholders' meeting shall be held at any date in May, as may be 
determined by the Board of Directors, unless it falls on a legal holiday, in which case, 
the meeting shall be held on the next succeeding business day. 
The appointive members of the Board shall hold a term of office for one (1) year and 
shall continue to hold office until their successor shall have been qualified and 
appointed. The Board shall convene as often as necessary to discharge its 
responsibilities properly, but shall meet at least once every month. The Board may be 
convoked either by the Chairperson or in one's absence, the Vice Chairperson. 
The majority of the board members shall constitute a quorum. All decisions of the 
Board shall require the concurrence of at least the majority of its members. 
No person shall be elected or appointed director of the Bank unless such person is a 
Filipino citizen, of good moral character, and has attained proficiency, expertise and 
recognized competence in one or more of the following:  banking, finance, economics, 
law, agriculture, agrarian reform, business management, governance, sustainability, 
digital transformation, rural economy, banking, co-operation, small-scale industry, 
information technology, and information security.  
The compensation, per diems, allowances, incentives, and other benefits for Board 
Members shall be subject to the provisions of RA No. 10149.  
SEC. 10. Powers and Responsibilities of the Board. – The Board of Directors shall 
have the following specific powers and responsibilities:  
(a) Formulate policies, rules and regulations for the effective operation of the 
Bank and issue such rules and regulations as it may deem necessary to 
effectively implement the provisions of this Charter;  
(b) Decide on matters concerning loans, as well as fix the rates of interest 
thereon, guarantees, investments, borrowings by the Bank, furnishing of 
technical assistance and other operations of the Bank; 
(c) Establish such branches and agencies as may be deemed necessary and 
convenient;  
(d) Appoint and remove such personnel as may be necessary for the 
expeditious conduct of the business of the Bank; 
(e) To create and establish a “Provident Fund” which shall consist of 
contributions, made both by the Bank and its officers or employees, to a 
common fund for the payment of benefits to such officers or employees, or 
their heirs, under such terms and conditions consistent with RA No. 10149 
and Executive Order (EO) No. 150, s. 2021 otherwise known as the 
Compensation and Position Classification System (CPCS) and Index of 
Occupational Services, Position Titles, and Job Grades for GOCCs (IOS-G) 
Framework; 
(f) Notwithstanding any law to the contrary, adopt an organizational structure, 
staffing pattern and personnel qualification standards of the Bank and to 
reorganize, rationalize and restructure the same, or realign the various 
functions in the Bank to ensure effective accomplishment of its mandates 
and strategic goals, the alignment of its organizational structure and staffing 


 
 
pattern with industry standards, and its responsiveness to regulatory 
requirements, subject to the provisions of RA No. 10149.  
(g) Design, adopt and revise, as it may deem necessary, an early separation 
plan for employees of the Bank to ensure the availability of a human 
resource pool qualified and capable of implementing the Bank's authorities 
under this Charter in a manner responsive and attuned to market 
developments, and to provide incentives for those who shall be separated 
from the service, subject to the provisions of RA No. 10149; 
(h) Approve the budget of the Bank for its operations;  
(i) Enter into compromise or release in whole or in part, any claim or liability 
whatsoever for or against the Bank, including interest, penalties, fees and 
other charges, under such terms and conditions as the Board may find 
acceptable and practicable in accordance with standard banking practices, 
subject to its best business judgment, and the best interest of the 
corporation; and 
(j) Perform other functions, duties and responsibilities necessary, related and 
incidental to the above-mentioned powers and functions. 
The Board shall exercise its powers in a manner consistent with the principles of 
transparency, fairness and accountability: Provided, That, the Board may delegate its 
powers to the President as may be deemed necessary. 
SEC. 11. Environmental, Social, and Governance Principles. – As an integral part of 
the National Government, the Bank is inherently mandated to be socially responsible, 
to act and operate as good corporate citizens. The Governing Board of the Bank shall 
recognize and perform obligations that the Bank has towards the National 
Government, its majority stockholder, as well as the minority stockholders when 
existing, together with the employees, suppliers, customers and other stakeholders, 
and the communities in which it operates. 
SEC. 12. Foreclosure of Collaterals and Disposal of Bank Acquired Properties. – The 
foreclosure of collaterals and disposal of bank acquired properties shall be governed 
by the following: 
(a) Foreclosure of Mortgage Collaterals - Foreclosure of mortgage collaterals 
to loan may be made either judicially or extrajudicially;  
(b) Deputization of Legal Staff - The Bank may, with the approval of the court, 
deputize any member of its legal staff to act as special sheriff in foreclosure 
cases, in the sale or attachment of debtor's properties and in the 
enforcement of court writs and processes in cases involving the Bank. The 
special sheriff of the Bank shall make a report to the proper court after any 
action has been taken by such special sheriff, which court shall treat such 
actions as if it were an act of its own sheriffs in all respect; 
(c) Disposal of Real Estate and Other Properties in the Collection of Debt - Real 
estate and other properties acquired by the Bank in the collection of debts 
or investment by way of foreclosure or other means shall be sold or 
disposed of in accordance with law, within five (5) years after their 
respective dates of acquisition.  


