Republic Act No.

1199

August 30, 1954

AN ACT TO GOVERN THE RELAT ON! "ET#EEN LAN$HOL$ER! AN$ TENANT! O% AGR C&LT&RAL LAN$! 'LEA!EHOL$! AN$ !HARE TENANC() *ART GENERAL *ROV ! ON! !ECT ON 1. Title. - This Act shall be known as the "Agricultural Tenancy Act of the Philippines." !ectio+ ,. Purposes. - It is the purpose of this Act to establish agricultural tenancy relations between landholders and tenants upon the principle of school justice; to afford adequate protection to the rights of both tenants and landholders; to insure an equitable division of the produce and inco e derived fro the land; to provide tenant- far ers with incentives to greater and ore efficient agricultural production; to bolster their econo ic position and to encourage their participation in the develop ent of peaceful! vigorous and de ocratic rural co unities. !ectio+ 3. Agricultural Tenancy Defined. - Agricultural tenancy is the physical possession by a person of land devoted to agriculture belonging to! or legally possessed by! another for the purpose of production through the labor of the for er and of the e bers of his i ediate far household! in consideration of which the for er agrees to share the harvest with the latter! or to pay a price certain or ascertainable! either in produce or in oney! or in both. !ectio+ 4. Systems of Agricultural Tenancy; Their Definitions. - Agricultural tenancy is classified into leasehold tenancy and share tenancy. "hare tenancy e#ists whenever two persons agree on a joint undertaking for agricultural production wherein one party furnishes the land and the other his labor! with either or both contributing any one or several of the ite s of production! the tenant cultivating the land personally with the aid of labor available fro e bers of his i ediate far household! and the produce thereof to be divided between the landholder and the tenant in proportion to their respective contributions. $easehold tenancy e#ists when a person who! either personally or with the aid of labor available fro e bers of his i ediate far household! undertakes to cultivate a piece of agricultural land susceptible of cultivation by a single person together with e bers of his i ediate far household! belonging to or legally possessed by! another in consideration of a price certain or ascertainable to be paid by the person cultivating the land either in percentage of the production or in a fi#ed a ount in oney! or in both. !ectio+ 5. Definitions of Terms. - As used in this Act% &a' A tenant shall ean a person who! hi self and with the aid available fro within his i ediate far household! cultivates the land belonging to! or possessed by! another! with the latter(s consent for purposes of production! sharing the produce with the landholder under the share tenancy syste ! or paying to the landholder a price certain or ascertainable in produce or in oney or both! under the leasehold tenancy syste . &b' A landholder shall ean a person! natural or juridical! who! either as owner! lessee! usufructuary! or legal possessor! lets or grants to another the use or cultivation of his land for a consideration either in shares under the share tenancy syste ! or a price certain or ascertainable under the leasehold tenancy syste . &c' Agricultural year is the period of ti e necessary for the raising of seasonal agricultural products! including the preparation of the land! and the sowing! planting and harvesting of the crop% )rovided! however! That in the case of coconuts! citrus! coffee! ra ie! and other crops where ore than one harvest is obtained fro one planting! the words "agricultural year" shall ean the period of ti e fro the preparation of land to the first harvest and thereafter fro harvest to harvest. In both cases! the period of ti e ay be shorter or longer than a calendar year. &d' *ar i ple ents include hand tools or achines ordinarily e ployed in a far enterprise.

&e' +ork ani als include ani als ordinarily e ployed in a far bullocks! etc.

enterprise. The words include carabaos! horses!

&f' )ulling of the seedlings is a phase of far i ediately before transplanting.

work in which seedlings are uprooted fro

the seed beds

&g' *inal harrowing in the last stage in pulveri,ing the soil into fine particles in readying the field for the transplanting of the seedlings. &h' -eaping is the cutting of rice stalks. &i' .arvesting shall ean the gathering of the fruits or produce of a crop other than rice.

&j' )iling into s all stacks used as a ter in rice share tenancy shall ean the piling into several s all stacks within the tenant(s holdings of reaped and bundled stalks containing the grain! preparatory to their transportation to the place designated for their threshing. &k' )iling into big stacks used as a ter in rice share tenancy shall ean the piling into one huge stack of the several s all stacks of reaped and bundled stalks containing grain! which constitute the entire harvest of the tenant fro his holdings! preparatory to threshing. &l' )roven far practices include those sound far ing practices which have attained general acceptance through usage or are officially reco ended by the /epart ent of Agriculture and 0atural -esources. & ' *air rental value is an a ount of oney not in e#cess of allowable depreciation plus si# per cent interest per annu on the invest ent co puted at its arket value% )rovided! however! That the fair rental value for the work ani al or ani als and far i ple ents required to produce the crop shall not e#ceed five per cent of the gross harvest for the ani al or ani als and five per cent for i ple ents% And! provided! further! That whenever a tractor or power and the necessary i ple ents are utili,ed interchangeably with work ani als in the sa e holding during the sa e agricultural year the rental shall not e#ceed ten per cent for the co bined services. &n' I ediately after as used in this Act shall be inclusive of the last day of harvesting! threshing or processing and the ne#t five days thereafter. &o' I ediate far household includes the e bers of the fa ily of the tenant! and such other person or persons! whether related to the tenant or not! who are independent upon hi for support and who usually help hi operate the far enterprise. &p' Incapacity eans any cause or circu stances which prevents the tenant fro obligations and those i posed by this Act. fulfilling his contractual

&q' Inspect eans to e#a ine and observe. .owever! such e#a inations and observations shall not include any acts of inti idation or coercion. &r' Au#iliary crop is any product raised other than the crop to which the cultivation of the land is principally devoted; and e#cluding the produce of the lot referred to in "ection twenty-si#. !ectio+ -. Tenancy Relationship; Its Definition. - Tenancy relationship is a juridical tie which arises between a landholder and a tenant once they agree! e#pressly or i pliedly! to undertake jointly the cultivation of land belonging to the for er! either under the share tenancy or leasehold tenancy syste ! as a result of which relationship the tenant acquires the right to continue working on and cultivating the land! until and unless he is dispossessed of his holdings for any of the just causes enu erated in "ection fifty or the relationship is ter inated in accordance with "ection nine. !ectio+ .. Tenancy Relationship; How established; Security of Tenure . - Tenancy relationship ay be established either verbally or in writing! e#pressly or i pliedly. 1nce such relationship is established! the tenant shall be entitled to security of tenure as hereinafter provided. !ectio+ /. Limitations of Relation. - The relation of landholder and tenant shall be li ited to the person who furnishes land! either as owner! lessee! usufructuary! or legal possessor! and to the person who actually works the land hi self with the aid of labor available fro within his i ediate far household.

!ectio+ 9. Se erance of Relationship. - The tenancy relationship is e#tinguished by the voluntary surrender of the land by! or the death or incapacity of! the tenant! but his heirs or the e bers of his i ediate far household ay continue to work the land until the close of the agricultural year. The e#piration of the period of the contract as fi#ed by the parties! and the sale or alienation of the land do not of the selves e#tinguish the relationship. In the latter case! the purchaser or transferee shall assu e the rights and obligations of the for er landholder in relation to the tenant. In case of death of the landholder! his heir or heirs shall likewise assu e his rights and obligations. !ectio+ 10. !ontracts; "ature and !ontinuity of !onditions. - The ter s and conditions of tenancy contracts! as stipulated by the parties or as provided by law! shall be understood to continue until odified by the parties. 2odifications of the ter s and conditions of contracts shall not prejudice the right of the tenant to the security of his tenure on the land as deter ined in "ection si#! seven! and forty-nine. !ectio+ 11. #reedom to !ontract in $eneral. - The landholder and the tenant shall be free to enter into any or all kinds of tenancy contract! as long as they are not contrary to law! orals or public policy. 3#cept in case of fraud! error! force! inti idation or undue influence! when such contract is reduced to writing and registered as hereinafter provided! the latter shall be conclusive evidence of what has been agreed upon between the contracting parties! if not denounced or i pugned within thirty days after its registration. "aid contract shall be contrary to law! A. In "hare Tenancy &a' If the tenant is to receive less than the corresponding share for the different contributions be production of the far as hereinafter provided. ade to the orals and public policy;

&b' If it is stipulated that the tenant or any e ber or his i ediate far household shall without co pensation perfor any work or render any service not connected with the tenant(s duties and obligations provided under this Act. 4. In $easehold Tenancy &a' If the tenant-lessee is to pay to the landholder! lessor! as a consideration for the use of the land! an a ount in e#cess of that hereinafter provided for the kind and class of land involved. &b' If the tenant-lessee is to pay the landholder-lessor a consideration in e#cess of the a ount prescribed as fair rental value! as deter ined pursuant to the provisions of this Act! for the use of work ani als! services and5or far i ple ents belonging to the landholder-lessor! in case it is agreed between the parties that the latter shall furnish any or all of these ite s of production. &c' If it is stipulated that! as a condition precedent to the co ence ent or continuance of the lease! the tenantlessee shall rent work ani als! services or far i ple ents! or shall ake use of any store or services operated by the landholder-lessor or any other person! or that the landholder-lessor ay i pose fines! deductions and5or assess ents! or that the tenant-lessee shall! without co pensation! perfor any work or render any service not connected with the tenant(s duties and obligations provided under this Act. !ectio+ 1,. #orm and Registration of !ontract. - A contract of tenancy in writing! in order to be conclusive as evidence! shall be drawn in quadruplicate in the language or dialect known to all the parties thereto and signed or thu b- arked both by the landholder or his authori,ed representative! and the tenant hi self! before two witnesses! one to be chosen by each party. If any of the parties does not know to read! one of the witnesses! to be chosen by hi ! shall read the contents of the docu ent to hi . 3ach of the contracting parties shall retain a copy of the contract and the third and fourth copies shall be delivered to the unicipal treasurer of the unicipality where the land which is the subject- atter of the contract is located! who shall file and register the third copy in his office and forward the fourth copy to the court% )rovided! That in order that a tenancy contract ay be registered! it shall be the duty of the unicipal treasurer and tenant! respectively! and to place an annotation on each copy of the fact of registration in his office! stating the date! ti e and place of registration as well as the entry or registration nu ber. The for of contract shall be unifor and shall be prepared and furnished by the court. The contracting parties shall acknowledge the e#ecution of the contracting before the unicipal treasurer or justice of the peace or the ayor of the unicipality where the land is situated. 0o fees or sta ps of any kind shall be paid or required.

+hen one of the parties is unable to read! in case of doubt the burden of proof to show that he understood the ter s of the contract shall rest upon the other party who is able to read. !ectio+ 13. Registry of Tenancy !ontracts. - *or the purposes of this Act! the unicipal treasurer of the unicipality wherein the land which is the subject- atter of a tenancy contract is situated shall keep a record of all such contracts entered into within his jurisdiction! to be known as "-egistry of Tenancy 6ontracts." .e shall keep this registry together with a copy of each contract entered therein! and ake annotations on said registry of all subsequent acts relative to each contract! such as its renewal! novation! cancellation! etc.% )rovided! That the unicipal treasurer shall not charge any fee for the registration of said contracts or of any subsequent acts relative thereto! none of which shall be subject to the docu entary sta p ta#. !ectio+ 14. !hange of System. - The tenant shall have the right to change the tenancy contract fro one of share tenancy to the leasehold tenancy and vice versa and fro one crop-sharing arrange ent to another of the share tenancy. If the share tenancy contract is in writing and is duly registered! the right ay be e#ercised at the e#piration of the period of the contract. In the absence of any written contract! the right ay be e#ercised at the end of the agricultural year. In both cases the changed to the leasehold syste shall be effective one agricultural year after the tenant has served notice of his intention to change upon the landholder. !ectio+ 15. Interest on Loans or Ad ances. - 1n all loans or advances obtained by the tenant fro the landholder in connection with the cultivation! planting! harvesting and other incidental e#penses for the i prove ent of the crop planted! as well as loans or advances for the subsistence of the tenant and his fa ily! the interest which ay be stipulated shall not e#ceed eight per centu per calendar year% )rovided! That on all loans or advances other than oney! such as grain or other agricultural products! ade co puted on the basis of the current price of the produce at the ti e it was loaned. 7iolation of the provisions of this section shall be punished in accordance with the 8sury $aw. !ectio+ 1-. %emorandum of Loans or Ad ances. - Any obligation referring to any a ount either in oney or in kind! including the pay ent of interest! which the tenant ay have received fro ti e to ti e as loan or advance fro the landholder! shall be void unless the sa e! or so e note or e orandu thereof! be in writing in a language or dialect known to the party charged! and subscribed by said party! or by his authori,ed agent. !ectio+ 1.. #orm of #inal Accounting. - The final accounting between landholder and tenant at the end of each agricultural year shall be effected within ten days after the threshing in case of rice and within the sa e period of ti e after the harvest or gathering of the fruits in the case of crops. In case of crops which have to be said in processed for ! the final accounting shall be within five days after the sale is consu ated and the sales receipt shall be e#hibited to the tenant. The accounting shall be ade to appear in a not or e orandu written in a language or dialect known to the tenant and signed by both parties in the presence of two witnesses who shall be selected by each party. 3ach of the contracting parties shall be furnished with a copy of said note or e orandu and such final accounting! once duly signed by both parties and two witnesses! shall be dee ed conclusive evidence of its contents! e#cept in case of fraud! error! force! inti idation or undue influence. +hen one of the parties is unable to read! the burden of proof! in case of doubt! to show that he understood the accounting! shall rest upon the other party who is able to read. In the absence of a written accounting in accordance with the preceding paragraph! the tenant ay! within three years fro the date of the threshing of the crop in question! petition the 6ourt to co pel the landholder to render an accounting of the sa e in accordance with this section. !ectio+ 1/. Settlement of Debts. - 1nce the accounting is ade! any a ount of oney which the landholder ay have advanced to the tenant for e#penses of cultivation! harvesting or gathering of the crop or for his own private use! as well as any a ount of grain or agricultural products advanced for his subsistence and that of his fa ily! shall be paid by the tenant out of his share either in grain or in oney! at the option of the latter; )rovided! That such grain or agricultural products shall be appraised in oney according to their current arket value at the place where the land is located at the ti e of their delivery to the tenant% )rovided! further! That in case his share is not sufficient! his outstanding debt shall be reduced to oney and shall bear an interest of not ore than ten per cent per annu % And provided! finally! That the re aining debts of the tenant once converted into oney shall not again be converted into kind. "aid outstanding debt oney ay! however! be paid in oney or in agricultural products appraised at the local current arket price at the ti e of pay ent. !ectio+ 19. &'emption from Lien and(or Attachment. - Twenty-five per centu of the tenant(s share of the produce of the land in share tenancy! or of the entire produce in leasehold tenancy! one work ani al and one of each kind of far

i ple ent belonging to the tenant! provided that the value of such work ani al and i ple ents do not e#ceed five hundred pesos! shall be e#e pt fro lien and attach ent. !ectio+ ,0. )se of *fficial +eights and %easures. - In all transactions entered into between the landholder and the tenant concerning agricultural products the official weights and easures of the 9overn ent shall be used. !ectio+ ,1. &,ectment- .iolation; /urisdiction. - All cases involving the dispossession of a tenant by the landholder or by a third party and5or the settle ent and disposition of disputes arising fro the relationship of landholder and tenant! as well as the violation of any of the provisions of this Act! shall be under the original and e#clusive jurisdiction of such court as ay now or hereafter be authori,ed by law to take cogni,ance of tenancy relations and disputes *ART THE !HARE !(!TE0 CHA*TER 1 Co22o+ *3o4isio+s !ECT ON ,,. Rights of the Tenant. &:' The tenant shall be free to work elsewhere whenever the nature of his far absence fro his holdings. obligation warrants his te porary

&;' The tenant shall! aside fro his labor! have the right to provide any of the contributions for production whenever he can do so adequately and on ti e. &<' The tenant(s dwelling shall not! without his consent! be re oved fro the lot assigned to hi by the landholder! unless there is a severance of the tenancy relationship between the as provided under "ection nine! or unless the tenant is ejected for cause! and only after the e#piration of forty-five days following such severance of relationship or dis issal for cause. If the tenant is dis issed without just cause and he is constrained to work elsewhere! he ay choose either to re ove his dwelling at the landholder(s cost or de and the value of the sa e fro the landholder at the ti e of the unjust dis issal. &=' The tenant shall have the right to be inde nified for his labor and e#penses in the cultivation! planting! or harvesting and other incidental e#penses for the i prove ent of the crop raised in case he is dispossessed of his holdings! whether such dis issal is for a just cause and not! provided the crop still e#ists at the ti e of the dispossession. !ectio+ ,3. *bligations for the tenant. - It shall be the obligation of the tenant% &:' To cultivate and take care of the far ! the growing crop and other i prove ents entrusted to hi father of a fa ily! by doing all the work necessary in accordance with proven far ing practices. &;' To infor the landholder at once of any trespass co itted by a third person upon the far . as a good

&<' To take reasonable care of the work ani als and far i ple ents used in the point undertaking. .e shall not use the work ani als and far i ple ents entrusted to hi by the landholder for purposes other than those intended! or allowed their use by other persons without the knowledge and consent of the landholder. The tenant shall not abandon or surrender his holdings and leave the far and growing crop and other i prove ents unattended during the watch season! e#cept for just and reasonable cause. In case of such unjustified abandon ent or surrender! any or all of his e#pected share in the crop ay! in the discretion of the court! be forfeited in favor of the landholder to the e#tent of the da age caused thereby. Any of the following shall be considered just and reasonable cause for the tenant to ter inate the tenancy relationship;

&a' 6ruel! inhu an or offensive treat ent on the part of the landholder of his representative toward the tenant or any e ber of his i ediate far household. &b' 0on-co pliance on the part of the landholder with any of the obligations i posed upon hi of this Act or by the contract. by the provisions

&c' If the landholder or his representative co pels the tenant or any e ber of his i ediate far household to do any work or render any service not in any way connected with his far work! or even without co pulsion if no co pensation is paid. &d' 6o ission of a cri e by the landholder or his representative against the tenant or any i ediate far household. !ectio+ ,4. Prohibitions to Tenant5 &:' It shall be unlawful for the tenant! whenever the area of his holdings is five hectares or ore! or is sufficient si,e to ake hi and the e bers of his i ediate far household fully occupied in its cultivation! to contract to work at the sa e ti e on two or ore separate holdings belonging to different landholders under any syste of tenancy! without the knowledge and consent of the land-holder with who he first entered into tenancy relationship. &;' It shall be unlawful for a share-tenant to e ploy a sub-tenant to furnish labor or any phase of the work required of hi under this Act! e#cept in cases of illness or any te porary incapacity on his part! in which eventuality the tenant or any e ber of his i ediate far household is under obligation to report such illness or incapacity to the landholder. )ay ent to the sub-tenant! in whatever for ! for services rendered on the land under this circu stance! shall be for the account of the tenant. &<' "ubject to provisions of the ne#t preceding paragraph! land entrusted for cultivation to a leasehold tenant shall not be sub-let nor shall the lease be assigned by the tenant to another person! e#cept with the written consent of the lessor. !ectio+ ,5. Rights of the Landholder5 &:' The landholder shall have the right to choose the kind of crop and the seeds with the tenant shall plant in his holdings% )rovided! however! That if the tenant should subject! the court shall settle the conflict! according to the best interest of both parties. &;' The landholder shall have the right to require the use of fertili,er of the kind or kinds shown by proven far practices to be adapted to the require ents of the land. &<' The landholder shall have the right to inspect and observe the e#tent of co pliance on the part of the tenant with the ter s and conditions of their contract and the provisions of this Act. &=' In cases where the crop has to be sold in processed for before division and the tenant has no representative! the landholder! shall have the right to deal with illers or processors in representation of the tenant. !ectio+ ,-. *bligations of the Landholder5 &a' The landholder shall furnish the tenant an area of not less than one thousand square eters where the latter ay construct his dwelling! raise vegetables! poultry! pigs! and other ani als and engage in inor industries! the products of which shall accrue to the tenant e#clusively. &b' The landholder shall keep the tenant in the peaceful possession and cultivation of his landholdings which are the subject atter of the contract. !ectio+ ,.. Prohibitions to the Landholder5 e ber of his

&:' The landholder shall not dispossess the tenant of his holdings e#cept for any of the causes enu erated in "ection fifty! and without the cause having been proved before! and the dispossession authori,ed by! the court; otherwise! he shall! aside fro the penalty of fine and5or i prison ent provided for any violation of this Act! be liable to the tenant for da ages to the e#tent of the landholder(s right under "ection twenty-two of this Act. &;' The landholder shall be responsible for the pay ent of ta#es levied by the 9overn ent upon the land which is the subject- atter of the contract and it shall be unlawful to ake the tenant bear in part of all of the sa e! either directly or indirectly. &<' The landholder shall not require the tenant to bear! directly or indirectly! any part of the rent! "canon" or other consideration which he! the for er! ay be under obligation to pay to a third person for the use of the land. !ectio+ ,/. &'penses for Seeds; #ertili0er; Pest and +eed !ontrol &'penses . &:' The sa e a ount of seeds or seedlings used in the production of any crop shall be deducted fro harvest and returned to the party who furnished the sa e. the gross

&;' The cost of fertili,er and e#penses for pest and weed control as evidenced by sales invoices shall be paid out of the gross harvest and returned to the party who advanced the cost and e#penses. !ectio+ ,9. Irrigation System. - The cost of the construction of an irrigation syste ! including the distributory canals! shall be borne e#clusively by the landholder. The cost of aintenance and operation of the syste shall! however! be borne by the landholder and the tenant in proportion to their respective shares in the harvest. !ectio+ 30. Au'iliary !rop. - In case the land is planted to an au#iliary crop! the tenant shall receive eighty per centu and the landholder twenty per centu of the net produce! provided all e#penses of production are borne by the tenant. Au#iliary crops shall! not! however! be construed to include the crops or products raised fro the garden! poultry and other industries carried on the lot specifically provided for the tenant under "ection ;>&a' hereof. !ectio+ 31. !ost of #ertili0er1 etc2; when to be Ad anced by the landholder . - +henever the use of fertili,er or the application of insect! disease and rodent control easures is directed by the landholder! he shall advance their cost! which shall be deducted fro the gross produce. CHA*TER 1 Rice !673e Te+7+c8

!ECT ON 3,. Share 3asis. - The parties shall! on ricelands which produces a nor al average of ore than forty cavanes per hectare for the three agricultural years ne#t preceding the current harvest! receive as shares in the gross produce! after setting aside the sa e a ount of palay used as seed! and after deducting the cost of fertili,er! pest and weed control! reaping and threshing! the a ount corresponding to the total equivalent of their individual contributions! co puted as follows; 6ontribution :. ;. <. =. A. >. $and $abor *ar i ple ents ediately before A@ ;A@ +ork Ani als *inal harrowing of the field i transplanting Transplanting )articipation <?@ <?@ A@ A@

!ectio+ 33. Share basis on Second !lass Land. - 1n ricelands! which produce a nor al average of forty cavans or less per hectare for the three agricultural years ne#t preceding the current harvest! the participation for the contribution of the land shall be twenty-five per centu and that of labor! thirty-five per centu .

