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This web page
contains
the full text of
Republic
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."
. .
REPUBLIC
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."
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:
"(12)
to act
as
an official government depository with full authority to maintain
deposits
of the government, its branches, subdivisions and instrumentalities,
and
of government-owned or controlled corporations which deposits shall be
subjected to liquidity floor and/or reserve requirements as may be
imposed
by the Monetary Board upon other commercial banks;
"(13)
for
the strengthening
of the capital base of the bank, to establish a national marketing
umbrella
for farmers and fisheries cooperatives to attract massive capital
formation
from savings deposits of the cooperative member nationwide." The existing
subsection
12 is
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:
"Apart
from
the
foregoing which pertains to the twenty-five years bonds previously
issued
by the bank and pursuant to its role as the financial intermediary of
the
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
Agrarian
Reform Fund or other unappropriated funds of the National Treasury an
amount
sufficient to pay all maturing bonds, debentures and all other
obligations
together with interest due thereon issued and/or incurred by the bank
as
compensation to the landowners including expenses related thereto. In
the
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
voluntary
offers of sale were made by the landowners." Sec. 3.
Section 80 of
the same
Act is hereby further amended by adding a new subsection thereto to
read
as follows:
"(7)
At
least sixty
percent (60%) of the proceeds of the sale of the stocks, securities and
other assets of the government now under administration by the Assets
Privatization
Trust (APT) shall be transferred to the land Bank of the Philippines
for
use in the payment of agricultural lands acquired pursuant to
Presidential
Decree No. 27 and Republic Act No. 6657." Sec. 4.
Section 81 of
the same
Act is hereby amended to read as follows:
"Sec.
81. Capital.- The
authorized capital stock of the Bank shall be nine billion pesos,
divided
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
shares
shall be non-voting. The Board, upon the recommendation of the
Secretary
of Finance and with the approval of the President of the Philippines,
may
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
referred
to as the "commission" as follows: four hundred million pesos within
sixty
(60) days from the approval of this Decree, and at least one hundred
million
pesos every year thereafter until the total subscription of the
Government
is fully Paid: Provided, That the common and preferred
shares
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
Government
shall be paid by the bank through its banking operations in an amount
equivalent
to at least ten percent (10%) of its annual net income or any form of
retained
earnings until fully paid: Provided, Finally, That the
dividends
due the Government shall first be paid." Sec. 5. Sec.
86 of the
same
Act relating to the Membership of it Board of Directors, as amended, is
hereby further amended to read as follows:
"Sec.
86. The
Board of Directors; Membership; Per Diem.- The affairs and
business
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
the
Secretary of Finance, as Chairman, the President of the bank as
Vice-Chairman,
the Secretary of Agrarian Reform, the secretary of Labor, and the
Secretary
of Agriculture as ex officio members. The President of the
Philippines
shall appoint two (2) members of the Board who shall represent the the
agrarian reform beneficiaries and two (2) members who shall represent
the
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
stock.
"Annually,
on the
first Tuesday
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
Directors
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
the
election. The two (2) members of the Board of Directors shall be
elected
preferably from the holders of the preferred shares as follows:
"(a)
Not
exceeding
P100.00 M - one member
"(b)
Exceeding
P100.00 M
- two members
"The
appointive
members of
the Board shall hold a term of office for one (1) year and shall
continue
to hold office until their successor shall have been appointed and
qualified.
The board shall convene as often as necessary to discharge its
responsibilities
properly, but shall meet at least once every two (2) weeks. The Board
may
be convoked either by the Chairman or in his absence, the Vice-Chairman.
"The
majority of the
board members
shall constitute a quorum. All decisions of the Board shall require the
concurrence of at least a majority.
"No
Person
shall
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
age,
of good moral character, and has attained proficiency, expertise and
recognized
competence in one or more of the following: banking, finance ,
economics,
law, agriculture, agrarian reform, business management : Provided,
Further, That
no director, shareholder or employee of any other bank shall be
eligible
for election or appointment as member of the Board of Directors of the
Bank.
"The
Chairman and
the members of the Board shall receive a per diem of One
thousand
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." Sec. 6.
Section 86-A of
the
same Act relating to the powers and responsibilities of the Board is
hereby
amended by adding subsection 6 which reads as follows:
"6.
To
compromise
or release, in whole or in part, any claim or liability whatsoever for
or against the bank, including interest, penalties, fees and/or other
charges,
under such terms and conditions as the board may find acceptable and
practicable
subject to their best business judgment and to the best interest of the
corporation in accord with standard banking practices." Sec. 7. A
new Section
86-B is
hereby added to read as follows:
"Section
86-b.
