FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
SENATE 
Senate Bill No. 2837 
'11 
MAY23 P4:49 
INTRODUCED BY SEN. JUAN MIGUEL F. ZUBIRI 
EXPLANA TORY NOTE 
Cooperatives have long been acknowledged and regarded as one of the 
fundamental sources of economic strength in our country. In particular, they playa 
crucial role in agrarian reform and rural development. The Land Bank of the Philippines 
(LBP), which was primarily created to assist farmers and fisherfolks, recognizes this 
crucial role played by the cooperatives and treats the latter as its partner in the 
implementation of its programs in agrarian reform and rural development. In fact, 
cooperatives have served as perfect instruments for the LBP to extend assistance to 
farmers and fisherfolks and have been provided a substantial loan portfOlio by the LBP. 
Despite the increasing importance and role of the cooperatives in agrarian reform 
and rural development, however, they are without a voice in the highest policy-making 
body of the LBP. The law creating the LBP, Republic Act No. 3844 otherwise known as 
the Code of Agrarian Reform in the Philippines as amended by Republic Act No. 7907, 
does not ensure the representation of cooperatives in the Board of Directors of LBP. 
This bill seeks to remedy this situation by providing for the representation of the 
cooperative sector in the Board of Directors of LBP by amending its composition from 
nine (9) to eleven (11) members and particularly providing that: 
1. Of the two (2) representatives from the Agrarian Reform Beneficiaries, one (1) 
shall come from an organized agrarian reform beneficiaries farmers cooperative; 
and 
2. Of the two (2) remaining seats, one (1) representative shall be appointed by the 
President from the nominees of the national cooperative federations and/or 
unions duly registered with the Cooperative Development Authority. 
Hence, this Representation humbly asks the approval of this bill. 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
'11 
r1AY 23 PI) :49 
SENATE 
S. No. 2837 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
AN ACT 
MANDATING THE REPRESENTATION OF COOPERATIVES IN THE BOARD OF 
DIRECTORS OF THE LAND BANK OF THE PHILIPPINES, AMENDING THEREFORE 
REPUBLIC ACT NUMBERED 3844, AS AMENDED 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Section 86 Republic Act No. 3844, otherwise known as the "Code of 
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Agrarian Reform in the Philippines", as amended by RA. No. 7907 is further amended 
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to read as follows: 
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"SEC. 86. The Board of Directors; Membership; Per Diem. - The affairs 
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and business of the Bank shall be directed and its property managed and preserved by 
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a Board of Directors consisting of [nine(9)] ELEVEN (11) members to be composed of 
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the Secretary of Finance, as [Chairman] CHAIRPERSON, the President of the Bank as 
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[Vice-Chairman] VICE-CHAIRPERSON, the Secretary of Agrarian Reform, the 
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Secretary of Labor, and the Secretary of Agriculture as ex-officio members. The 
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President of the Philippines shall appoint two (2) members of the Board who shall 
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represent the agrarian reform beneficiaries: PROVIDED, THAT AT LEAST ONE (1) OF 
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THE SAID REPRESENTATIVES SHALL COME FROM AN ORGANIZED AGRARIAN 
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REFORM BENEFICIARIES FARMERS COOPERATIVE, IF ANY, [and] two (2) 
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members who shall represent the private sector[.], [The two (2) remaining members,] 
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ONE (1) MEMBER WHO SHALL REPRESENT THE COOPERATIVE SECTOR: 
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PROVIDED, THAT THE REPRESENTATIVE SHALL COME FROM THE NOMINEES 
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OF THE NATIONAL COOPERATIVE FEDERATIONS ANDIOR UNIONS DULY 
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REGISTERED WITH THE COOPERATIVES DEVELOPMENT AUTHORITY, AND. 
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ONE (1) MEMBER WHO SHALL REPRESENT [shall be elected from] the 
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[shareholders] STAKEHOLDERS coming from the public sector to the extent that they 
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may be entitled to two (2) seats in proportion to the outstanding capital stock] FROM 
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THE RURAL FINANCIAL SECTOR. 


1 
XXX 
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XXX 
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XXX 
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" No person shall be elected or appointed director of the Bank unless [he] THAT 
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PERSON is a natural born citizen of the Philippines, not less than thirty-five (35) years 
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of age, of good moral character, and has attained proficiency, expertise and recognize 
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competence in one or more of the following: banking, finance, econornics, agriculture, 
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agrarian reform, COOPERATIVES AND business management: Provided further, That 
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no director, shareholder or employee o9f any bank shall be eligible for election or 
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appointment as member of the Board of Directors of the Bank. 
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XXX 
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SEC. 2. All members of the Board of Directors at the time of the approval and 
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effectivity of this Act shall continue in office until the end of their term of office as defined 
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in Section 86 of R.A. 3844 as amended. At the end of their term, the President shall 
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appoint 
the 
members 
of 
the 
Board 
in 
accordance 
with 
this 
21 
Act. 
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SEC. 3. Repealing Clause. - All laws, presidential decrees, executive orders in 
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whole or in part, including the rules and regulations promulgated thereunder 
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inconsistent with the provisions of this Act, are hereby amended, repealed or modified 
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accordingly. 
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SEC. 4. Effectivity - This Act shall take effect fifteen (15) days following its 
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publication in the Official Gazette or in at least two (2) newspapers of general 
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circulation. 
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Approved, 
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