Preamble
WHEREAS, the farmer-beneficiary who has fully paid the cost of his farm and/or homelots to the Land Bank of the Philippines under Section Sixty-two of Republic Act Numbered Three Thousand Eight Hundred and Forty-Four, is legally enjoined from using said property as collateral for loans to be obtained from public or private lending institutions; WHEREAS, under the existing provision, a farmer-beneficiary who is still amortizing the cost of his land is better situated than a beneficiary who has already paid in full the cost of the land for being given an opportunity to secure loans and credit assistance thru the use of the Certificate of Land Transfer (CLT) as collateral; WHEREAS, the operative effects of such provision, besides being iniquitous on the part of the farmer-beneficiary who has fully paid for his land, could lead to a situation where a farmer-beneficiary would defer the full payment of the purchase price if only to enable him to use his landholdings as collateral for any loan that he intends to obtain thereby; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree: