NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 1
Senate
of tl)f Bfcn'l.n-y
72 JUL-7 P2 52
RtCElVLD BV.
Introduced by Senator Cynthia A. Villar
AN ACT PROVIDING FOR A NEW CHARTER 
OF THE LAND BANK OF THE PHILIPPINES
EXPLANATORY NOTE
The Landbank of the Philippines (LBP) was created under Republic Act 3844 or 
the Agricultural Land Reform Code for the purpose of financing the acquisition by the 
Government of landed estates for division and resale to small landholders, as well as 
the purchase of the land-holding by the agricultural lessee from the landowner. Its 
charter later on underwent several amendments which modified and added functions 
to it.
Some of the laws that amended the LBP charter are as follows: Presidential 
Decree No. 251 on July 21, 1973, Executive Order 229 on July 22, 1987 Providing 
Mechanism on For the Implementation of Comprehensive Agrarian Reform Program, 
Republic Act No. 6657 or the Comprehensive Agrarian Reform Law on June 10, 1988, 
Republic Act No. 7907 on February 23, 1995 Amending the Agricultural Land Reform 
Code, and Republic Act 10374 on March 5, 2013 Extending LBP's corporate life to 
another 50 years.
Other laws and issuances that re-shaped LBP into what it is today are: 
Presidential Decree No. 27 on October 21, 1972 or the Tenant Emancipation Decree, 
Executive Order 816 on July 8, 1982, Executive Order No. 405 on June 14, 1990,
1


Executive Order No. 267 on July 25, 1995, Republic Act No. 10000 on February 23, 
2010 or the Agri-Agra Law of 2009, Republic Ad No. 10878 on July 27, 2016, 
Institutionalizing Direct Credit Support of LBP to Agrarian Reform Beneficiaries, Small 
Farmers and Fisherfolk, Republic Act No. 11203 on February 14, 2019, or the Rice 
Tariffication Law, among many others.
LBP was also instrumental in the COVID response program of the government 
through Republic Act No. 11494 or the "Bayanihan to Recover as One Act". It was 
LBP subsidized the payment of interest on new and existing loans secured by LGUs 
through government financial Institutions. It also made available low-interest credit 
program to persons and entities engaged in industries affected by the COVID-19 
pandemic.
The activities of LBP have obviously been expanding throughout the years. It 
has become a crucial partner of the government In facilitating services to various 
beneficiaries such as small farmers and fisherfolks, agrarian reform beneficiaries, 
countryside financial Institutions, small and medium enterprises, and overseas 
Filipino workers. With the growing clientele and needs to address. It has to 
constantly adapt to the evolving Philippine financial landscape and elevate itself to a 
higher and stronger position, In support of the policy direction of the National 
Government on agricultural and country-side development and accelerated financial 
inclusion objectives.
Hence, there is a need to craft a charter for the LBP to institutionalize its 
expansion as a corporate entity that will address the extent of its power to act, 
operate and take in investments. In accordance with its primary purpose of being a 
government financial Institution responsible for broad-based agricultural and rural 
development and accelerated financial inclusion.
The approval of this bill is urgently requested.
CYNTHIA A. VILLAR


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
0( fbr ' ri,'fn>
■22 JUL-7 P2S2
SENATE
S. No. 123
RECEIVED BY;
Introduced by Senator Cynthia A. Villar
AN ACT PROVIDING FOR A NEW CHARTER 
OF THE LAND BANK OF THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
1 
SECTION 1. Short Tide. - This Act shall be known as the "New Land Bank of
2 
the Philippines Act".
3 
SEC. 2. Purpose and Domiciie. - The Land Bank of the Philippines, hereinafter
4 
referred to as the "Bank", operating under the provisions of Republic Act No. 3844,
5 
as amended, otherwise known as the "Agricultural Land Reform Code", shall
6 
henceforth operate under the provisions of this Act as a government financial
7 
institution responsible for broad-based agricultural and rural development and
8 
accelerated financial inclusion. It shall provide accessible and innovative solutions to
9 
deliver timely and responsive financial and support services to rural financial
10 
institutions as well as small farmers, fisherfolk and agrarian reform beneficiaries
11 
(ARBs). The Bank shall remain to be a body corporate and shall have perpetual
12 
existence. It shall be supervised by the Bangko Sentral ng Pilipinas (BSP), taking into
13 
account its mandated roles of spurring countryside development and supporting the
14 
country's financial inclusion objectives.
15 
The principal office and place of business of the Bank shall be in Metro
16 
Manila. It may, however, open and maintain branches, agencies or other offices at


