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the full text of
Act No. 7907
AN ACT AMENDING REPUBLIC ACT NUMBERED
THIRTY-EIGHT HUNDRED FORTY-FOUR,
AS AMENDED, OTHERWISE KNOWN AS THE "CODE
OF AGRARIAN REFORM IN THE PHILIPPINES."
ACT NO. 7907
ACT NUMBERED THIRTY-EIGHT HUNDRED FORTY-FOUR, AS AMENDED, OTHERWISE
AS THE "CODE OF AGRARIAN REFORM IN THE PHILIPPINES."
Be it enacted by the Senate
and House of Representatives of the Philippines in Congress assembled:
Section 1. Sec. 75 of
Republic Act No. 3844, as amended, is hereby further amended by adding
the following subsections to read as follows:
an official government depository with full authority to maintain
of the government, its branches, subdivisions and instrumentalities,
of government-owned or controlled corporations which deposits shall be
subjected to liquidity floor and/or reserve requirements as may be
by the Monetary Board upon other commercial banks;
of the capital base of the bank, to establish a national marketing
for farmers and fisheries cooperatives to attract massive capital
from savings deposits of the cooperative member nationwide."
hereby renumbered as subsection 14.
Sec. 2. Section 78 of the
same Act is hereby further amended by adding a new paragraph thereto to
read as follows:
foregoing which pertains to the twenty-five years bonds previously
by the bank and pursuant to its role as the financial intermediary of
Comprehensive Agrarian Reform Program, mandated under Republic Act No.
6657, the National Government through the Presidential Agrarian Reform
Council (PARC), shall provided and/or allocate from the existing
Reform Fund or other unappropriated funds of the National Treasury an
sufficient to pay all maturing bonds, debentures and all other
together with interest due thereon issued and/or incurred by the bank
compensation to the landowners including expenses related thereto. In
apportionment and distribution of funds from the Agrarian Reform Fund,
the PARC shall give priority and preference to the payment of landowner
compensation in the chronological sequence or order at which the
offers of sale were made by the landowners."
Section 80 of
Act is hereby further amended by adding a new subsection thereto to
percent (60%) of the proceeds of the sale of the stocks, securities and
other assets of the government now under administration by the Assets
Trust (APT) shall be transferred to the land Bank of the Philippines
use in the payment of agricultural lands acquired pursuant to
Decree No. 27 and Republic Act No. 6657."
Section 81 of
Act is hereby amended to read as follows:
81. Capital.- The
authorized capital stock of the Bank shall be nine billion pesos,
into seven hundred and eighty million common shares with a par value of
ten pesos each, which shall be fully subscribed by the government, and
one hundred and twenty million preferred shares with a par value of ten
pesos each, which shall be issued in accordance with the provisions of
Section seventy-seven and eighty-three of this Code. These preferred
shall be non-voting. The Board, upon the recommendation of the
of Finance and with the approval of the President of the Philippines,
increase the capitalization of the Bank up to such an amount as may be
necessary to attain the objectives of this Act. The total capital stock
subscribed by the Government shall be paid by the Agrarian Reform Fund
Commission created under Presidential Decree No. 85, hereinafter
to as the "commission" as follows: four hundred million pesos within
(60) days from the approval of this Decree, and at least one hundred
pesos every year thereafter until the total subscription of the
is fully Paid: Provided, That the common and preferred
of the Bank which have been issued, including those already subscribed,
shall form part of the increased capitalization of the Bank: Provided,
further, That the additional common shares subscribed by the
shall be paid by the bank through its banking operations in an amount
to at least ten percent (10%) of its annual net income or any form of
earnings until fully paid: Provided, Finally, That the
due the Government shall first be paid."
Sec. 5. Sec.
86 of the
Act relating to the Membership of it Board of Directors, as amended, is
hereby further amended to read as follows:
Board of Directors; Membership; Per Diem.- The affairs and
of the Bank shall be directed and its property managed and preserve by
a board of Directors consisting of nine (9) members to be composed of
Secretary of Finance, as Chairman, the President of the bank as
the Secretary of Agrarian Reform, the secretary of Labor, and the
of Agriculture as ex officio members. The President of the
shall appoint two (2) members of the Board who shall represent the the
agrarian reform beneficiaries and two (2) members who shall represent
private sector. The two (2) remaining members shall be elected from the
shareholders coming from the public sector to the extent that they may
be entitled to two (2) seats in proportion to the outstanding capital
after the first Monday in December, the stockholders shall meet to take
up, among others, the election of two (2) members of the Board of
for the succeeding year. Each shareholder or proxy shall be entitled to
as many votes as he may have shares of stock registered in his name on
the 31st day of October last preceding and held by him at the time of
election. The two (2) members of the Board of Directors shall be
preferably from the holders of the preferred shares as follows:
P100.00 M - one member
majority of the
shall constitute a quorum. All decisions of the Board shall require the
concurrence of at least a majority.
