Question & AnswerQ&A (EXECUTIVE ORDER NO. 40)
Executive Order No. 4 (s. 2022) imposed the initial one-year moratorium on the payment of principal and interest of amortization by Agrarian Reform Beneficiaries.
Republic Act No. 11953, also known as the 'New Agrarian Emancipation Act,' condoned and wrote off individual loans of ARBs, including interests, penalties, and surcharges.
Under RA No. 11953, Agrarian Reform Beneficiaries are exempt from the payment of estate tax on agrarian reform lands secured under CARP or other agrarian reform laws.
Section 2 of RA No. 11953 states that there are 346,432 ARBs, out of the total 610,054, whose names and loan details have not yet been submitted to Congress by the Land Bank of the Philippines and the Department of Agrarian Reform.
EO No. 40 extends the moratorium to provide sustained economic relief for both ARBs covered by RA No. 11953 and those who are excluded due to the law's cut-off date while also protecting them from adverse effects of the global economic situation.
The Department of Agrarian Reform (DAR) and the Land Bank of the Philippines (LBP) are tasked to jointly formulate the implementing rules and regulations.
They must formulate the rules and regulations within fifteen (15) days from the effectivity of EO No. 40.
They must comply with existing general banking laws, the rules and regulations of the Bangko Sentral ng Pilipinas, EO No. 228 (s. 1987), RA No. 6657 (the Comprehensive Agrarian Reform Law of 1988), RA No. 11953, and other relevant laws and issuances.
Funds will be charged against the existing and available appropriations of the DAR and LBP, subject to relevant budgeting, accounting, and auditing laws, rules, and regulations.
EO No. 40 includes a separability clause stating that if any part is held unconstitutional or invalid, the other unaffected provisions shall remain in full force and effect.
EO No. 40 amends or modifies relevant provisions of EO No. 4 (s. 2022).
EO No. 40 takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.