HISTORY OF LANDBANK

1. Republic Act 3844 (Agricultural Land Reform Code) - 8 August 1963

 Created the Land Bank of the Philippines (LBP) to finance the acquisition and

distribution of agricultural estates for division and resale to small landholders as well as

the purchase of the landholding by the agricultural lessee;

 Authorized capitalization of 1.5 billion Php. Initial capital of 200 million Php;

 Members of the Board of Trustees

o Chairman - LBP President & CEO

o One member elected by the holder of preferred shares

o 4 Members: including the Head of Land Authority (now Dept. of

Agrarian Reform)

 Tax exempt on all operations, holdings, equipment, property, income and earnings;

 Exempted from cash or stock dividend payments to the National Government;

 Agricultural Credit Administration (ACA) responsible for extending credit assistance to

farmers cooperatives and directly to small farmers

2. Adoption of By-Laws and Creation of Board of Trustees

 Adopted the by-laws, established the first organizational chart and manual of operations

in 1965;

 Formed the Board of Trustees with the Secretary of Finance as chairman in 1966
 3. Presidential Decree 27 (Tenant Emancipation Act) - 21 October 1972

 Emancipation of tenant-farmers of private agricultural lands devoted to rice and corn

under a system of share-crop or lease-tenancy, whether classified as landed estate or

not;

 Value of land transferred to tenant-farmers at 2 1/2 times the average

 Harvest of 3 normal crop years immediately preceding the promulgation of PD 27;

 LBP to collect 15-year land amortizations from beneficiaries for the cost of the land plus

6% interest per annum

4. Presidential Decree 251 (Revitalizing LANDBANK) - 21 July 1973

 Because LBP was deficient and inadequate both in capitalization and in organization

structure to meet the implementation requirements of agrarian reform, the Bank was

revitalized;

 Granted universal or expanded commercial banking powers to LBP and established LBP

as the universal bank with a social mission of spurring countryside development;

o to cross-subsidize agrarian land transfer and loans to small

farmers and fisherfolk;

 Expanded LBP's powers to include lending to agricultural, industrial, home-building or

home-financing projects and other productive enterprises;

o to ensure LBP's financial stability and sustainability;

 Empowered LBP to grant loans to farmers cooperatives/associations to facilitate

production, marketing of crops and acquisition of essential commodities;

 LBP mandated to provide timely and adequate support in all phases involved in the

execution of agrarian reform;

 Increased authorized capitalization to 3 billion Php ;

 Increased the members of the Board of Directors to seven (7):

o Chairman - Secretary of Finance

o Vice-Chairman - LBP President

o Members (Ex-Officio)

 Secretary of Agrarian Reform

 Secretary of Labor -

 Three Members - elected annually

o Exempted from all national, provincial, municipal & city taxes and

assessments

5. Reorganization - 1977

 LBP formed three major sectors - Agrarian, Banking and Operations to strengthen

operations and ensure long-term viability

6. Executive Order 816 (Transfer of ACA to LBP) - 8 July 1982

 To adopt an integrated approach in the provision of financial assistance to AR farmer-

beneficiaries a single institution is preferred;

 ACA was abolished and its functions (loans to small farmers) were transferred to LBP

7. Executive Order 229 (CARL) - 22 July 1987

 Created the Presidential Agrarian Reform Council (PARC) as the highest policy-making

and coordinating body of the Comprehensive Agrarian Reform Program (CARP) to

ensure timely and effective delivery of the necessary support services;

 Established the Agrarian Reform Fund (ARF) with an interim amount of 50 Php billion to

cover the financing requirements of CARP with appropriations coming from the proceeds

of the Asset Privatization Trust and the Presidential Commission on Good Government;

 FBs to pay for lands acquired and redistributed by the government in 30 equal annual

amortizations at 6% p.a. with the first payment due one year after resale (annual

amortization should not exceed 10% of the land's annual value of gross production);

 LBP to provide assistance to landowners through:

o investment information and counselling assistance.

o conversion and/or exchange of LBP Agrarian Reform bonds

to/from government stocks with government assets.

o marketing of LBP Agrarian Reform bonds.

8. Republic Act 6657 (CARL) - 10 June 1988

 Broadened the coverage of agrarian reform to include all public and private agricultural

lands including other lands of the public domain suitable for agriculture;

 Payment to landowners at 25% to 35% cash and the balance in 10-year Agrarian

Reform bonds with a yield of 91-day T-bills;

 Authorized LBP to collect from the FBs payment for lands awarded to them in 30 annual

amortizations at 6% per annum;

 Established LBP as the financial intermediary of the CARP.

9. Executive Order 405 (CARP Land Valuation) - 14 June 1990

 Transferred the primary responsibility of determining land valuation and compensation

for all lands covered under CARP from the DAR to the LBP;

 Accelerated and streamlined certain procedures in land valuation and compensation;

 LBP created regional Land Valuation and Landowners Compensation Offices (LVOs) to

carry out land valuation and compensation.

10. Republic Act 7907 (Amended LBP Charter) - 23 February 1995

 Increased authorized capitalization to 9 billion Php ;

 Established LBP as an official government depository;

 Increased the members of the Board of Directors to nine (9) composed of:

o Chairman - Secretary of Finance

o Vice- Chairman - LBP President and CEO

o Members:

 Secretary of Agrarian Reform.

 Secretary of Labor.

 Secretary of Agriculture.

 2 Representatives of Agrarian Reform Beneficiaries.

 2 Representatives from the Private Sector.

11. Executive Order 267 (CARL) - 25 July 1995

 National Government to issue Agrarian Reform (AR) bonds to be used by LBP for land

transfer payments;

 Segregation of the accounts of CARP-related transactions from the books of LBP;

 CARP accounts and AR bonds were previously part of LBP's books and adversely

affected LBP's financial position (leverage and capital adequacy ratios).

 12. Increase of Authorized Capital - 25 August 1998

 Authorized capitalization increased to 25 billion Php by the Department of Finance and

the President of the Philippines.