1 
such places in the Philippines as its Board of Directors may deem advisable, with the
2 
prior approval of the Monetary Board of the BSP.
3 
In line with its mandate, the Bank shall allocate five percent (5%) of its
4 
regular loan portfolio (net of loans to the BSP, interbank loans and availments from
5 
domestic bills purchase line), for socialized credit to qualified small farmers,
6 
fisherfolk and ARBs. This facility shall solely finance agricultural projects pursuant to
7 
the provisions of Section 4 of Republic Act No. 10000, otherwise kfiown as "The
8 
Agri-Agra Reform Credit Act of 2009".
9 
Credits extended to the beneficiaries named therein under this facility shall be
10 
based on the feasibility of the project and their paying capacity, their estimated
11 
production, and securities they can provide as well as assets as may be acquired by
12 
them from the proceeds of the loan.
13 
This facility will be funded through the operations of the Bank itself and will
14 
not require additional government funding.
15 
All loans extended through this special socialized credit facility shall qualify as
16 
part of the Batik's compliance with the Agri-Agra Law.
17 
Credit under this special socialized credit facility shall be extended through
18 
the following conduits:
19 
(a) Farmers' and fisherfolk's cooperatives;
20 
(b) Farmers' and fisherfolk's organizations or associations;
21 
(c) Nonagricultural cooperatives (credit and multipurpose);
22 
(d) Cooperative banks;
23 
(e) Rural banks;
24 
(f) Thrift banks;
25 
(g) Agri-business firms or anchor firms providing credit support to ARBs, and
26 
small farmers and fisherfolk; and
27 
(h) Duly accredited microfinance nongovernment organizations by the
28 
Microfinance NGO Regulatory Council.
29 
Loans under this special socialized credit facility shall have an interest rate
30 
equivalent to not more than seventy-five percent (7b%) of the Bank's prevailing
31 
rates for loans to cooperatives: Provided, That these conduits shall have an interest
32 
spread of not more than five (5) percentage points. The interest spread shall


1 
exclude crop insurance premiums and guarantee fees: Provided, further. That a
2 
conduit cannot lend to another conduit.
3 
Criteria for eligibility under this special socialized credit facility shall be
4 
determined by the Bank and shall be reflected in the implementing rules and
5 
regulations.
6 
SEC. 3. General Powers. - The Bank shall have the power to:
7 
(a) Prescribe, repeal and alter its own bylaws, to determine its operating
8 
policies, and to issue such rules and regulations as may be necessary;
9 
(b) Adopt, alter and use a corporate seal;
10 
(c) Hold, purchase, acquire and own real and personal property, introduce
11 
necessary improvements thereon to enhance and develop their social and economic
12 
value, and to sell, mortgage or otherwise dispose of the same;
13 
(d) Sue and be sued, make contracts, negotiate and secure loans from both
14 
local and foreign sources. Before undertaking any such credit operation, the Bank,
15 
through the Secretary of Finance, shall request the opinion, in writing, of the
16 
Monetary Board on the monetary implications of the contemplated action. All loans
17 
from foreign sources shall be subject to approval by the President of the Philippines
18 
and shall be fully guaranteed by the Philippine Government;
19 
(e) Grant short, medium and long-term loans and advances against security
20 
of real estate or other acceptable assets for the establishment, development or
21 
expansion of agricultural, indushlal, home building or home financing projects and
22 
other productive enterprises;
23 
(f) Grant loans to farmers' cooperatives and associations to facilitate farm
24 
production, marketing of crops and acquisition of essential commodities;
25 
(g) Underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or
26 
otherwise invest or reinvest In stocks, bonds, debentures, securities and other
27 
evidences of indebtedness of other corporations and the government or its
28 
instrumentalities which are issued for or in connection with any project or enterprise;
29 
(h) Guarantee acceptances, credits, loans, transactions or obligations of any
30 
person, co-partnership, association or corporation in favor of any financing or
31 
banking institution, whether foreign or domestic: Provided, That the proceeds of
32 
such acceptances, credits, loans, transactions or obligations are utilized or


