Article 125Labor and Agrarian Laws and Social Legislation, p. 125

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

Section 92. Auditor - The Chairman of the Commission on

Audit shall act as the ex-officio Auditor of the Bank and,

as such, he is empowered and authorized to appoint a

representative who shall be the auditor in charge of the

auditing office of the Bank and, in accordance with law,

fix his salary, and to appoint and fix the salaries and

number of personnel to assist said representative in his

work, but in all cases subject to the approval of the Board

of

Directors.

The salaries and all other expenses of

maintaining the auditor's office shall be paid by the Bank.

The Auditor of the Bank and personnel under him may be

removed only by the Commission on Audit. (Amending

R.A. No. 3844 As Amended (Code of Agrarian Reform),

Presidential Decree No. 251, [July 21, 1973])

Section

93.

Report

on

Condition

of

Bank

-

The

representative of the Commission on Audit shall make a

quarterly report on the condition of the Bank to the

President of the Philippines, to the Secretary of Finance,

to the Chairman of the Commission on Audit, and to the

Board of Directors of the Bank. The report shall contain,

among other things, a statement of the resources and

liabilities, including earnings and expenses, the amount

of capital stock, surplus, reserve and profits, as well as

losses, bad debts, and suspended and overdue paper

carried in the books and assets of the Bank. (Amending

R.A. No. 3844 As Amended (Code of Agrarian Reform),

Presidential Decree No. 251, [July 21, 1973])

Section 94. Auditing Rules and Regulations - The Auditor

General

shall,

with

respect

to

the

Bank,

formulate

improved and progressive auditing rules and regulations

designed to expedite the operations of the Bank and

prevent the occurrence of delays and bottlenecks in its

work.

Section

95.

Removal

of

Members

-

(Repealed

by

Presidential Decree No. 251, [July 21, 1973])

Section 96. Transfer of Claims and Liabilities - The assets

of

the

former

Land

Tenure

Administration and the

National Resettlement and Rehabilitation Administration

in the form of claims and receivables arising from the sale

or

transfer

of

private

and

public

lands, agricultural

equipment,

machinery,

tools and work animals, but

excluding

advances

made

for

subsistence,

to

small

landholders

shall,

after

an

exhaustive

evaluation

to

determine

their

true

asset

value,

be

irrevocably

transferred to the Bank under such arrangements as the

Department of Agrarian Reform and the Bank shall agree

upon. Thereafter, the Bank shall have authority and

jurisdiction to administer the claims, to collect and make

adjustments on the same and, generally, to do all other

acts properly pertaining to the administration of claims

held

by

a

financial

institution.

The

Department

of

Agrarian Reform, upon request of the Bank, shall assist

the

latter

in

the

collection

of

such

claims.

The

Department of Agrarian Reform shall be entitled to

collect from the Bank no more than the actual cost of

such collection services as it may extend. The claims

transferred under this Section shall not be considered as

part of the Government's subscription to the capital of

the Bank.

Section 97. Central Bank Supervision - The Bank shall be

under the supervision and regulation of the Central Bank

of the Philippines. (Amending R.A. No. 3844 As Amended

(Code of Agrarian Reform), Presidential Decree No. 251,

[July 21, 1973])

Section 98. Tax Exemption - The Land Bank shall be

exempt from all national, provincial, municipal, and city

taxes

and

assessment

now

enforced

or

hereinafter

established.

The exemption authorized in the preceding paragraph of

this section shall apply to all property of the Bank, to the

resources, receipts, expenditures, profits and income of

the Bank, as well as to all contracts, deeds, documents

and transactions related to the conduct of the business of

the Bank, Provided , That said exemptions shall apply only

to such taxes and assessments payable by persons or

other entities doing business with the Bank. (Amending

R.A. No. 3844 As Amended (Code of Agrarian Reform),

Presidential Decree No. 251, [July 21, 1973])

Section 99. Reorganization of the Bank - The Bank shall

be reorganized within ninety (90) days from the date this

Decree take effect. The present personnel complement of

the Bank shall in the interim continue to discharge their

respective

functions.

Officials

and

personnel

whose

services may be dispensed with as a result of this

reorganization shall be paid the usual gratuities to which

they may be entitled under existing law. (Amending R.A.

No.

3844

As

Amended

(Code

of

Agrarian

Reform),

Presidential Decree No. 251, [July 21, 1973])

Section 100. Penalty for Violation of the Provisions of this

Chapter - Any director, officer, employee or agent of the

Bank who violates or permits the violation of any of the

provisions

of

this

Chapter

or

any

person aiding or

abetting the violation of any of the provisions of this

Chapter, shall be punished by a fine of not to exceed ten

thousand pesos or by imprisonment of not more than

five years, or both, such fine and imprisonment at the

discretion of the Court. (Amending R.A. No. 3844 As

Amended (Code of Agrarian Reform), Presidential Decree

No. 251, [July 21, 1973])

CHAPTER V AGRICULTURAL CREDIT

ADMINISTRATION

Section 101. Reorganization of ACA to Align Its Activities -

The administrative machinery of the Agricultural Credit

Administration, shall be reorganized to enable it to align

its activities with the requirements and objectives of this

Code: Provided , That the Board of Governors established

by

Republic

Act

Numbered

Eight

hundred

and

twenty-one,

as

amended,

shall

be

composed

of

a

chairman and four (4) members, three (3) of whom shall

be the Undersecretary of Agrarian Reform who shall be

the

Chairman

ex-officio ,

the

Administrator

of

the

Agricultural

Credit

Administration

who

shall

be

the

Vice-Chairman

ex-officio

and

the

Vice-President

in

charge of agricultural loans of the Philippine National

Bank, who shall be ex-officio member thereof. The two

other members shall be appointed by the President of

the Philippines with the consent of the Commission on

Appointments for a term of three years, one of whom

shall represent the farmers-beneficiary of the Agrarian

Reform

Program

and

shall

be

appointed

upon

recommendation of either or both the farmers and/or

cooperatives movement, federation or league existing at

the time such recommendation is submitted, and the

other to represent the political party receiving the second

highest number of votes in the immediately preceding

presidential elections: Provided, however , That the term of

the farmers' representative shall ipso facto terminate

when such member cease to be in the farmers and/or

cooperatives movement, federation or league, and that of

the minority party at the pleasure of the nominating

political party.

The Administrator shall be the Chief Executive of the

Administration and shall serve for a term of six years

unless

he

resigns

or

is

removed

for

cause.

The

compensation of the Administrator shall be fixed by the

President but shall not be less than twenty-four thousand

pesos per annum . The members of the Board shall

receive per diems of not more than fifty pesos for each

session of the Board that they attend: Provided, however ,

That

the

total

per

diems ,

including

all

other

remunerations, shall not exceed six hundred pesos a

month.

No person shall be appointed as Administrator unless he

is a natural-born citizen of the Philippines, with proven

executive ability and experience in the field of agricultural

cooperatives

and/or

banking

and

finance,

adequate

background and experience in land reform here and/or

elsewhere for at least five (5) years, and at least thirty-five

years of age: Provided, however , That he shall have,

among other qualifications, demonstrated interest in,

and concern for, the needs and problems of the rural

population and/or peasantry and the solutions thereto:

© Compiled By RGL

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