Dept. of Agrarian Reform as Trustee of Land Fund

The fund originates from an Exchange of Notes between the Government of the United States of America and the Republic of the Philippines.
The United States makes available funds for assistance to the Philippine land reform education program out of the Special Fund for Education, identified as United States Public Law No. 88-94.
The Governments agree that the Land Reform Education Fund is established as a permanent Trust Fund.
The fund’s income is used to finance the land reform education program in the Philippines.
The order recognizes that the National Land Reform Council was previously designated as trustee, but was abolished under Republic Act No. 6389 (the Code of Agrarian Reforms of the Philippines).
The order provides that after Republic Act No. 6389, the trustee function is assumed through the Department of Agrarian Reform, under a Cabinet Secretary.

The order designates the Department of Agrarian Reform, through the Secretary, as Trustee of the Land Reform Education Fund.
The trustee role is carried out in the capacity of performing the trustee functions assigned by the order.
The Department’s trustee functions are implemented subject to the approval of the President.

The Secretary, acting for the Department, must formulate the general policy for the Fund.
The Secretary must make decisions on the use of the Fund’s income and capital gains, including final action on appropriation for grants and research projects.
The Secretary must formulate and adopt an assistance program based on educational programs set forth in the agreement on the use of the Fund.
The assistance program must extend preference to projects that are enduring or self-sustaining, or that incorporate counterpart financial agreements.
The Secretary must approve programs and projects undertaken by the Philippine Land Reform Center for Continuing Education to implement the assistance program.
The Secretary must authorize expenditures for those programs and projects out of the earnings of the Fund.
The Secretary must obtain professional counsel and services for the wise and prudent management of the Fund through an Investment and Financial Manager.
The Secretary must employ staff personnel, advisors and consultants to assist in educational program planning and implementation.

The Fund is a permanent Trust Fund, and its income finances the land reform education program in the Philippines.
Educational assistance is implemented through educational programs consistent with the agreement on the use of the Fund.
The Philippine Land Reform Center for Continuing Education implements approved programs and projects under the trustee’s authorization for expenditures.

The trustee role previously vested in the National Land Reform Council is displaced because that Council was abolished under Republic Act No. 6389.
The trustee role is carried out through the Department of Agrarian Reform, under the Cabinet Secretary structure referenced in Republic Act No. 6389.
The order reflects a succession of trustee functions from the abolished National Land Reform Council to the Department of Agrarian Reform via the Secretary.