!ectio+ 34. Reimbursement "ot Allowed2 - 6ontributions or shares in the contribution to the production of the crop in the for of cash! grain or services! once shouldered or rendered alone by one party ay not be rei bursed by the other party after the phase or phases of work required in the joint undertaking shall have been co pleted. !ectio+ 35. Sharing of &'penses. - In case the landholder and the tenant agree to share equally in the e#penses of final harrowing of field and transplanting! the latter ay engage the services of persons or helpers to perfor these phases of far work! provided the rates for each shall have been previously deter ined and agreed upon between the landholder and the tenant. In case of disagree ent upon said rates! the party who undertakes to the corresponding share in the harvest! after deducting the e#penses of reaping. !ectio+ 3-. #urther Rights of the Tenant. - In addition to the provision of "ection twenty-two! the tenant shall have the right to% :. /eter ine when to scatter the seeds! to transplant the seedlings! and to reap the harvest! provided they shall be in accordance with proven far practices and after due notice to the landholder. ;. 6hoose the thresher which shall thresh the harvest whenever it is the best available in the locality and the best suited to the landholder(s and tenant(s needs and provided the rate charged is equal to or lower than the rate charged by the owner of other threshers under si ilar circu stances% )rovided! further! That in cases where there are ore than tenant the selection of the ajority of the tenants shall prevail% )rovided! finally! That if the landholder is the owner of a thresher and is ready and willing to grant equal or lower rates under the sa e conditions! the use of the landholder(s thresher shall be given preference. <. Apply appropriate pest! insect! disease and rodent control easures whenever in his judg ent such action is necessary% )rovided! however! That if a tenant fails to apply any of the above control easures after the landholder has ade a request in writing for such action! he shall be liable for any loss resulting fro such failure. =. Apply fertili,er of the kind or kinds shown by proven far practices to be adapted to the require ents of the land! provided the landholder has not e#ercised his right under "ection twenty-five to require the use of such fertili,er. !ectio+ 3.. #urther Rights of the Landholder. - In addition to the provisions of "ection twenty-five! the landholder! by hi self or through his representative! ay deter ined% :. The proper height of pilapils or dikes according to the local practices. ;. The location and si,e of irrigation canals. <. The site for the stacking of the harvest! provided it shall not be farther than one kilo eter fro area cultivated by a ajority of the tenants. =. The date of threshing. )rovided! however! That in case of disagree ent by the tenant in any of the foregoing instances! the court shall deter ine whatever ay be in the interest or both parties. !ectio+ 3/. Labor; +hat It !onstitutes. - The tenant shall perfor "ection thirty-two; the following as the labor contributed by hi under the center of the

:. The preparation of the seedbed which shall include plowing! harrowing! and watering of the seedbed! the scattering of the seeds! and the care of the seedlings. ;. The plowing! harrowing! and watering of the area he is cultivating! e#cept final harrowing of the field as an ite of contribution specified in "ection thirty-two of this Act. <. The aintenance! repair and weeding of dikes! paddies! and irrigation canals in his holdings.

=. The pulling and bundling of the seedlings preparatory to their transplanting.

A. 6are of the growing plants. >. 9athering and bundling of the reaped harvest. B. The piling of the bundles into s all stacks. C. The preparation of the place where the harvest is to be stacked. D. 9athering of the s all stacks and their transportation to the place where they are to be stacked. :?. )iling into a big stack preparatory to threshing. !ectio+ 39. Prohibition on Pre4Threshing. - It shall be unlawful for either the tenant or the landholder! without utual consent! to reap or thresh a portion of the crop at any ti e previous to the date set for its threshing. Any violation by either party shall be treated and penali,ed in accordance with this Act and5or under the general provisions of law applicable to the act co itted. !ectio+ 40. Place of !rop Di ision. - The division of the crop shall be ade in the sa e place where the harvest has been threshed and each party shall transport his share to his warehouse or barn! unless the contrary is stipulated by the parties. CHA*TER 1 !673e Te+7+c8 o+ C3ops ot6e3 t67+ Rice

!ECT ON 41. 3asis of Shares in !rops other than Rice. - The landholder and the tenant on lands which produce crops either than rice shall be free to enter into any contract stipulating the ratio of crop division. In the absence of a stipulation! the custo s of the place shall govern% )rovided! That whether the basis of division of the crop is the contract between the parties or the custo s of the place! the share of the tenant for his labor in the production shall not less than thirty per cent of the harvest or produce! after deducting the e#penses for harvesting and5or initial processing% )rovided! further! That in cases where the share of the tenant is! according to local practices or custo s prevailing at the ti e of the approval of this Act! ore than the ini u herein set! the tenant(s share thus established by local practices or custo s shall prevail and be considered the ini u . *ART THE LEA!EHOL$ TENANC( !ECT ON 4,. Landholder4Lessor and Tenant4Lessee1 Defined. Any person! natural or juridical! either as owner! lessee! usufructuary or legal possessor or agricultural land! who lets! leases or rents to another said property for purposes of agricultural production and for a price certain or ascertainable either in an a ount of oney or produce! shall be known as the landholder-lessor; and any person who! with the consent of the for er! tills! cultivates or operates said land! susceptible of cultivation by one individual! personally or with the aid of labor available fro a ong his own i ediate far household! is a tenant-lessee. !ectio+ 43. Rights and *bligations of Tenant4Lessee. - +ith the creation of the tenancy relationship arising out of the contract between the landholder-lessor and tenant-lessee! the latter shall have the right to enter the pre ises of the land! and to the adequate and peaceful enjoy ent thereof. .e shall have the right to work the land according to his best judg ent! provided this anner and ethod of cultivation and harvest are in accordance with proven far practices. 8pon ter ination of the relationship! he shall be entitled to one half of the value of the i prove ents ade by hi ! provided they are reasonable and adequate to the purposes of the lease. The tenant-lessee shall pay the consideration stipulated in the lease contract provided it shall not e#ceed the li it fi#ed in "ection forty-si#. In the absence of stipulation! the consideration shall be that established in said "ection forty-si#. .e shall ake proper use of the land and the i prove ents thereon and shall be under obligation to cultivate it as a good father of a fa ily! by doing all the work considered reasonable and necessary in accordance with proven far practices. .e is likewise obliged to take reasonable care of the work ani als and far i ple ents that ay be delivered to hi by the land-holder! in case it is agreed between the parties that the landholder-lessor shall furnish any or all of the . !ectio+ 44. Rights of Landholder4lessor. - The landholder-lessor or his duly authori,ed representatives shall have the right to inspect the pre ises of the land which is the subject of the lease for the purpose of ascertaining the tenant(s

co pliance with the provisions of the contract and of this Act! but in no case shall he e#ercise any coercion! inti idation or violence in word or deed. !ectio+ 45. %anner of Rental Payment. - )ay ent of the consideration for the use of land a ount certain or ascertainable in oney or in produce! or both. !ectio+ 4-. !onsideration for the )se of Land. &a' The consideration for the use of ricelands! shall not be ore than thirty per centu of the gross produce for first class lands and not ore than twenty-five per centu for second class lands. 6lassification of ricelands shall be deter ined by productivity% first class lands being those which yield ore than forty cavanes per hectare and second class lands being those which yield forty cavanes or less! the sa e to be co puted upon the nor al average harvest of the three preceding years. &b' The consideration for agricultural land where e#ist fruit trees and other useful trees and plants! fro which the whole or any portion of the produce of the said land is taken! shall not be ore than what have been specified in the preceding section% )rovided! however! That additional considerations for the e ploy ent of said trees and useful plants! if the principal product is rice or other crops! shall be decided and specified by negotiation between the landholder-lessor and the tenant-lessee; )rovided! further! That where the tenant-lessee! during the period of the lease and5or in consideration thereof! plants and5or takes care of said trees and plants! with the consent of the landholder-lessor! the tenant-lessee shall be co pensated by the latter in the anner agreed between the . &c' The consideration for the use of sugar lands! fishponds! saltbeds and of lands devoted to the raising of livestock shall be governed by stipulation between the parties. !ectio+ 4.. Rental of +or5 Animals1 etc21 and Applicability of Schedules . - 8pon agree ent of the parties! the tenant- lessee ay ake use of such work ani als! far i ple ents or services belonging to the landholder-lessor as are available for hire! the consideration of which shall be based on their fair rental value. The rates on the fair rental value for the use of work ani als! far i ple ents and services! belonging to the landholderlessor shall be those provided in "chedules "A"! "4"! and "6"! which shall apply upon approval of this Act and shall re ain in force! unless the "ecretary of Agricultural and 0atural -esources revises the sa e in accordance with "ection fifty-two. !ectio+ 4/. Loans and Interests. - $oans! either in oney or in kind! obtained by a tenant-lessee fro the landholder lessor shall be payable at the ti e stipulated% )rovided! however! That this shall not be construed as prejudicing the right of the borrower to repay his obligation before the date of aturity. The loan! unless it is otherwise stipulated! shall be payable in oney at not ore than eight per cent interest per annu ! co puted fro the date of the indebtedness was contracted up to and including the date of pay ent. A note or e orandu to evidence such indebtedness shall be e#ecuted in accordance with the provisions of "ection si#teen. *ART V !EC&R T( O% TEN&RE !ECT ON 49. &,ectment of Tenant. - 0otwithstanding any agree ent or provision of law as to the period! in all cases where land devoted to any agricultural purpose is held under any syste of tenancy! the tenant shall not be dispossessed of his holdings e#cept for any of the causes hereinafter enu erated and only after the sa e has been proved before! and the dispossession is authori,ed by! the court. !ectio+ 50. !auses for the Dispossession of a Tenant. - Any of the following shall be a sufficient cause for the dispossession of a tenant fro his holdings% &a' The bona fide intention of the landholder to cultivate the land hi self personally or through the e ploy ent of far achinery and i ple ents% )rovided! however! That should the landholder not cultivate the land hi self or should fail to e ploy echanical far i ple ents for a period of one year after the dispossession of the tenant! it shall be presu ed that he acted in bad faith and the land and da ages for any loss incurred by hi because of said dispossession% )rovided! further! That the land-holder shall! at least one year but not ore than two years prior to the date of his petition to dispossess the tenant under this subsection! file notice with the court and shall infor the tenant in wiring in a language or dialect known to the latter of his intention to cultivate the land hi self! ay be ade either in an

either personally or through the e ploy ent of echanical i ple ents! together with a certification of the "ecretary of Agriculture and 0atural -esources that the land is suited for echani,ation% )rovided! further! That the dispossessed tenant and the e bers of his i ediate household shall be preferred in the e ploy ent of necessary laborers under the new set-up. &b' +hen the current tenant violates or fails to co ply with any of the ter s and conditions of the contract or any of the provisions of this Act% )rovided! however! That this subsection shall not apply when the tenant has substantially co plied with the contract or with the provisions of this Act. &c' The tenant(s failure to pay the agreed rental or to deliver the landholder(s share% )rovided! however! That this shall not apply when the tenant(s failure is caused by a fortuitous event or force ajeure. &d' +hen the tenant uses the land for a purpose other than that specified by agree ent of the parties. &e' +hen a share-tenant fails to follow those proven far of the land and increased agricultural production. practices which will contribute towards the proper care

&f' +hen the tenant through negligence per its serious injury to the land which will i pair its productive capacity. &g' 6onviction by a co petent court of a tenant or any e ber of his i cri e against the landholder or a e ber of his i ediate fa ily. ediate fa ily or far household of a

!ectio+ 51. 3urden of Proof. - The burden of proof to show the e#istence of a lawful cause for the eject ent of a tenant shall rest upon the landholder. *ART V !*EC AL *ROV ! ON! !ECT ON 5,. Duties of the Secretary of Agriculture and "atural Resources . - It shall be the duty of the "ecretary of Agriculture and 0atural -esources to% :. 6onduct such educational progra s as circu stances ay require adequately to acquaint tenants and landholders with their rights and responsibilities under this Act. ;. -evise the rental rates provided for in "chedules "A"! and "4"! whenever such revision is ade necessary by changes in values and prices! so that the rental rates shall confor to the standard of fair rental value as defined in "ection A& '. <. *acilities the preparation and registration of land- holder-tenant contracts through the distribution of appropriate printed for s and instructions to guide the interested parties in drafting and e#ecuting rental agree ents. The for s of contracts ust bear the approval of the court. =. 6onduct surveys and researches to deter ine the e#tent of co pliance! adaptability to different crops and areas and the fairness of this Act to all parties affected by its i ple entation. A. "ub it an annual report to the )resident containing an analysis showing the progress ade toward attaining the objectives enu erated in "ection two of this Act and reco endations concerning ethods of i proving the i ple entation and general effectiveness of this Act. 6opies of this report shall be provided to e bers of the 6ongress. !ectio+ 53. Duties of Secretary of /ustice. - The "ecretary of Eustice! through the 3#ecutive Eudge of the 6ourt! shall be responsible for for ulating a national enforce ent progra ! a ong other things! through the assign ent of judges and personnel! which will insure the full enforce ent of the provisions of this Act. !ectio+ 54. Representation by !ounsel. - In all cases wherein a tenant cannot afford to the represented by counsel! it shall be the duty of the )ublic /efender of the /epart ent of $abor to represent hi ! upon proper notification by the party concerned! or the court of co petent jurisdiction shall assign or appoint counsel de oficio for the indigent tenant.

!ectio+ 55. Applicability of $eneral Laws. - The provisions of e#isting laws which are not inconsistent herewith shall apply to the contracts governed by this Act as well as to acts or o issions by either party against each other during! and in connection with! their relationship. !ectio+ 5-. Doubts to 3e Sol ed in #a or of the Tenant. - In the interpretation and enforce ent of this Act and other laws as well as of the stipulations between the landholder and the tenant! the courts and ad inistrative officials shall solve all grave doubts in favor of the tenant. !ectio+ 5.. Penal Pro ision. - 7iolation of any of the provisions of this Act shall be punished with a fine not e#ceeding two thousand pesos or i prison ent not e#ceeding one year! or both in the discretion of the 6ourt. !ectio+ 5/. Separability of Pro isions. - If for any reason! any section or provision of this Act shall be questioned in any court! and shall be held to be unconstitutional or invalid! no other section or provision of this Act shall be effected thereby. !ectio+ 59. Repealing Pro isions. - )ublic Act 0u bered *our thousand fifty-four! as a ended by -epublic Act 0u bered Thirty-four! 6o onwealth Act 0u bered *ifty-three! 6o onwealth Act 0u bered *our hundred si#ty-one as a ended by -epublic Act 0u bered *orty- four! and all laws! rules and regulations inconsistent herewith are hereby repealed. !ectio+ -0. &ffecti e Date. - This Act shall take effect upon its approval. Approved% August <?! :DA=

!CHE$&LE 9A9 The rental value of work ani als and far i ple ents other than achinery! shall not e#ceed the allowable depreciation charges plus si# per cent &>@' interest per annu co puted on the arket value of the said work ani als and far i ple ents not fi#ed in this "chedule shall be those prevailing in the locality where the said ani als and i ple ents are rented. Ite 2arket 7alue )eriod of depreciation Allowable Allowable *air -ental depreciation in interest at value per years charge > per annu cent )<?.?? CA.D: :C.BA ;C.AB C.?? :;.A? <.>? =?.?? ):C.?? <>.?? D.?? :;.?? ;.=? :.A? :.?? ;=.?? )=C.?? :;:.?? ;B.BA =?.AB :?.=? :=.?? =.>C >=.??

6arabao 4ullock .orse! native 6attle )low! iron )low wooden .arrow iron 6arreton &native cart'

)<??.?? >??.?? :A?.?? ;??.?? =?.?? ;A.?? :C.?? =??.??

:? B C B A ; A :?

!CHE$&LE 9"9 The rental value for far achineries inclusive of tractors! tractor equip ent! engines! otors! and pu ps shall not e#ceed the allowable depreciation equal to one-tenth &:5:?' of the current arket value plus interest at si# per cent &>@ per annu .

!CHE$&LE 9C9 The a ounts to be charged by the landholder when he perfor s services in the operation of the far current the rates in the locality where such services are rendered. Approved% August 30, 1954 enterprise shall not

RE*&"L C ACT No. 3/44 AN ACT TO OR$A N THE AGR C&LT&RAL LAN$ RE%OR0 CO$E AN$ TO N!T T&TE LAN$ RE%OR0! N THE *H L ** NE!, NCL&$ NG THE A"OL T ON O% TENANC( AN$ THE CHANNEL NG O% CA* TAL NTO N$&!TR(, *ROV $E %OR THE NECE!!AR( 0*LE0ENT NG AGENC E!, A**RO*R ATE %&N$! THERE%OR AN$ %OR OTHER *&R*O!E! *REL 0 NAR( CHA*TER T TLE $ECLARAT ON O% *OL C( AN$ CO0*O! T ON O% CO$E !ectio+ 1. Title - This Act shall be known as the Agricultural $and -efor !ectio+ ,. Declaration of Policy - It is the policy of the "tate% &:' To establish owner-cultivatorship and the econo ic fa ily-si,e far as the basis of )hilippine agriculture and! as a consequence! divert landlord capital in agriculture to industrial develop ent; &;' To achieve a dignified e#istence for the s all far ers free fro pernicious institutional restraints and practices; 6ode.

&<' To create a truly viable social and econo ic structure in agriculture conducive to greater productivity and higher far inco es; &=' To apply all labor laws equally and without discri ination to both industrial and agricultural wage earners; &A' To provide a ore vigorous and syste atic land resettle ent progra and public land distribution; and

&>' To ake the s all far ers ore independent! self-reliant and responsible citi,ens! and a source of genuine strength in our de ocratic society. !ectio+ 3. Composition of Code - In pursuance of the policy enunciated in "ection two! the following are established under this 6ode% &:' An agricultural leasehold syste to replace all e#isting share tenancy syste s in agriculture;

&;' A declaration of rights for agricultural labor; &<' An authority for the acquisition and equitable distribution of agricultural land; &=' An institution to finance the acquisition and distribution of agricultural land; &A' A &>' A achinery to e#tend credit and si ilar assistance to agriculture; achinery to provide arketing! anage ent! and other technical services to agriculture;

&B' A unified ad inistration for for ulating and i ple enting projects of land refor ; &C' An e#panded progra &D' A judicial syste of land capability survey! classification! and registration; and

to decide issues arising under this 6ode and other related laws and regulations. CHA*TER AGR C&LT&RAL LEA!EHOL$ !(!TE0

!ectio+ 4. Abolition of Agricultural Share Tenancy - Agricultural share tenancy! as herein defined! is hereby declared to be contrary to public policy and shall be abolished% )rovided! That e#isting share tenancy contracts ay continue in force and effect in any region or locality! to be governed in the eanti e by the pertinent provisions of -epublic Act 0u bered 3leven hundred and ninety-nine! as a ended! until the end of the agricultural year when the 0ational $and -efor 6ouncil proclai s that all the govern ent achineries and agencies in that region or locality relating to leasehold envisioned in this 6ode are operating! unless such contracts provide for a shorter period or the tenant sooner e#ercise his option to elect the leasehold syste % )rovided! further! That in order not to jeopardi,e international co it ents! lands devoted to crops covered by arketing allot ents shall be ade the subject of a separate procla ation that adequate provisions! such as the organi,ation of cooperatives! arketing agree ents! or other si ilar workable arrange ents! have been ade to insure efficient anage ent on all atters requiring synchroni,ation of the agricultural with the processing phases of such crops% )rovided! further ore! That where the agricultural share tenancy contract has ceased to be operative by virtue of this 6ode! or where such a tenancy contract has been entered into in violation of the provisions of this 6ode and is! therefore! null and void! and the tenant continues in possession of the land for cultivation! there shall be presu ed to e#ist a leasehold relationship under the provisions of this 6ode! without prejudice to the right of the landowner and the for er tenant to enter into any other lawful contract in relation to the land for erly under tenancy contract! as long as in the interi the security of tenure of the for er tenant under -epublic Act 0u bered 3leven hundred and ninety-nine! as a ended! and as provided in this 6ode! is not i paired% )rovided! finally! That if a lawful leasehold tenancy contract was entered into prior to the effectivity of this 6ode! the rights and obligations arising therefro shall continue to subsist until odified by the parties in accordance with the provisions of this 6ode. !ectio+ 5. Establishment of Agricultural Leasehold Relation - The agricultural leasehold relation shall be established by operation of law in accordance with "ection four of this 6ode and! in other cases! either orally or in writing! e#pressly or i pliedly. !ectio+ -. Parties to Agricultural Leasehold Relation - The agricultural leasehold relation shall be li ited to the person who furnishes the landholding! either as owner! civil law lessee! usufructuary! or legal possessor! and the person who personally cultivates the sa e. !ectio+ .. Tenure of Agricultural Leasehold Relation - The agricultural leasehold relation once established shall confer upon the agricultural lessee the right to continue working on the landholding until such leasehold relation is e#tinguished. The agricultural lessee shall be entitled to security of tenure on his landholding and cannot be ejected therefro unless authori,ed by the 6ourt for causes herein provided. !ectio+ /. Extinguishment of Agricultural Leasehold Relation - The agricultural leasehold relation established under this 6ode shall be e#tinguished by% &:' Abandon ent of the landholding without the knowledge of the agricultural lessor; &;' 7oluntary surrender of the landholding by the agricultural lessee! written notice of which shall be served three onths in advance; or &<' Absence of the persons under "ection nine to succeed to the lessee! in the event of death or per anent incapacity of the lessee. !ectio+ 9. Agricultural Leasehold Relation Not Extinguished by Death or ncapacity of the Parties - In case of death or per anent incapacity of the agricultural lessee to work his landholding! the leasehold shall continue between the agricultural lessor and the person who can cultivate the landholding personally! chosen by the agricultural lessor within one onth fro such death or per anent incapacity! fro a ong the following% &a' the surviving spouse; &b' the eldest direct descendant by consanguinity; or &c' the ne#t eldest descendant or descendants in the order of their age% )rovided! That in case the death or per anent incapacity of the agricultural lessee occurs during the agricultural year! such choice shall be e#ercised at the end of that agricultural year% )rovided! further! That in the event the agricultural lessor fails to e#ercise his choice within the periods herein provided! the priority shall be in accordance with the order herein established. In case of death or per anent incapacity of the agricultural lessor! the leasehold shall bind his legal heirs. !ectio+ 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period! etc" - The agricultural leasehold relation under this 6ode shall not be e#tinguished by ere e#piration of the ter or period in a leasehold contract nor by the sale! alienation or transfer of the legal possession of the landholding. In case the agricultural lessor sells! alienates or

transfers the legal possession of the landholding! the purchaser or transferee thereof shall be subrogated to the rights and substituted to the obligations of the agricultural lessor. !ectio+ 11. Lessee#s Right of Pre$emption - In case the agricultural lessor decides to sell the landholding! the agricultural lessee shall have the preferential right to buy the sa e under reasonable ter s and conditions% )rovided! That the entire landholding offered for sale ust be pre-e pted by the $and Authority if the landowner so desires! unless the ajority of the lessees object to such acquisition% )rovided! further! That where there are two or ore agricultural lessees! each shall be entitled to said preferential right only to the e#tent of the area actually cultivated by hi . The right of pre-e ption under this "ection ay be e#ercised within ninety days fro notice in writing which shall be served by the owner on all lessees affected. !ectio+ 1,. Lessee#s Right of Redemption - In case the landholding is sold to a third person without the knowledge of the agricultural lessee! the latter shall have the right to redee the sa e at a reasonable price and consideration% )rovided! That the entire landholding sold ust be redee ed% )rovided! further! That where these are two or ore agricultural lessees! each shall be entitled to said right of rede ption only to the e#tent of the area actually cultivated by hi . The right of rede ption under this "ection ay be e#ercised within two years fro the registration of the sale! and shall have priority over any other right of legal rede ption. !ectio+ 13. Affida%it Re&uired in Sale of Land Sub'ect to Right of Pre$emption - 0o deed of sale of agricultural land under cultivation by an agricultural lessee or lessees shall be recorded in the -egistry of )roperty unless acco panied by an affidavit of the vendor that he has given the written notice required in "ection eleven of this 6hapter or that the land is not worked by an agricultural lessee. !ectio+ 14. Right of Pre$emption and Redemption Not Applicable to Land to be Con%erted into Residential! ndustrial and Similar Purposes - The right of pre-e ption and rede ption granted under "ections eleven and twelve of this 6hapter cannot be e#ercised over landholdings suitably located which the owner bought or holds for conversion into residential! co ercial! industrial or other si ilar non-agricultural purposes% )rovided! however! That the conversion be in good faith and is substantially carried out within one year fro the date of sale. "hould the owner fail to co ply with the above condition! the agricultural lessee shall have the right to repurchase under reasonable ter s and conditions said landholding fro said owner within one year after the afore entioned period for conversion has e#pired% )rovided! however! That the tenure of one year shall cease to run fro the ti e the agricultural lessee petitions the $and Authority to acquire the land under the provisions of paragraph :: of "ection fifty-one. !ectio+ 15. Agricultural Leasehold Contract in (eneral - The agricultural lessor and the agricultural lessee shall be free to enter into any kind of ter s! conditions or stipulations in a leasehold contract! as long as they are not contrary to law! orals or public policy. A ter ! condition or stipulation in an agricultural leasehold contract is considered contrary to law! orals or public policy% &:' If the agricultural lessee is required to pay a rental in e#cess of that which is hereinafter provided for in this 6hapter; &;' If the agricultural lessee is required to pay a consideration in e#cess of the fair rental value as defined herein! for the use of work ani als and5or far i ple ents belonging to the agricultural lessor or to any other person; or &<' If it is i posed as a condition in the agricultural leasehold contract% &a' that the agricultural lessee is required to rent work ani als or to hire far i ple ents fro the agricultural lessor or a third person! or to ake use of any store or services operated by the agricultural lessor or a third person; or &b' that the agricultural lessee is required to perfor any work or render any service other than his duties and obligations provided in this 6hapter with or without co pensation; or &c' that the agricultural lessee is required to answer for any fine! deductions and5or assess ents. Any contract by which the agricultural lessee is required to accept a loan or to contrary to law! orals or public policy. ake pay ent therefor in kind shall also be

!ectio+ 1-. Nature and Continuity of Conditions of Leasehold Contract - In the absence of any agree ent as to the period! the ter s and conditions of a leasehold contract shall continue until odified by the parties% )rovided! That in no case shall any odification of its ter s and conditions prejudice the right of the agricultural lessee to the security of his tenure on the landholding% )rovided! further! That in case of a contract with a period an agricultural lessor ay not! upon the e#piration of the period increase the rental e#cept in accordance with the provisions of "ection thirty-four.

