MANILA – The House of Representatives on Monday unanimously approved on third reading a measure providing for a new charter of the Land Bank of the Philippines.
With 150 affirmative votes, zero negative vote, and no abstention, the chamber passed on final reading House Bill 10581, which revitalizes LandBank's charter to operate as a government financial institution responsible for broad-based agricultural and rural development and accelerated financial inclusion.
The bill mandates the LandBank to allocate 5 percent of its regular loan portfolio for socialized credit to qualified small farmers, fisherfolk, and agrarian reform beneficiaries (ARBs) for purposes of financing agricultural projects.
It grants the bank the power to issue common and preferred shares of stocks, subject to the following conditions: 1) the issuance of shares must have prior approval from the Secretary of Finance; 2) the national government shall at all times maintain at least 3/4 ownership of the total outstanding capital stock of the bank; and 3) no individual or group, related interest or conglomerate, may directly or indirectly vote more than 5 percent of the bank's total outstanding capital stock except for the government.
It authorizes the bank to issue all kinds of bonds, debentures, securities, collaterals, and other evidences of indebtedness conditioned upon prior approval from the Secretary of Finance and compliance with applicable laws and regulations of the Monetary Board.
The bill prescribes that the voting power of the common shares owned and controlled by the national government shall be vested in the Philippine president or any ex-officio member of the board or his designated alternate.
It prescribes the powers and responsibilities of the board of directors, including the power to adopt and review its own organizational structure, staffing pattern and qualification standards; to reorganize, restructure or realign its functions to ensure the accomplishment of the bank's mandates and strategic goals; and to adopt and early separation plan for its employees and provide incentives for those who will be separated from the service. (PNA)