1 
earmarked for the development and/or expansion of agriculture and industry, the
2 
provision of any law to the contrary notwithstanding;
3 
(i) Borrow from, or rediscount notes, bills of exchange and other credit
4 
instruments with the BSP subject to the provisions of Chapter IV of Republic Act No.
5 
7653, as amended by Republic Act No. 11211, otherwise known as "The New Central
6 
Bank AcT', and relevant BSP rules and regulations;
7 
(j) Act as a trustee, or administer any trust or hold property in trust in
8 
accordance with the provisions of law governing trust corporations;
9 
(k) Act as an official government depository with full authority to maintain
10 
deposits of the government, its branches, subdivisions and instrumentalities, and of
11 
government owned or -controlled corporations which deposits shall be subject to
12 
liquidity floor or reserve requirements as may be imposed by the Monetary Board
13 
upon other commercial banks;
14 
(I) Strengthen the capital base of the Bank, to establish a national marketing
15 
federation of farmers and fisheries cooperatives to attract massive capital formation
16 
from savings deposits of the cooperative members nationwide;
17 
(m) Offer and Issue common and preferred shares of stocks in such manner
18 
and in such quantities as approved by the Secretary of Rnance upon the
19 
recommendation of the Board of Directors and in accordance with applicable laws,
20 
rules and regulations: Provided, however. That the National Government shall
21 
maintain, at all times, at least three-fourths (3/4) ownership of the total outstanding
22 
capital stock of the Bank.
23 
The holders of preferred shares of stock shall be non-voting. Other features
24 
of preferred shares shall be determined by the Board of Directors in accordance with
25 
applicable laws and regulations; and
26 
(n) Exercise the general powers provided for in Republic Act No. 11232,
27 
otherwise known as the "Revised Corporation Code of the Philippines", and the
28 
universal banking powers under Republic Act No. 8791, otherwise known as "The
29 
General Banking Law of 2000", insofar as they are not inconsistent or incompatible
30 
with this Charter.
31 
SEC. 4. Issuance of Bonds. - The Bank, shall, upon the approval of the
32 
Secretary of Finance, issue all kinds of bonds, debentures, securities, collaterals and


1 
other evidence of indebtedness and/or the renewal or refunding thereof; at such
2 
terms, rates and conditions as the Bank may determine, up to an aggregate amount
3 
not exceeding, at any one time, ten times its paid-in capital and surplus, subject to
4 
compliance with the provisions of applicable law, and rules and regulations
5 
promulgated by the Monetary Board.
6 
These bonds and other obligations shall be redeemable at the option of the
7 
Bank at or before maturity and in such manner as may be stipulated therein and
8 
shall bear such rate of interest as may be fixed by the Bank. Such obligations shall
9 
be secured by the assets of the Bank including the stocks, bonds, debentures, and
10 
other securities underwritten, purchased or held by it under the provisions of this
11 
Charter. Such obligations may be Issued in payment or replacement of certain assets
12 
transferred to the Bank or offered for sale at such price or prices as the Bank may
13 
determine, and shall be fully guaranteed by the Government of the Republic of the
14 
Philippines, and such guarantee shall be expressed on the face thereof.
15 
These instruments of indebtedness shall be negotiable and may be
16 
mortgaged In accordance with established banking procedures and practices with
17 
government Institutions, their existing charters and existing law to the contrary
18 
notwithstanding, to enable the holders of such bonds to make use of them in
19 
investments in productive enterprises. The Board of Directors shall have the power
20 
to prescribe rules and regulations for the issuance, reissuance, servicing, placement
21 
and redemption of the bonds herein authorized to be issued as well as the
22 
registration of such bonds at the request of the holders thereof.
23 
SEC. 5. Investment by Government-Owned or -Controlled Corporations. - The
24 
provisions of their respective charters to the contrary notwithstanding, all
25 
government-owned or -controlled corporations, including government financial
26 
institutions, are authorized to invest in preferred shares of the Bank or accept those
27 
shares in exchange for any of their assets or properties under such terms and
28 
conditions as shall be agreed upon between the corporations or institutions
29 
concerned and the Bank.
30 
SEC. 6. Capital. - The Board, upon the recommendation of the Secretary of
31 
Finance and with the approval of the President of the Philippines, may increase the
32 
capitalization of the Bank up to such an amount as may be necessary to attain the