!ectio+ 1.. )orm and Registration of Contract - "hould the parties decide to reduce their agree ent into writing! the agricultural leasehold contract shall be drawn in quadruplicate in a language or dialect known to the agricultural lessee and signed or thu b- arked both by the agricultural lessee personally and by the agricultural lessor or his authori,ed representative! before two witnesses! to be chosen by each party. If the agricultural lessee does not know how to read! the contents of the docu ent shall be read and e#plained to hi by his witness. The contracting parties shall acknowledge the e#ecution of the contract before the justice of the peace of the unicipality where the land is situated. 0o fees or sta ps of any kind shall be required in the preparation and acknowledg ent of the instru ent. 3ach of the contracting parties shall retain a copy of the contract. The justice of the peace shall cause the third copy to be delivered to the unicipal treasurer of the unicipality where the land is located and the fourth copy to the 1ffice of the Agrarian 6ounsel. 3#cept in case of istake! violence! inti idation! undue influence! or fraud! an agricultural contract reduced in writing and registered as hereinafter provided! shall be conclusive between the contracting parties! if not denounced or i pugned within thirty days after its registration. !ectio+ 1/. Registration of Leasehold Contract - The unicipal treasurer shall! upon receipt of his copy of the contract! require the agricultural lessee and agricultural lessor to present their respective copies of the contract! and shall cause to be annotated thereon the date! ti e and place of registration as well as its entry or registration nu ber. !ectio+ 19. Registry of Agricultural Leasehold Contracts - The 2unicipal Treasurer of the unicipality wherein the land is situated shall keep a record of all such contracts drawn and e#ecuted within his jurisdiction! to be known as "-egistry of Agricultural $easehold 6ontracts". .e shall keep this registry together with a copy of each contract entered therein! and ake annotations on said registry of all subsequent acts relative to each contract! such as its renewal! novation! cancellation! etc. 0o registration fees or docu entary sta ps shall be required in the registration of said contracts or of any subsequent acts relative thereto. !ectio+ ,0. *emorandum of Loans - 0o obligation to pay oney on account of loans including interest thereon obtained by the agricultural lessee fro the agricultural lessor or his representative shall be enforceable unless the sa e or a e orandu thereof be in writing in a language or dialect known to the agricultural lessee! and signed or thu b- arked by hi ! or by his agent. !ectio+ ,1. Exemption from Lien and+or Execution - The following shall be e#e pt fro agricultural lessee% &:' Twenty-five per centu lien and5or e#ecution against the

of the entire produce of the land under cultivation; and

&;' +ork ani als and far i ple ents belonging to the agricultural lessee% )rovided! That their value does not e#ceed one thousand pesos. 4ut no article or species of property entioned in this "ection shall be e#e pt fro e#ecution issued upon a judg ent recovered for its price or upon a judg ent of foreclosure of a ortgage thereon. !ectio+ ,,. ,se of Accepted Standards of -eights and *easures - In all transactions entered into between the agricultural lessee and the agricultural lessor concerning agricultural products the official or! upon agree ent of the parties! the accepted standards of weights and easures shall be used. !ectio+ ,3. Rights of Agricultural Lessee in (eneral - It shall be the right of the agricultural lessee% &:' To have possession and peaceful enjoy ent of the land; &;' To anage and work on the land in a far practices; &<' To anner and ethod of cultivation and harvest which confor to proven

echani,e all or any phase of his far

work; and

&=' To deal with illers and processors and attend to the issuance of quedans and warehouse receipts for the produce due hi .

!ectio+ ,4. Right to a .ome Lot - The agricultural lessee shall have the right to continue in the e#clusive possession and enjoy ent of any ho e lot he ay have occupied upon the effectivity of this 6ode! which shall be considered as included in the leasehold. !ectio+ ,5. Right to be ndemnified for Labor - The agricultural lessee shall have the right to be inde nified for the cost and e#penses incurred in the cultivation! planting or harvesting and other e#penses incidental to the i prove ent of his crop in case he surrenders or abandons his landholding for just cause or is ejected therefro . In addition! he has the right to be inde nified for one-half of the necessary and useful i prove ents ade by hi on the landholding% )rovided! That these i prove ents are tangible and have not yet lost their utility at the ti e of surrender and5or abandon ent of the landholding! at which ti e their value shall be deter ined for the purpose of the inde nity for i prove ents. !ectio+ ,-. /bligations of the Lessee - It shall be the obligation of the agricultural lessee% &:' To cultivate and take care of the far ! growing crops! and other i prove ents on the landholding as a good father of a fa ily and perfor all the work therein in accordance with proven far practices; &;' To infor the agricultural lessor within a reasonable ti e of any trespass co far ! without prejudice to his direct action against the trespasser; itted by third persons upon the

&<' To take reasonable care of the work ani als and far i ple ents delivered to hi by the agricultural lessor and see that they are not used for purposes other than those intended or used by another without the knowledge and consent of the agricultural lessor% )rovided! however! That if said work ani als get lost or die! or said far i ple ents get lost or are destroyed! through the negligence of the agricultural lessee! he shall be held responsible and ade answerable therefor to the e#tent of the value of the work ani als and5or far i ple ents at the ti e of the loss! death or destruction; &=' To keep his far and growing crops attended to during the work season. In case of unjustified abandon ent or neglect of his far ! any or all of his e#pected produce ay! upon order of the 6ourt! be forfeited in favor of the agricultural lessor to the e#tent of the da age caused thereby; &A' To notify the agricultural lessor at least three days before the date of harvesting or! whenever applicable! of threshing; and &>' To pay the lease rental to the agricultural lessor when it falls due. !ectio+ ,.. Prohibitions to Agricultural Lessee - It shall be unlawful for the agricultural lessee% &:' To contract to work additional landholdings belonging to a different agricultural lessor or to acquire and personally cultivate an econo ic fa ily-si,e far ! without the knowledge and consent of the agricultural lessor with who he had entered first into household! if the first landholding is of sufficient si,e to ake hi and the e bers of his i ediate far household fully occupied in its cultivation; or &;' To e ploy a sub-lessee on his landholding% )rovided! however! That in case of illness or te porary incapacity he ay e ploy laborers whose services on his landholding shall be on his account. !ectio+ ,/. Termination of Leasehold by Agricultural Lessee During Agricultural 0ear - The agricultural lessee ter inate the leasehold during the agricultural year for any of the following causes% &:' 6ruel! inhu an or offensive! treat ent of the agricultural lessee or any e ber of his i ediate far household by the agricultural lessor or his representative with the knowledge and consent of the lessor; &;' 0on-co pliance on the part of the agricultural lessor with any of the obligations i posed upon hi provisions of this 6ode or by his contact with the agricultural lessee; by the ay

&<' 6o pulsion of the agricultural lessee or any e ber of his i ediate far household by the agricultural lessor to do any work or render any service not in any way connected with far work or even without co pulsion if no co pensation is paid;

&=' 6o ission of a cri e by the agricultural lessor or his representative against the agricultural lessee or any e ber of his i ediate far household; or &A' 7oluntary surrender due to circu stances ore advantageous to hi and his fa ily.

!ectio+ ,9. Rights of the Agricultural Lessor - It shall be the right of the agricultural lessor% &:' To inspect and observe the e#tent of co pliance with the ter s and conditions of their contract and the provisions of this 6hapter; &;' To propose a change in the use of the landholding to other agricultural purposes! or in the kind of crops to be planted% )rovided! That in case of disagree ent as to the proposed change! the sa e shall be settled by the 6ourt according to the best interest of the parties concerned% )rovided! further! That in no case shall an agricultural lessee be ejected as a consequence of the conversion of the land to so e other agricultural purpose or because of a change in the crop to be planted; &<' To require the agricultural lessee! taking into consideration his financial capacity and the credit facilities available to hi ! to adopt in his far proven far practices necessary to the conservation of the land! i prove ent of its fertility and increase of its productivity% )rovided! That in case of disagree ent as to what proven far practice the lessee shall adopt! the sa e shall be settled by the 6ourt according to the best interest of the parties concerned; and &=' To ortgage e#pected rentals.

!ectio+ 30. /bligations of the Agricultural Lessor - It shall be the obligation of the agricultural lessor% &:' To keep the agricultural lessee in peaceful possession and cultivation of his landholding; and &;' To keep intact such per anent useful i prove ents e#isting on the landholding at the start of the leasehold relation as irrigation and drainage syste and arketing allot ents! which in the case of sugar quotas shall refer both to do estic and e#port quotas! provisions of e#isting laws to the contrary notwithstanding. !ectio+ 31. Prohibitions to the Agricultural Lessor - It shall be unlawful for the agricultural lessor% &:' To dispossess the agricultural lessee of his landholding e#cept upon authori,ation by the 6ourt under "ection thirty-si#. "hould the agricultural lessee be dispossessed of his landholding without authori,ation fro the 6ourt! the agricultural lessor shall be liable for da ages suffered by the agricultural lessee in addition to the fine or i prison ent prescribed in this 6ode for unauthori,ed dispossession; &;' To require the agricultural lessee to assu e! directly or indirectly! the pay ent of the ta#es or part thereof levied by the govern ent on the landholding; &<' To require the agricultural lessee to assu e! directly or indirectly! any part of the rent! "canon" or other consideration which the agricultural lessor is under obligation to pay to third persons for the use of the land; &=' To deal with illers or processors without written authori,ation of the lessee in cases where the crop has to be sold in processed for before pay ent of the rental; or &A' To discourage! directly or indirectly! the for ation! aintenance or growth of unions or organi,ations of agricultural lessees in his landholding! or to initiate! do inate! assist or interfere in the for ation or ad inistration of any such union or organi,ation. !ectio+ 3,. Cost of rrigation System - The cost of construction of a per anent irrigation syste ! including distributory canals! ay be borne e#clusively by the agricultural lessor who shall be entitled to an increase in rental proportionate to the resultant increase in production% )rovided! That if the agricultural lessor refuses to bear the e#penses of construction the agricultural lessee or lessees ay shoulder the sa e! in which case the for er shall not be entitled to an increase in rental and shall! upon the ter ination of the relationship! pay the lessee or his heir the reasonable value of the i prove ent at the ti e of the ter ination% )rovided! further! That if the irrigation syste constructed does not work! it shall not be considered as an i prove ent within the eaning of this "ection.

!ectio+ 33. *anner! Time and Place of Rental Payment - The consideration for the lease of the land shall be paid in an a ount certain in oney or in produce! or both! payable at the place agreed upon by the parties i ediately after threshing or processing if the consideration is in kind! or within a reasonable ti e thereafter! if not in kind. In no case shall the agricultural lessor require the agricultural lessee to file a bond! ake a deposit or pay the rental in advance! in oney or in kind or in both! but a special and preferential lien is hereby created in favor of the agricultural lessor over such portion of the gross harvest necessary for the pay ent of the rental due in his favor. !ectio+ 34. Consideration for the Lease of Riceland and Lands De%oted to /ther Crops - The consideration for the lease of riceland and lands devoted to other crops shall not be ore than the equivalent of twenty-five per centu of the average nor al harvest during the three agricultural years i ediately preceding the date the leasehold was established after deducting the a ount used for seeds and the cost of harvesting! threshing! loading! hauling and processing! whichever are applicable% )rovided! That if the land has been cultivated for a period of less than three years! the initial consideration shall be based on the average nor al harvest during the preceding years when the land was actually cultivated! or on the harvest of the first year in the case of newly-cultivated lands! if that harvest is nor al% )rovided! further! That after the lapse of the first three nor al harvests! the final consideration shall be based on the average nor al harvest during these three preceding agricultural years% )rovided! further ore! That in the absence of any agree ent between the parties as to the rental! the a#i u allowed herein shall apply% )rovided! finally! That if capital i prove ents are introduced on the far not by the lessee to increase its productivity! the rental shall be increased proportionately to the consequent increase in production due to said i prove ents. In case of disagree ent! the 6ourt shall deter ine the reasonable increase in rental. !ectio+ 35. Exemption from Leasehold of /ther 1inds of Lands - 0otwithstanding the provisions of the preceding "ections! in the case of fishponds! saltbeds! and lands principally planted to citrus! coconuts! cacao! coffee! durian! and other si ilar per anent trees at the ti e of the approval of this 6ode! the consideration! as well as the tenancy syste prevailing! shall be governed by the provisions of -epublic Act 0u bered 3leven hundred and ninety-nine! as a ended. !ectio+ 3-. Possession of Landholding2 Exceptions - 0otwithstanding any agree ent as to the period or future surrender! of the land! an agricultural lessee shall continue in the enjoy ent and possession of his landholding e#cept when his dispossession has been authori,ed by the 6ourt in a judg ent that is final and e#ecutory if after due hearing it is shown that% &:' The agricultural lessor-owner or a e ber of his i ediate fa ily will personally cultivate the landholding or will convert the landholding! if suitably located! into residential! factory! hospital or school site or other useful nonagricultural purposes% )rovided; That the agricultural lessee shall be entitled to disturbance co pensation equivalent to five years rental on his landholding in addition to his rights under "ections twenty-five and thirty-four! e#cept when the land owned and leased by the agricultural lessor! is not ore than five hectares! in which case instead of disturbance co pensation the lessee ay be entitled to an advanced notice of at least one agricultural year before eject ent proceedings are filed against hi % )rovided! further! That should the landholder not cultivate the land hi self for three years or fail to substantially carry out such conversion within one year after the dispossession of the tenant! it shall be presu ed that he acted in bad faith and the tenant shall have the right to de and possession of the land and recover da ages for any loss incurred by hi because of said dispossessions. &;' The agricultural lessee failed to substantially co ply with any of the ter s and conditions of the contract or any of the provisions of this 6ode unless his failure is caused by fortuitous event or force ajeure; &<' The agricultural lessee planted crops or used the landholding for a purpose other than what had been previously agreed upon; &=' The agricultural lessee failed to adopt proven far twenty-nine; practices as deter ined under paragraph < of "ection

&A' The land or other substantial per anent i prove ent thereon is substantially da aged or destroyed or has unreasonably deteriorated through the fault or negligence of the agricultural lessee; &>' The agricultural lessee does not pay the lease rental when it falls due% )rovided! That if the non-pay ent of the rental shall be due to crop failure to the e#tent of seventy-five per centu as a result of a fortuitous event! the non-pay ent shall not be a ground for dispossession! although the obligation to pay the rental due that particular crop is not thereby e#tinguished; or

&B' The lessee e ployed a sub-lessee on his landholding in violation of the ter s of paragraph ; of "ection twenty-seven. !ectio+ 3.. 3urden of Proof - The burden of proof to show the e#istence of a lawful cause for the eject ent of an agricultural lessee shall rest upon the agricultural lessor. !ectio+ 3/. Statute of Limitations - An action to enforce any cause of action under this 6ode shall be barred if not co enced within three years after such cause of action accrued. CHA*TER " LL O% R GHT! %OR AGR C&LT&RAL LA"OR !ectio+ 39. Rights for Agricultural Labor - To enable the far industrial workers! they shall enjoy the following% &:' -ight to self-organi,ation; &;' -ight to engage in concerted activities; &<' -ight to ini u wage; ore than eight hours; workers to enjoy the sa e rights and opportunities in life as

&=' -ight to work for not &A' -ight to clai

for da ages for death or injuries sustained while at work;

&>' -ight to co pensation for personal injuries! death or illness; and &B' -ight against suspension or lay-off. !ectio+ 40. Right to Self$/rgani4ation - The far workers shall have the right to self-organi,ation and to for ! join or assist far workers( organi,ations of their own choosing for the purpose of collective bargaining through representatives of their own choosing% )rovided! That this right shall be e#ercised in a anner as will not unduly interfere with the nor al far operations. Individuals e ployed as supervisors shall not be eligible for e bership in far workers( organi,ations under their supervision but ay for separate organi,ations of their own. !ectio+ 41. Right to Engage in Concerted Acti%ities - The far workers shall also have the right to engage in concerted activities for the purpose of collective bargaining and other utual aid or protection. *or the purpose of this and the preceding "ection! it shall be the duty of the far e ployer or anager to allow the far workers! labor leaders! organi,ers! advisers and helpers co plete freedo to enter and leave the far ! plantation or co pound at the portion of the sa e where said far workers live or stay per anently or te porarily. !ectio+ 4,. Right to *inimum -age - 0otwithstanding any provision of law or contract to the contrary! far workers in far enterprises shall be entitled to at least )<.A? a day for eight hours( work% )rovided! That this wage ay! however! be increased by the 2ini u +age 4oard as provided for in -epublic Act 0u bered "i# hundred and two. !ectio+ 43. Right to Eight .ours# -or5 - 0otwithstanding the provision of e#isting laws to the contrary! far workers shall not be required to work for ore than eight hours daily. +hen the work is not continuous! the ti e during which the far worker is not working and can leave his working place and can rest co pletely shall not be counted. +ork ay be perfor ed beyond eight hours a day in case of actual or i pending e ergencies caused by serious accidents! fire! flood! typhoon! epide ic! or other disaster or cala ity! or in case of urgent work to be perfor ed on far achines! equip ent or installations in order to avoid a serious loss which the far e ployer or anager would otherwise suffer! or so e other just cause of a si ilar nature! but in all such cases the far workers shall be entitled to receive co pensation for the overti e work perfor ed at the sa e rate as their regular wages! plus at least twenty-five per centu additional! based on their daily wages.

0o far e ployer or anager shall co pel a far worker to work during "undays and legal holidays% )rovided! however! That should the far worker agree to work on said days! he shall be paid an additional su of at least twenty-five per centu of his regular co pensation; )rovided! further! That the far e ployer or anager shall not be held liable for any clai for overti e work which he had not previously authori,ed! e#cept if the work rendered was to avoid da ages to crops! produce! work ani als or i ple ents! buildings or the like. Any agree ent or contract between the far "ection shall be null and void. e ployer or anager and the far worker contrary to the provisions of this

!ectio+ 44. Right of Action for Damages - 0otwithstanding the provisions of e#isting laws to the contrary! Act 0u bered 3ighteen hundred and seventy-four! as a ended! entitled "An Act to e#tend and regulate the responsibility of e ployers for personal injuries and death suffered by their e ployees while at work"! shall apply to far workers insofar as it ay be applicable. !ectio+ 45. Right to Compensation for Personal n'uries! Death! or llness - 0otwithstanding the provisions of e#isting laws to the contrary! Act 0u bered Thirty-four hundred and twenty-eight! as a ended! entitled "An Act prescribing the co pensation to be received by e ployees for personal injuries! death or illness contracted in the perfor ance of their duties"! shall apply to far workers insofar as it ay be applicable. !ectio+ 4-. Right Against Suspension of Lay$off - The landowner! far e ployer or far anager shall not suspend! layoff or dis iss any far worker without just cause fro the ti e a far workers( organi,ation or group of far workers has presented to the landowner a petition or co plaint regarding any atter likely to cause a strike or lockout and a copy thereof furnished with the /epart ent of $abor! or while an agricultural dispute is pending before the 6ourt of Agrarian -elations. If it is proved during the said period that a worker has been suspended or dis issed without just cause! the 6ourt ay direct the reinstate ent and the pay ent of his wage during the ti e of his suspension or dis issal or of any su he should have received had he not been suspended or dis issed! without prejudice to any cri inal liability of the landowner! far e ployer or far anager as prescribed by "ection twenty-four of 6o onwealth Act 0u bered 1ne hundred and three! as a ended. !ectio+ 4.. /ther Applicable Pro%isions - All other e#isting laws applicable to non-agricultural workers in private enterprises which are not inconsistent with this 6ode shall likewise apply to far workers! far labor organi,ations and agrarian disputes as defined in this 6ode! as well as to relations between far anage ent and far labor and the functions of the /epart ent of $abor and other agencies. !ectio+ 4/. Exceptions to Preceding Section - The preceding "ections of this 6hapter! e#cept "ections forty! forty-one! forty-two and forty-three shall not apply to far enterprises co prising not ore than twelve hectares. CHA*TER LAN$ A&THOR T(

ART CLE O3g7+i:7tio+ 7+; %u+ctio+s o< t6e L7+; Aut6o3it8 !ectio+ 49. Creation of the Land Authority - *or the purpose of carrying out the policy of establishing owner-cultivatorship and the econo ic fa ily-si,e far as the basis of )hilippine agriculture and other policies enunciated in this 6ode! there is hereby created a $and Authority! hereinafter called the Authority! which shall be directly under the control and supervision of the )resident of the )hilippines. The Authority shall be headed by a 9overnor who shall be appointed by the )resident with the consent of the 6o ission on Appoint ents. .e shall be assisted by two /eputy 9overnors who shall be appointed by the )resident with the consent of the 6o ission on Appoint ents! each of who shall head such operating depart ents as ay be set up by the 9overnor. The 9overnor and the /eputy 9overnors shall hold office for five years. !ectio+ 50. 6ualifications and Compensation of (o%ernors - 0o person shall be appointed 9overnor or /eputy 9overnor of the Authority unless he is a natural-born citi,en of the )hilippines! with adequate background and e#perience in land refor here and5or elsewhere! and at least thirty-five years of age. The 9overnor shall receive an annual co pensation of twenty-four thousand pesos; the /eputy 9overnors shall each receive an annual co pensation of eighteen thousand pesos.

!ectio+ 51. Po7ers and )unctions - It shall be the responsibility of the Authority% &:' To initiate and prosecute e#propriation proceedings for the acquisition of private agricultural lands as defined in "ection one hundred si#ty-si# of 6hapter FI of this 6ode for the purpose of subdivision into econo ic fa ilysi,e far units and resale of said far units to bona fide tenants! occupants and qualified far ers% )rovided! That the powers herein granted shall apply only to private agricultural lands subject to the ter s and conditions and order of priority hereinbelow specified% a. all idle or abandoned private agricultural lands! e#cept those held or purchased within one year fro the approval of this 6ode by private individuals or corporations for the purpose of resale and subdivision into econo ic fa ily-si,e far units in accordance with the policies enunciated in this 6ode% )rovided! That the subdivision and resale shall be substantially carried out within one year fro the approval of this 6ode; b. all private agricultural lands suitable for subdivision into econo ic fa ily-si,e far units! owned by private individuals or corporations worked by lessees! no substantial portion of whose landholding in relation to the area sought to be e#propriated! is planted to per anent crops under labor ad inistration! in e#cess of seventy-five hectares e#cept all private agricultural lands under labor ad inistration and lands acquired under "ection seventy-one of this 6ode; and c. in e#propriating private agricultural lands declared by the 0ational $and -efor 6ouncil or by the $and Authority within a land refor district to be necessary for the i ple entation of the provisions of this 6ode! the following order of priority shall be observed% :. idle or abandoned lands; ;. those whose area e#ceeds :!?;= hectares; <. those whose area e#ceeds A?? hectares but is not =. those whose area e#ceeds :== hectares but is not A. those whose area e#ceeds BA hectares but is not ore than :!?;= hectares; ore than A?? hectares; and ore than :== hectares.

