FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIl>PINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.No. 
2623 , 
,$)rmrt~ 
IgHlfI~ of Hi-e~~i';:rrbru 
'10 
DEC -8 P.4 :09 
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Introduced by Senator FRANCIS N. PANGILINAN 
EXPLANATORY NOTE 
The passage of Republic Act 10000 otherwise known as AN ACT PROVIDING 
FOR AN AGRICULTURE AND AGRARIAN REFORM CREDIT AND FINANCING 
SYSTEM THROUGH BANKING INSTITUTIONS was a significant advance in terms 
of legislation, promoting credit access of small farmers and fisherfolks. 
The law 
strengthens the current policy of mandatory allocations of total loanable funds generated 
(TLFG) by banks to agriculture and agrarian reform beneficiaries and strengthens the 
system by prohibiting non-agricultural related compliance and providing a stricter and 
more responsive penalty scheme. 
The TLFG is the basis for the computation of the 25% minimum compliance 
requirement broken down into 15% for agriculture and 10% [or agrarian refOlm. The 
TLFG shall refer to funds generated by banks from the date of effectivity of RA 10000 
which is on April 20, 2010, when the law took effect. The spirit of the law is intended to 
improve the credit access of farmers, fisherfolks, agrarian reform beneficiaries, settlers, 
farm owners, fish workers, farmers' and fisherfolks' cooperatives, organizations and 
associations through goverrnnent and private banking institutions. Access to credit will 
give the farmers and fisherfolks the financial assistance they need to become competitive 
and eventually will help raise the productivity of the agriculture and fisheries sectors in 
the country. 
The amendment to RA 10000 being proposed in the bill is to adjust the date of the 
computation of the TLFG by banks from April 20, 2010 to May 29,1975, which is the 
effectivity date of Presidential Decree 717 otherwise known as 
PROVIDING AN 
AGRARIAN REFORM CREDIT AND FINANCING SYSTEM FOR AGRARIAN 
REFORM BENEFICIARIES THROUGH BANKING INSTITUTIONS. 
With the 
enactment of RA 10000, the PD 717 has been superceded. However, the bill seeks to 
amend RA 10000 to prescribe the effectivity date of May 29, 1975 the basis of the 
computation of the total loanable funds. The rationale for the proposal is to avoid the 
significant reduction of available credit to the farmers should the basis of the computation 
of the total loanable funds be 1975. 
In view of the foregoing, the passage of this bill is being sought. 


, . 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE: 
S. B. No. 
2623 
4:; n~'" \,- ~ n 
r7.J/~HU i~ 
(r)fhfP: of !he(:-"~'ndHil 
'10 
DEC -8 P 4 :09 
Introduced by Senator FRANCIS N. PANGILINAN 
AN ACT AMENDING SECTION 6 OR REPUBLIC ACT 10000 
OTHERWISE KNOWN AS THE AGRI-AGRA REFORM CREDIT ACT OF 2009 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Credit Quota. Section 6 of Republic Act No. 10000 is hereby amended and 
shall read as follows: 
Section 6. Credit Quota. - All banking institutions, whether government or 
private, shall set aside at least twenty-five percent (25%) of their total loanable funds for 
agriculture and fisheries credit in general, of which at least ten percent (10%) of the 
loanable funds shall be made available for agrarian reform beneficiaries mentioned in 
Section 5 hereof: Provided, however, That total loanable funds as used in the section shall 
refer to nmds generated from [the date of effectivity of this Act] 29 MAY 
1975: Provided, further, That the twenty -five percent (25%) credit quota is subject to a 
joint review by the Department of Agriculture (DA), the Department of Agriculture 
Reform (DAR) and the Bangko Sentral ng Pilipinas (BSP) after three (3) years of 
implementation to determine whether the law has been effective in accomplishing its 
goals. The findings shall be submitted to Congress. 
Section. 2. Repealing Clause. - Other laws, presidential decrees, executive orders, 
rules and regulations, or parts thereof inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly. 
Section 3. Effectivity. - This Act shall take 
effect 
fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,