1 
objectives of this Charter, and may allocate part or all of the Bank's unrestricted
2 
retained earnings towards paying for the increase in authorized capital stock.
3 
SEC. 7. Preferred Shares. - All preferred shares of stock issued under this
4 
Charter shall be entitled to the income earned by the Bank on its investment and
5 
other operations: Provided, That the holders of such preferred shares of stock shall
6 
not bring derivative suits against the Bank.
7 
SEC. 8. Voting of Shares. - The voting power of all the common shares of
8 
stock of the Bank owned and controlled by the government shell be vested in the
9 
President of the Philippines or in any ex officio member of the Board of Directors of
10 
the Bank or their respective alternates, as may be designated by the ex officio
11 
member.
12 
SEC. 9. The Board of Directors and Membership. - The affairs and business of
13 
the Bank shall be directed and its properly managed and preserved by a Board of
14 
Directors consisting of eleven (11) members to be composed of the Secretary of
15 
Finance as Chairperson, the President of the Bank as Vice Chairperson, the Secretary
16 
of Agrarian Reform, the Secretary of Labor, the Secretary of the National Economic
17 
and Development Authority and the Secretary of Agriculture as ex officio members.
18 
The President of the Philippines shall appoint two (2) members of the Board who
19 
shall represent the agrarian reform beneficiaries and three (3) members who shall
20 
represent the private sector in accordance with the appointment process under
21 
Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011".
22 
The annual stockholders meeting shall be held on the first Tuesday of
23 
December.
24 
The appointive members of the Board shall hold a term of office for one (1)
25 
year and shall continue to hold office until their successor shall have been qualified
26 
and appointed. The Board shall convene as often as necessary to discharge its
27 
responsibilities properly, but shall meet at least once every two (2) weeks. The
28 
Board may be convoked either by the Chairperson or in one's absence, the Vice
29 
Chairperson.
30 
The majority of the board members shall constitute a quorum. All decisions of
31 
the Board shall require the concurrence of at least the majority of its members.


1 
No person shall be elected or appointed director of the Bank unless such
2 
person is a natural born citizen of the Philippines, not less than thirty-five (35) years
3 
of age, of good moral character, and has attained proficiency, expertise and
4 
recognized competence in one or more of the (ollowing: banking, finance,
5 
economics, law, agriculture, agrarian reform, business management
6 
SEC. 10. Powers and Responsibilities of the Board. - The Board of Directors
7 
shall have the following specific powers and responsibilities:
8 
(a) Formulate policies, rules and regulations for the effective operation of the
9 
Bank and issue such rules and regulations as It may deem necessary to
10 
effectively implement the provisions of this Charter;
11 
(b) Decide on matters concerning loans, as well as fix the rates of interest
12 
thereon, guarantees, investments, borrowings by the Bank, furnishing of
13 
technical assistance and other operations of the Bank;
14 
(c) Establish such branches and agencies as may be deemed necessary and
15 
convenient;
16 
(d) Ensure the appointment and removal of such personnel as may be
17 
necessary for the expeditious conduct of the business of the Bank, except
18 
the President of the Bank, who shall also be exempt from the manner of
19 
appointment and removal provided under Section 18 of Republic Act No.
20 
10149: Provided, That the President and CEO of the Bank shall be subject
21 
to appointment and removal by the President of the Philippines, upon
22 
recommendation by the Secretary of Rnance;
23 
(e) Notwithstanding any law to the contrary, adopt and review the
24 
organizational structure, staffing pattern 
and personnel qualification
25 
standards of the Bank and to reorganize, rationalize and restructure the
26 
same, or realign the various functions in the Bank to ensure effective
27 
accomplishment of its mandates and strategic goals, the alignment of its
28 
organizational structure and staffing pattern with Industry standards, and
29 
its responsiveness to regulatory requirements;
30 
(f) Design, adopt and revise, as it may deem necessary, an early separation
31 
plan for employees of the Bank to ensure the availability of a human
32 
resource pool qualified and capable of implementing the Bank's authorities