&;' To help bona fide far ers without lands or agricultural owner-cultivators of unecono ic-si,e far s to acquire and own econo ic fa ily-si,e far units; &<' To ad inister and dispose of agricultural lands of the public do ain under the custody and ad inistration of the 0ational -esettle ent and -ehabilitation Ad inistration prior to the approval of this 6ode and such other public agricultural lands as ay hereafter be reserved by the )resident of the )hilippines for resettle ent and sale! in accordance with such ter s and conditions as are set forth under this 6hapter% )rovided! That the e#ercise of the authority granted herein! as well as in the preceding sub-paragraph! shall not contravene public policy on the per anency of forest reserves or other laws intended for the preservation and conservation of public forests; &=' To develop plans and initiate actions for the syste atic opening of alienable and disposable lands of the public do ain for speedy! distribution to and develop ent by deserving and qualified persons or corporations; &A' To reco end to the )resident! fro ti e to ti e after previous consultation with the "ecretary of Agriculture and 0atural -esources! what portion of the alienable or disposable public lands shall be reserved for settle ent or disposition under this chapter; &>' To give econo ic fa ily-si,e far s to landless citi,ens of the )hilippines who need! deserve! and are capable of cultivating the land personally! through organi,ed resettle ent! under the ter s and conditions the Authority ay prescribe! giving priority to qualified and deserving far ers in the province where such lands are located; &B' To reclai swa ps and arshes! obtain titles thereto whenever feasible and subdivide the fa ily-si,e far s for distribution to deserving and qualified far ers; into econo ic

&C' To undertake easures which will insure the early issuance of titles to persons or corporations who have actually settled and cultivated disposable alienable lands of the public do ain; &D' To survey! subdivide and set aside lands or areas of landholdings under its ad inistration for econo ic fa ilysi,e far s! large-scale far operations! town sites! roads! parks! govern ent centers and other civic i prove ents as circu stances ay warrant and to sub it subdivision survey plans conducted either by the govern ent or private surveyors on parcels of lands under its ad inistration for verification and approval either by the /irector of $ands or by the $and -egistration 6o ission; &:?' To infor the Agricultural )roductivity 6o ission and the 1ffice of the Agrarian 6ounsel of the proble s of settlers and far ers on lands under its ad inistration; &::' To acquire for agricultural lessees e#ercising their right of pre-e ption under 6hapter I of this 6ode! any landholdings entioned thereunder; &:;' To conduct land capability survey and classification of the entire country and print aps;

&:<' To ake such arrange ents with the $and 4ank with respect to titles of agricultural lands of the public do ain under its ad inistration as will be necessary to carry out the objectives of this 6ode; &:=' To e#propriate ho e lots occupied by agricultural lessees outside their landholdings for resale at cost to said agricultural lessees; and &:A' To sub it to the )resident of the )hilippines and to both .ouses of 6ongress through their presiding officers! to the "ecretary of *inance and to the Auditor 9eneral within si#ty days of the close of the fiscal year! an annual report showing its acco plish ents during the year; the e#propriation proceedings it has undertaken; the e#penditures it has incurred and other financial transactions undertaken with respect thereto. !ectio+ 5,. Appointment of Subordinate /fficials and Employees - The 9overnor shall organi,e the personnel in such depart ents! divisions and sections of the Authority as will insure their a#i u efficiency. .e shall appoint! subject to civil service rules and regulations! fi# the co pensation! subject to +A)61 rules and regulations! and deter ine the duties of subordinate officials and e ployees as the e#igencies of the service ay require. ART CLE E=p3op3i7tio+ o< *3i47te Ag3icultu37l L7+;s !ectio+ 53. Compulsory Purchase of Agricultural Lands - The Authority shall! upon petition in writing of at least one-third of the lessees and subject to the provisions of 6hapter 7II of this 6ode! institute and prosecute e#propriation proceedings for the acquisition of private agricultural lands and ho e lots enu erated under "ection fifty-one. In the event a landowner agrees to sell his property under the ter s specified in this 6hapter and the 0ational $and -efor 6ouncil finds it suitable and necessary to acquire such property! a joint otion e bodying the agree ent! including the valuation of the property! shall be sub itted by the $and Authority and the land-owner to the 6ourt for approval% )rovided! That in such case! any person qualified to be a beneficiary of such e#propriation or purchase ay object to the valuation as e#cessive! in which case the 6ourt shall deter ine the just co pensation in accordance with "ection fifty-si# of this 6ode. !ectio+ 54. Possession of the Land2 Procedure - The Authority! after co encing the e#propriation suit! ay take i ediate possession of the land upon deposit with the 6ourt that has acquired jurisdiction over the e#propriation proceedings in accordance with the -ules of 6ourt! of oney! and bonds of the $and 4ank! in accordance with the proportions provided for under "ection eighty of this 6ode! equal to the value as deter ined by the 6ourt in accordance with the provisions of "ection fifty-si# hereof. !ectio+ 55. Expeditious Sur%ey and Subdi%ision - I ediately after the Authority takes possession of lands to be acquired by it under this 6ode! it shall undertake a subdivision survey of the land into econo ic fa ily-si,e far s which shall be i ediately assigned to beneficiaries selected in accordance with "ection one hundred and twenty-eight subject to such rules and regulations as it ay prescribe. !ectio+ 5-. 8ust Compensation - In deter ining the just co pensation of the land to be e#propriated pursuant to this 6hapter! the 6ourt! in land under leasehold! shall consider as a basis! without prejudice to considering other factors also! the annual lease rental inco e authori,ed by law capitali,ed at the rate of si# per centu per annu .

The owner of the land e#propriated shall be paid in accordance with "ection eighty of this Act by the $and 4ank and pursuant to an arrange ent herein authori,ed. !ectio+ 5.. Duty of Court in Expropriation Proceedings - In e#propriation proceedings! it shall be the duty of the 6ourt to include in its resolution or order of e#propriation a provision that the $and Authority shall! after taking possession of the land and after the subdivision thereof! allow the $and 4ank to have the title thereto for the purpose of paying the owner the just co pensation therefor. !ectio+ 5/. ssuance of Certificates of Title for Parcel or Lot - After the pay ent of just co pensation on the land e#propriated the $and 4ank shall cause the issuance of separate certificates of titles for each parcel or lot in accordance with the subdivision survey ade under "ection fifty-five. !ectio+ 59. Prohibition Against Alienation and E'ectment - 8pon the filing of the petition referred to in "ection fifty-three the landowner ay not alienate any portion of the land covered by such petition e#cept in pursuance of the provisions of this 6ode! or enter into any for of contract to defeat the purposes of this 6ode! and no eject ent proceedings against any lessee or occupant of the land covered by the petition shall be instituted or prosecuted until it beco es certain that the land shall not be acquired by the Authority. !ectio+ -0. Disposition of Expropriated Land - After separate certificates of titles have been issued in accordance with "ection fifty-eight! the $and Authority! on behalf of the -epublic of the )hilippines and in representation of the $and 4ank as the financing agency! shall allot and sell each parcel or lot to a qualified beneficiary selected under "ection fifty-five of this 6ode! subject to unifor ter s and conditions i posed by the $and 4ank% )rovided! That the resale shall be at cost which shall ean the purchase price not ore than si# per centu per annu ! which shall cover ad inistrative e#penses! and actual e#penses for subdivision! surveying! and registration% )rovided! further! That such cost shall be paid on the basis of an a orti,ation plan not e#ceeding twenty-five years at the option of the beneficiary. In case so e agricultural lessees working portions of agricultural lands acquired by the govern ent under this 6ode prefer to re ain as lessees thereof! which preference shall be e#pressed in writing and attested by a representative of the 1ffice of Agrarian 6ounsel! the resale and redistribution to the shall be deferred until such ti e that such lessees are ready and willing to assu e the obligations and responsibilities of independent owners! which shall be anifested by a written notice to this effect by the lessees and which shall oblige the $and Authority forthwith to allot and sell such portions to such lessees under the sa e unifor ter s and conditions. )ending the sale! such lessees shall continue to work on their landholdings and receive the produce thereof! subject! however! to the require ent that they pay the $and 4ank the allowable rental established in "ection thirty-four. The $and 4ank shall apply the rental to the si# percent added to the acquisition price and credit the balance to the acquisition cost in the na e of the lessee as partial pay ent for the land. The $and Authority shall ad inister said parcels of land during the period they are under lease. 6o petent anage ent and adequate production credit shall be provided in accordance with the progra developed by the $and -efor )roject Tea for such area. !ectio+ -1. /rgani4ation of Cooperati%e Associations - *or the purpose of ore efficient anage ent! adoption of odern far ethods and techniques! and spreading risk! either through diversification of far projects or utual assu ption of risks the far er beneficiaries ay organi,e the selves into cooperative associations with the advice or assistance of the Agricultural )roductivity 6o ission and in accordance with the guidelines established by said 6o ission for such associations. !ectio+ -,. Limitation on Land Rights - 3#cept in case of hereditary succession by one heir! landholdings acquired under this 6ode ay not be resold! ortgaged! encu bered or transferred until after the lapse of ten years fro the date of full pay ent and acquisition and after such ten-year period! any transfer! sale or disposition ay be ade only in favor of persons qualified to acquire econo ic fa ily-si,e far units in accordance with the provisions of this 6ode% )rovided! That a purchaser who acquired his landholding under a contract to sell ay secure a loan on the sa e fro any private lending institution or individual for an a ount not e#ceeding his equity on said landholding upon a guaranty by the $and 4ank. !ectio+ -3. nscription of Specific Prohibition Against Resale and Subdi%ision of Landholding - 6ertificates of titles of landholdings acquired by the $and Authority and resold to purchasers shall contain therein a specific inscription prohibiting further subdivision and the resale! transfer or encu brance of said landholdings e#cept as provided in the preceding "ection.

!ectio+ -4. Exemption from Attachment - $ands acquired under the provisions of this 6hapter shall be e#e pt fro e#ecution and attach ent! e#cept when the land itself is the property ortgaged! in accordance with "ection si#ty-two of this 6ode. !ectio+ -5. Precedence of Expropriation Cases - 3#propriation cases filed by the Authority under provisions of this 6hapter shall take precedence over all other civil cases pending before the 6ourt and shall be ter inated within a period not e#ceeding si# onths fro the date of filing. ART CLE $ist3ibutio+ o< Ag3icultu37l L7+;s o< t6e *ublic $o27i+ !ectio+ --. Title to Public Agricultural Land - 8pon reservation by the )resident of the )hilippines of public agricultural land available for disposition by the $and Authority! such land shall be surveyed! titled and transferred to the $and 4ank! which shall reduce said title into individual titles for specific parcels or lots in accordance with the subdivision survey conducted by the $and Authority under paragraph D of "ection fifty-one% )rovided! however! That e#isting laws governing the acquisition of public lands shall have been co plied with. The $and Authority shall thereupon distribute in accordance with the provisions of this 6ode! each parcel or lot! subject to the ter s and conditions of the $and 4ank! to a beneficiary selected pursuant to "ection seventy-one or in accordance with paragraph < of "ection fifty-one! to a beneficiary selected pursuant to paragraph < of "ection one hundred twentyeight. !ectio+ -.. Census of Settlements - The Authority shall take a census of all settle ents already ade or started by far ers on their own initiative on public agricultural lands! forest lands! and on private titled lands which had been cleared! occupied and cultivated wholly or partially by the ! with or without legal sanction. The census shall include! a ong other things! the bona fide character of the settle ents! the character of the settlers or far ers! the e#act status of the lands settled! the feasibility of enlarging the settle ents! particularly in connection with the resources of the land occupied and the neighboring areas! actual and potential accessibility to arkets! as well as strategic location of the settle ent with respect to national security. !ectio+ -/. Assistance to Settlers in Transporting Themsel%es and Their 3elongings - The Authority ay! in certain projects! assist settlers in transporting the selves! their belongings! work ani als and far equip ent! if any! fro the co unities fro which they are igrating to the settle ent areas reserved for the purpose and for subsistence necessary until credit can be provided by govern ent financing agencies! or by any other credit institution by loaning to the the full a ount required for such purposes. These loans fro the $and Authority shall be non-interest bearing! shall constitute a lien upon the land! and shall be a orti,ed over a period of ten years! payable annually beginning with the end of the third year! after the date of arrival in the settle ent areas! subject to the right of the borrower to pay in the full at any ti e prior to the aturity of the loan. !ectio+ -9. Assistance to Settlers in Securing E&uipment - The Authority ay assist the settlers in securing equip ent! supplies and aterials needed; or assist the cooperative associations of the new settlers in securing the ost advantageous prices or ter s on far i ple ents and supplies needed. !ectio+ .0. Pro%iding .ousing and Accommodations to Settlers - The Authority ay help provide housing and other acco odations for the new settlers upon their arrival in the settle ent areas by the stationing the in properly surveyed and subdivided lots reserved for the purpose% help the organi,e co unity activities; and cooperate with the 4ureau of .ealth! the 4ureau of )ublic "chools and other pertinent agencies of the 9overn ent! in providing services necessary for the proper establish ent of co unity facilities. !ectio+ .1. Po7er of the Land Authority to Sell to .olders of 3onds ssued to )ormer Lando7ners -hose Lands .a%e 3een Purchased for Redistribution - The $and Authority shall sell! for a price not less than the appraised value! any portion not e#ceeding one hundred forty-four hectares in the case of individuals or one thousand twenty-four hectares in the case of corporations of the public agricultural lands transferred to the $and 4ank which is suitable for large-scale far operations to any holder! who is qualified to acquire agricultural lands through purchase! of bonds issued to for er landowners whose lands have been purchased for redistribution under this 6ode! subject to the condition that the purchaser shall! within two years after acquisition! place under cultivation at least thirty per centu of the entire area under plantation ad inistration and the re aining seventy per centu within five years fro the date of acquisition. The 9overnor of the $and Authority shall issue the title of said land upon showing that the purchaser has begun the develop ent and cultivation of his land under plantation ad inistration% )rovided! That public agricultural land sold as

hereinabove specified shall not be the object of any e#propriation as long as the sa e shall be developed and cultivated for large-scale production under far labor anage ent! e#cept as allowed by the 6onstitution. The selling price of the portion of the public agricultural land sold under this "ection shall be credited to the 9overn ent(s subscription to the $and 4ank. As pay ent for the land sold under this "ection! the $and 4ank shall accept as sole instru ents of pay ent the bonds issued pursuant to "ection seventy-si#. Issued bonds accepted as pay ent for the land sold shall be cancelled to the e#tent of the a ount paid. All sales under this 6ode shall be subject to the provision of 6hapter 7 of the )ublic $and Act covering sales of public agricultural lands insofar as they are not inconsistent with the provisions of this 6ode. !ectio+ .,. Duplicate Records to be )urnished the 3ureau of Lands - The $and Authority shall furnish the 4ureau of $ands with the duplicate records of proceedings on applications for the sale or other disposition of public agricultural lands under its ad inistration. !ectio+ .3. Transfer of Appropriations! Po7ers! )unctions! etc - The 0ational -esettle ent and -ehabilitation Ad inistration and the $and Tenure ad inistration are hereby abolished and their powers and functions not inconsistent with this 6ode! balances of all appropriations! funds! equip ent! records and supplies! as well as agricultural lands! public and private! under their ad inistration! are hereby transferred to the Authority% )rovided! That the function of the $and Tenure Ad inistration with respect to the e#propriation of urban lands as provided by e#isting laws is hereby transferred to and all hereafter be undertaken by the )eople(s .o esite and housing 6orporation. In addition to the appropriations herein transferred there is hereby appropriated fro the general funds in the 0ational Treasury not otherwise appropriated the su of five illion pesos! or so uch thereof as ay be necessary! to carry out the purposes of this 6ode. To carry out the land capability survey and classification entioned in paragraph :; of "ection fifty-one and "ection one hundred thirty-two of this 6ode! there is hereby appropriated out of the unappropriated funds of the 0ational Treasury the a ount of ten illion pesos. CHA*TER V LAN$ "AN> !ectio+ .4. Creation - To finance the acquisition by the 9overn ent of landed estates for division and resale to s all landholders! as well as the purchase of the landholding by the agricultural lessee fro the landowner! there is hereby established a body corporate to be known as the "$and 4ank of the )hilippines"! hereinafter called the "4ank"! which shall have its principal place of business in 2anila. The legal e#istence of the 4ank shall be for a period of fifty years counting fro the date of the approval hereof. The 4ank shall be subject to such rules and regulations as the 6entral 4ank ay fro ti e to ti e pro ulgate. !ectio+ .5. Po7ers in (eneral - To carry out this ain purpose! the 4ank shall have the power%

&:' To prescribe! repeal! and alter its own by laws! to deter ine its operating policies! and to issue such rules and regulations as ay be necessary to achieve the ain purpose for the creation of the 4ank; &;' To adopt! alter and use a corporate seal; &<' To acquire and own real and personal property and to sell! ortgage or otherwise dispose of the sa e;

&=' To sue and be sued! ake contracts! and borrow oney fro both local and foreign sources. "uch loans shall be subject to approval by the )resident of the )hilippines and shall be fully guaranteed by the 9overn ent of the )hilippines; &A' 8pon reco endation of the 6o ittee on Invest ents! to hold! own! purchase! acquire! sell or otherwise invest! or reinvest in stocks! bonds or other securities capable of giving the 4ank a reasonably assured inco e sufficient to support its financing activities and give its private stockholders a fair return on their holdings% )rovided! however! That pending the organi,ation of the 6o ittee on Invest ents! the 4ank ay e#ercise the powers herein provided without the reco endation of said 6o ittee on Invest ents% )rovided! further! That in case of the dissolution of the $and 4ank all unsold public lands transferred to it which ay be allocated to the

9overn ent of the )hilippines in the course of liquidation of the business of the 4ank shall revert to the /epart ent of Agriculture and 0atural -esources; and &>' To provide! free of charge! invest ent counselling and technical services to landowners whose lands have been acquired by the $and 4ank. *or this purpose! the $and 4ank ay contract the services of private consultants. !ectio+ .-. ssuance of 3onds - The $and 4ank shall! upon reco endation by the 4oard of Trustees and approval of the 2onetary 4oard of the 6entral 4ank! issue bonds! debentures and other evidences of indebtedness at such ter s! rates and conditions as the 4ank ay deter ine up to an aggregate a ount not e#ceeding! at any one ti e! five ti es its uni paired capital and surplus. "uch bonds and other obligations shall be secured by the assets of the 4ank and shall be fully ta# e#e pt both as to principal and inco e. "aid inco e shall be paid to the bondholder every si# &>' onths fro the date of issue. These bonds and other obligations shall be fully negotiable and unconditionally guaranteed by the 9overn ent of the -epublic of the )hilippines and shall be redee able at the option of the 4ank at or prior to aturity! which in no case shall e#ceed twenty-five years. These negotiable instru ents of indebtedness shall be ortgageable in accordance with established banking procedures and practices to govern ent institutions not to e#ceed si#ty per centu of their face value to enable the holders of such bonds to ake use of the in invest ents in productive enterprises. They shall also be accepted as pay ents for reparation equip ent and aterials. The 4oard of Trustees shall have the power to prescribe rules and regulations for the registration of the bonds issued by the 4ank at the request of the holders thereof. !ectio+ ... ssuance of Preferred Shares of Stoc5 to )inance Ac&uisition of Landed Estates - The $and 4ank shall issue! fro ti e to ti e! preferred shares of stock in such quantities not e#ceeding si# hundred illion pesos worth of preferred shares as ay be necessary to pay the owners of landed estates in accordance with "ections eighty and eighty-one of this 6ode. The a ount of shares that the 4ank ay issue shall not e#ceed the aggregate a ount need to pay for acquired estates in the proportions prescribed in said "ection eighty of this 6ode. The 4oard of Trustees shall include as a necessary part of the by-laws that it shall issue under "ection seventy-five of this 6ode! such for ula as it dee s adequate for deter ining the net asset value of its holdings as a guide and basis for the issuance of preferred shares. The shares of stock issued under the authority of this provision shall be guaranteed a rate of return of si# per centu per annu . In the event that the earnings of the 4ank for any single fiscal year are not sufficient to enable the 4ank! after aking reasonable allowance for ad inistration! contingencies and growth! to declare dividends at the guaranteed rate! the a ount equivalent to the difference between the 4ank(s earnings available for dividends and that necessary to pay the guaranteed rate shall be paid by the 4ank out of its own assets but the 9overn ent shall! on the sa e day that the 4ank akes such pay ent! rei burse the latter in full! for which purpose such a ounts as ay be necessary to enable the 9overn ent to ake such rei burse ents are hereby appropriated out of any oneys in the 0ational Treasury not otherwise appropriated. The 4ank shall give sufficient notice to the 4udget 6o issioner and the )resident of the )hilippines in the event that it is not able to pay the guaranteed rate of return on any fiscal period. The guaranteed rate of return on these shares shall not preclude the holders thereof fro participating at a percentage higher than si# per centu should the earnings of the 4ank for the corresponding fiscal period e#ceed the guaranteed rate of return. The 4oard of Trustees shall declare and distribute dividends within three onths after the close of each fiscal year at the guaranteed rate unless a higher rate of return in justified by the 4ank(s earnings after aking reasonable allowance for ad inistration! contingencies and growth! in which case dividends shall be declared and distributed at a higher rate. The capital gains derived fro the sale or transfer of such shares and all inco e derived therefro in the for of dividends shall be fully e#e pt fro ta#es. !ectio+ ./. Special (uaranty )und - In the event that the 4ank shall be unable to pay the bonds! debentures! and other obligations issued by it! a fi#ed a ount thereof shall be paid fro a special guaranty fund to be set up by the 9overn ent! to guarantee the obligation of the $and 4ank! and established in accordance with this "ection! and thereupon! to the e#tent of the a ounts so paid! the 9overn ent of the -epublic of the )hilippines shall succeed to all the rights of the holders of such bonds! debentures or other obligations% )rovided! however! That for the ne#t four years after the establish ent of the 4ank! the pay ent to the special guaranty fund should not e#ceed one illion pesos per year! after which period! the 9overn ent shall pay into the guaranty fund the su of five hundred thousand pesos each year until the cu ulative total of such guaranty fund is no less than twenty percent of the outstanding net obligation of the $and 4ank at the end of any single calendar year. The guaranty fund shall be ad inistered by the 6entral 4ank of the )hilippines in the anner ost consistent with its charter. *or the purpose of such fund! there shall be appropriated annually the su of one illion pesos out of any oneys in the 0ational Treasury not otherwise appropriated! until the total a ount of twenty illion pesos shall have been attained.

!ectio+ .9. Recei%ing Payments and Time Deposits - The 4ank! under the supervision of the 2onetary 4oard and subject to the provisions of the 9eneral 4anking Act! shall receive savings and ti e deposits fro the s all landholders in whose favor public lands or landed estates acquired by the $and Authority have been sold and! for this purpose! establish! and aintain branches and offices in such areas as ay be necessary to service such deposits. The 2onetary 4oard shall supervise and authori,e the 4ank to receive savings and ti e deposits fro the public in areas where facilities for such a service do not e#ist or cannot be adequately provided by other deposit institutions. !ectio+ /0. *a5ing Payment to /7ners of Landed Estates - The $and bank shall ake pay ents in the for herein prescribed to the owners of land acquired by the $and Authority for division and resale under this 6ode. "uch pay ent shall be ade in the following anner% ten per centu in cash and the re aining balance in si# percent! ta#-free! redee able bonds issued by the 4ank in accordance with "ection seventy-si#! unless the landowner desires to be paid in shares of stock issued by the $and 4ank in accordance with "ection seventy-seven in an a ount not e#ceeding thirty per centu of the purchase price. In the event there is an e#isting lien on encu brance on the land in favor of any 9overn ent institution at the ti e of acquisition by the $and 4ank! the bonds and5or shares! in that order! shall be accepted as substitute collaterals to secure the indebtedness. The profits accruing fro pay ent shall be e#e pt fro the ta# on capital gains.

