Abolition of Agricultural Credit Admin; Transfer of Functions

Executive Order No. 816 is issued under the powers vested in the President by the Constitution.
Executive Order No. 816 is also issued under the authority vested in the President by Presidential Decree No. 1416, as amended.
The order is grounded on the need for a more efficient, effective, and economical government aligned with national economic development.
The order aims to create a more integrated approach to aspects of the agrarian reform program, particularly in government corporations’ financial and extension programs.
The order establishes that a single institutional mechanism is preferable to improve resource utilization for adequate and timely financial assistance to agrarian reform beneficiaries.
The order reflects the principle that separate government corporate entities providing loans of differing risk levels to the same borrowing clientele is not generally desirable.

Section 1 abolishes the Agricultural Credit Administration, referred to as the Administration.
Section 1 transfers the Administration’s functions, assets and liabilities, applicable appropriations, records, equipment, and property to the Land Bank of the Philippines, referred to as the Bank.
Section 1 requires that the valuation of the net assets of the Administration be determined by the Bank jointly with the Office of Budget and Management and the Commission on Audit.
The functional transfer is mandatory and covers the Administration’s entire operational and resource base as enumerated in Section 1.

Section 2 provides that all valid existing contracts entered into by the Administration continue to be honored by the Bank.
Section 2 covers contracts with public and private domestic and foreign parties.
The continuity of contractual obligations is automatic upon the transfer effected under Section 1.

Section 3 authorizes the Bank to issue such orders, rules, and regulations as may be necessary to implement Executive Order No. 816.
Section 3 allows the Bank to issue implementing issuances that effect changes in the Bank’s organization to absorb the functions of the Administration.
Section 3 empowers the Bank to appoint qualified personnel of the Administration to appropriate positions in the Bank.
Section 3 states that personnel of the Administration not so appointed are deemed laid off.
Section 3 provides that laid-off employees are entitled to all benefits and gratuities provided for under existing laws.

Section 4 provides that, except as otherwise determined by the Bank, present incumbents of positions in the Administration continue to exercise their present functions, duties, and responsibilities.
Section 4 requires that the continued exercise of functions persists pending the issuance of appropriate implementing orders.

Section 5 repeals or modifies accordingly all laws, decrees, orders, proclamations, rules, regulations, or portions thereof, that are inconsistent with any provision of Executive Order No. 816.

Section 6 provides that any portion or provision of Executive Order No. 816 that may be declared unconstitutional does not nullify the other provisions.
Section 6 requires that remaining portions can still stand and be given effect in their entirety to accomplish the objectives of Executive Order No. 816.