QuestionsQuestions (Republic Act No. 11953)
RA 11953 is the Agrarian Reform Loan Condonation Act. Its short title in the law is the “New Agrarian Emancipation Act.”
RA 11953 condones all principal loans, unpaid amortizations, and interests (including penalties and surcharges) payable to the Government/LBP as agrarian reform debts, provided the ARBs were indebted as of the effectivity of the Act.
It covers P57.557 billion principal debt of 610,054 ARBs, tilling a total of 1,173,101.57 hectares of agrarian reform lands.
The principal loan of P14.5 billion (including interests, penalties, and surcharges) for 263,622 ARBs, covering 409,206.91 hectares, shall be condoned outright.
The inclusion of the remaining P43.057 billion takes effect only upon submission by the LBP and DAR of the detailed list of actual loans subject to condonation for 346,432 ARBs, including required data, to the concerned Senate and House committees within the 3-year period from effectivity.
DAR shall issue a Certificate of Condonation whenever necessary, and this shall be annotated on the Emancipation Patent (EP) and CLOA based on applicable agrarian reform law.
Condonation under RA 11953 lifts all mortgage liens attached to the land in favor of the National Government represented by LBP.
Section 3 terminates all direct payments of compensation by 10,201 ARBs under VLT and DPS amounting to P206,247,776.41. The remaining balance of compensation due to the landowners will be paid by the Government through LBP and charged against the Agrarian Reform Fund, provided ARBs were indebted to the landowner as of effectivity.
ARBs are Filipino farmers or farmworkers granted lands under PD 27, RA 6657 (as amended), and RA 9700, who have outstanding loan balances payable to LBP and/or private landowners as of the Act’s effectivity.
DA must include the ARBs beneficiaries of this Act in the Registry System for Basic Sectors in Agriculture (RSBSA) and provide them the support services due to farmers.
ARBs who completed their amortization schedule and paid the interest charges under Section 26 of RA 6657 (as amended), Section 6 of EO 228 of 1987, and other agrarian reform laws are given preference in credit facilities and support services under related provisions and programs.
Section 7 provides that awarded land is excluded from the ARB’s gross estate for purposes of estate tax. It also encourages LGUs to enact local tax amnesty for real property taxes and other transfer taxes of qualified ARBs.
Registry of Deeds must register EP/CLOA/other titles within 60 days from issuance in the name of the ARB. DAR must annotate the Notice of Condonation on affected EPs/CLOAs/other titles within 60 days from issuance.
Pending administrative cases for forfeiture solely due to failure to pay the 30-year amortization plus 6% annual interest must be dismissed motu proprio by DAR. DAR must also move to dismiss related court actions for collection. Final executory forfeiture decisions based on such failure must be immediately terminated, the award restored, forfeiture reversed, and the title reconstituted (or equivalent land awarded) if already given to another.
Disqualification applies to persons convicted by final judgment of prohibited acts and omissions under Sections 73 and 74 of RA 6657. It also applies if final judgment determines that the ARB willfully refused to make the land productive as possible or deliberately neglected/abandoned it continuously for 2 calendar years, subject to exceptions such as non-cultivation due to threats, lack of facilities/support, or circumstances beyond the ARB’s fault.
No. Section 11 clarifies that nothing diminishes landowners’ right to just compensation and it should not be interpreted to remove existing limitations on transfer, ownership, and agricultural use of land.
DAR, coordinated with the Executive Committee of PARC and with technical assistance of LBP, must issue IRR within 60 days from effectivity (Section 12). All other government offices must assist in implementation subject to applicable laws/rules (Section 13). Funding is charged against the Agrarian Reform Fund, subject to budgeting processes and certifications (Section 14).