1 
under this Charter in a manner responsive and attuned to market
2 
developments, and to provide incentives for those who shall be separated
3 
from the service. Notwithstanding any law to the contrary, these
4 
incentives shall be in addition to all gratuities and benefits the employee is
5 
entitled under existing laws;
6 
(g) Approve the budget of the Bank for its operations; and
7 
(h) Enter Into compromise or release in whole or In part, any claim or liability
8 
whatsoever for or against the Bank, including interest, penalties, fees and
9 
other charges, under such terms and conditions as the Board may find
10 
acceptable and practicable in accordance with standard banking practices,
11 
subject to its best business judgment, and the best interest of the
12 
corporation.
13 
SEC. 11. Corporate Social Responsibility Prindp/es. - As an integral part of the
14 
National Government, the Bank is inherently mandated to be socially responsible, to
15 
act and operate as good corporate citizens. The Governing Board of the Bank shall
16 
recognize and perform obligations that the Bank has towards the National
17 
Government, its majority stockholder, as well as the minority stockholders when
18 
existing, together with the employees, suppliers, customers and other stakeholders,
19 
and the communities in which it operates.
20 
SEC. 12. Foreclosure of Collaterals and Disposal of Bank Acquired Properties.
21 
- The foreclosure of collaterals and disp)osal of bank acquired properties shall be
22 
governed by the following:
23 
(a) Foreclosure of Mortgage Collaterals - Foreclosure of mortgage collaterals
24 
to loan may be made either judicially or extrajudicially: Provided, That movable
25 
collaterals may be foreclosed in its present condition or following any commercially
26 
reasonable manner in accordance with Republic Act No. 11057, otherwise known as
27 
the "Personal Property Security Act";
28 
(b) Deputization of Legal Staff - The Bank may, with the approval of the
29 
court, deputize any member of its legal staff to act as special sheriff in foreclosure
30 
cases, in the sale or attachment of debtor's properties and in the enforcement of
31 
court writs and processes in cases involving the Bank. The special sheriff of the Bank
32 
shall make a report to the proper court after any action has been taken by such


1 
special sheriff, which court shall treat such actions as if it were an act of its own
2 
sheriffs in all respect;
3 
(c) Disposal of Real Estate and Other Properties in the Collection of Debt -
4 
Real estate and other properties acquired by the Bank In the collection of debts or
5 
investment by way of foreclosure or other means shall be sold or disposed of in
6 
accordance with law, within five (5) years after their respective dates of acquisition.
7 
The Bank Is also authorized to sell its acquired real estate and other
8 
properties to a Rnancial Institutions Strategic Transfer Corporation (FISTC), In
9 
accordance with the provisions of Republic Act No. 11523 or tlie "Financial
10 
Institutions Strategic Transfer (FIST) Act".
11 
For this purpose, the Board of Directors shall be the appropriate regulatory
12 
authority and promulgate the necessary implementing rules and regulations;
13 
(d) Exemption from Attachment - The provisions of anv law to the contrary
14 
notwithstanding, securities on loans and other credit accommodations granted by
15 
the Bank shall not be subject to attachment or execution or any other court process,
16 
nor shall they be included in the property of insolvent persons or institutions, unless
17 
all debts and obligations of the debtors to the Bank have been paid, including
18 
accrued interest, penalties, collection expenses, and other charges; and
19 
(e) Right of Redemption of Foreclosed Property, Right of Possession During
20 
Redemption Period - Within the redemption period provided for In Section 47 of the
21 
General Banking Law of 2000, the mortgagor shall have the right to redeem the
22 
property by paying all claims of the Bank against such mortgagor on the date of the
23 
sale including all the cost and other expenses incurred by reason of the foreclosure
24 
sale and custody of the property, as well as charges and accrued interest. The Bank
25 
may take possession of the foreclosed property during the redemption period. When
26 
the Bank takes possession during such period. It shall be entitled to the fruits of the
27 
property with no obligation to account for them, the same being considered
28 
compensation for the interest that would otherwise accrue on the account. Neither
29 
shall the Bank be obliged to post a bond for the purpose of such possession.
30 
SEC. 13. Compensation of Executive Officers. - The President of the Bank
31 
shall be its Chief Executive Officer whose salary shall be based on the Compensation
32 
and Position Classification System developed by the Governance Commission for


