FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
S E N A T E  
S.B. No. 
8 
SEP -3 
'1 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
A cooperative is defined as "a duly registered association of persons, with a 
common bond of interest, who have voluntarily joined together to achieve a lawful 
common social or economic end, making equitable contributions to the capital required 
and accepting a fair share of the risks and benefits of the undertaking in accordance 
with universally accepted cooperative principles." Time has proven the valuable 
contribution of cooperatives in agrarian reforms. Having direct interaction with 
peasants and landowners, they have been instrumental in heralding different agrarian 
reform programs to further the agrarian development in the country. 
As part of the Agricultural Land Reform Code, or Republic Act No. 3844, 
otherwise known as the "Code of Agrarian Reform in the Philippines" as amended by 
RA No. 7907, Land Bank of the Philippines was created to help with land reform, 
especially the purchase of agricultural estates for division 'and resale to small 
landholders and the purchase of land by the agricultural lessee. 
A Board of Directors, chaired by the incumbent Department of Finance Secretary, 
has been mandated to carry out the affairs and business of the bank. The composition of 
the board manifests that the bill has overlooked the importance of 'cooperatives in 
agrarian reform. There is no proper representation of these cooperatives, depriving 
them the chance to ensure that their voice is heard, in the Board of Directors governing 
the LBP. It is unfortunate that LBP, being the official financial intermediary for the 
Comprehensive Agrarian Reform Program in 1988, has untapped the rich experience of 
cooperative movement because of the absence of specific provisions in the bill. 
In recognition of the abovementioned issues, this bill seeks to further amend RA 
No. 3844, as amended by RA No. 7907, through the inclusion of a proviso authorizing 
the proper representation of cooperatives in the LBP Board. Such provision shall be 
helpful in the issuance of comprehensive decisions and courses of actio& by the LBP. 
In view of the foregoing, the passage of this bill is earnestly sought. 
-~ 
Senator 


FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
8 
SEP -.3 
' 
4 i l  
Second Regular Session 
) 
Introduced by Senator Loren Legarda 
AN ACT MANDATING THE REPRESENTATION OF COOPERATIVES IN THE 
BOARD OF DIRECTORS OF THE LAND BANK OF THE PHILIPPINES, 
AMENDING FOR THIS PURPOSE REPUBLIC ACT NUMBER 3844, AS AMENDED 
Be it enacted by the Senate and House of the Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 86 Republic Act No. 3844, otherwise known as the "Code of 
Agrarian Reform in the Philippines", as amended by Republic Act No. 7907 is further 
amended to read as folIows: 
"Sec. 86. The Board of Directors; Membership; Per Diem - The 
affairs of and business of the Bank shall be directed and its property 
managed and preserved by a Board of Directors consisting of [nine 91 TEN 
(10) members to be composed of the Secretary of Finance, as [Chairman] 
CHAIRPERSON, the Secretary of Agrarian Reform, the Secretary of Labor, 
and the Secretary of Agriculture as ex- officio members. THE PRESIDENT 
OF THE PHILIPPINES SHALL APPOINT TWO (2) MEMBERS 
REPRESENTING 
THE 
AGRARIAN 
REFORM 
BENEFICIARIES, 
PROVIDED 
THAT 
AT 
LEAST 
ONE 
(1) OF 
THE 
SAID 
REPRESENTATIVES 
SHALL 
COME 
FROM 
AN 
ORGANIZED 
AGRARIAN REFORM BENEFICIARIES FARMERS COOPERATIVE, IF 
ANY; TWO (2) MEMBERS REPRESENTING THE PRIVATE SECTOR 
AND ONE (1) MEMBER REPRESENTING THE COOPERATIVE 
SECTOR; PROVIDED, FURTHER, THAT THE REPRESENTATIVE OF 
THE COOPERATIVE SECTOR SHALL BE APPOINTED BY THE 
PRESIDENT OF THE PHILIPPINES FROM THE NOMINEES OF THE 
NATIONAL COOPERATIVE FEDERATIONS AND/OR UNIONS DULY 
RECOGNIZED BY THE COOPERATIVE DEVELOPMENT AUTHORITY. 
[The President of the Philippines shall appoint two (2) members who shall 
represent the agrarian reform beneficiaries and two (2) members who 
shall represent the agrarian reform beneficiaries and two (2) members 
who shall represent the private sector. The two (2) remaining members 
shall be elected from the shareholders coming from the public sector to the 
extent that they may be entitled to two (2) seats in proportibn to the 
outstanding capital stock. ] " 
1 


” No person shall be elected or appointed director of the Bank unless [he] 
THAT PERSON is a natural born citizen of the Philippines, not less than 
thirty- five years of age, of good moral character, and has attained 
proficiency, expertise and recognize competence in one or more of the 
following; banking, finance, economics, agriculture, agrarian reform, 
COOPERATIVES AND business management: Provided further, that no 
director, shareholder or employee of any bank shall be eligible for election 
or appointment as member of the Board of Directors of the Bank. 
SECTION 2. All members of the Board of Directors at the time of the approval 
and effectivity of this act shall continue in office until the end of their term of office as 
defined in Section 86 of R.A 3844 as amended. At the end of their term, the President 
shall appoint the members of the Board in accordance with Act. 
SECTION 3. Repealing Clause- All laws, presidential decrees, executive orders 
in whole or in part, including the rules and regulations promulgated there under 
inconsistent with the provisions of this Act, are herby amended, repedled or modified 
accordingly. 
, 
SECTION 4. Effectivity- This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette in at least two (2) newspapers of general circulation. 
Approved, 
2