 
 
For this purpose, the Board of Directors shall be the appropriate 
regulatory authority and promulgate the necessary implementing rules and 
regulations; 
(d) Exemption from Attachment - The provisions of any law to the contrary 
notwithstanding, securities on loans and other credit accommodations 
granted by the Bank shall not be subject to attachment or execution or any 
other court process, nor shall they be included in the property of insolvent 
persons or institutions, unless all debts and obligations of the debtors to the 
Bank have been paid, including accrued interest, penalties, collection 
expenses, and other charges; and 
(e) Right of Redemption of Foreclosed Property, Right of Possession During 
Redemption Period - Within the redemption period provided for in Section 
47 of the General Banking Law of 2000, the mortgagor shall have the right 
to redeem the property by paying all claims of the Bank against such 
mortgagor on the date of the sale including all the cost and other expenses 
incurred by reason of the foreclosure sale and custody of the property, as 
well as charges and accrued interest. The Bank may take possession of the 
foreclosed property during the redemption period. When the Bank takes 
possession during such period, it shall be entitled to the fruits of the property 
with no obligation to account for them, the same being considered 
compensation for the interest that would otherwise accrue on the account. 
Neither shall the Bank be obliged to post a bond for the purpose of such 
possession. Perform other functions, duties and responsibilities necessary, 
related and incidental to the above-mentioned powers and functions 
SEC. 13. Compensation of Executive Officers. – The President of the Bank shall be 
its Chief Executive Officer whose salary shall be subject to the provisions of RA No. 
10149.  
The President shall be assisted by Vice Presidents and other officials whose 
appointment and removal for cause shall be approved by the Board of Directors upon 
recommendation of the President of the Bank. The salary of the Vice President and 
other officials shall also be subject to the provisions of RA No. 10149. During the 
absence or temporary incapacity of the President, or in case of vacancy or permanent 
Incapacity and pending appointment of a new President of the Bank, the Board of 
Directors shall designate the officer-in-charge of the Bank 
SEC. 14. Duties and Powers of the Bank President. – The President of the Bank shall 
execute the policies, measures, orders and resolutions promulgated by the Board of 
Directors and supervise and administer the operations of the Bank. The President shall 
be the legal representative of the Bank and shall make all contracts and enter into all 
necessary obligations on behalf of the Bank as required or permitted by this Charter. 
The President shall report periodically to the Board of Directors the main facts 
concerning the operations of the Bank, and recommended changes of policies which 
may seem best. The President shall furnish, upon the request of the President of the 
Philippines, any information regarding the operations of the Bank. 
SEC. 15. Qualifications of Executive Officers. – No person shall be appointed to any 
executive position in the Bank mentioned in the preceding section unless that person 
is of good moral character and of unquestionable integrity and responsibility, and who 


 
 
