Law Summary
Sources of the Fund's Resources
- Contributions from the Central Bank of the Philippines, including bonds and guarantee funds.
- Assets and shares from the Development Bank of the Philippines such as preferred shares, stocks, and acquired assets.
- Assets from the Philippine National Bank and National Investment and Development Corporation.
- Contributions from Government Service Insurance System, Land Bank shares, Agrarian Reform Special Account, and Social Security System.
- Proceeds from foreign loans and other government disposable assets.
- Resources are transferred to the Fund on terms agreed by the Agrarian Reform Fund Commission and contributing entities, paid via Agrarian Reform Bonds.
Utilization of the Fund
- Financing acquisition of lands through various settlement modes:
- Cash payments for small landholdings when funds are available.
- Exchange for government stocks in corporations.
- Payment via annuities or pensions with inflation and medical insurance guarantees.
- Full guarantee on fifteen annual amortizations of tenant-farmers.
- Other settlement modes as prescribed by the Commission.
- Financing agricultural production and commodity loans through banks, with guarantees covering up to 85% of losses under Commission-prescribed terms.
Administration Structure
- Administered by the Agrarian Reform Fund Commission composed of:
- Secretary of Finance (Chairman)
- Governor of the Central Bank of the Philippines (Member)
- Secretary of Agrarian Reform (Member)
- The next ranking official may represent absent members.
- Central Bank covers initial operational expenses, reimbursed by Fund income.
Powers and Duties of the Commission
- Exclusive control over Fund administration, including investing and disposing of Fund assets.
- Authority to promulgate necessary rules and regulations.
- Empowered to perform all acts for the Fund's best interests.
Issuance of Bonds
- Secretary of Finance issues bonds and debt instruments for the Fund upon recommendation.
- Terms and conditions decided by the Commission; bonds secured by Fund assets.
- Bonds and associated income are tax-exempt.
- Income paid biannually to landholders.
- Obligations are direct government obligations, redeemable within a maximum of 25 years.
Reorganization of Land Bank
- The Commission, as holder of Government-owned Land Bank shares, can reorganize and modify Land Bank operations with Presidential approval, superseding relevant laws.
Tax Exemptions
- All assets and earnings of the Fund are exempt from national, provincial, municipal, and city taxes and assessments.
Legal Supremacy and Effectivity
- Laws, orders, or regulations inconsistent with this Decree are repealed or modified accordingly.
- The Decree takes immediate effect as of its signing date.