Foreclosure of collateral and disposal of bank acquired properties.
"1. Foreclosures
of Mortgage
Collaterals. Foreclosure of mortgage collaterals to loans
may
be made either judicially or extra-judicially.
"2.
Deputization
of Legal
Staff. The bank may, with the approval of the court, deputize any
member
of its legal staff to act as special sheriff in foreclosure cases, in
the
sale or attachment of debtor's properties and in the enforcement of
court
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
has
been taken by him, which court shall treat such actions as if it were
an
act of its own sheriffs in all respect.
"3. Disposal
of
Real Estate
and Other Properties in the Collection of Debt. Real estate and
other
properties acquired by the Bank in the collection of debts or
investment
by way of foreclosure or other means shall be sold or disposed of in
accordance
with law, within five (5) years after date of acquisition. The sale or
disposal shall be effected through public bidding, in accordance with
the
law.
"4. Exemption
from Attachment. The
provisions of any law to the contrary notwithstanding, securities on
loans
and/or other credit accommodations granted by the bank shall not be
subjected
to attachment, executions to any other court process, nor shall they be
included in the property of insolvent persons or institutions, unless
all
debts and obligations of the debtors to the bank have been paid,
including
accrued interest, penalties, collection expenses and other charges.
"5. Right
of
Redemption
of Foreclosed Property; Right of Possession during Redemption Period. Within
one (1) year from the registration of the foreclosure sale of real
estate,
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
the
cost and other expenses incurred by reason of the foreclosure sale and
custody of the property, as well as charges and accrued interest. The
bank
may take possession of the foreclosed property during the redemption
period.
The bank shall be eligible to post a bond for the purpose of such
possession."
Sec. 8.
Section 87 is
hereby
amended to read as follows:
"Section
87.
Executive officers; Compensation. The Chief Executive of the Bank
shall
be the President, who shall be chosen and may be removed by the Board
of
Directors with the advises and consent of the President of the
Philippines.
His salary shall be fixed by the Board of Directors with the approval
of
the President of the Philippines. The President shall be assisted by
Vice-Presidents
as may be required, whose appointments and removal shall be fixed in
accordance
with Section 90 hereof by the Board of Directors upon recommendation of
the President of the Bank." SEC . 9.
Section 88 of
the same
Act prescribing the qualifications of Executive Officers is also hereby
amended to read as follows:
"No
persons
shall
be appointed to any executive position in the Bank mentioned in the
preceding
section unless he be of good moral character and of unquestionable
integrity
and responsibility, and who is of recognized competence in the field of
economics, agriculture, industry, law, banking and/or finance, and
possessed
of demonstrated administrative skill and ability." Sec. 10.
Section 90 of
the same
Act is hereby amended to read as follows:
"Section
90. Personnel.
The Board of Directors shall provided for an organization and staff of
officers and employees of the Bank and upon recommendation of the
President
of the Bank, appoint and fix their remunerations and other emoluments,
and remove such officers and employees: Provided, That the
Board
shall have exclusive and final authority to promote, transfer, assign
or
reassign personnel of the Bank, any provisions of existing law to the
contrary
notwithstanding.
"All
positions in
the Bank shall be governed by a compensation, position classification
system
and qualification, standards approved by the Bank's Board of Directors
based on a comprehensive job analysis and audit of actual duties and
responsibilities.
The compensation loan shall be comparable with the prevailing
compensation
plans in the private sector and shall be subjected to periodic review
by
the Board no more than once every two (2) years without prejudices to
yearly
merit reviews or increases based on productivity and profitability. The
bank shall therefore be exempt from existing laws, rules and
regulations
on compensation, position classification and qualification standards.
It
shall however endeavor to make its system conform as closely as
possible
with the principle under Republic Act No. 6758.
"The Bank
officer
and employees,
including all members of the Board, shall not engage directly or
indirectly
in partisan activities or take part in any election except to vote.
"No
officer or
employee of
the Bank subject to the Civil Service Law and Regulations shall be
removed
or suspended except for cause as provided by law."
Sec. 11. Separability
Clause.
If any provision or part hereof is held invalid, the other provisions
not
affected thereby shall remained continue in full force and effect.
Sec. 12. Repealing Clause. All
laws, executive orders, rules and regulations or parts thereof
inconsistent
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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