Coverage and Context of the Moratorium
- RA No. 11953, the New Agrarian Emancipation Act, condones individual loans of ARBs, including interests, penalties, and surcharges, and exempts them from estate tax on agrarian reform lands secured under CARP or other agrarian reform programs.
- The law takes effect as of July 24, 2023, pardoning loans due and payable by ARBs by that date.
- However, as per Section 2 of RA 11953, a significant number of ARBs (346,432 out of 610,054) and their loan details are yet to be submitted to Congress by the Land Bank of the Philippines (LBP) and the Department of Agrarian Reform (DAR).
- New ARBs who started after the law’s cut-off date may not benefit from the condonation and exemption.
Purpose and Rationale for the Extension
- The extension is to provide sustained economic relief and financial protection to ARBs not covered or excluded under the New Agrarian Emancipation Act.
- It aims to shield ARBs from adverse impacts of the current global economic challenges.
- The extension supports the broader objective of emancipating ARBs from financial burdens related to their land amortization.
Executive Authority and Constitutional Basis
- Section 17, Article VII of the 1987 Philippine Constitution grants the President authority over executive departments and the mandate to ensure faithful execution of laws.
- President Ferdinand R. Marcos, Jr. exercises this power to issue the order extending the moratorium.
Implementing Rules and Regulations
- The DAR and LBP are tasked to jointly formulate the implementing rules and regulations within 15 days of the Order’s effectivity.
- Formulation of these rules must adhere to:
- Existing general banking laws
- Bangko Sentral ng Pilipinas regulations
- EO No. 228 (s. 1987)
- RA No. 6657, the Comprehensive Agrarian Reform Law of 1988, as amended
- RA No. 11953
- Other relevant laws and issuances
Funding for Implementation
- Implementation costs, including monitoring and evaluation, shall be charged against existing funds of the DAR and LBP.
- All expenditures are subject to pertinent budgeting, accounting, and auditing laws and regulations.
Legal Provisions: Separability, Repeal, and Effectivity
- Separability Clause: If any provision is declared unconstitutional or invalid, other provisions remain effective.
- The Order amends or modifies provisions of EO No. 4.
- All inconsistent orders or regulations are repealed or modified accordingly.
- The Order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.