1 
Government-Owned or -Controlled Corporations (GCG) and as approved by the
2 
President of the Philippines upon recommendation by the Secretary of Finance. The
3 
sum total of the salary allowances, benefits and other emoluments of the President
4 
of the Bank shall be higher than the compensation package of the next highest
5 
ranking executive of the Bank.
6 
The President shall be assisted by Vice Presidents and other officials whose
7 
appointment and removal for cause shall be approved by the Board of Directors
8 
upon recommendation of the President of the Bank. The salary of the Vice President
9 
and other officials shall be based on the Compensation and Classification System
10 
established by the GCG and as approved by the President of the Philippines upon
11 
recommendation of the Secretary of Rnance. During the absence or temporary
12 
incapacity of the President, or in case of vacancy or permanent Incapacity and
13 
pending appointment of a new President of the Bank, the Board of Directors shall
14 
designate the officer-in-charge of the Bank.
15 
SEC. 14. Duties and Powers of the Bank President - The President of the
16 
Bank shall execute the policies, measures, orders and resolutions promulgated by
17 
the Board of Directors and supervise and administer the operations of the Bank. The
18 
President shall be the legal representative of the Bank and shall make all contracts
19 
and enter into all necessary obligations on behalf of the Bank as required or
20 
permitted by this Charter. The President shall report periodically to the Board of
21 
Directors the main facts concerning the operations of the Bank, and recommended
22 
changes of policies which may seem best. The President shall furnish, upon the
23 
request of the President of the Philippines, any information regarding the operations
24 
of the Bank.
25 
SEC. 15. Qualifications of Executive Officers. - No person shall be appointed
26 
to any executive position In the Bank mentioned In the preceding section unless that
27 
person Is of good moral character and of unquestionable Integrity and responsibility,
28 
and who is of recognized competence in the field of economics, agriculture, industry,
29 
law, banking or finance, and possessed of demonstrated administrative skill and
30 
ability.
31 
SEC. 16. Withdrawal of Persons Having Persona! Interest. - In addition to the
32 
requirements of Republic Act No. 6713, otherwise known as the "Code of Conduct
10


1 
and Ethical Standards for Public Officials and Employees" whenever any member
2 
attending a meeting of the Board has a personal interest in the discussion or
3 
resolution of any given matter, or any of the relatives within the fourth degree of
4 
consanguinity or a second degree of affinity has such interest, said member shall
5 
disclose such interest to the Board and shall not participate in the discussion or
6 
resolution of the matter and must retire from the meeting during the deliberations
7 
thereon. The subject matter, when resolved, and the fact that a member had a
8 
personal interest in it, shall be disclosed to the public. The minutes of the meeting
9 
shall reflect the disclosure made and the recusal of the member concerned.
10 
SEC. 17. Personnel. - The Board of Directors shall provide for an organization
11 
and staff of officers and employees of the Bank and upon recommendation of the
12 
President of the Bank, appoint and remove such officers and employees: Provided,
13 
That the Board shall have exclusive and final authority to promote, transfer, assign
14 
or reassign personnel of the Bank, any provisions of existing law to the contrary
15 
notwithstanding.
16 
All positions in the Bank shall be governed by the Compensation and
17 
Classification System established by the GCG and as approved by the President of
18 
the Philippines upon recommendation by the Secretary of Rnance.
19 
The Bank officers and employees. Including all members of the Board, shall
20 
not engage directly or Indirectly in partisan political activities or take part in any
21 
election except to vote.
22 
No officer or employee of the Bank, subject to civil service law and
23 
regulations, shall be removed or suspended except for cause as pro'^ided for by law
24 
and after due process of law.
25 
SEC. 18. Legal Counsel. - Any provision of existing law or executive order to
26 
the contrary notwithstanding, the Bank shall have its own Legal Department which
27 
shall have the power to represent the Bank in cases filed before courts, tribunals,
28 
and quasi-judicial bodies, render 
opinions, prepare and review
29 
contracts/agreements. The Head and members of the Legal Department shall be
30 
appointed by the Board of Directors.
11


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
In appropriate cases, the Bank may also avail of the legal services of the 
Office of the Government Corporate Counsel: Provided, however. That the present 
Legal Services Group in the Bank shall serve as Its In-house legal counsel.
TRANSITORY PROVISIONS
SEC. 19. Reorganization of the Bank. - Within one hundred eighty (130) days 
after the effectivity of this Act, and whenever necessary thereafter, 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. 20. Penaity for Vioiation of the Provisions of this Charter. - Any director, 
officer, employee or agent of the Bank who violates or permits the vioiation of any 
of the provisions of this Charter, or any person aiding or abetting the vioiation 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, at the discretion of the court.
SEC. 21. 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. 22. Repealing Qause. - Sections 74 to 100 of Republic Act No. 3844, 
otherwise known as the Agricultural Land Reform Code, as amended, are hereby 
repealed. All laws, executive orders, rules and regulations, of parts thereof 
inconsistent with any provision hereof are hereby repealed or modified accordingly.
SEC. 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
12