- two members
the Board shall hold a term of office for one (1) year and shall
to hold office until their successor shall have been appointed and
The board shall convene as often as necessary to discharge its
properly, but shall meet at least once every two (2) weeks. The Board
be convoked either by the Chairman or in his absence, the Vice-Chairman.
be elected or appointed director of the Bank unless he is natural born
citizens of the Philippines, not less than thirty-five (35) years of
of good moral character, and has attained proficiency, expertise and
competence in one or more of the following: banking, finance ,
law, agriculture, agrarian reform, business management : Provided,
no director, shareholder or employee of any other bank shall be
for election or appointment as member of the Board of Directors of the
the members of the Board shall receive a per diem of One
five hundred pesos (P1,500) for each session of the Board attended but
in no case not to exceed Seven thousand five hundred (P7,500) a month."
Section 86-A of
same Act relating to the powers and responsibilities of the Board is
amended by adding subsection 6 which reads as follows:
or release, in whole or in part, any claim or liability whatsoever for
or against the bank, including interest, penalties, fees and/or other
under such terms and conditions as the board may find acceptable and
subject to their best business judgment and to the best interest of the
corporation in accord with standard banking practices."
Sec. 7. A
hereby added to read as follows:
Foreclosure of collateral and disposal of bank acquired properties.
Section 87 is
amended to read as follows:
Collaterals. Foreclosure of mortgage collaterals to loans
be made either judicially or extra-judicially.
Staff. The bank may, with the approval of the court, deputize any
of its legal staff to act as special sheriff in foreclosure cases, in
sale or attachment of debtor's properties and in the enforcement of
writs and processes in cases in involving the bank. The special Sheriff
of the bank shall make a report to the proper court after any action
been taken by him, which court shall treat such actions as if it were
act of its own sheriffs in all respect.
and Other Properties in the Collection of Debt. Real estate and
properties acquired by the Bank in the collection of debts or
by way of foreclosure or other means shall be sold or disposed of in
with law, within five (5) years after date of acquisition. The sale or
disposal shall be effected through public bidding, in accordance with
from Attachment. The
provisions of any law to the contrary notwithstanding, securities on
and/or other credit accommodations granted by the bank shall not be
to attachment, executions to any other court process, nor shall they be
included in the property of insolvent persons or institutions, unless
debts and obligations of the debtors to the bank have been paid,
accrued interest, penalties, collection expenses and other charges.
of Foreclosed Property; Right of Possession during Redemption Period. Within
one (1) year from the registration of the foreclosure sale of real
the mortgagor shall have the right to redeem the property by paying all
claims of the bank against him on the date of the sale including all
cost and other expenses incurred by reason of the foreclosure sale and
custody of the property, as well as charges and accrued interest. The
may take possession of the foreclosed property during the redemption
The bank shall be eligible to post a bond for the purpose of such
Executive officers; Compensation. The Chief Executive of the Bank
be the President, who shall be chosen and may be removed by the Board
Directors with the advises and consent of the President of the
His salary shall be fixed by the Board of Directors with the approval
the President of the Philippines. The President shall be assisted by
as may be required, whose appointments and removal shall be fixed in
with Section 90 hereof by the Board of Directors upon recommendation of
the President of the Bank."
SEC . 9.
Section 88 of
Act prescribing the qualifications of Executive Officers is also hereby
amended to read as follows:
be appointed to any executive position in the Bank mentioned in the
section unless he be of good moral character and of unquestionable
and responsibility, and who is of recognized competence in the field of
economics, agriculture, industry, law, banking and/or finance, and
of demonstrated administrative skill and ability."
Section 90 of
Act is hereby amended to read as follows:
The Board of Directors shall provided for an organization and staff of
officers and employees of the Bank and upon recommendation of the
of the Bank, appoint and fix their remunerations and other emoluments,
and remove such officers and employees: Provided, That the
shall have exclusive and final authority to promote, transfer, assign
reassign personnel of the Bank, any provisions of existing law to the
the Bank shall be governed by a compensation, position classification
and qualification, standards approved by the Bank's Board of Directors
based on a comprehensive job analysis and audit of actual duties and
The compensation loan shall be comparable with the prevailing
plans in the private sector and shall be subjected to periodic review
the Board no more than once every two (2) years without prejudices to
merit reviews or increases based on productivity and profitability. The
bank shall therefore be exempt from existing laws, rules and
on compensation, position classification and qualification standards.
shall however endeavor to make its system conform as closely as
with the principle under Republic Act No. 6758.
Sec. 11. Separability
If any provision or part hereof is held invalid, the other provisions
affected thereby shall remained continue in full force and effect.
including all members of the Board, shall not engage directly or
in partisan activities or take part in any election except to vote.
the Bank subject to the Civil Service Law and Regulations shall be
or suspended except for cause as provided by law."
Sec. 12. Repealing Clause. All
laws, executive orders, rules and regulations or parts thereof
with any provision hereof hereby repealed or modified accordingly.
Sec. 13. Effectivity. This
Act shall take effect upon its approval.
Approved: 23 February 1995.
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