!ectio+ /1. Capital - The authori,ed capital stock of the 4ank shall be one billion five hundred illion pesos divided into ninety illion shares with a par value of ten pesos each! which shall be fully subscribed by the 9overn ent and si#ty illion preferred shares with a par value of ten pesos each which shall be issued in accordance with the provisions of "ections seventy-seven and eighty-three of this 6ode. 1f the total capital subscribed by the 9overn ent! two hundred illion pesos shall be paid by the 9overn ent within one year fro the approval of this 6ode! and one hundred illion pesos every year thereafter for two years for which purpose the a ount of two hundred illion pesos is hereby appropriated upon the effectivity of this 6ode! and one hundred illion pesos every year for the ne#t two years thereafter! out of the funds in the 0ational Treasury not otherwise appropriated for the purpose% )rovided! That if there are not enough funds in the 0ational Treasury for the appropriation herein ade! the "ecretary of *inance! with the approval of the )resident of the )hilippines! shall issue bonds or other evidence of indebtedness to be negotiated either locally or abroad in such a ount as ay be necessary to cover any deficiency in the a ount above-appropriated but not e#ceeding four hundred illion pesos! the proceeds of which are hereby appropriated% )rovided! further! That the bonds to be issued locally shall not be supported by the 6entral 4ank% )rovided! finally! That there is auto atically appropriated out of the unappropriated funds in the 0ational Treasury such a ounts as is necessary to cover the losses which shall include a ong other things loss of earnings occasioned by the li itation of the resale cost herein provided such that said a ount together with the ad inistrative e#penses entioned in "ection ninety hereof shall not e#ceed in the aggregate the equivalent of two and one-half per centu of its assets li ited therein. !ectio+ /,. (o%ernment Shares - All shares of stock in the 4ank subscribed or owned by the 9overn ent shall not be entitled to participate in the inco e earned by the 4ank fro its invest ents and other operations! whether in the for of cash or stock dividends or otherwise. A ounts e#pended for the ad inistration of the 4ank shall not be dee ed as a participation of the 9overn ent in inco e. !ectio+ /3. Preferred Shares - All preferred shares of stock issued under "ection seventy-seven of this 6ode shall be entitled to the inco e earned by the 4ank on its invest ents and other operations and shall have a li ited right to elect annually one e ber of the 4oard of Trustees and one e ber of the 6o ittee on Invest ents% )rovided! That the holders of such preferred shares of stock shall not bring derivative suits against the 4ank. "uch preferred shares shall be fully transferable% )rovided! further! That upon the liquidation of the 4ank! the rede ption of such preferred shares shall be given priority and shall be guaranteed at par value. !ectio+ /4. 9oting of Shares - The voting power of all the shares of stock of the $and 4ank owned or controlled by the 9overn ent shall be vested in the )resident of the )hilippines or in such person or persons as he ay fro ti e to ti e designate. !ectio+ /5. ,se of 3onds - The bonds issued by the $and 4ank in the a ount of their face value as any of the following% ay be used by the holder thereof and shall be accepted

&:' )ay ent for agricultural lands or other real properties purchased fro

the 9overn ent;

&;' )ay ent for the purchase of shares of stock of all or substantially all of the assets of the following 9overn ent owned or controlled corporations% The 0ational /evelop ent 6o pany; 6ebu )ortland 6e ent 6o pany; 0ational "hipyards and "teel 6orporation; 2anila 9as 6orporation; and the 2anila .otel 6o pany. 8pon offer by the bondholder! the corporation owned or controlled by the 9overn ent shall! through its 4oard of /irectors! negotiate with such bondholder with respect to the price and other ter s and conditions of the sale. In case there are various bondholders aking the offer! the one willing to purchase under ter s and conditions ost favorable to the corporation shall be preferred. If no price is acceptable to the corporation! the sa e shall be deter ined by a 6o ittee of Appraisers co posed of three e bers! one to be appointed by the corporation! another by the bondholder aking the highest or only offer! and the third by the two e bers so chosen. The e#penses of appraisal shall be borne equally by the corporation and the successful purchaser. "hould the 9overn ent offer for sale to the public any or all of the shares of stock or the assets of any of the 9overn ent owned or controlled corporations enu erated herein! the bidder who offers to pay in bonds of the $and 4ank shall be preferred provided that the various bids be equal in every respect e#cept in the ediu of pay ent. &<' "urety or perfor ance bonds in all cases where the 9overn ent bonds; and &=' )ay ent for! reparations goods. !ectio+ /-. 3oard of Trustees - The affairs and business of the 4ank shall be directed! its powers e#ercised and its property anaged and preserved by a 4oard of Trustees. "uch 4oard shall be co posed of one 6hair an and four e bers! one of who shall be the head of the $and Authority who shall be an e#-officio e ber of such 4oard and another to be elected by the holders of preferred shares. The 6hair an and two e bers of the 4oard of Trustees shall serve on full-ti e basis with the 4ank. +ith the e#ception of the head of the $and Authority and the e ber elected by the holders of preferred shares! the 6hair an and all e bers of the 4oard shall be appointed by the )resident with the consent of the 6o ission on Appoint ents for a ter of seven years! e#cept that the first 6hair an and e bers to be appointed under this 6ode shall serve for a period of three! five and seven years! such ter s to be specified in their respective appoint ents. Thereafter the 6hair an and e bers! with the e#ception of the e#-officio e ber! appointed after such initial appoint ent shall serve for a ter of seven years including any 6hair an or e ber who is appointed in place of one who resigns or is re oved or otherwise vacates his position before the e#piration of his seven-year ter . The 6hair an and the two full-ti e e bers of the 4oard shall act as the heads of such operating depart ents as ay be set up by the 4oard under the authority granted by "ection eighty-seven of this 6ode. The 6hair an shall have authority! e#erciseable at his discretion! to deter ine fro ti e to ti e the organi,ational divisions to be headed by each e ber serving full ti e and to ake the corresponding shifts in designations pursuant thereto. The co pensation of the 6hair an and the e bers of the 4oard of Trustees serving full ti e shall be twenty-four thousand and eighteen thousand pesos! respectively. The other e bers of the 4oard shall receive a per die of one hundred pesos for each session of the 4oard that they attend. !ectio+ /.. The Chairman and 9ice$Chairman - The 6hair an of the 4oard shall be the chief e#ecutive officer of the 4ank. .e shall have direct control and supervision of the business of the 4ank in all atters which are not by this 6ode or by the by-laws of the 4ank specifically reserved to be done by the 4oard of Trustees. .e shall be assisted by an 3#ecutive 7ice-6hair an and one or ore vice-chair an who shall be chosen and ay be re oved by the 4oard of Trustees. The salaries of the 7ice-6hair en shall be fi#ed by the 4oard of Trustees with the approval of the )resident of the )hilippines. !ectio+ //. 6ualifications of *embers - 0o person shall be appointed 6hair an or e ber of the 4oard unless he is a an of accepted integrity! probity! training and e#perience in the field of banking and finance! at least thirty-five years of age and possessed of de onstrated ad inistrative skill and ability. !ectio+ /9. Committee on n%estments - There shall be a 6o ittee on Invest ents co posed of three e bers; the e ber of the 4oard of Trustees elected by the holders of preferred shares as 6hair an! one e ber to be appointed by the )resident of the )hilippines fro a ong the govern ent e bers of the 4oard of Trustees! and another e ber to be selected by the holders of preferred shares under "ection eighty-three of this 6ode. The 6o ittee on Invest ents shall reco end to the 4oard of Trustees the corporations or entities fro which the $and 4ank shall purchase shares of stock. ay require or accept real property as

The $and 4ank shall not invest in any corporation! partnership or co pany wherein any e ber of the 4oard of Trustees or of the 6o ittee on Invest ents or his spouse! direct descendant or ascendant has substantial pecuniary interest or has participation in the anage ent or control of the enterprise e#cept with the unani ous vote of the e bers of the 4oard of Trustees and of the 6o ittee on Invest ents! e#cluding the e ber interested! in a joint eeting held for that purpose where full and fair infor ation of the e#tent of such interest or participation has been adequately disclosed in writing and recorded in the inutes of the eeting% )rovided! That such interested e ber shall not in any anner participate in the deliberations and shall refrain fro e#erting any pressure or influence whatever on any official or e ber of the 4ank whose functions bear on or relate to the invest ent of the funds of the 4ank in the enterprise% )rovided! further! That the total invest ent in any single corporation! partnership! co pany! or association shall not e#ceed five per centu of the total investible funds. !ectio+ 90. Personnel2 Cost of Administration - The Ad inistrative e#penses of the 4ank during any single fiscal year shall not in any case e#ceed two and one-half per centu of its total assets. The 4oard of Trustees shall provide for an organi,ation and staff of officers and e ployees necessary to carry out the functions of the 4ank! fi# their co pensation! and appoint and re ove such officers and e ployees for cause. The 4ank officers and e ployees shall be subject to the rules and regulations issued by the 6ivil "ervice 6o ission but shall not fall under the +age and )osition 6lassification 1ffice. The 4oard of Trustees shall reco end to the 6ivil "ervice 6o ission rules and regulations for the recruit ent! appoint ent! co pensation! ad inistration! conduct! pro otion and re oval of all 4ank officers and e ployees under a strict erit syste and prepare and conduct e#a inations under the supervision of said 6o ission. !ectio+ 91. Legal counsel - The "ecretary of Eustice shall be e#-officio legal adviser of the 4ank. Any provision of law to the contrary notwithstanding! the $and 4ank shall have its own $egal /epart ent! the chief and e bers of which shall be appointed by the 4oard of Trustees. The co position! budget and operating e#penses of the 1ffice of the $egal 6ounsel and the salaries and traveling e#penses of its officers and e ployees shall be fi#ed by the 4oard of Trustees and paid by the 4ank. !ectio+ 9,. Auditor - The Auditor 9eneral shall be the e#-officio auditor of the 4ank and shall appoint a representative! who shall be the auditor in charge of the auditing office of the 4ank. The Auditor 9eneral shall! upon the reco endation of the auditor of the 4ank! appoint or re ove the personnel of the auditing office. The co pensation! budget and operating e#penses of the auditing office and the salaries and traveling e#penses of the officers and e ployees thereof shall be fi#ed by the 4oard of Trustees and paid by the 4ank notwithstanding any provision of law to the contrary. !ectio+ 93. Report on Condition of 3an5 - The representative of the Auditor 9eneral shall ake a quarterly report on the condition of the 4ank to the )resident of the )hilippines! to the "enate through its )resident! to the .ouse of -epresentatives through its "peaker! to the "ecretary of *inance! to the Auditor 9eneral and to the 4oard of Trustees of the 4ank. The report shall contain! a ong other things! a state ent of the resources and liabilities including earnings and e#penses! the a ount of capital stock! surplus! reserve and profits! as well as losses! bad debts! and suspended and overdue paper carried in the books as assets of the 4ank! and a plantilla of the 4ank. !ectio+ 94. Auditing Rules and Regulations - The Auditor 9eneral shall! with respect to the 4ank! for ulate i proved and progressive auditing rules and regulations designed to e#pedite the operations of the 4ank and prevent the occurrence of delays and bottlenecks in its work. !ectio+ 95. Remo%al of *embers - The )resident of the )hilippines ay! at any ti e! re ove the 6hair an or any e ber of the 4oard appointed by hi if the interest of the 4ank so requires! for any of the following causes% &:' 2is anage ent! grave abuse of discretion! infidelity in the conduct of fiduciary relations! or gross neglect in the perfor ance of duties; &;' /ishonesty! corruption! or any act involving oral turpitude; and

&<' Any act or perfor ance tending to prejudice or i pair the substantial rights of the stockholders. 6onviction of the 6hair an or a e ber for a cri e carrying with it a penalty greater than arresto re oval of such 6hair an or e ber without the necessity of )residential action. The 6hair an or the stockholders. e ber ay! in any of the above cases! be civilly liable for any da age that ayor shall cause the

ay have been suffered by

!ectio+ 9-. Transfer of Claims and Liabilities - The assets of the for er $and Tenure Ad inistration and the 0ational -esettle ent and -ehabilitation Ad inistration in the for of clai s and receivables arising fro the sale or transfer of private and public lands! agricultural equip ent! achinery! tools and work ani als! but e#cluding advances ade for subsistence! to s all landholders shall! after an e#haustive evaluation to deter ine their true asset value! be irrevocably transferred to the 4ank under such arrange ents as the $and Authority and the 4ank shall agree upon. Thereafter! the 4ank shall have authority and jurisdiction to ad inister the clai s! to collect and ake adjust ents on the sa e and! generally! to do all other acts properly pertaining to the ad inistration of clai s held by a financial institution. The $and Authority! upon request of the 4ank! shall assist the latter in the collection of such clai s. The $and Authority shall be entitled to collect fro the 4ank no ore than the actual cost of such collection services as it ay e#tend. The clai s transferred under this "ection shall not be considered as part of the 9overn ent(s subscription to the capital of the 4ank. !ectio+ 9.. Regulation - The 4ank shall not be subject to the laws! rules and regulations governing banks and other financial institutions of whatever type e#cept with respect to the receipt of savings and ti e deposits in accordance with "ection seventy-nine of this 6ode! in which case the legal reserve and other require ents prescribed by the 6entral 4ank for such deposits shall apply. The 4ank shall be operated as an autono ous body and shall be under the supervision of the 6entral 4ank. !ectio+ 9/. Tax Exemption - The operations! as well as holdings! equip ent! property! inco e and earnings of the 4ank fro whatever sources shall be fully e#e pt fro ta#ation. !ectio+ 99. /rgani4ation of 3an5 - The 4ank shall be organi,ed within one year fro the date that this 6ode takes effect.

!ectio+ 100. Penalty for 9iolation of the Pro%isions of this Chapter - Any trustee! officer! e ployee or agent of the 4ank who violates or per its the violation of any of the provisions of this 6hapter! or any person aiding or abetting the violations of any of the provisions of this 6hapter! shall be punished by a fine not to e#ceed ten thousand pesos or by i prison ent of not ore than five years! or both such fine and i prison ent at the discretion of the 6ourt. CHA*TER V AGR C&LT&RAL CRE$ T A$0 N !TRAT ON !ectio+ 101. Reorgani4ation of ACC)A to Align ts Acti%ities - The ad inistrative achinery of the Agricultural 6redit and 6ooperative *inancing Ad inistration created under -epublic Act 0u bered 3ight hundred twenty-one! as a ended by -epublic Act 0u bered Twelve hundred and eighty-five! shall be reorgani,ed to enable it to align its activities with the require ents and objectives of this 6ode and shall be known as the Agricultural 6redit Ad inistration. !ectio+ 10,. )inancing - To finance the additional credit functions of the Agricultural 6redit Ad inistration as a result of the land refor progra laid down in this 6ode! there is hereby appropriated the su of one hundred fifty illion pesos out of funds in the 0ational Treasury not otherwise appropriated in addition to e#isting appropriations for the Agricultural 6redit and 6ooperative *inancing Ad inistration. !ectio+ 103. Pri%ilege of Rediscounting - The Agricultural 6redit Ad inistration is hereby granted the privilege of rediscounting with the 6entral 4ank of the )hilippines! the /evelop ent 4ank of the )hilippines and the )hilippine 0ational 4ank eligible evidence of indebtedness acquired by it in carrying on its authori,ed activities! at an interest rate equal to the lowest charged by the above financing institution on any private person or entity. !ectio+ 104. Po7er to /btain Additional )unds - 0othing in this "ection shall li it the power of the Agricultural 6redit Ad inistration to obtain fro the 6entral 4ank of the )hilippines! the /evelop ent 4ank of the )hilippines! the )hilippine 0ational 4ank and other financing institutions! such additional funds as ay be necessary for the effective i ple entation of this Act% )rovided! That such additional funds are to be utili,ed as loans to far ers and5or far ers( cooperatives. !ectio+ 105. Loaning Acti%ities - $oaning activities of the Agricultural 6redit Ad inistration shall be directed to sti ulate the develop ent and operation of far ers( cooperatives. The ter "*ar ers( 6ooperatives" shall be taken to include all cooperatives relating to the production and arketing of agricultural products and those for ed to anage and5or own! on a cooperative basis! services and facilities! such as irrigation and transport syste ! established to support production and5or arketing of agricultural products. 8nder such rules and regulations in accordance with generally accepted banking practices and procedures as ay be pro ulgated by the Agricultural 6redit Ad inistration! -ural 4anks and /evelop ent 4anks ay! in their respective localities! be designated to act as agents of the Agricultural 6redit Ad inistration in regard to its loaning activities.

!ectio+ 10-. Credit to Small )armers - )roduction loans and loans for the purchase of work ani als! tillage equip ent! seeds! fertili,ers! poultry! livestock! feed and other si ilar ite s! ay be e#tended to s all far ers as defined in -epublic Act 0u bered 3ight hundred twenty-one! based upon their paying capacity and such securities as they can provide! and under such ter s and conditions as the Agricultural 6redit Ad inistration ay i pose! provided the a ount thereof does not e#ceed two thousand pesos! or such a ount as ay be fi#ed by the )resident! but in no case shall the a ount of loan e#ceed eighty per centu of the value of the collateral pledged. In instances where credit is e#tended for ite s which are not consu ed in their use! such ite s ay be pledged as security therefor. The Agricultural 6redit Ad inistration shall pro ulgate such rules and regulations as ay be necessary in the e#tension of the loans herein authori,ed so as to assure their repay ent% )rovided! That such rules and regulations shall follow and be in accordance with generally accepted financing practices and procedures. !ectio+ 10.. Security for Loans - The production of the borrower! after deducting the lease rental and5or liens thereon! shall be accepted as security for loans% )rovided! That said production is pledged to the Agricultural 6redit Ad inistration with appropriate safeguards to insure against its unauthori,ed disposition% )rovided! further! That the a ount of loan shall not e#ceed si#ty per centu of the value of the esti ated production. !ectio+ 10/. Loans to Cooperati%es - The Agricultural 6redit Ad inistration is hereby authori,ed to e#tend such types of loans as it ay dee necessary for the effective i ple entation of this 6ode! to eligible far ers( cooperatives as herein defined! under such ter s and conditions as it ay i pose and with such securities as it ay require. A far ers( cooperative that has been registered with the "ecurities and 3#change 6o ission and affiliated with the Agricultural 6redit Ad inistration shall be eligible for loans if! in the judg ent of the latter! its organi,ation! anage ent and business policies are of such character as will insure the safety and effective use of such loans. !ectio+ 109. Loans for Construction or Ac&uisition by Purchase of )acilities - $oans for the construction or acquisition by purchase of facilities of far ers( cooperatives ay be granted by the Agricultural 6redit Ad inistration. !ectio+ 110. nterest on Loans - The total charges including interest and insurance fees on all kinds of loans shall not be ore than eight per centu per annu % )rovided! That if an i pair ent of the capitali,ation of the Agricultural 6redit Ad inistration is i inent by reason of the li itation of the interest rate herein provided! there is auto atically appropriated out of the unappropriated funds in the 0ational Treasury such a ounts as is necessary to cover the losses of the Agricultural 6redit Ad inistration! but not e#ceeding si# illion pesos for any one year. !ectio+ 111. nstitution of Super%ised Credit - To provide for the effective use of credit by far ers! the Agricultural 6redit Ad inistration ay institute a progra of supervised credit in cooperation with the Agricultural )roductivity 6o ission. !ectio+ 11,. (uidance to Cooperati%es - The Agricultural 6redit Ad inistration shall have the power to register and provide credit guidance or assistance to all agricultural cooperatives including irrigation cooperatives and other cooperative associations or fund corporations. !ectio+ 113. Auditing of /perations - *or the effective supervision of far ers( cooperatives! the head of the Agricultural 6redit Ad inistration shall have the power to audit their operations! records and books of account and to issue subpoena and subpoena duces tecu to co pel the attendance of witnesses and the production of books! docu ents and records in the conduct of such audit or of any inquiry into their affairs. Any person who! without lawful cause! fails to obey such subpoena or subpoena duces tecu shall! upon application of the head of Agricultural 6redit Ad inistration with the proper court! be liable to punish ent for conte pt in the anner provided by law and if he is an officer of the association! to suspension or re oval fro office. !ectio+ 114. Prosecution of /fficials - The Agricultural 6redit Ad inistration! through the appropriate provincial or city fiscal! shall have the power to file and prosecute any and all actions which it ay have against any and all officials or e ployees of far ers( cooperatives arising fro isfeasance or alfeasance in office. !ectio+ 115. )ree Notarial Ser%ices - Any justice of the peace! in his capacity as notary e#-officio! shall render service free of charge to any person applying for a loan under this 6ode either in ad inistering the oath or in the acknowledg ent of instru ents relating to such loan. !ectio+ 11-. )ree Registration of Deeds - Any register of deeds shall accept for registration! free of charge any instru ent relative to a loan ade under this 6ode. !ectio+ 11.. -riting$off ,nsecured and /utstanding Loans - "ubject to the approval of the )resident upon reco endation of the Auditor 9eneral! the Agricultural 6redit Ad inistration ay write-off fro its books! unsecured and

outstanding loans and accounts receivable which ay beco e uncollectible by reason of the death or disappearance of the debtor! should there be no visible eans of collecting the sa e in the foreseeable future! or where the debtor has been verified to have no inco e or property whatsoever with which to effect pay ent. In all cases! the writing-off shall be after five years fro the date the debtor defaults. !ectio+ 11/. Exemption from Duties! Taxes and Le%ies - The Agricultural 6redit Ad inistration is hereby e#e pted fro the pay ent of all duties! ta#es! levies! and fees! including docket and sheriff(s fees! of whatever nature or kind! in the perfor ance of its functions and in the e#ercise of its powers hereunder. CHA*TER V AGR C&LT&RAL *RO$&CT V T( CO00 !! ON !ectio+ 119. Creation of the Agricultural Producti%ity Commission - *or the purpose of accelerating progressive i prove ent in the productivity of far s! the advance ent of far ers and the strengthening of e#isting agricultural e#tension services through the consolidation of all5pro otional! educational and infor ational activities pertaining to agriculture! the present 4ureau of Agricultural 3#tension of the /epart ent of Agriculture and 0atural -esources is hereby placed directly under the e#ecutive supervision and control of the )resident and hereinafter rena ed Agricultural )roductivity 6o ission. 8pon the effectivity of this 6ode! the Agricultural Tenancy 6o ission of the /epart ent of Eustice! together with its powers! duties! responsibilities! files! records supplies! equip ent! personnel and une#pended balance of appropriations! is hereby placed under the Agricultural )roductivity 6o ission as a separate office thereof. !ectio+ 1,0. Commissioner of the Agricultural Producti%ity Commission - The Agricultural )roductivity 6o ission shall be ad inistered by an Agricultural )roductivity 6o issioner who shall be appointed by the )resident with the consent of the 6o ission on Appoint ents and who shall have a co pensation of si#teen thousand pesos per annu . 0o person shall be appointed as a Agricultural )roductivity 6o issioner unless he be a holder of at least a 4achelor of "cience degree in Agricultural fro a reputable school or college of agriculture and shall have practiced agriculture for at least five years! and who is of recogni,ed co petence in agricultural econo ics or any of its equivalents. !ectio+ 1,1. Po7ers and Duties - The Agricultural )roductivity 6o vested in the /irector of the 4ureau of Agricultural 3#tension. issioner shall e#ercise the sa e powers and duties

!ectio+ 1,,. Di%ision on Cooperati%es - In addition to the e#isting divisions of the 4ureau of Agriculture 3#tension! herein rena ed as Agricultural )roductivity 6o ission! there shall be a /ivision of 6ooperatives and such other divisions and sections as the Agricultural )roductivity 6o issioner ay dee necessary to organi,e in order to carry out the pro otional and educational activities of the 6o ission. !ectio+ 1,3. Recruitment! Selection and Training of Extension -or5ers - The e#tension workers shall be recruited and selected fro graduates of agricultural college with adequate practical e#perience and training in actual crop! tree! poultry and livestock far ing% )rovided! however! That in the event there are no graduates of agricultural colleges available! graduates of agricultural high schools ay be te porarily e ployed. Training of e#tension workers shall be done in conjunction with research institutions to insure their a#i u efficiency. !ectio+ 1,4. )unctions of Extension -or5ers - In addition to their functions under -epublic Act 0u bered "i# hundred eighty! it shall be the duty of e#tension workers% &:' To reside in the locality where they are assigned! to disse inate technical infor ation to far ers! and to de onstrate i proved far anage ent practices and techniques; &;' To work with individual far ers in far planning and budgeting! guide the in the proper conduct of far business and work out schedules of re-pay ent of loans obtained by far ers; &<' To assist far ers in securing the services or assistance of other agencies! or their personnel! having to do with relevant activities and proble s of far ers; &=' To visit newly-established independent far operators either singly or collectively at least once a onth;

