Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila
FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILLNO.__9117

INTRODUCED BY REPRESENTATIVE PEDRO P. ROMUALDO-

EXPLANATORY NOTE

The Land Bank of the Philippines (LBP) was created on August 8, 1963 by virtue of
Section 74 of Republic Act No. 3844, with an original term of fifty (50) years which will
expire on August 8, 2013. This bill proposes to extend the term of the Land Bank of the
Philippines to another fifly (50) years to continue its existence and operations.

‘The Land Bank of the Philippines has been very successfull in its twin-thursts as a
bank by virtue of Presidential Decree No. 251 on July 21, 1973 and as the
financial intermediary of the agrarian reform program of the government wherein it was
primarily created to provide financial support in all phases of agrarian reform under
Section 64 of Republic Act No. 3844.

It was reorganized in 1977 to focus into three areas: Agrarian, Banking and Operations

to meet the increasing and diverse needs of its clients and strengthen its long term
ility. On February 23, 1995, its charter was amended wherein its authorized capital
increased from its original authorized capital One billion five hundred thousand
pesos (P\ 1,500,000.00) to "Nine billion pesos" (P\ 9,000,000.00) and its Board of
uustees Was increased from seven (7) to nine (9). It also became the official government
depository bank. On August 25, 1998, its authorized capitalization was again increased to
"Twenty-five billion pesos” (P\ 25,000,000.00).

Today, Land Bank of the Philippines is one of the top five commercial banks in the
country in terms of deposits, assets, loans and capital. It continues to serve the country
as: a) the implementing arm of the Comprehensive Agrarian Reform Program which
includes land valuation, compensation to owners of agricultural lands, and collection of
amortizations from CARP-farmer beneficiaries; b) provision of credit assistance to small
farmers and fisherfolks and agrarian reform beneficiaries; c) as official government
depository bank; and d) in fulfilling its mandate to spur countryside development.

Let us continue to support "Ang Bangkong May Damdaming Bayan” so it can function
well and fulfill its mandate as a top universal and government bank as well as lead
partner of our national government in the successful implementation of the
Comprehensive Agrarian Reform Program. “

Congressman, Lone District, Camiguin


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila
FIFTEENTH CONGRESS
Second Regular Session

House BILL No._5117

INTRODUCED BY REPRESENTATIVE PEDRO P. ROMUALDO-

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

AN ACT
EXTENDING THE TERM OF THE LAND BANK OF THE PHILIPPINES (LBP)
TO ANOTHER FIFTY (50) YEARS THEREBY AMENDING SECTION 74 OF
THE REPUBLIC ACT NO. 3844, AS AMENDED, OTHERWISE KNOWN AS
THE "AGRICULTURAL LAND REFORM CODE"

(CTION 1. Section 74 of Republic Act No. 3844, as amended is hereby amended to
as follows:

ion 74. Creation - To finance the acquisition by the Government of landed
estates for division and resale (0 small landholders, as well as the purchase of the
landholding by the agricultural lessee from the landowner, there is hereby established a
body corporate to be known as the "Land Bank of the Philippines", hereinafter called the
"Bank", which shall have its principal place of business in Manila. [The legal existence
of the Bank shall be for a period of fifty years counting from the date of the approval
hereof] THE BANK IS HEREBY GRANTED FROM THE EXPIRATION OF ITS
NAL TERM ON AUGUST 8, 2013, ANOTHER PERIOD OF FIFTY (50)
YEARS. The Bank shall be subject to such rules and regulations as the [Central Bank]
KO SENTRAL NG PILIPINAS may from time to time promulgate.

SECTION 2. Repealing Clause. - All laws, decrees, executive orders, proclamations,
rules and regulations and other issuances, or parts thereof which are inconsistent with
the provisions of this Act, are hereby repealed, amended or modified.

SECTION 3. Effeetivity Clause. - This Act shall take effect fifteen (15) days from the
date of its publication, upon its initiative, in at least two (2) newspapers of general
circulation in the Philippines.

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Approved,