FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Firsf Regular Session 
1 
SENATE 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
This bill seeks to allow the beneficiaries of agrarian reform to use such lands as 
collateral in securing loans to enable farmer-beneficiaries to increase productivity and 
raise the farm household incomes of CARP beneficiaries. 
The State shall, by law, 
undertake an agrarian reform program founded on the right of farmers and regular 
farmworkers, who are landless, to own directly or collectively, the lands they till, or, in 
the case of other farmworkers, to receive a just share of the fruits thereof. To this end, 
the State shall encourage and undertake the just distribution of all agricultural lands, 
subject to such priorities and reasonable retention limits as the Congress may 
prescribe, taking into account ecological, developmental, or equity considerations and 
subject to the payment of just compensation ...” 
Thus, in 1988 Republic Act No. 6657 was enacted to implement this State policy 
to undertake agrarian reform, or the redistribution of lands, regardless of crops or fruits 
produced, to farmers and regular farm workers who are landless, irrespective of tenurial 
agreement, to include the totality of factors and support services designed to lift the 
economic status of the beneficiaries and all other arrangements alternative to the 
physical redistribution of lands, such as production or profit-sharing, labor 
administration, and the distribution of shares of stock which will allow beneficiaries to 
receive a just share of the fruits of the land they work. 
Section 4, Article Xlll of the Constitution states: 
The scope of CARP covers 9 million hectares of which 5.164 million hectares are 
for distribution by the Department of Agrarian Reform and 3.838 million has. by the 
Dept. of Environment and Natural Resources. Of these, the DAR has already distributed 
3.96 Million hectares and the DENR 3.183 Million hectares benefiting 1,959 agrarian 
reform communities with at least 393.535 farm households. 
This bill comes at an opportune time when the issue of food security related to 
the decreasing areas of arable land is a growing major concern. 
The proceeds of loans will enhance the ability of these farmers to cultivate more 
food crops to supply our growing demand for rice, corn and other staple cereals and 
feeds for livestock whose prices have skyrocketed. Likewise, loans and whatever 
financial assistance to be generated from Certificate of Land Ownership Awards (CLOA) 
are accepted as collateral will enhance their capacity to manage their farms more 
efficiently as they conscientiously fulfill their obligations to banks and financial 
institutions that will grant them loans. 


Most important, this bill provides that the lands on which farmer-beneficiaries 
have paid five annual amortizations shall be allowed to be titled in their favor. 
Hence, the approval of this bill is earnestly requested. 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
FOURTEENTH CONGRESS OF THE 
) 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES ) 
8 f,fi? 22 rj ,/ 
:I;.', 
~~~~.~~~~~~~~ :iW : __ 
SENATE 
s . N ~ .  2185 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
ALLOWING THE TITLING OF LANDS COVERED BY A CERTIFICATE OF LAND 
OWNERSHIP AWARD (CLOA) GRANTED UNDER THE AGRARIAN REFORM 
PROGRAM AND UTILIZING IT AS COLLATERAL FOR THE PURPOSE OF 
SECURING AGRICULTURAL LOANS AND SIMILAR OTHER FINANCIAL 
ASSISTANCE, AMENDING THE PERTINENT PROVISIONS OF REPUBLIC ACT 
6657, OTHERWISE KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM 
LAW, AND FOR OTHER PURPOSES 
Be if enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1, Section 27 of RA 6657 is hereby amended to read as follows: 
"SEC. 27. Transferability of Awarded lands. - Lands acquired by 
beneficiaries under this Act may not be sold, transferred or conveyed except 
through hereditary succession, or to the government, or the LBP, or to other 
qualified beneficiaries for a period of ten (1 0) years: Provided, however, that the 
children or the spouse of the transferee shall have a right to repurchase the land 
from the government or LBP within a period of two (2) years. Due notice of the 
availability of the land shall be given by the LBP to the Barangay Agrarian 
Reform committee Coordinating Committee (PARCCOM), as herein provided, 
shall, in turn, be given due notice thereof by the BARC. 
PORTIONS OF THE AWARDED LANDS ACQUIRED BY FARMERS- 
BENEFICIARIES IN WHICH FIVE (5) ANNUAL AMORTIZATIONS HAVE BEEN 
PAID SHALL BE ALLOWED TO BE TITLED, PARTICULARLY IF THE SAID 
PORTION REPRESENTS THEIR HOME LOT. 
ALL FINANCING AND BANKING INSTITUTIONS, PRIVATE OR PUBLIC, 
SHALL ACCEPT DULY ISSUED LAND TITLES COVERED BY A DULY- 
REGISTERED CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA) AS 
COLLATERAL IN SECURING LOANS OR FINANCIAL ASSISTANCE THAT 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
WILL ENHANCE THE PRODUCTION OR MARKETING OF AGRICULTURAL 
PRODUCTS OR INCREASE FARM INCOME THEREFORM, OR IN THE 
EXERCISE OF PROFESSION BY THE CHILDREN OF THE FARMERS- 
ENDEAVOURS, EDUCATION AND SIMILAR OTHER PURPOSES. 
xxx 
SECTION 2. All laws, executive orders, rules and regulations, or any part thereof 
inconsistent herewith are deemed repealed or modified accordingly. 
SECTION 3. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in 6: least two newspapers of national circulation, 
whichever comes earlier. 
Approved, 
2