NINETEENTH CONGRESS OF THE )
REPUBLIC GF THE PHILIPPINES i}
First Regular Session )

HOUSE OF REPRESENTATIVES

“2828

H. B. No.

ve Ralph G. Re

AN ACT
PRIORITIZING THE AGRICULTURAL SECTOR IN THE GRANT OF LOANS BY THE
LAND BANK OF THE PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 3844, AS AMENDED

EXPLANATORY NOTE

The Land Bank of the Phikppines (LBP) 1s 6 government financial instdution that

ranks among the top comm

loans and capital. LBP’s original mandate

Government of land for distitston anc nai landhe

aes ag provided for under Republic Act No. 384 or me

by agricultural hi

Agncultural Land Reform Code.

vel oF visibility

Today, LBP is one of

in the countryside. From being the financing arm af th am, the LEP

hag since expanded ints @ fullservice

In March 2021, LBP rep 847.03 biker gi

devastating impact of COVID-19 wn both the comestic and giobal economy 4

toomdu

previous year. However, much of the barks Fung

than the agricultural sector. Of the P810.G7 bihos worth of oars

micro, small and medium

public ith

omiruneaten

related pf another 6.70% was extended to ot

ent units (LGUs) and government-owned of -contolled

hike local



corporations (GOCCs). This eaves only 23.59% of the bank's reqular Inan sarfolic fo

support small farmers and fisherfolk end to bolster agribusiness, aqua-husiness, and

agriculture-rélated orojects of private enterprises, LGUs and GOCCs.

This bill proposes to amend the LBP charter, allowing it to focus on the provision of

affordable cred? to the earicuiture sector most poer Fitipinos belona. It further

rity to the 3qnculture sector and putting a

cap to the emount of loans the bank may grant for programs and projerts in sectors other

than agriculture. Such move will allow the agricultural sector, particularly the smvall farmers

with and development.

and fisnerfotks to uuly sponsibility and

This bili seeks to

Bank of the

estore the onginal tent for te createn oft

which 16 to assist farmers and other agneuitural workers, and to contribute to

the fruition of agnicultural develspment projects.

In view: of the foregning, the approval of this fill 1s earnestly sought.



NINETEENTH CONGRESS OF THE
EPUBLIC OF THE PHILIPPINES

Fst Reg

HOUSE OF REPRESENTATIVES

~ 2828

H. B. No.

introduced by Represeniative Raipn G. Recto

AN ACT
PRIORITIZING THE AGRICULTURAL SECTOR IN THE GRANT OF LOANS BY THE
LAND BANK OF THE PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO 3844, AS AMENDED

tates of the Sldippimes in Conaress

Be it enacted by the Senate and Heuse of Rep
assembled

Section 1. Section 75 of Repubhe Act No. 3844, as amended, is hereby further

amended to tead as follows.

nerai, The bank shall have the paw

“Sec. 75. Powers in

im loans and advances against

“5, To grant shert-, medium: 2nd k

sacunty of real estste and/or i} acceptable assets tor the

indus

establishment, development or expansion of agricultu

uth productive

building or home financing

PROVIDED, THAT THE TOTAL AMOUNT OF LOANS

enterpr

GRANTED FOR PROGRAMS AND PROJECTS IN SECTORS OTHER
THAN AGRICULTURE SHALL NOT EXCEED TWENTY PERCENT
(20%) OF THE BANK'S TOTAL LOAN PORTFOLIO.

respec
Any receivables pertain

this Act, shall be valid and enforcea!

loans were made, including the pledge of collateral agonst which they were issued, and


ail loans made and security or collateral therefore held by the bank shail roman
anforceable according te the terms unless they may be lawfully terminated in accordance

with this Act, nor shail this Act st

ipersede the operation of any

jaw protecting ar preserving

vested contractual nghts or be construed to change the terms of any legal contract

between the bank end any third party or to impose any new conditions thereon, oF to

dispense with any condition expressed or authorized m any such contract entered into and

ict prior to this Act

Sec. 3. Transition Period, - The Lana Bani, of the Philippines (LRP) shall have a

Of tea (19) years fram the effectinty of this Act to restructure its loan portale, The

transition milestones shail be identified sn the Implerenting Rules and Regu to be
promulgated pursuant to Section 4 of this Act.

Sec. 4. Implementing Rules and Regutatians. - Yiithin runety (80) days from

effectivity of this Act, the Oepartment of Finance (DOF) shall, in coadination with the LBP,

promulgate the rules and regulations to aly implement the provisions of this A

Sec. 5. Separabuity Clause. - If any provision of this Act is held invalid or

unconstitutionai, the sar affect the validity and effectivity of the other

Provisions hereof

nial de

use. ~ All laws, executive orders, presich

Sec. 6. Repeating

f contrary to or inconsistent with Ine

lati

ces, tules and r ns or parts there

provisions of this Act are hereby repeated or modified accordinaly.

- This Act shail take effect fifteen (15) days after its

ity Ciatise

publication in the Offcia! Gazette ar in two (2) newspapers of generat circulation,

Approved.