FOURTEENTH CON.GRESS 
1 
FIRST REGULAR SESSION 
1 
REPUBLIC OF THE PHILIPPINES 
) 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to allow beneficiaries of agrarian reform to use such lands as 
collateral in securing loans or financial assistance to enhance the productivity of 
farmlands or increase income therefrom. 
Section 4, Article XI11 of the Constitution states that 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. 
Pursuant to this policy, Republic Act No. 6657 was enacted in 1988 to implement 
this State policy and urdertake 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 arrangement, 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 lands they work. 
While the law is nearing the'end of its target, the standard of living of 
beneficiaries of the Program is far from being desirable. This is largely attributed to the 
lack of support systems that will enable the farmer-beneficiary to cultivate the land and 
maximize its yield. It must be noted that most of the beneficiaries are poor so that they 
lack the proper training and resources to fully realize the potential of their land. 
This bill aims to provide farmer beneficiaries access to capital and credit from 
banks and other lending institutions for use in the production or marketing of 
agricultural products, increase farm income therefrom, livelihood and entrepreneurial 
purposes, and developing one's innate potential through education and skills training.. 
Under this proposed measure, farmer-beneficiaries with certificate of land 
ownership Award (CLOA) are allowed to use their farm lands as collateral. 
In view of the foregoing, immediate passage of this bill is earnestly sought, 
Senator 


FOURTEENTH CONGRESS 
1 
FIRST REGULAR SESSION 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Introduced by Senator Loren Legarda 
AN ACT 
ALLOWING THE TITLING OF LANDS COVERED BY A CERTIFICATE OF LAND 
OWNERSHIP AWARD (CLOA) GRANTED UNDER THE AGRARIAN REFORM 
PROGRAM AND UTILIZING ITS USE AS COLLATERAL FOR PURPOSES OF 
SECURING AGRICULTURAL LOANS AND SIMILAR OTHER FINANCIAL 
ASSISTANCE, AMENDING THE PERTINENT PROVISIONS OF REPUBLIC ACT 
AS THE COMPREHENSIVE AGRARIAN REPORM LAW, AND FOR OTHER 
PURPOSES. 
NUMBERED SIXTY-SIX HUNDRED AND FIFTY SEVEN, OTHERWISE KNOWN 
Be it enacted by the Senate and 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 (10) 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, 
CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA) AS COLLATERAL IN 
SECURING LOANS OR FINANCIAL ASSISTANCE THAT 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. 
SHALL ACCEPT DULY ISSUED LAND TITLES COVERED BY A DULY-REGISTERED 
x x x  


SEC. 2. All laws, executive orders, rules and regulations, or any part thereof 
inconsistent herewith are deemed repealed or modified accordingly. 
SEC. 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,