NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1179
of tl)f pfarj!>
‘22 AUG 16 A 8 35
RECEIVED 3Y:
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
CONDONING UNPAID INTEREST, PENALTIES, SURCHARGES ON LOANS 
AND AMORTIZATIONS OF LANDS AWARDED TO COMPREHENSIVE 
AGRARIAN REFORM BENEFICIARIES, REPEALING FOR THE PURPOSE, 
SECTION 26 OF REPUBLIC ACT NO. 6657 OTHERWISE KNOWN AS THE 
COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
In a discussion paper published by the Food and Fertilizer Technoiogy Center 
for the Asian and Pacific Region, former DAR Secretary Virgiiio R. de los Reyes reported 
that a total amount for payment by 906,997 beneficiaries amount to Php 58,617 biliion 
(US $ 1.144 biliion). This represents 84% of the total landowner compensation 
requirements of Php 69.443 biliion (US $1,356 biliion). The difference of Php 10.826 
biiiion (US $ 211.404 miilion) are reguiar subsidies and adjustments in vaiuation as a 
result of just compensation cases decided by the legai courts. These are charged to 
the account of the government. In 2017, the totai amount to be amortized by ARBs is 
at Php 58.617 biiiion (US $ 1.144biliion) of which Php 4.699 biiiion (US $91,174 million) 
have aiready been coliected leaving a baiance of Php 53.948 biiiion (US $1,053 
biiiion)1.
The same report further said that, in terms of payment performance of ARBs, 
a total of 715,783 hectares of land awarded to 464,842 ARBs considered as agrarian 
reform receivables (ARR) amounting to Php 15.658 biiiion or 27% of total expected
1 Umbo R. C. (2017, November) Amortization on Awarded Lands by Beneficiaries in the Philippines: Cost 
Implications of Non-Payment


amortization of Php 58.617 billion. The other 73% or Php 42.959 billion is not booked 
as ARR and considered as Lands Purchased and Expropriated (LPEX) due to the 
absence of Land Distribution Information Sheets (LDIS) and / or Land Amortization 
Schedule (LAS).
Clearly, there are challenges in collecting land amortization, one reason is the 
absence of an efficient administrative system due to prohibitive administrative costs2. 
The other one is the high cost of expenses and effects of climate change on agriculture 
such as lower crop yields due to drought, heat waves and flooding as well as increases 
in pests and plant diseases leaving our agrarian reform beneficiaries struggling in 
amortizing the land they incurred from the agrarian reform.
This bill seeks to help our farmers to recover and overcome the fallout of 
COVID-19 crisis, slow economic growth and escalating wars. Condoning their land 
amortization will provide them the much-needed financial resources that shall develop 
their farms, increase their productivity and advance an agriculture driven economy. In 
the end. It desires to improve the lives of farmers, reduce poverty, accelerate rural 
development and promote food security.
To sustain the gains of the agrarian reform program, the swift passage of this 
measure is earnestly sought.
M. LAPID
Senator
2 Arlanza, R. S., et. al. (2006 April). The Comprehensive Agrarian Reform Program: Scenarios and 
Options for Future Development. Quezon City: Department of Agrarian Reform.


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. noL179
fiS'1! S>enatp
©ffl'C<> of tljs?
•22 AUG 16 A 8 35
RECEIVED BY;
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
CONDONING UNPAID INTEREST, PENALTIES, SURCHARGES ON LOANS
3 
AND AMORTIZATIONS OF LANDS AWARDED TO COMPREHENSIVE
4 
AGRARIAN REFORM BENEFICIARIES, REPEALING FOR THE PURPOSE,
5 
SECTION 26 OF REPUBLIC ACT NO. 6657 OTHERWISE KNOWN AS THE
6 
COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AND FOR OTHER
7 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
8 
SECTION 1. Condonation of Unpaid Amortizations. — All unpaid interest,
9 
penalties, surcharges on loans and amortizations due from farmer-beneficiaries as of
10 
the effectivlty of this Act are hereby condoned by the Government, thereby relieving
11 
all farmer-beneficiaries from the payment thereof. The agrarian reform beneficiaries,
12 
as of the effectivlty of this Act, shall be deemed to have completed payment and are
13 
hereby authorized to perform all the remaining acts necessary to establish full
14 
ownership of the lands awarded to them.
15 
SECTION. 2. Implementing Rules and Regulations. — Within thirty (30) days
16 
from the effectivlty of this Act, the Department of Agrarian Reform (DAR), in
17 
coordination with the Philippine Agrarian Reform Council and the Land Bank of the
18 
Philippines (LBP), shall promulgate the necessary rules and regulations to effectively
19 
implement the provisions of this Act.


1 
SECTION. 3. Repealing Clause. — All laws, decrees, orders, rules and
2 
regulations or parts thereof inconsistent with any of the provisions of this Act are
3 
hereby repealed, amended or modified accordingly.
4 
SECTION. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days
5 
after its complete publication in the Official Gazelle or in at least two (2) newspapers
6 
of general circulation.
7 
Approved,