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Republic of the Philippines Le aN
HOUSE OF REPRESENTATIVES, < RECEIVED <

Quezon City

NINETEENTH CONGRESS
First Regular Session

3490 Runes”

Introduced by Representative Wilbert T. Lee

HOUSE BILL

AN ACT CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS,
PENALTIES OR SURCHARGES ON LOANS SECURED UNDER THE
COMPREHENSIVE AGRARIAN REFORM PROGRAM AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

Article XIII, Section 4 of the 1987 Constitution states that “ [t]he State shall, by law,
undertake an agrarian reform program founded on the right of farmers and regular farmworkers
who are landless, to own directly or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof.”

In the same section, the Constitution guarantees that the “[s]tate shall encourage and
undertake the just distribution of all agricultural lands, subject to such priorities and reasonable
retention limits as the Congress may prescribe, taking into account ecological, developmental,
or equity considerations, and subject to the payment of just compensation. In determining
retention limits, the State shall respect the right of small landowners, The State shall further
provide incentives for voluntary land-sharing,”

the country is facing a compounded problem regarding the state of our
0 State of Food Security and Nutrition in the World Report, the

As of weitir
food security. In the 2

Philippines recorded the most number of food insecure people in Southeast Asia from 2017 to
2019, with 59 million Filipinos suffering from moderate to severe lack of consistent access to
food. Despite having some 7.9 million hectares of Philippine lands devoted to agriculture', 3.1
million Filipino families experienced hunger in the first quarter of 2022 according to the survey
conducted by the Social Weather Stations (SWS)?

Q SWS. Retrieved last 7 August
m-filipinos-expertenced-hunger-in- 1 -o1-2022-sws-survey~

3.1 million Ftipine fan
2022 from: hitpst/newsinto. inquirer net! 160729.
Shows#inz/TOKD7X/10,



Apart from the rising prices of food and commodities, the agriculture sector has always
been weighed down by low productivity and high production costs, among many other causes*
The sad condition we aim to concretely address is despite their hard work, farmers are finding
it hard to emancipate themselves from debt. The Philippine Institute for Development Studies
(PIDS), revealed that the “[dJespite the large subsidy given to ARBs in terms of amortization
subsidies, the collection performance of ARBs is not encouraging even in the context of cost
recovery

In the same report of the PIDS, About 11% of Landbank’s Agrarian Reform
Receivables (ARR) accounts have been fully paid but there is also a considerable number of
accounts in default, The government's think-tank concluded that there is an apparent disregard
of the land payment by some Agricultural Reform Beneficiaries (ARBs).*

One of the primary interventions that the Executive Branch and Legislature agreed upon
is to emancipate around 650,000 ARBs from their debt®. Through this measure, we authorize
the cancellation of the obligations owed to the government by farmer-beneficiaries for parcels
of land received by amending Section 26 of Republic Act (RA) 6657, or the Comprehensive
Agrarian Reform Law of 1988. Through this bill, we outrightly unburden the farmers from
their loans, interests and penalties which is one of the reasons they are chained to poverty

This representation believes that we need to empower and bolster the capacity of the
backbone of our agricultural sector, our indefatigable farmers, to holistically address our food
security woes, Their sacrifices in striving to provide food to every Filipino household have
been sidetracked for decades and we owe them this move, rather than them owing the
government. Through this relief, we allow them to further increase their productivity by
providing them additional financial resources through the condonation of their annual
amortization and interests, including penalties or surcharges. Likewise, necessary safeguards
such as non-conversion of these agricultural lands for non-agricultural uses as well as selling
or mortgaging of these awarded lands are prohibited within a ten (10) year holding period from
the date of registration of the Emancipation Patent (EP), Certificate of Land Ownership Award
(CLOA), or other Title issued pursuant to an agrarian reform program of the Government

The ultimate objective of this condonation measure is to achieve the original intent of
the agrarian reform program, which is the alleviation of poverty, acceleration of rural
development and improvement of the lives of our agricultural workers.

In view of the foregoing, the swift passage of this bill is earnestly s

AGRI PARTYLIST.

2) griculture: low proxductivity and high production costs, Retrieved last 8 August 2022 from:
{ayo byvorldonfine com/special-reports/20)

lesteros et. Al (December 2017) The Comprehensive Agrarian Refonn Prog
Fonvard Options. Retieved last 6 August 2022 from: hutps/ipidswebs pids gov.ph¥CDN/PUBLICATIONS/pidsdps!734 pal
“Tod

© Moai, M. (27 July 2022) DAR ready to work with Congress on condonation of farmers” loans, Retrieved last 8 August
2022 tron: htips:/svww.pna. pov phiarticled 79884



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS

First Regular Session

HOUSE BILL No. 3498

Introduced by Representative Wilbert T. Lee

AN ACT CONDONING ALL UNPAID AMORTIZATIONS, INTERESTS,
PENALTIES OR SURCHARGES ON LOANS SECURED UNDER THE
COMPREHENSIVE AGRARIAN REFORM PROGRAM AND FOR OTHER
PURPOSES

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

SECTION. 1. Condonation of Unpaid Amortications, Interest Payments, Penalties
or Surcharges. All unpaid principal and interests, including penalties or surcharges, if any,
due from loans used for land acquisition secured under the Comprehensive Agrarian Reform
Program are hereby condoned by the Government, thereby emancipating all farmer-
beneficiaries from the payment thereof: Provided, That the condonation of such all unpaid
principal, interests, penalties or surcharges, shall be in accordance with the applicable banking
laws and regulations of the Bangko Sentral ng Pilipinas: Provided, further. That upon the
effectivity of this Act, the Land Bank of the Philippines (LBP) shall issue the necessary
attestation to facilitate the issuance of a certificate of land title ownership in favor of the
agrarian reform beneficiary concerned: Provided, finally. That the condonation of all unpaid
principal, interests, penalties, or surcharges shall release all attached liens and encumbrances
arising from the loans secured for land acquisition. The Agrarian Reform Beneficiaries (AGBs)
shall be deemed as rightful owners of the lands awarded to them upon the effectivity of this

Act.


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SEC. 2. Government Safeguards. All agricultural lands transferred to AGBs shall not
be converted into non-agricultural uses or allowed to be sold or mortgage to private individuals
or entities within a ten (10) year holding period

The aforementioned holding period will commence from the date of registration of the
Emancipation Patent (EP), Certificate of Land Ownership Award (CLOA), or other Title issued
pursuant to an agrarian reform program of the State until the lapse of ten (10) calendar years.

SEC. 3. Implementing Rules and Regulations. Within thirty (30) days from the
effectivity of this Act, the Department of Agrarian Reform, in coordination with the Philippine
Agrarian Reform Council, Department of Finance and the LBP, shall promulgate the necessary
rules and regulations to effectively implement the provisions of this Act.

SEC. 4. Repealing Clause. Section 26 of Republic Act No. 6657, otherwise known as
the “Comprehensive Agrarian Reform Law of 1988," as amended by Republic Act No. 9700
is hereby repealed. All laws, decrees, orders, rules and regulations or parts thereof inconsistent
with any of the provisions of this Act are hereby repealed, amended or modified accordingly

SEC. 5. Effectivity. This Act shall take effect fifteen (15) days following its publication
in three (3) newspapers of general circulation.

Approved,