is of recognized competence in the field of economics, agriculture, industry, law, 
banking or finance, information technology, information security, and possessed of 
demonstrated administrative skill and ability. 
SEC. 16. Withdrawal of Persons Having Personal Interest. – Whenever any member 
attending a meeting of the Board has a personal interest in the discussion or resolution 
of any given matter, or any of the relatives within the fourth degree of consanguinity 
or a second degree of affinity has such interest, said member shall disclose such 
interest to the Board and shall not participate in the discussion or resolution of the 
matter and must retire from the meeting during the deliberations thereon. The subject 
matter, when resolved, and the fact that a member had a personal interest in it, shall 
be disclosed to the public. The minutes of the meeting shall reflect the disclosure made 
and the recusal of the member concerned. 
SEC. 17. Prohibition on Persons with Personal/Pecuniary Interest. – No member of 
the Board, officer, attorney, agent, or employee of the Bank shall in any manner, 
directly or indirectly participate in the deliberation upon or the determination of any 
question affecting one’s direct personal interest or the personal interests of relatives 
within the second civil degree of consanguinity or affinity, or of any corporation, 
partnership, or association in which the member, officer, attorney, agent, or employee 
has a direct interest. 
SEC. 18. Borrowing by Directors, Officers and Employees; Restriction and Limitation. 
– No (1) director or officer or employee of the Bank; or (2) any corporation, partnership, 
or company wherein any member of the Bank’s Board of Directors, officer or 
employee, or their relatives within the first civil degree of consanguinity or affinity is a 
director, officer or controlling shareholder either directly or indirectly, for one’s self or 
as representative or agent of others, borrow any of the deposits of funds from the 
Bank, nor shall he become a guarantor, or in any manner be an obligor for money 
borrowed from the Bank or loaned by it: Provided, that this prohibition on loans to 
directors, officers and employees shall not include loans allowed in the form of fringe 
benefits granted in accordance with rules and regulations as may be prescribed by the 
Monetary Board: Provided, further, that this prohibition shall not apply to loans to 
corporations wherein the director, officer or employee of the Bank sits on the board of 
the borrower corporation to represent the interest of the Bank. 
SEC. 19. Rules and Regulations on Conflict of Interest. – The Board of Directors is 
hereby authorized to issue rules and regulations for the purposes of determining and 
resolving conflict of interest questions, which rules shall, in particular, include the 
requirement on all officers and employees of the Bank to disclose any shareholdings 
they, or their relatives within the second civil degree of consanguinity or affinity, may 
have in any corporation, partnership, or company in excess of two percent (2%) of the 
equity of said corporation, partnership, or company or in any related party transactions 
defined by the Monetary Board of the BSP and the Board of Directors of the Bank.  
SEC. 20. Prohibition on Officers and Employees of the Bank. – Except as required by 
law, or upon order of a court of competent jurisdiction, or the express order of the 
President of the Philippines or written permission of the client, no officer or employee 
of the Bank shall reveal nor allow to be examined, inquired or looked into, by any third 
person, government official, bureau or office any information relative to details of 


 
 
individual accounts or specific banking transactions, condition or business of any of its 
clients, or funds or properties in the custody of the Bank belonging to private 
individuals: Provided, That in respect to deposits or whatever nature, the provisions of 
existing law shall apply.  
This prohibition shall not apply to the exchange of confidential credit information 
among government financial institutions or among banks, in accordance with 
established banking practices or as may be allowed by law.  
SEC. 21. Exaction of Fee, Commission, Gift or Charge. – No unauthorized fee, 
commission, gift, or charge of any kind shall be exacted, demanded, or paid, for 
obtaining loans from the Bank, and any officer, employee, or agent of the Bank found 
guilty of exacting, demanding, or receiving any fee services in obtaining any service 
or transaction from the Bank, shall be punished by a fine of not less than FIFTY 
THOUSAND PESOS (P50,000) nor more than TWO MILLION PESOS (P2,000,000), 
imprisonment for not less than six (6) years and one (1) month nor more than fifteen 
(15) years, and perpetual disqualification from public office and confiscation or 
forfeiture in favor of the government of any prohibited interest and unexplained wealth.  
SEC. 22. Personnel. – The Board of Directors shall provide for an organization and 
staff of officers and employees of the Bank and upon recommendation of the President 
of the Bank, appoint and remove such officers and employees: Provided, That the 
Board shall have exclusive and final authority to promote, transfer, assign or reassign 
personnel of the Bank, any provisions of existing law to the contrary notwithstanding.  
All positions in the Bank shall be governed by the provisions of RA No. 10149 . 
The Bank officers and employees, including all members of the Board, shall not 
engage directly or indirectly in partisan political activities or take part in any election 
except to vote. 
No officer or employee of the Bank, subject to civil service law and regulations, shall 
be removed or suspended except for cause as provided for by law and after due 
process of law. 
SEC. 23. Legal Counsel. – Any provision of existing law or executive order to the 
contrary notwithstanding, the Bank shall have its own Legal Department which shall 
have the power to represent the Bank in cases filed before courts, tribunals, and quasi-
judicial bodies, render opinions, prepare and review contracts/agreements. The Head 
and members of the Legal Department shall be appointed by the Board of Directors. 
In appropriate cases, the Bank may also avail of the legal services of external counsel, 
subject to the approval of the Board and the Office of the Government Corporate 
Counsel (OGCC): Provided, however, That the present Legal Services Group in the 
Bank shall serve as its in-house legal counsel. 
The hiring of any external private counsel may be authorized by the President, upon 
the recommendation of the chief legal counsel and the approval of the Board and the 
OGCC. 