&A' To conduct educational activities that will acquaint leaseholders and other independent far their rights and responsibilities under this 6ode;

operators with

&>' To encourage the for ation and growth of private associations! study clubs! co ittees and other organi,ed groups of far ers! fa iliari,e the with odern ethods of far ing and interest the to actively participate! collaborate or take the initiative in agricultural research! e#peri entation and i ple entation of projects in cooperation with the Agricultural )roductivity 6o issioner and other agencies; and &B' To pro ote! sti ulate and assist in the organi,ation of far ers( cooperatives. !ectio+ 1,5. Appropriation - In addition to the funds herein transferred! there is hereby appropriated fro the general funds in the 0ational Treasury not otherwise appropriated the su of five illion pesos! or so uch thereof as ay be necessary to carry out the purposes of this 6hapter. CHA*TER V LAN$ RE%OR0 *RO?ECT A$0 N !TRAT ON !ectio+ 1,-. Creation of National Land Reform Council - There is hereby created a 0ational $and -efor 6ouncil! hereinafter called the 6ouncil! which shall be co posed of the 9overnor of the $and Authority! who shall act as 6hair an! the Ad inistrator of the Agricultural 6redit Ad inistration! the 6hair an of the 4oard of Trustees of the $and 4ank! the 6o issioner of the Agricultural )roductivity 6o ission and another e ber appointed by the )resident upon reco endation of the inority party receiving the second largest nu ber of votes in the last )residential election who shall hold office at the pleasure of such inority party! unless sooner re oved for cause by the )resident as e bers and the Agrarian 6ounsel as legal counsel% )rovided! That the 6ouncil shall not be considered fully constituted and ready to function until after the e ber representing the inority party has been appointed by the )resident of the )hilippines% )rovided! further! That the inority party shall sub it its reco endation to the )resident within si#ty days fro the approval of this 6ode! in the absence of which the 6ouncil shall be dee ed to be so constituted even without such e ber fro the inority party% )rovided! finally! That the inority representative shall receive a per die of fifty pesos for each day he attends a council eeting! chargeable to the appropriations of the $and Authority. !ectio+ 1,.. *eetings2 Resolutions - The 6hair an of the 6ouncil shall convoke the 6ouncil as its responsibilities enu erated in "ection one hundred twenty-eight ay warrant! and shall preside over its eetings. It shall be the duty of the e bers to attend any eeting of the 6ouncil upon the call of the 6hair an. In case of inability! a e ber ay require the officer ne#t in rank in his agency to attend the eeting in his behalf. A ajority vote of the e bers present if there is a quoru shall be necessary for the approval of a resolution. 8pon such approval the resolution shall be final and binding upon all e bers of the 6ouncil and their respective agencies insofar as their functions! powers and duties required under this 6ode are concerned. The refusal of any e ber to i ple ent any resolution or part thereof falling within the scope of the powers granted to his agency shall be sufficient ground for the )resident of the )hilippines to re ove said e ber fro office or to i pose upon hi disciplinary or ad inistrative sanctions. !ectio+ 1,/. )unctions of National Land Reform Council - It shall be the responsibility of the 6ouncil% &:' To construct the general progra of land refor conte plated by this 6ode; e ber-agencies relative to any particular land refor

&;' To establish guidelines! plans and policies for its project;

&<' To for ulate such rules and regulations as ay be necessary to carry out the provisions of this 6ode for &a' the selection of agricultural land to be acquired and distributed under this 6ode; &b' the deter ination of si,es of fa ily far s as defined in "ection one hundred si#ty-si#; and &c' the selection of beneficiaries to fa ily far s available for distribution% )rovided! That priority shall be given in the following order% *irst! to e bers of the i ediate fa ily of the for er owner of the land within the first degree of consanguinity who will cultivate the land personally with the aid of labor available within his far household; "econd! to the actual occupants personally cultivating the land either as agricultural lessees or otherwise with respect to the area under their cultivation; Third! to far ers falling under the preceding category who are cultivating unecono ic-si,e far s with respect to

idle or abandoned lands; *ourth! to owner-operators of unecono ic-si,e far s; and *ifth! to such other categories as ay be fi#ed by virtue of this 6ode! taking into consideration the needs and qualifications of the applicants% &=' To revise! approve! or reject any land refor proposal or project; and

&A' To proclai in accordance with the provisions of this 6ode! which procla ation shall be considered as having been pro ulgated i ediately after three successive weekly publications in at least two newspapers of general circulation in the region or locality affected by the procla ation! preference being given to local newspapers! if any! that all the govern ent achineries and agencies in any region or locality relating to leasehold envisioned in this 6ode are operating% )rovided! That the conversion to leasehold in the proclai ed area shall beco e effective at the beginning of the ne#t succeeding agricultural year after such pro ulgation% )rovided! further! That the procla ation shall be ade after having considered factors affecting feasibility and fund require ents and the other factors e bodied in "ections one hundred twenty-nine! one hundred thirty and one hundred thirty-one. !ectio+ 1,9. Creation of Land Reform Districts - The 6ouncil shall e#ercise the functions enu erated in the preceding "ection for particular areas which the 6ouncil shall select and designate as land refor districts. A district shall constitute one or ore refor projects! each project to co prise either a large landed estate or several areas within s all estates. In the selection of a district! the 6ouncil shall consider factors affecting the feasibility of acquiring for redistribution the areas within the district! including% &:' The productivity of the area; &;' Its suitability for econo ic fa ily-si,e far s; &<' The tenancy rate in the area; &=' The ini u fi#ed capital outlay required to develop the area;

&A' The pro#i ity of the area to resettle ent projects; and &>' The nu ber of far ers that cultivate unecono ic-si,e far s! the ability and readiness of such far ers to be resettled! and the availability of idle or abandoned lands that ay be acquired or e#propriated as well as of other resettle ent facilities. !ectio+ 130. Regional Land Reform Committee - *or the purpose of i ple enting the progra and policies of the 6ouncil on the local level! the 6ouncil shall establish in each region of the )hilippines a -egional $and -efor 6o ittee which shall be co posed of the representatives of the agencies co posing the 0ational $and -efor 6ouncil and shall be under the chair anship of the representative of the $and Authority. The co ittee shall reco end to the 6ouncil such plans for projects of land refor in its jurisdiction as it ay dee appropriate. The 6o ittee shall conduct public hearings! gather and analy,e data! esti ate the essentials of such plans for projects or progra s and consolidate its findings in a report to be sub itted to the 6ouncil for its consideration. The decision of the 6ouncil upon such projects or progra s shall be returned to the 6o ittee! within thirty days fro the sub ission thereof! for early i ple entation or e#ecution by said 6o ittee and the agencies represented therein. !ectio+ 131. Land Reform Pro'ect Team - The -egional $and -efor 6o ittee shall direct and assign a $and -efor )roject Tea for any project or projects within the region! to be co posed of an appropriate nu ber of personnel fro the e ber-agencies. The tea shall be headed by a representative of the $and Authority designated by the 6o ittee! but each agency shall! in every case! be duly represented by at least one e ber in the Tea . 1n the basis of national! regional! and local policies and progra s for ulated and approved by the 6ouncil through the 6o ittee! the Tea shall deter ine &a' the suitability of any area for redistribution into econo ic fa ily-si,e far s; &b' the econo ic si,e of far units; &c' the feasibility of acquiring and distributing the area; &d' the willingness of the lessees to assu e the responsibilities of ownership; and &e' the financial and other require ents of the project. *or this purpose! it shall gather data! obtain opinions! conduct surveys! pursue investigations! and incorporate any infor ation thus established in a develop ent progra for the area concerned to be sub itted in the for of a consolidated report to the 6o ittee. CHA*TER V LAN$ CA*A" L T( !&RVE( AN$ CLA!! % CAT ON

!ectio+ 13,. Land Sur%ey to Conform to Legal Re&uirements - To provide the necessary basis for the i ple entation of the land refor progra for ulated under this 6ode! the $and Authority is hereby authori,ed to undertake a land capability survey and classification in cooperation with the relevant agencies that will be directly benefited by such survey and classification. The survey shall be ade to confor to the require ents of the /epart ent of Agriculture and 0atural -esources for i ple entation of Agricultural progra s and forestry inventory! of the 4oard of Technical "urveys and 2aps! and of the 0ational 3cono ic 6ouncil and other agencies for agricultural planning and other purposes. !ectio+ 133. Cadastral Sur%ey - To resolve the rights of landholders holding unregistered property! the 4ureau of $ands is directed to undertake an e#panded cadastral survey and land registration progra co encing within three onths fro the passage of this 6ode. !ectio+ 134. Costs of )ees and Charges - 0otwithstanding any provisions of law to the contrary! the following rules shall apply with respect to the costs! fees and charges in the survey! onu enting! and registration of lands of whatever description and nature had in relation to cadastral proceedings undertaken by the 0ational 9overn ent! either alone through its offices! agencies and instru entalities! or in conjunction with provincial and unicipal govern ents. !ectio+ 135. Apportionment of Cost of Sur%ey - 1ne-half of the cost of survey and onu enting and registration proceedings shall be fully assessed and collected against each and all of the lots included in cadastral proceedings and shall be apportioned in accordance with the area thereof! but in no case shall less than ten pesos be charged against each lot! the other half being chargeable to the 0ational 9overn ent. The a ounts ta#ed against each of the lots or parcels of land shall be considered as a special assess ent of ta#es against the respective parcels! shall constitute a first lien upon the land and shall be collected by the /irector of $ands or his duly authori,ed representatives in equal install ents within a period of three years! bearing interest at the rate of si# per centu per annu . The first install ent shall beco e due and payable at the sa e ti e as the general land ta#es for the year ne#t succeeding the year in which the assess ent of the cost shall be received by the )rovincial Treasurer! and shall be collected in the sa e anner as such general ta#es. 3ach succeeding install ent shall beco e due and payable at the sa e ti e as the general land ta#es for the corresponding current year and shall be collected in the sa e anner. The /irector of $ands shall for this purpose send to the officer in charge of such collection a copy of said assess ent of costs% )rovided! however! That the a ounts representing the proportional shares of the costs ta#ed against lots surveyed at the request and e#pense of their owner and for which a plan other than the cadastral plan has been ade by a duly authori,ed surveyor prior to the decision in the cadastral proceeding! or which have been registered in accordance with the provisions of Act 0u bered *our hundred ninety-si#! entitled "The $and -egistration Act"! or surveyed! patented! or leased under the )ublic $and and 2ining $aws! prior to the decision in the cadastral proceeding! or have been declared to the public lands by the 6ourt! shall not constitute a lien against said lot nor shall be collected fro the owner thereof% )rovided! further! That the owner of any lot ay! if he so desires! pay any install ent of the costs ta#ed against his lot at any ti e before the sa e beco es due. !ectio+ 13-. Payment of Costs of Land in ts Entirety in Case of Transfer of Land - In case of the sale! transfer! or conveyance! for a pecuniary consideration! of any property! or part thereof! registered by virtue of a decree issued in a cadastral proceeding! prior to the pay ent of the total a ount of the costs ta#ed against such property in accordance with the preceding "ection endorsed as an encu brance or lien upon each cadastral certificate of title! the vendor or his legal representative shall pay such costs in their entirety in case the order apportioning the costs has already been issued in the cadastral proceeding in which the property being sold! transferred! or conveyed is included! and the register of deeds concerned shall de and of the vendor! before registering the deed for such sale! transfer! or conveyance of said property! that he e#hibit a receipt signed by the /irector of $ands or his duly authori,ed representative showing that such encu brance or lien has been paid. !ectio+ 13.. Costs of Registration Proceedings - The costs of the registration proceedings under the provisions of this 6ode shall consist of a su equivalent to ten per centu of the costs of the survey and onu enting of the land. The a ount of the costs of the proceeding so ta#ed shall be for all services rendered by the $and -egistration 6o ission and the clerk or his deputies in each cadastral proceeding! and the e#pense of publication! ailing! and posting notice! as well as the notices of the decision and the order apportioning the cost shall be borne by the $and -egistration 6o ission. !ectio+ 13/. La7s Co%ering Sur%ey and Registration of Land in )orces - 8nless otherwise provided in this 6hapter! all provisions of law covering the survey and registration of land shall re ain in full force and effect. !ectio+ 139. Re%ol%ing )und - All a ounts collected by the 4ureau of $ands or its duly authori,ed representatives fro the owners of the various lots as costs of proceedings! survey! and onu enting in relation to the cadastral survey progra herein described shall be paid into a "pecial 6adastral )rogra -evolving *und to finance the cadastral land survey and registration of other unregistered lands.

!ectio+ 140. Appropriation - To finance and support the e#panded cadastral land survey and registration progra set forth herein! the a ount of one hundred illion pesos is hereby appropriated out of funds in the 0ational Treasury not otherwise appropriated! which a ount shall be paid into a ""pecial 6adastral )rogra -evolving *und"! to finance the cadastral land survey and registration of other unregistered areas. CHA*TER @ CO&RT! O% AGRAR AN RELAT ON! !ectio+ 141. Creation - 6ourts of Agrarian -elations are hereby organi,ed and established throughout the )hilippines in confor ity with the provisions of this 6hapter. !ectio+ 14,. Regional Districts - -egional districts for the 6ourts of Agrarian -elations in the )hilippines are constituted as follows% The first -egional /istrict shall consist of the provinces of 6agayan! 4atanes! Isabela and 0ueva 7i,caya! with seat in Tuguegarao! 6agayan for 4ranch I and in Ilagan! Isabela for 4ranch II; The second -egional /istrict! of the provinces of Ilocos 0orte! Ilocos "ur! Abra! 2ountain )rovince! $a 8nion and the 6ity of 4aguio! with seat in $aoag! Ilocos 0orte for 4ranch I and in "an *ernando! $a 8nion for 4ranch II; The third -egional /istrict of the provinces of )angasinan and Ga bales! and the 6ity of /agupan! with seat in $ingayen! )angasinan for 4ranch I! in Tayug! )angasinan for 4ranch II and in Iba! Ga bales for 4ranch III; The fourth -egional /istrict! of the provinces of 0ueva 3cija and Tarlac! and 6abanatuan 6ity! with seat in 6abanatuan 6ity for 4ranch I! in 9ui ba! 0ueva 3cija for 4ranch II! in Tarlac! Tarlac for 4ranch III and in 2oncada! Tarlac for 4ranch I7; The fifth -egional /istrict! of the provinces of )a panga! 4ataan and 4ulacan! with seat in 2alolos! 4ulacan for 4ranch I! in "an *ernando! )a panga for 4ranch II! in Angeles! )a panga for 4ranch III and in 4alanga! 4ataan for 4ranch I7; The si#th -egional /istrict! of the 6ity of 2anila! Hue,on 6ity! )asay 6ity! the province of -i,al! the 6ity of 6avite! the province of 6avite! the 6ity of Tagaytay! Trece 2artires 6ity! and the province of )alawan! with seat in 2anila for 4ranch I &3#ecutive Eudge'! in 6avite 6ity for 4ranch II and in )asig! -i,al for 4ranch III; The seventh -egional /istrict! of the province of $aguna! the 6ity of "an )ablo! the province of 4atangas! the 6ity of $ipa! and the provinces of 1riental 2indoro and 1ccidental 2indoro! with seat in $os 4aIos! $aguna for 4ranch I! in 4atangas! 4atangas for 4ranch II and in 2a burao! 2indoro 1ccidental for 4ranch III; The eight -egional /istrict! of the province of Hue,on! the subprovince of Aurora! the 6ity of $ucena! and the province of 6a arines 0orte! with seat in the 6ity of $ucena for 4ranch I and in /aet! 6a arines 0orte for 4ranch II; The ninth -egional /istrict! of the province of 6a arines "ur! 0aga 6ity! $egaspi 6ity and the provinces of Albay! 6atanduanes! "orsogon and 2asbate! with seat in 0aga 6ity for 4ranch I! in $egaspi 6ity for 4ranch II and in "orsogon! "orsogon for 4ranch III; The tenth -egional /istrict! of the province of 6api,! -o#as 6ity! the provinces of Aklan! -o blon! 2arinduque and Iloilo! the 6ity of Iloilo! and the province of Antique! with seat in the 6ity of Iloilo for 4ranch I and in -o#as 6ity for 4ranch II; The eleventh -egional /istrict! of the province of 1ccidental 0egros! the 6ities of 4acolod and "ilay! the province of 1riental 0egros! /u aguete 6ity! and the subprovince of "iquijor! with seat in 4acolod 6ity for 4ranch I! in /u aguete 6ity for 4ranch II and in "an 6arlos 6ity for 4ranch III; The twelfth -egional /istrict! of the province of "a ar! the 6ity of 6albayog! the province of $eyte! and the 6ities of 1r oc and Tacloban! with seat in 6atbalogan! "a ar for 4ranch I and in 1r oc 6ity for 4ranch II; The thirteenth -egional /istrict! of the province of 6ebu! the 6ity of 6ebu! and the province of 4ohol! with seat in the 6ity of 6ebu for 4ranch I and in Tagbilaran! 4ohol for 4ranch II;

The fourteenth -egional /istrict! of the provinces of "urigao and Agusan! 4utuan 6ity! the province of 1riental 2isa is! 6agayan de 1ro 6ity! the provinces of 4ukidnon! $anao del "ur and $anao del 0orte! and the 6ities of Iligan and 2arawi! with seat in 6agayan de 1ro 6ity for 4ranch I and in Iligan 6ity for 4ranch II; The fifteenth -egional /istrict! of the province of /avao the 6ity of /avao! the provinces of 6otabato and 1ccidental 2isa is! 1,a i, 6ity! the provinces of Ga boanga del 0orte and Ga boanga del "ur! Ga boanga 6ity! 4asilan 6ity and the province of "ulu! with seat in the 6ity of /avao for 4ranch I! 6otabato 6ity for 4ranch II and 1,a i, 6ity for 4ranch III. !ectio+ 143. 8udges of Agrarian Relations $ The judicial function of the 6ourts of Agrarian -elations shall be vested in an 3#ecutive Eudge and the -egional /istrict Eudges! who shall be appointed fro ti e to ti e! depending on the need for their services! by the )resident of the )hilippines with the consent of the 6o ission on Appoint ents% )rovided! however! That the 3#ecutive Eudge and the eight Associate Eudges! at the ti e of the approval of this 6ode! of the 6ourt of Agrarian -elations established and organi,ed under -epublic Act 0u bered Twelve hundred and si#ty-seven! shall continue as Agrarian Eudges without need of new appoint ents by the )resident of the )hilippines and new confir ation of the 6o ission on Appoint ents% )rovided! further! That upon the approval of this 6ode! the said 3#ecutive Eudge shall continue as such with authority to e#ercise the usual ad inistrative functions over the 6ourt of Agrarian -elations not inco patible with the provisions of this 6hapter and shall have his office in 2anila without prejudice to his holding court in any district where the require ents of the service so warrant! and the eight Associate Eudges shall be assigned as -egional /istrict Eudges by the 3#ecutive Eudge to any of the regional districts as constituted in the preceding "ection. !ectio+ 144. 6ualifications of 8udges2 Tenure of /ffice2 Compensation - 0o person shall be appointed as 3#ecutive Eudge or -egional /istrict Eudge unless he has been a citi,en of the )hilippines for ten years and has practiced law in the )hilippines for a period of not less than ten years or has held during a like period! within the )hilippines! an office requiring ad ission to the practice of law in the )hilippines as an indispensable requisite. -egional /istrict Eudges shall be appointed to serve during good behavior! until they reach the age of seventy years or beco e incapacitated to discharge the duties of their office! unless sooner re oved in accordance with law. The judges ay be suspended or re oved in the sa e *irst Instance% anner and upon the sa e grounds as judges of the 6ourt of

The 3#ecutive Eudge shall receive an annual co pensation which shall be equal to that allowed or ay hereafter be allowed for judges of the 6ourt of *irst Instance and the -egional /istrict Eudges shall receive an annual co pensation of one thousand pesos less than that of the 3#ecutive Eudge. !ectio+ 145. Lea%e Pri%ileges2 Tra%eling Expenses - Eudges of the 6ourts of Agrarian -elations shall be entitled to sa e retire ent and leave privileges now granted or ay hereafter be granted to judges of the court of *irst Instance. They shall be entitled to traveling e#penses when perfor ing their duties outside official stations. !ectio+ 14-. 9acation of Courts of Agrarian Relations - The yearly vacation of 6ourts of Agrarian -elations shall begin with the first of April and close with the first of Eune each year. !ectio+ 14.. Assignment of 8udges to 9acation Duty - /uring the onth of Eanuary of each year the 3#ecutive Eudge shall issue an order na ing the judges who are to re ain on duty during the court vacation of that year; and! consistently with the require ents of the judicial service! the assign ent shall be so ade that no judge shall be assigned to vacation duty! unless upon his own request! with greater frequency than once in two years. "uch order shall specify! in the case of each judge assigned to vacation duty! the territory over which in addition to his own district his authority as vacation judge shall e#tend. The 3#ecutive Eudge ay fro ti e to ti e conditions or e ergencies ay require. odify his order assigning the judges to vacation duty as newly arising

A judge assigned to vacation duty shall not ordinarily be required to hold court during such vacation; but the 3#ecutive Eudge ay! when in his judg ent the e ergency shall require! direct any judge assigned to vacation duty to hold during the vacation a special ter of court in any district.

!ectio+ 14/. 8udges of Regional Districts - *our judges shall be co issioned for each of the fourth and fifth -egional /istricts; three judges shall be co issioned for each of the third! si#th! seventh! ninth! eleventh and fifteenth -egional /istricts; and two judges for each of the other -egional /istricts. !ectio+ 149. /ath of /ffice - 4efore entering upon the discharge of the duties of their office! the judges shall take and subscribe to an oath of office in accordance with the provisions of "ection twenty-three of the -evised Ad inistrative 6ode. !ectio+ 150. Di%ision of 3usiness 3et7een 3ranches - All business appertaining to the 6ourts of Agrarian -elations of each -egional /istrict shall be equitably distributed a ong the judges of the branches in such anner as shall be agreed upon by the judges the selves. "hould the judges fail to agree on the distribution of business! then the 3#ecutive Eudge shall ake the distribution. !ectio+ 151. 8udges# Certification as to -or5 Completed - The judges of the 6ourts of Agrarian -elations shall certify at the end of each onth that all petitions and otions in all cases pending decision or resolution for a period of thirty days fro sub ission by the parties have been deter ined and decided before the date of the aking of the certificate. 0o leave shall be granted and no salary shall be paid without such certificate. !ectio+ 15,. /fficial Station of Regional District 8udges - +ithin thirty days after the approval of this 6ode! the 3#ecutive Eudge shall issue an order designating the official station of the judges of the branches of each of the -egional /istricts. !ectio+ 153. Time and Place of .olding Court - "essions of the 6ourt shall be convened on all working days when there are cases ready for trial or other court business to be dispatched. The hours for the daily session of the 6ourt shall be fro nine to twelve in the orning! and fro three to five in the afternoon! e#cept on "aturdays! when a orning session only shall be required% but the judge ay e#tend the hours of session whenever in his judg ent it is proper to do so. The judge! in his discretion! ay order that but one session per day shall be held instead of two! at such hours as he ay dee e#pedient for the convenience both of the 6ourt and of the public; but the nu ber of hours that the 6ourt shall be in session per day shall be not less than five. "essions of the 6ourt shall be held at the places of the official station of the respective judges% )rovided! however! That whenever necessary in the interest of speedy and ine#pensive justice and litigation! a judge shall hold court in the unicipality where the subject atter of the dispute is located! utili,ing the sala of the local justice of the peace court for this purpose. A brief onthly report which shall be sub itted within the first five days of the succeeding onth showing the nu ber and nature of the cases tried in his sala! the place of hearing in each case! the progress of the litigation with corresponding dates and the disposition ade thereon shall be rendered by every judge under his signature and copies thereof shall be furnished the 3#ecutive Eudge! who shall co pile and report in an appropriate for the decisions pro ulgated in i portant cases. A judge who fails or neglects to ake his report shall! upon first offense! be liable to warning by the 3#ecutive Eudge! and upon repeated failure or neglect ay be suspended or re oved fro office. !ectio+ 154. 8urisdiction of the Court - The 6ourt shall have original and e#clusive jurisdiction over% &:' All cases or actions involving atters! controversies! disputes! or oney clai s arising fro agrarian relations% )rovided! however! That all cases still pending in the 6ourt of Agrarian -elations! established under -epublic Act 0u bered Twelve hundred and si#ty-seven! at the ti e of the effectivity of this 6ode! shall be transferred to and continued in the respective 6ourts of Agrarian -elations within whose district the sites of the cases are located; &;' All cases or actions involving violations of 6hapters I and II of this 6ode and -epublic Act 0u ber 3ight hundred and nine; and &<' 3#propriations to be instituted by the $and Authority% )rovided! however! That e#propriation proceedings instituted by the $and Tenure Ad inistration pending in the 6ourt of *irst Instance at the ti e of the effectivity of this 6ode shall be transferred to and continued in the respective 6ourts of Agrarian -elations within whose district the subject atter or property is located. !ectio+ 155. Po7ers of the Court2 Rules and Procedures - The 6ourts of Agrarian -elations shall have all the powers and prerogatives inherent in or belonging to the 6ourt of *irst Instance.

