. PRESEN

“RECEIVED Al

NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES. ) DATESUL 20 2020
First Regular Session ) |

HOUSE OF REPRESENTATIVES

H.B.No, 2182

Introduced by Representative Ralph G. Recto

AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES OR
SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Financing the Comprehensive Agrarian Reform Program (CARP) is one of the
major challenges in implementing land reform in the country. Apart from meager
appropriations for agrarian reform support services, the program also suffers from low
repayment rates from agrarian reform beneficiaries. The Senate Economic Planning
Office (SEPO) estimated that from 1987 to 2004, only P2.5 billion of the projected
P14.3 billion collectible land amortization payments was actually collected. A Philippine
Institute for Development Studies (PIDS) study revealed that CARP loan collection
performance by Land Bank of the Philippines (LBP) as of March 2015 is about 51.55%
for amortization and interest payments.

The cause for the low collection rate is two-fold. On the one hand, an
administrative system to collect loan proceeds from farmer-beneficiaries was not fully
established due to its prohibitive administrative costs. On the other hand, the high
cost of agricultural inputs, low farm outputs, and the onset of devastating
meteorological calamities, among others, have left the agrarian reform beneficiaries
bereft of any means to pay for the loan they have secured under CARP.

This bill seeks to accomplish several undertakings. First, it seeks to further

increase the productivity of agrarian reform beneficiaries by providing them additional

i: [6:2 om
THAME: é



financial resources through the condonation of their annual amortization and interests,
including penalties or surcharges, if any. Second, it strives to reduce the administrative
cost of implementing the agrarian reform program.

Ultimately, it endeavors to achieve the original intent of the agrarian reform
program, which is to improve the lives of farmers, reduce rural poverty and accelerate
rural development. Such intervention is founded on the principles of the agrarian
reform law, which seek to uphold the welfare of landless farmers and farmworkers
with the goal of promoting social justice, sound rural development and

industrialization.
To sustain the gains of the agrarian reform program, the swift passage of this

measure is earnestly sought.

RALPH G.
/mag


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12
23
14
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16

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NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session y

HOUSE OF REPRESENTATIVES
H.B.No,_ 2182

Introduced by Representative Ralph G. Recto

AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES OR
SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES

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

Section 1. Condonation of Unpaid Amortizations, Interest Payments, Penalties
or Surcharges. ~ All unpaid amortizations and interests, including penalties or
surcharges, if any, due from loans secured under the Comprehensive Agrarian Reform
Program (CARP) are hereby condoned by the Government, thereby relieving all
farmer-beneficiaries from the payment thereof. The agrarian reform beneficiaries shall
be deemed as rightful owners of the lands awarded to them upon the effectivity of
this Act.

Sec. 2. Implementing Rules and Regulations. - Within thirty (30) days from the
effectivity of this Act, the Department of Agrarian Reform (DAR), in coordination with
the Philippine Agrarian Reform Council (PARC) and the Land Bank of the Philippines
(LBP), shall promulgate the necessary rules and regulations to effectively implement
the provisions of this Act.

Sec. 3. Repealing Clause. — Section 26 of Republic Act No. 6657, otherwise
known as the “Comprehensive Agrarian Reform Law of 1988," as amended, is hereby
repealed. All laws, decrees, orders, rules and regulations or parts thereof inconsistent
with any of the provisions of this Act are hereby repealed, amended or modified

accordingly.


1 Sec. 4. Fffectivity Clause. - This Act shall take effect fifteen (15) days after its
2 complete publication in the Officia/ Gazette or in at least two (2) newspapers of general
3 circulation.

Approved,


NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES ) hy REC EIVED “e, ¥
First Regular Session ) i 3 pat pet 20 2022 bi i
We pideam Z

cm,
HOUSE OF REPRESENTATIVES Ne 5

H.B.No,_ 2182

Introduced by Representative Ralph G. Recto

AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES OR
SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Financing the Comprehensive Agrarian Reform Program (CARP) is one of the
major challenges in implementing land reform in the country. Apart from meager
appropriations for agrarian reform support services, the program also suffers from low
repayment rates from agrarian reform beneficiaries. The Senate Economic Planning
Office (SEPO) estimated that from 1987 to 2004, only P2.5 billion of the projected
P14.3 billion collectible land amortization payments was actually collected. A Philippine
Institute for Development Studies (PIDS) study revealed that CARP loan collection
performance by Land Bank of the Philippines (LBP) as of March 2015 is about 51.55%

for amortization and interest payments.

The cause for the low collection rate is two-fold. On the one hand, an
administrative system to collect loan proceeds from farmer-beneficiaries was not fully
established due to its prohibitive administrative costs. On the other hand, the high
cost of agricultural inputs, low farm outputs, and the onset of devastating
meteorological calamities, among others, have left the agrarian reform beneficiaries
bereft of any means to pay for the loan they have secured under CARP.

This bill seeks to accomplish several undertakings. First, it seeks to further
increase the productivity of agrarian reform beneficiaries by providing them additional


financial resources through the condonation of their annual amortization and interests,
including penalties or surcharges, if any. Second, it strives to reduce the administrative
cost of implementing the agrarian reform program.

Ultimately, it endeavors to achieve the original intent of the agrarian reform
program, which is to improve the lives of farmers, reduce rural poverty and accelerate
rural development. Such intervention is founded on the principles of the agrarian
reform law, which seek to uphold the welfare of landless farmers and farmworkers
with the goal of promoting social justice, sound rural development and
industrialization.

To sustain the gains of the agrarian reform program, the swift passage of this

measure is earnestly sought.

RALPH G.
/mag


10
11

12

NINETEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
H. B, No. 2182

Introduced by Representative Ralph G. Recto

AN ACT
CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS, PENALTIES OR
SURCHARGES ON LOANS SECURED UNDER THE COMPREHENSIVE
AGRARIAN REFORM PROGRAM AND FOR OTHER PURPOSES

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

Section 1. Condonation of Unpaid Amortizations, Interest Payments, Penalties
or Surcharges. — All unpaid amortizations and interests, including penalties or
surcharges, if any, due from loans secured under the Comprehensive Agrarian Reform
Program (CARP) are hereby condoned by the Government, thereby relieving all
farmer-beneficiaries from the payment thereof. The agrarian reform beneficiaries shall
be deemed as rightful owners of the lands awarded to them upon the effectivity of
this Act.

Sec. 2. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Department of Agrarian Reform (DAR), in coordination with
the Philippine Agrarian Reform Council (PARC) and the Land Bank of the Philippines
(LBP), shall promulgate the necessary rules and regulations to effectively implement
the provisions of this Act.

Sec. 3. Repealing Clause. - Section 26 of Republic Act No. 6657, otherwise
known as the “Comprehensive Agrarian Reform Law of 1988," as amended, is hereby
repealed. All laws, decrees, orders, rules and regulations or parts thereof inconsistent
with any of the provisions of this Act are hereby repealed, amended or modified
accordingly.


1
2
3

Sec. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,