 
 
SEC. 24. Penalty for Violation of the Provisions of this Charter. – Any director, officer, 
employee or agent of the Bank who violates or permits the violation of any of the 
provisions of this Charter, or any person aiding or abetting the violation of any of the 
provisions of this Charter, shall be punished by a fine of not to exceed FIVE HUNDRED 
THOUSAND PESOS (P500,000.00) or by Imprisonment of not more than five (5) 
years, or both such fine and Imprisonment. 
SEC. 25. Other Liability of Guilty Officer or Employee. – Any member of the Board of 
Directors or officer or employee of the Bank who willfully violates any of the provisions 
of this Act shall, in addition to the criminal and administrative liability resulting from 
such act, be held liable for any loss or injury suffered by the Bank as a result of such 
violation.  
SEC. 26. Liability of Directors, Officers or Partners of Offending Corporation or 
Partnership. – If the violation of the provisions of this Act is committed by a corporation 
or partnership, the directors, officers or partners hereof who participated in the 
violation shall be criminally liable for such violation. 
SEC. 27. Applicability of Banking Laws. – The provisions of R.A. No. 7653, otherwise 
known as the New Central Bank Act, as amended by R.A. No. 11211, R.A. No. 8791, 
and other applicable banking laws, insofar as they are not in conflict with any provision 
of this Act,  shall apply to the Bank.  
The penal provisions of Section 66 R.A. No. 8791, in relation to Sections 34, 35, 36 
and 37 of R.A. No. 7653, as amended by R.A. No. 11211 shall be applicable to 
directors, officers, employees and borrowers of the Bank. 
SEC. 28. Control Over Subsidiaries and Dividends from Subsidiaries. – Pursuant to 
Section 3(a) of this Act and notwithstanding any law, rule, regulation or practice to the 
contrary, the Bank, thru its President and CEO, shall have control over its subsidiaries 
and shall appoint the members of its board of directors based on the number of shares 
of stock standing in the Bank’s own name in the stock books of the subsidiaries: 
Provided, That the Bank may temporarily appoint directors to its subsidiaries in cases 
where urgent action is needed from the subsidiaries’ board and the present number of 
directors does not constitute a quorum.  Every subsidiary shall declare and remit at 
least fifty percent (50%) of its annual net earnings as cash, stock or property dividends, 
without impairing its viability and the purposes for which it has been established, to the 
Bank as the parent corporation: Provided, That the percentage of annual net earnings 
that shall be declared by such subsidiary may be adjusted by the President and CEO. 
SEC. 29. Transitory Provision. – Nothing in this Act shall operate to abolish the Bank 
and affect the validity or legality of any right, duty, or obligation created by or in respect 
of the Bank prior to the effectivity this Act. 
Within one hundred eighty (180) days after the effectivity of this Act, the Bank is hereby 
authorized to reorganize  and/or rationalize  the  Bank's  organizational structure to 
attract fresh and critical talents to join the Bank's workforce in response to dynamic 
Industry trends, incentivize early separation of tenured employees and those with 
medical conditions who will be considered for retirement before the optional retirement 


 
 
age of sixty (60) years old, and improve headcount management and succession 
planning. 
All those who shall retire from the service or are separated therefrom on account of 
the reorganization of the Bank under the provisions of this Charter shall be entitled to 
all gratuities and benefits provided for under existing laws and/or supplementary 
retirement plans adopted by and effective in the Bank. 
SEC. 30. Separability Clause. – If any provision of this Act is subsequently declared 
invalid or unconstitutional, the other provisions hereof which are not affected thereby 
shall remain in full force and effect. 
SEC. 31. Repealing Clause. – Sections 74 to 100 of RA No. 3844, otherwise known 
as the Agricultural Land Reform Code, as amended, are hereby repealed. All laws, 
executive orders, rules and regulations, or parts thereof inconsistent with any provision 
hereof 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 a newspaper of general circulation. 
Approved,