The 6ourts of Agrarian -elations shall be governed by the -ules of 6ourt% )rovided! That in the hearing! investigation and deter ination of any question or controversy pending before the ! the 6ourts without i pairing substantial rights! shall not be bound strictly by the technical rules of evidence and procedure! e#cept in e#propriation cases. !ectio+ 15-. Appeals - Appeals fro an order or decision of the 6ourts of Agrarian -elations ay be taken to the 6ourt of Appeals on questions of fact and of fact and law or to the "upre e 6ourt on pure questions of law! as the case ay be! in accordance with rules governing appeals fro the 6ourt of *irst Instance as provided in the -ules of 6ourt. !ectio+ 15.. Detail of 8udges to Another District - +henever any judge in any of the 6ourt shall certify to the 3#ecutive Eudge that the condition of the docket in his 6ourt is such as to require the assistance of an additional judge! or when there is any vacancy in any 6ourt! the 3#ecutive Eudge ay! in the interest of justice! with the approval of the "upre e 6ourt! assign any judge of the 6ourt of Agrarian -elations whose docket per its his te porary absence fro said 6ourt! to hold session in the 6ourt needing such assistance or where such vacancy e#ists. +henever a judge appointed or assigned in any branch of the 6ourt shall leave his district by transfer or assign ent to another 6ourt of equal jurisdiction without having decided a case totally heard by hi and which was duly argued or opportunity given for argu ent to the parties of their counsel! it shall be lawful for hi to prepare and sign his decision in said case anywhere within the )hilippines and send the sa e by registered ail to the clerk of court to be filed in the 6ourt as of the date when the sa e was received by the clerk! in the sa e anner as if the judge had been present in the 6ourt to direct the filing of the judg ent% )rovided! however! That if a case has been heard only in part! the "upre e 6ourt! upon petition of any of the interested parties to the case and the reco endation of the respective district judge! ay also authori,e the judge who has partly heard the case to continue hearing and to decide said case notwithstanding his transfer or appoint ent to another court of equal jurisdiction. !ectio+ 15/. Personnel of the Courts of Agrarian Relations &:' 6ourt 6o issioners; Hualifications and 6o pensation - There shall be twenty-four 6ourt 6o issioners who shall receive an annual co pensation of nine thousand pesos each and shall be appointed by the )resident with the consent of the 6o ission on Appoint ents. A 6ourt 6o issioner shall be a e ber of the )hilippine 4ar and ust have been engaged in the practice of law for five years or ust have held a position in the govern ent requiring the qualifications of a lawyer for the sa e period. A 6ourt 6o issioner ay be assigned by the 3#ecutive Eudge to assist in the hearing and investigation of cases. "ubject to the latter(s direction and supervision! he ay hear evidence for the 6ourt on any disputed point or issue in any given case or cases and shall after said hearing sub it a report of all the cases heard by hi together with the records thereof within the period prescribed by the 6ourt. /uring the hearing he ay rule upon questions of pleading and procedure but not on the erits of the case. &;' 6lerks of 6ourt; Hualifications! /uties! 6o pensation and 4ond - There shall be as any 6lerks of 6ourt as there are judges! who shall be appointed by the )resident of the )hilippines with the consent of the 6o ission on Appoint ents. /eputy 6lerks of 6ourt and such other e ployees as ay be required shall be appointed by the 3#ecutive Eudge! subject to 6ivil "ervice law! rules and regulations. 0o person shall be eligible for appoint ent as 6lerk of 6ourt unless he is duly authori,ed to practice law in the )hilippines. 4efore entering upon the discharge of the duties of his office! he shall file a bond in the a ount of ten thousand pesos in the sa e anner and for as required of the 6lerk of the "upre e 6ourt! such bond to be approved by! and filed with! the Treasurer of the )hilippines and shall be subject to inspection by interested parties. The 6lerk of 6ourt shall require his deputy to give an adequate bond as security against loss by reason of his wrong-doing or gross negligence. The 6lerks of 6ourt shall each receive an annual co pensation of seven thousand two hundred pesos. They shall e#ercise the sa e powers and perfor the sa e duties on all atters within the jurisdiction of the 6ourts as those e#ercised by the 6lerks of 6ourt of the 6ourts of *irst Instance. 6lerks of 6ourts and other subordinate e ployees of the 6ourts of Agrarian -elations shall! for ad inistrative purposes! belong to the /epart ent of Eustice; but in the perfor ance of their duties! they shall be subject to the supervision of the judges of the 6ourt to which they respectively pertain.

The 6o issioners! otherwise known as .earing 1fficers of the 6ourt of Agrarian -elations! as well as the 6lerks of 6ourt at the ti e of the approval of this 6ode! shall continue as such without the need of new appoint ent by the )resident of the )hilippines and new confir ation by the 6o ission on Appoint ents. !ectio+ 159. Appropriation - There is hereby appropriated the su of three illion five hundred thousand pesos! or so uch thereof as ay be necessary! out of the unappropriated funds in the )hilippine Treasury for e#penses for courtroo s and court offices! including equip ent for the 6ourts and their personnel! for salaries! and for other necessary e#penses that ay be incurred in carrying out the provisions of this 6hapter. The a ount appropriated shall be carried in succeeding appropriations for the 6ourts of Agrarian -elations. CHA*TER @ O%% CE O% AGRAR AN CO&N!EL !ectio+ 1-0. Creation of /ffice of Agrarian Counsel - To strengthen the legal assistance to agricultural lessees and agricultural owner-cultivators referred to in this 6ode! the Tenancy 2ediation 6o ission is hereby e#panded and shall hereafter be known as the 1ffice of the Agrarian 6ounsel. The head of the 1ffice shall hereafter be known as Agrarian 6ounsel and shall have the rank! qualifications and salary of *irst Assistant "olicitor 9eneral. .e shall be assisted by a /eputy Agrarian 6ounsel! who shall have the rank! qualifications and salary of Assistant "olicitor 9eneral. The Agrarian 6ounsel and /eputy Agrarian 6ounsel shall be appointed by the )resident with the consent of the 6o ission on Appoint ents of 6ongress and shall be under the direct supervision of the "ecretary of Eustice. !ectio+ 1-1. Special Attorneys - There is hereby created in the 1ffice of the Agrarian 6ounsel eighty additional positions of "pecial Attorneys! who shall be appointed by the )resident upon reco endation of the "ecretary of Eustice and with the consent of the 6o ission on Appoint ents. They shall have the rank! qualifications and salary provided by law for a solicitor in the 1ffice of the "olicitor 9eneral with the lowest rank. !ectio+ 1-,. Appointment of Subordinate /fficials - The Agrarian 6ounsel shall appoint the subordinate officials and e ployees of the 1ffice of Agrarian 6ounsel! subject to civil service rules and regulations! fi# their co pensation and prescribe their duties. The co pensation of special attorneys transferred to the 1ffice of Agrarian 6ounsel shall be fi#ed on salary scales corresponding to solicitors of the 1ffice of the "olicitor 9eneral% )rovided! That in the fi#ing of their salary seniority in rank shall be taken into account. The Agrarian 6ounsel shall have the power to organi,e such divisions and sections as will insure the 1ffice. a#i u efficiency of

!ectio+ 1-3. )unctions of the /ffice of Agrarian Counsel - It shall be the responsibility of the 1ffice of the Agrarian counsel! upon proper notification by the party concerned or by the association or organi,ation to which belongs! to represent agricultural lessees! agricultural far workers and agricultural owner-cultivators referred to in this 6ode who cannot engage the services of co petent private counsel in cases before the 6ourt of Agrarian -elations. !ectio+ 1-4. Authority to Administer /ath - The Agrarian 6ounsel! the /eputy Agrarian 6ounsel and the "pecial Attorneys of the 1ffice of Agrarian 6ounsel are hereby authori,ed to ad inister oaths free of charge. !ectio+ 1-5. Appropriations - There is hereby appropriated! in addition to the appropriation of the Tenancy 2ediation 6o ission for *iscal Jear :D>=! the su of three illion pesos! or so uch thereof as ay be necessary! out of the unappropriated funds in the 0ational Treasury! for salaries! wages! purchase of otor vehicles! supplies! equip ent! and other sundry e#penses. The a ount appropriated herein shall be carried in the appropriations for the 1ffice of the Agrarian 6ounsel in the 9eneral Appropriations Acts for succeeding fiscal years. CHA*TER @ GENERAL *ROV ! ON! !ectio+ 1--. Definition of Terms - As used in 6hapter I of this 6ode% &:' "Agricultural $and" eans land devoted to any growth! including but not li ited to crop lands! salt beds! fish ponds! idle land and abandoned land as defined in paragraphs :C and :D of this "ection! respectively. &;' "Agricultural lessee" eans a person who! by hi self and with the aid available fro within his i ediate far household! cultivates the land belonging to! or possessed by! another with the latter(s consent for purposes of

production! for a price certain in oney or in produce or both. It is distinguished fro the 6ivil 6ode of the )hilippines.

civil lessee as understood in

&<' "Agricultural lessor" eans a person! natural or juridical! who! either as owner! civil law lessee! usufructuary! or legal possessor! lets or grants to another the cultivation and use of his land for a price certain. &=' "Agricultural year" eans the period of ti e required for raising a particular agricultural product! including the preparation of the land! sowing! planting and harvesting of crops and! whenever applicable! threshing of said crops% )rovided! however! That in case of crops yielding ore than one harvest fro planting! "agricultural year" shall be the period fro the preparation of the land to the first harvest and thereafter fro harvest to harvest. In both cases! the period ay be shorter or longer than a calendar year. &A' "6ourt" eans the 6ourt of Agrarian -elations.

&>' *air rental value" eans the value not in e#cess of allowable depreciation plus si# per cent interest per annu on the invest ent co puted at its arket value% )rovided! That the fair rental value for work ani al or ani als and far i ple ents used to produce the crop shall not e#ceed five per cent of the gross harvest for the work ani al or ani als and five per cent for i ple ents. &B' "*ar i ple ents" eans hand tools or achines ordinarily e ployed in a far enterprise.

&C' "I ediate far household" eans the e bers of the fa ily of the lessee or lessor and other persons who are dependent upon hi for support and who usually help hi in his activities. &D' "Incapacity" eans any cause or circu stance which prevents the lessee fro other obligations under this 6ode. fulfilling his contractual and

&:?' "Inspect" eans to enter! e#a ine and observe. 8nder no circu stance! however! shall such entrance! e#a ination and observation be utili,ed to co it any act of inti idation or coercion nor shall it be utili,ed to i pair the civil rights of the individuals affected. &::' ")roven far practices" eans sound far ing practices generally accepted through usage or officially reco ended by the Agricultural )roductivity 6o ission for a particular type of far . &:;' "+ork ani als" etc. eans ani als ordinarily e ployed in a far enterprise! such as carabaos! horses! bullocks!

&:<' ")ersonal cultivation" eans cultivation by the lessee or lessor in person and5or with the aid of labor fro within his i ediate household. As used in 6hapter II% &:=' "*ar e ployer" includes any person acting directly or indirectly in the interest of a far e ployer whether for profit or not! as well as a labor contractor! but shall not include any labor organi,ation &otherwise than when acting as a far e ployer' or anyone acting in the capacity of an officer or agent of such labor organi,ation. &:A' "*ar worker" includes any agricultural wage! salary or piece but is not li ited to a far worker of a particular far e ployer unless this 6ode e#plicitly states otherwise and any individual whose work has ceased as a consequence of! or in connection with! a current agrarian dispute or an unfair labor practice and who has not obtained a substantially equivalent and regular e ploy ent. +henever the ter e ployee. "far worker" is used in this 6ode! it shall be understood to include far laborer and5or far

&:>' "*ar workers( organi,ation" includes any union or association of far workers which e#ists! in whole or in part! for the purpose of collective bargaining or dealing with far e ployers concerning ter s and conditions of e ploy ent.

&:B' "Agrarian dispute" eans any controversy relating to ter s! tenure or conditions of e ploy ent! or concerning an association or representation of persons in negotiating! fi#ing! aintaining! changing! or seeking to arrange ter s or conditions of e ploy ent! regardless of whether the disputants stand in the pro#i ate relation of far e ployers and e ployees. As used in 6hapter III of this 6ode% &:C' "Idle lands" eans land not devoted directly to any crop or to any definite econo ic purpose for at least one year prior to the notice of e#propriation e#cept for reasons other than force ajeure or any other fortuitous event but used to be devoted or is suitable to such crop or is contiguous to land devoted directly to any crop and does not include land devoted per anently or regularly to other essential and ore productive purpose. &:D' "Abandoned lands" eans lands devoted to any crop at least one year prior to the notice of e#propriation! but which was not utili,ed by the owner for his benefit for the past five years prior to such notice of e#propriation. &;?' "3cono ic fa ily-si,ed far units" eans an area of far land that per its efficient use of labor and capital resources of the far fa ily and will produce an inco e sufficient to provide a odest standard of living to eet a far fa ily(s needs for food! clothing! shelter! and education with possible allowance for pay ent of yearly install ents on the land! and reasonable reserves to absorb yearly fluctuations in inco e. &;:' ""uitably for econo ic fa ily-si,e far " refers to situations where a parcel of land whose characteristics! such as cli ate! soil! topography! availability of water and location! will support a far fa ily if operated in econo ic fa ily-si,e far units and does not include those where large-scale operations will result in greater production and ore efficient use of land. &;;' "Agricultural owner-cultivator" eans any person who! providing capital and cultivates his own land with the aid of his i ediate fa ily and household. anage ent! personally

&;<' "1wner- anager" eans the owner of a parcel of land devoted to agricultural production who provides the capital and anage ent in the far enterprise. &;=' "$abor ad inistration" eans cases where far workers are e ployed wholly in the agricultural production.

&;A' ""hare tenancy" as used in this 6ode eans the relationship which e#ists whenever two persons agree on a joint undertaking for agricultural production wherein one party furnishes the land and the other his labor! with either or both contributing any one or several of the ite s of production! the tenant cultivating the land personally with the aid of labor available fro e bers of his i ediate far household! and the produce thereof to be divided between the landholder and the tenant. &;>' "Ta# free" in reference to bonds and shares of stock issued by the $and 4ank as pay ent for acquired private agricultural land shall ean all govern ent ta#es! e#cept gift ta# and inheritance ta#. !ectio+ 1-.. Penal Pro%isions &:' 7iolation of the provisions of "ection thirteen and twenty-seven and paragraph : of "ection thirty-one of this 6ode shall be punished by a fine not e#ceeding one thousand pesos or i prison ent not e#ceeding one year or both in the discretion of the court. In case of juridical persons! the anager or the person who has charge of the anage ent or ad inistration of the property or! in his default! the person acting in his stead! shall be liable under this "ection. &;' Any person! natural or juridical! who induces another! as tenant! to e#ecute or enter into a share tenancy contract with hi self or with another in violation of this 6ode shall be punished by a fine not e#ceeding five thousand pesos with subsidiary i prison ent in accordance with the -evised )enal 6ode% )rovided! That the e#ecution of a share tenancy contract shall be considered pri a facie evidence of such induce ent as to the owner! civil law lessee! usufructuary or legal possessor. In case of juridical persons! the anager or the person who has charge of the anage ent or ad inistration of the property or! in his default! the person acting in his stead! shall be liable under this "ection.

&<' Any person who e#ecutes an affidavit as required by "ection thirteen of 6hapter I! knowing the contents thereof to be false! shall be punished by a fine not e#ceeding one thousand pesos or i prison ent of not ore than one year! or both! in the discretion of the court. &=' Any person who wilfully violates the provisions of "ections forty and forty-one of this 6ode shall be punished by a fine of not less than one hundred pesos nor ore than one thousand pesos or by i prison ent of not less than one onth nor ore than one year! or both such fine and i prison ent! in the discretion of the court. If any violation of "ections forty and forty-one of this 6ode is co itted by a corporation! partnership or association! the anager or! in his default! the person acting as such when the violation took place shall be cri inally responsible. &A' Any person who wilfully violates the provisions of "ection forty-two of this 6ode shall! upon conviction thereof! be subject to a fine of not ore than two thousand pesos! or upon second conviction! to i prison ent of not ore than one year or both such fine and i prison ent! in the discretion of the court. If any violation of the provisions of "ection forty-two of this 6ode is co itted by a corporation! partnership or association! the anager or! in his default! the person acting as such when the violation took place shall be cri inally responsible. !ectio+ 1-/. Pending Application for *echani4ation - Any provision of this 6ode to the contrary notwithstanding! any application for echani,ation where corresponding certifications for suitability for echani,ation and for availability for resettle ent by the Agricultural Tenancy 6o ission and the 0ational -esettle ent and -ehabilitation Ad inistration! respectively! have been issued and proper notices served on the tenants at least two onths prior to the approval of this 6ode shall be given due course and decided in accordance with the pertinent provisions and require ents of -epublic Act 0u bered 3leven hundred and ninety-nine! as a ended. !ectio+ 1-9. Personnel of Reorgani4ed or Abolished Agencies - )er anent officials and e ployees of all e#isting govern ent agencies which are abolished or reorgani,ed under this 6ode! subject to 6ivil "ervice -ules and regulations! shall be absorbed and shall not be divested of their positions e#cept presidential appointees% )rovided! That those presidential appointees who cannot be absorbed and such officials and e ployees who prefer to be laid-off shall be given gratuity equivalent to one onth salary for every year of service but in no case ore than twenty-four onth(s salary! in addition to all benefits to which they are entitled under e#isting laws and regulations. To carry out the provisions of this "ection! there is hereby appropriated the su unappropriated funds in the 0ational Treasury. of five hundred thousand pesos out of the

!ectio+ 1.0. 3udgeting and Disbursing of Appropriated )unds - Any provision of this 6ode or of any e#isting law to the contrary notwithstanding! not ore than si#ty per centu of the specific appropriations provided in this 6ode for operating e#penditures shall be used for personnel services% )rovided! That in the case of the appropriations for the Agricultural )roductivity 6o ission not ore than twenty per centu shall be spent for office personnel and other ad inistrative e#penses thereof% )rovided! further! That the total operating e#penditures of the Agricultural 6redit Ad inistration shall not e#ceed three per centu of its total capitali,ation in addition to the allowance for losses under "ection one hundred ten% )rovided! further ore! That all une#pended balances of all appropriations provided in this 6ode for operating e#penditures shall revert to the 0ational Treasury at the end of the fiscal year in confor ity with the provisions of "ection twenty-three of -epublic Act 0u bered 0ine hundred ninety-two% And provided! finally! That all the financial require ents of the various agencies established in this 6ode for their operation e#cept the $and 4ank and the Agricultural 6redit Ad inistration shall be proposed in the )resident(s budget in order that such appropriation as ay be necessary therefor ay be provided in the 9eneral Appropriation Acts for the succeeding fiscal years. !ectio+ 1.1. Separability of Pro%isions - If! for any reason! any section or provision of this 6ode shall be questioned in any court! and shall be held to the unconstitutional or invalid! no other section or provision of this 6ode shall be affected thereby. !ectio+ 1.,. Prior nconsistent La7s - All laws or parts of any law inconsistent with the provisions of this 6ode are hereby repealed. !ectio+ 1.3. Effecti%e Date - This 6ode shall take effect upon its approval. Approved% August C! :D><

*RE! $ENT AL $ECREE No. 15, 073c6 13, 19.3 *ROH " T NG THE E0*LO(0ENT OR &!E O% !HARE TENANT! N CO0*L( NG # TH REA& RE0ENT! O% LA# REGAR$ NG ENTR(, OCC&*AT ON, 0*ROVE0ENT AN$ C&LT VAT ON O% *&"L C LAN$!, A0EN$ NG %OR THE *&R*O!E CERTA N *ROV ! ON! O% CO00ON#EALTH ACT NO. 141, A! A0EN$E$, OTHER# !E >NO#N A! THE *&"L C LAN$ ACT +.3-3A"! one of the objectives of the "tate is to abolish tenancy and all its attendant evils! and to e ancipate the tenant fro the bondage of the soil so as to secure for hi a dignified e#istence consistent with his role as the basic foundation of our society; +.3-3A"! several applicants for! or holders of! lands of the public do ain do not occupy and cultivate the lands the selves but have resorted to the pernicious practice of e ploying or using tenants for the purpose of co plying with the entry! occupation and cultivation require ents of the )ublic $and Act; +.3-3A"! although the courts in the past have invariably upheld the right of public land applicants to use tenants in the occupation and cultivation of the lands applied for the ! such ruling is no longer in keeping with the state policies and concepts of the 0ew 6onstitution; la7phi:"net 01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers vested in e by the 6onstitution as 6o ander-in-6hief of all the Ar ed *orces of the )hilippines! and pursuant to )rocla ation 0o. :?C:! dated "epte ber ;:! :DB; and 9eneral 1rder 0o. :! dated "epte ber ;;! :DB;! as a ended! do hereby decree and order the following% :. It shall be an essential condition in every application for! or grant of! agricultural lands of the public do ain under the provisions of 6o onwealth Act 0o. :=:! as a ended! that the applicant or his transferee shall enter and work upon! i prove and cultivate the land by .I2"3$* within the periods prescribed for the various odes of concession under the said Act. ;. The e ploy ent or use of share tenants in whatever for for purposes of co plying with the require ents of the )ublic $and Act regarding entry! occupation! i prove ent and cultivation! is hereby prohibited and any violation hereof shall constitute a ground for the denial of the application! cancellation of the grant and forfeiture of i prove ents on the land in favor of the govern ent. <. $ands covered by application or grants that have been rejected! cancelled or revoked for violation of this /ecree shall be disposed of to other qualified persons who will till the land the selves but the share tenant actually tilling the land shall be entitled to preferential right to acquire the portion actually tilled by hi if he is not otherwise disqualified to apply for the sa e under the provisions of the )ublic $and Act. =. Agricultural lands originally tilled under the provisions of the )ublic $and Act ay be sold to individuals not otherwise disqualified to acquire the sa e subject to the e#isting provisions of the )ublic $and Act. .owever! it shall be an essential condition in such transactions that the vendee shall cultivate the land hi self and shall not e ploy or use share tenants in the use or enjoy ent thereof. A. Any provision of 6o onwealth Act 0o. :=:! as a ended! otherwise known as the )ublic $and Act! or any rule or regulation which is contrary to! or inconsistent herewith! is hereby a ended or repealed as the case ay be. >. This /ecree shall take effect i ediately.

/one in the 6ity of 2anila! this :<th day of 2arch! in the year of 1ur $ord! nineteen hundred and seventy-three.

*RE! $ENT AL $ECREE No. 5/3 No4e2be3 1-, 19.4 *RE!CR " NG *ENALT E! %OR THE &NLA#%&L E?ECT0ENT, E@CL&! ON, RE0OVAL OR O&!TER O% TENANT1%AR0ER! %RO0 THE R %AR0HOL$ NG! +.3-3A"! I have declared in various decrees! letters of instructions and other orders! as well as in other oral pronounce ents that the land refor under the 0ew "ociety; y speeches and

+.3-3A"! the deter ination of the 9overn ent to i ple ent the progra has been de onstrated by various acts! including the revitali,ation of agencies i ple enting the progra such as the /epart ent of Agrarian -efor and the $and 4ank! and the channeling of a ajor portion of govern ent resources to the progra ! as well as the pro ulgation of decrees! letters of instructions and other orders designed to hasten the i ple entation of the progra and the protection of the tenants; +.3-3A"! notwithstanding all the foregoing! there re ains a strong resistance to the progra on the part of so e of our citi,ens! including govern ent officials! and this has been ade evident by direct acts such as the ejection of tenantfar ers notwithstanding the prohibition against eject ent of subtle sche es intended to obstruct the progress of the progra or to keep the tenants in perpetual bondage under a feudalistic syste of landownership; +.3-3A"! these acts or sche es against a vital progra of the 0ew "ociety cannot be allowed! and will not be allowed! to re ain unpunished or without sanction fro the 9overn ent. 01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers in the 6onstitution! do hereby decree and order% e vested by

!ectio+ 1. In view of the deter ination of the 9overn ent to e ancipate the tenant-far ers fro a feudalistic syste of landownership! it is hereby declared a policy of the "tate! in furtherance of its desire to protect the tenant-far ers! that no acts or sche es designed to obstruct the i ple entation of land refor progra or obviously in derogation of the rights of tenant-far ers shall re ain unpunished. !ectio+ ,. Any judge of the 6ourt of Agrarian -elations! 6ourt of *irst Instance! 6ity or 2unicipal 6ourt or any fiscal or any investigating officer! including e bers of the Ar ed *orces of the )hilippines! who shall order the eject ent! ouster! e#clusion or re oval of any tenant-far er fro the land tilled by hi or who shall take cogni,ance of any eject ent case or any other si ilar case designed to e#clude! oust! eject or re ove a tenant-far er fro the land tilled by hi without first co plying with the provisions of )residential /ecree 0o. <:> shall! upon conviction! be punished by prision ayor and perpetual absolute disqualification. !ectio+ 3. Any official or e ployee of the 9overn ent! including e bers of the Ar ed *orces of the )hilippines! who e#ecutes and order for the ouster! re oval! e#clusion or eject ent of a tenant-far er! knowing that the order is unlawful as provided under "ection ; of this /ecree shall! upon conviction! suffer the penalty of prision correccional and perpetual absolute disqualification. !ectio+ 4. 8nless previously authori,ed by the "ecretary of Agrarian -efor ! any land-owner who converts his tenanted land pri arily devoted to rice and corn into any non-agricultural use or to the production of any other crop as a eans to avoid the application of the land refor laws or decrees to his landholdings and to dispossess his tenant-far ers of the land tilled by the shall! upon conviction! suffer the penalty of prision ayor or a fine ranging fro )A!???.?? to ):?!???.??! or both! at the discretion of the court. The sa e penalty shall be i posed on a landowner who by any other act! sche e or strategy shall eject! e#clude! re ove or oust and5or causes the ouster! e#clusion! re oval or eject ent of a tenant-far er fro his far -holding in contravention of decrees! laws! and other orders on land refor . !ectio+ 5. -epealing 6lause. All provisions of e#isting laws! orders! decrees! rules and regulations inconsistent herewith are hereby repealed or odified accordingly. !ectio+ -. 3ffectivity of this /ecree. This /ecree shall take effect i ediately.

/103 in the 6ity of 2anila! this :>th day of 0ove ber! in the year of 1ur $ord! nineteen hundred and seventy-four.

*RE! $ENT AL $ECREE No. /1- Octobe3 ,1, 19.5 *ROV $ NG THAT TENANT1%AR0ER!BAGR C&LT&RAL LE!!EE! !HALL *A( THE LEA!EHOL$ RENTAL! #HEN THE( %ALL $&E AN$ *ROV $ NG *ENALT E! THERE%OR +.3-3A"! under )residential /ecree 0o. ;! dated "epte ber ;>! :DB;! the whole country has been declared a land refor area; +.3-3A"! the said )residential /ecree covers only tenanted rice and corn landholdings; +.3-3A"! while the i ple enting rules and regulations of presidential /ecree 0o. ;B have not yet been issued co pletely! the status quo shall be aintained between the parties! that is! the landowner shall continue to pay the land ta#es thereon if the said landholding is not yet covered by a 6ertificate of $and Transfer! while on the other hand the tenant-far er who is now called agricultural lessee shall continue to pay the rental to the landowner whether or not his landholding planted to rice and corn is already covered by a 6ertificate of $and Transfer; +.3-3A"! such pay ent of rental shall continue until and after the valuation of the property shall have been deter ined or agreed upon between the landowner and the deter ined of Agrarian -efor which! in turn! will beco e the basis of co puting the a orti,ation pay ent to be ade by the agricultural lessee in :A years with >@ interest per annu under )residential /ecree 0o. ;B; +.3-3A"! it is known that despite the presidential pronounce ents that they shall continue to pay the rentals to the landowners5agricultural lessors! so e agricultural lessees have stopped and refused to pay their leasehold rentals to their landowners5agricultural lessors on the assu ption that! once the 6ertificates of $and Transfer are issued in their favor! they are no longer obliged to pay the said leasehold rentals; +.3-3A"! this practice is detri ental to the e#peditious i ple entation of land refor B! :DBA! it indicates resistance to the govern ent(s land refor progra and its goals; because! as I pointed out on 2ay

+.3-3A"! it has always been the policy of the govern ent to equali,e the rights and obligations of the landowners5agricultural lessors and the agricultural lessees; 01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers vested in the 6onstitution! do hereby decree and order% !ectio+ 1. That the continuing and deliberate refusal of the agricultural lessees to pay their leasehold rentals to the landowners5agricultural lessors cannot be countenanced and shall not re ain unchecked or unpunished; !ectio+ ,. That any agricultural lessee of a rice or corn land under )residential /ecree 0o. ;B who deliberately refuses and5or continues to refuse to pay the rentals or a orti,ation pay ents when they fall due for a period of two &;' years shall! upon hearing and final judg ent! forfeit the 6ertificate of $and Transfer issued in his favor! if his far holding is already covered by such 6ertificate of $and Transfer! and his far holding; !ectio+ 3. That any agricultural lessee whose landholding is not yet covered by a 6ertificate of $and Transfer and who shall continue not to pay his lease rentals or a orti,ation pay ents when they fall due for a period of two &;' years to the landowner5agricultural lessor shall! upon proper hearing and judg ent! lose his right to be issued a 6ertificate of $and Transfer under )residential /ecree 0o. ;B and his far holding; !ectio+ 4. That landholdings subject of forfeiture under the preceding "ection shall be turned over to the "a ahang 0ayon with which the agricultural lessee is affiliated for assign ent to a qualified e ber or e bers of the association whose landholding5s is5are of unecono ic si,e in accordance with the policies laid down by the /epart ent of Agrarian -efor ; !ectio+ 5. That any action for violation of the provisions of the preceding "ections ; and < shall be cogni,able by the 6ourt of Agrarian -elations which is hereby vested with original and e#clusive jurisdiction to try and decide the sa e; !ectio+ -. All provisions of e#isting laws! orders! decrees! and rules and regulations which are inconsistent herewith are hereby repealed or odified accordingly. e by

!ectio+ .. This /ecree shall take effect i

ediately.

/103 in the 6ity of 2anila! this ;:st day of 1ctober! in the year of 1ur $ord! nineteen hundred and seventy-five.

?u+e 10, 19./ )-3"I/30TIA$ /36-33 01. :=;A A0EN$ NG *RE! $ENT AL $ECREE NO. 1040 "( !TRENGTHEN NG THE *ROH " T ON AGA N!T AGR C&LT&RAL !HARE TENANC( AN$ *ROV $ NG *ENALT E! %OR V OLAT ON THEREO%

+.3-3A"! under the provisions of the 6ode of Agrarian -efor s! agricultural share tenancy throughout the country! with the e#ceptions and5or qualifications provided for in said 6ode! has been declared contrary to public policy and auto atically converted into agricultural leasehold; +.3-3A"! under )residential /ecree 0o. ; dated "epte ber ;>! :DB;! the whole country has been proclai ed as a land refor areas; +.3-3A"! notwithstanding such provisions of the 6ode of Agrarian -efor s and )residential /ecree 0o. ;! any landowners! landholders! civil law lessees! legal possessors! and usufructuaries! including persons acting for and in their behalf! particularly in tenanted rice and5or corn lands! still insist on the crop sharing syste to govern the tenancy relationship with their tenants; and cda +.3-3A"! the penal provisions of the 6ode of Agrarian -efor are inadequate to enforce full co pliance with the aforestated declared policy on leasehold and! therefore! there is a need to strengthen said penal provisions by i posing stiffer penalties. 01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers vested in e by the 6onstitution! do hereby decree and order% "36TI10 :. The agricultural leasehold syste shall continue to govern the relationship between the landowner! landholder! civil law lessee! legal possessor! usufructuary or any person acting for and in his behalf! and the tenant-far er in rice and5or corn lands not covered by the land transfer progra under )residential /ecree 0o. ;B as well as in those tenanted lands devoted to other crops with the e#ceptions and5or qualifications provided for in "ections = and <A of the 6ode of Agrarian -efor s. "36TI10 ;. In all cases covered by "ection : hereof! all agricultural leasehold contracts shall! upon de and by either party! be reduced in writing and shall be registered in the for and anner provided for in the 6ode of Agrarian -efor s% )rovided! That the leasehold contract ay be acknowledged either before the unicipal judge of the unicipality where the land is situated or before the field lawyer of the /epart ent of Agrarian -efor duly co issioned as a 0otary )ublic for the province5city where the land is situated. acd "36TI10 <. Any landowner! landholder! civil law! lessee! legal possessor! usufructuary! or any person acting for and in his behalf! who refuse upon the de and by the tenant to co ply with the provisions of "ection : of this /ecree by continuing and aintaining the share tenancy syste ! or any person who induces another to enter into a share tenancy contract! relationship or arrange ent shall! upon conviction! suffer the penalty of two &;' years i prison ent or a fine of not ore than )A!??? or both in the discretion of the court% Pro%ided! That the e#ecution of a share tenancy contract shall be considered prima facie evidence of such induce ent. In the case of judicial persons! the anager or the person who has charge of the anage ent or ad inistration of the property! or in his absence the person acting in his stead! shall be liable under this "ection. "36TI10 =. In case the tenant refuses to enter into a leasehold contract! he ay be proceeded against before the 6ourt of Agrarian -elations under the provisions of "ection =! -epublic Act 0o. <C==! as a ended by -epublic Act 0o. ><CD! and other pertinent provisions of e#isting law. acd "36TI10 A. 7iolations of the penal provisions of this /ecree shall e#clusively be cogni,able by the 6ourt of Agrarian -elations. "36TI10 >. )residential /ecree 0o. :?=? and all other laws! decrees! orders! and rules and regulations! or parts thereof inconsistent herewith are hereby repealed! a ended or odified accordingly. "36TI10 B. eight. This /ecree shall take effect i ediately. /one in the 6ity of 2anila! this :;th day of 8une! in the year of 1ur $ord! nineteen hundred and seventy-

*RE! $ENT AL $ECREE No. 1040 Octobe3 ,1, 19.RE TERAT NG THE *ROH " T ON AGA N!T AGR C&LT&RAL !HARE TENANC( N ALL AGR C&LT&RAL LAN$! AN$ *ROV $ NG *ENALT E! THERE%OR +.3-3A"! under the provisions of the 6ode of Agrarian -efor s! agricultural share tenancy in private agricultural lands covered by )residential /ecree 0o. ;B with the e#ceptions and5or qualifications provided for therein! has been declared contrary to public policy and auto atically converted into agricultural leasehold; +.3-3A"! )residential /ecree 0o. ; proclai ed the whole country as a land refor area;

+.3-3A"! notwithstanding such provisions in the 6ode of Agrarian -efor s and )residential /ecree 0o. ;! any landowners landholders! civil law lessees! legal possessors! usufructuaries of tenanted private agricultural lands! including persons acting for and in their behalf still insist that the cropsharing syste govern the tenancy relationship between the and their tenants; +.3-3A"! the penal provisions of the 6ode of Agrarian -efor s are inadequate to enforce full co pliance with the declared policy on leasehold! and therefore! it is i perative to strengthen said penal provisions by including therein! landholders! civil law lessees! legal possessors! usufructuaries! or persons acting for and in their behalf! and by i posing stiffer penalties; +.3-3A"! the continuation of the feudal agricultural share tenancy syste i ple entation of the Agrarian -efor )rogra of the 0ew "ociety. adversely i pedes and obstructs the

01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers vested in the 6onstitution! do hereby decree and order the following%

e by

!ectio+ 1. The leasehold syste shall govern the relation between the landowner! landholder! civil law lessee! legal possessor! usufructuary! or any person acting for and in behalf! and the tenant-far er in all tenanted private agricultural lands that have co e under or are covered by and subject to the provisions of )residential /ecree 0o. ;B. !ectio+ ,. In all cases covered by "ection : hereof! the e#istence of an actual sharing arrange ent between the landowner! landholder! civil law lessee! legal possessor! usufructuary! or any person acting for and in his behalf! and his tenants shall give rise to the presu ption that such landowner! landholder! civil law lessee! legal possessor! usufructuary or person has continued and aintained! or has entered into a share tenancy contract or relationship with the tenant. !ectio+ 3. The landowner! landholder! civil law lessee! legal possessor! usufructuary! or any person acting for and in his behalf! shall be given one agricultural year fro the pro ulgation of this /ecree before the penal provisions hereof shall operate against hi . In case the tenant is alleged to be unwilling to accept leasehold! then the landowner! landholder! civil law lessee! legal possessor! usufructuary or any person acting for and in his behalf! shall report the atter to the /epart ent of Agrarian -efor which shall i ediately give effect to the provisions of all laws governing tenancy! aking the retroactive whenever necessary and proper to co ply with said laws. !ectio+ 4. The /epart ent of Agrarian -efor this /ecree. is hereby e powered to pro ulgate rules and regulations to i ple ent

!ectio+ 5. The "ecretary of 0ational /efense shall assist the "ecretary of Agrarian -efor /ecree.

in the i ple entation of this

!ectio+ -. Any landowner! landholder! civil law lessee! legal possessor! usufructuary! or any person acting for and in behalf! who shall violate "ection : of this /ecree by continuing and aintaining the share tenancy syste ! or by entering into a share tenancy contract or relationship with another! as tenant! shall! upon conviction! suffer the penalty of prision ayor or a fine ranging fro )A!??? to ):?!???! or both! in the discretion of the court. In the case of juridical persons! the anager or the person who has charge of the anage ent or ad inistration of the property! or in his absence the person acting in his stead! shall be liable under this "ection. !ectio+ .. 7iolations of the penal provision of this /ecree shall e#clusively be cogni,able by the 6ourts of Agrarian -elations.

!ectio+ /. All provisions of e#isting laws! decrees! orders! and rules and regulations inconsistent herewith are hereby repealed or odified accordingly. !ectio+ 9. This /ecree shall take effect i ediately.

/one in the 6ity of 2anila! this ;:st day of 1ctober in the year of 1ur $ord! nineteen hundred and seventy-si#.

*RE! $ENT AL $ECREE No. ,. Octobe3 ,1, 19., $ECREE NG THE E0ANC *AT ON O% TENANT! %RO0 THE "ON$AGE O% THE !O L, TRAN!%ERR NG TO THE0 THE O#NER!H * O% THE LAN$ THE( T LL AN$ *ROV $ NG THE N!TR&0ENT! AN$ 0ECHAN !0 THERE%OR In as uch as the old concept of land ownership by a few has spawned valid and legiti ate grievances that gave rise to violent conflict and social tension! The redress of such legiti ate grievances being one of the funda ental objectives of the 0ew "ociety! "ince -efor ation ust start with the e ancipation of the tiller of the soil fro his bondage!

01+! T.3-3*1-3! I! *3-/I0A0/ 3. 2A-61"! )resident of the )hilippines! by virtue of the powers vested in e by the 6onstitution as 6o ander-in-6hief of all the Ar ed *orces of the )hilippines! and pursuant to )rocla ation 0o. :?C:! dated "epte ber ;:! :DB;! and 9eneral 1rder 0o. : dated "epte ber ;;! :DB;! as a ended do hereby decree and order the e ancipation of all tenant far ers as of this day! 1ctober ;:! :DB;% This shall apply to tenant far ers of private agricultural lands pri arily devoted to rice and corn under a syste sharecrop or lease-tenancy! whether classified as landed estate or not; of

The tenant far er! whether in land classified as landed estate or not! shall be dee ed owner of a portion constituting a fa ily-si,e far of five &A' hectares if not irrigated and three &<' hectares if irrigated; In all cases! the landowner area or will now cultivate it; ay retain an area of not ore than seven &B' hectares if such landowner is cultivating such

*or the purpose of deter ining the cost of the land to be transferred to the tenant-far er pursuant to this /ecree! the value of the land shall be equivalent to two and one-half &; :5;' ti es the average harvest of three nor al crop years i ediately preceding the pro ulgation of this /ecree; The total cost of the land! including interest at the rate of si# &>' per centu fifteen &:A' years of fifteen &:A' equal annual a orti,ations; per annu ! shall be paid by the tenant in

In case of default! the a orti,ation due shall be paid by the far ers( cooperative in which the defaulting tenant-far er is a e ber! with the cooperative having a right of recourse against hi ; The govern ent shall guaranty such a orti,ations with shares of stock in govern ent-owned and govern ent-controlled corporations; 0o title to the land owned by the tenant-far ers under this /ecree shall be actually issued to a tenant-far er unless and until the tenant-far er has beco e a full-fledged e ber of a duly recogni,ed far er(s cooperative; Title to land acquired pursuant to this /ecree or the $and -efor )rogra of the 9overn ent shall not be transferable e#cept by hereditary succession or to the 9overn ent in accordance with the provisions of this /ecree! the 6ode of Agrarian -efor s and other e#isting laws and regulations; The /epart ent of Agrarian -efor the i ple entation of this /ecree. through its "ecretary is hereby e powered to pro ulgate rules and regulations for

All laws! e#ecutive orders! decrees and rules and regulations! or parts thereof! inconsistent with this /ecree are hereby repealed and or odified accordingly. /one in the 6ity of 2anila! this ;:st day of 1ctober! in the year of 1ur $ord! nineteen hundred and seventy-two.

Republic o< t6e *6ilippi+es Co+g3ess o< t6e *6ilippi+es 2etro 2anila Eig6t6 Co+g3ess

Republic Act No. --5.

?u+e 10, 19//

AN ACT N!T T&T NG A CO0*REHEN! VE AGRAR AN RE%OR0 *ROGRA0 TO *RO0OTE !OC AL ?&!T CE AN$ N$&!TR AL CAT ON, *ROV $ NG THE 0ECHAN !0 %OR T! 0*LE0ENTAT ON, AN$ %OR OTHER *&R*O!E! 3e it enacted by the Senate and .ouse of Representati%es of the Philippines in Congress assembled< % CHA*TER *3eli2i+738 C67pte3 !ectio+ 1. Title. K This Act shall be known as the !omprehensi e Agrarian Reform Law of 6788. !ectio+ ,. Declaration of Principles and Policies. K It is the policy of the "tate to pursue a 6o prehensive Agrarian -efor )rogra &6A-)'. The welfare of the landless far ers and far workers will receive the highest consideration to pro ote social justice and to ove the nation toward sound rural develop ent and industriali,ation! and the establish ent of owner cultivatorship of econo ic-si,e far s as the basis of )hilippine agriculture. To this end! a ore equitable distribution and ownership of land! with due regard to the rights of landowners to just co pensation and to the ecological needs of the nation! shall be undertaken to provide far ers and far workers with the opportunity to enhance their dignity and i prove the quality of their lives through greater productivity of agricultural lands. The agrarian refor progra is founded on the right of far ers and regular far workers! who are landless! to own directly or collectively the lands they till or! in the case of other far workers! to receive a just share of the fruits thereof. To this end! the "tate shall encourage and undertake the just distribution of all agricultural lands! subject to the priorities and retention li its set forth in this Act! having taken into account ecological! develop ental! and equity considerations! and subject to the pay ent of just co pensation. The "tate shall respect the right of s all landowners! and shall provide incentives for voluntary land-sharing. The "tate shall recogni,e the right of far ers! far workers and landowners! as well as cooperatives and other independent far ers( organi,ations! to participate in the planning! organi,ation! and anage ent of the progra ! and shall provide support to agriculture through appropriate technology and research! and adequate financial production! arketing and other support services. The "tate shall apply the principles of agrarian refor ! or stewardship! whenever applicable! in accordance with law! in the disposition or utili,ation of other natural resources! including lands of the public do ain! under lease or concession! suitable to agriculture! subject to prior rights! ho estead rights of s all settlers and the rights of indigenous co unities to their ancestral lands. The "tate ay resettle landless far ers and far workers in its own agricultural estates! which shall be distributed to the in the anner provided by law. 4y eans of appropriate incentives! the "tate shall encourage the for ation and far s to be constituted by individual beneficiaries and s all landowners. aintenance of econo ic-si,e fa ily

The "tate shall protect the rights of subsistence fisher en! especially of local co unities! to the preferential use of co unal arine and fishing resources! both inland and offshore.t shall provide support to such fisher en through appropriate technology and research! adequate financial! production and arketing assistance and other services. The "tate shall also protect! develop and conserve such resources. The protection shall e#tend to offshore fishing grounds of

subsistence fisher en against foreign intrusion. *ishworkers shall receive a just share fro arine and fishing resources.

their labor in the utili,ation of

The "tate shall be guided by the principles that land has a social function and land ownership has a social responsibility. 1wners of agricultural lands have the obligation to cultivate directly or through labor ad inistration the lands they own and thereby ake the land productive. The "tate shall provide incentives to landowners to invest the proceeds of the agrarian refor progra to pro ote industriali,ation! e ploy ent and privati,ation of public sector enterprises. *inancial instru ents used as pay ent for lands shall contain features that shall enhance negotiability and acceptability in the arketplace. The "tate ay lease undeveloped lands of the public do ain to qualified entities for the develop ent of capital-intensive far s! and traditional and pioneering crops especially those for e#ports subject to the prior rights of the beneficiaries under this Act. !ectio+ 3. Definitions. K *or the purpose of this Act! unless the conte#t indicates otherwise% &a' Agrarian -efor eans redistribution of lands! regardless of crops or fruits produced! to far ers and regular far workers who are landless! irrespective of tenurial arrange ent! to include the totality of factors and support services designed to lift the econo ic status of the beneficiaries and all other arrange ents alternative to the physical redistribution of lands! such as production or profit-sharing! labor ad inistration! and the distribution of shares of stocks! which will allow beneficiaries to receive a just share of the fruits of the lands they work. &b' Agriculture! Agricultural 3nterprise or Agricultural Activity eans the cultivation of the soil! planting of crops! growing of fruit trees! raising of livestock! poultry or fish! including the harvesting of such far products! and other far activities and practices perfor ed by a far er in conjunction with such far ing operations done by person whether natural or juridical. &c' Agricultural $and refers to land devoted to agricultural activity as defined in this Act and not classified as ineral! forest! residential! co ercial or industrial land. &d' Agrarian /ispute refers to any controversy relating to tenurial arrange ents! whether leasehold! tenancy! stewardship or otherwise! over lands devoted to agriculture! including disputes concerning far workers( associations or representation of persons in negotiating! fi#ing! aintaining! changing! or seeking to arrange ter s or conditions of such tenurial arrange ents. It includes any controversy relating to co pensation of lands acquired under this Act and other ter s and conditions of transfer of ownership fro landowners to far workers! tenants and other agrarian refor beneficiaries! whether the disputants stand in the pro#i ate relation of far operator and beneficiary! landowner and tenant! or lessor and lessee. &e' Idle or Abandoned $and refers to any agricultural land not cultivated! tilled or developed to produce any crop nor devoted to any specific econo ic purpose continuously for a period of three &<' years i ediately prior to the receipt of notice of acquisition by the govern ent as provided under this Act! but does not include land that has beco e per anently or regularly devoted to non-agricultural purposes.t does not include land which has beco e unproductive by reason of force ajeure or any other fortuitous event! provided that prior to such event! such land was previously used for agricultural or other econo ic purpose. &f' *ar er refers to a natural person whose pri ary livelihood is cultivation of land or the production of agricultural crops! either by hi self! or pri arily with the assistance of his i ediate far household! whether the land is owned by hi ! or by another person under a leasehold or share tenancy agree ent or arrange ent with the owner thereof. &g' *ar worker is a natural person who renders service for value as an e ployee or laborer in an agricultural enterprise or far regardless of whether his co pensation is paid on a daily! weekly! onthly or "pakyaw" basis. The ter includes an individual whose work has ceased as a consequence of! or in connection with! a pending agrarian dispute and who has not obtained a substantially equivalent and regular far e ploy ent.

&h' -egular *ar worker is a natural person who is e ployed on a per anent basis by an agricultural enterprise or far . &i' "easonal *ar worker is a natural person who is e ployed on a recurrent! periodic or inter ittent basis by an agricultural enterprise or far ! whether as a per anent or a non-per anent laborer! such as "du aan"! "sacada"! and the like. &j' 1ther *ar worker is a far worker who does not fall under paragraphs &g'! &h' and &i'. &k' 6ooperatives shall refer to organi,ations co posed pri arily of s all agricultural producers! far ers! far workers! or other agrarian refor beneficiaries who voluntarily organi,e the selves for the purpose of pooling land! hu an! technological! financial or other econo ic resources! and operated on the principle of one e ber! one vote. A juridical person ay be a e ber of a cooperative! with the sa e rights and duties as a natural person. CHA*TER Co4e37ge !ectio+ 4. Scope. K The 6o prehensive Agrarian -efor $aw of :DCD shall cover! regardless of tenurial arrange ent and co odity produced! all public and private agricultural lands! as provided in )rocla ation 0o. :<: and 3#ecutive 1rder 0o. ;;D! including other lands of the public do ain suitable for agriculture. 2ore specifically the following lands are covered by the 6o prehensive Agrarian -efor )rogra %

&a' All alienable and disposable lands of the public do ain devoted to or suitable for agriculture. 0o reclassification of forest or ineral lands to agricultural lands shall be undertaken after the approval of this Act until 6ongress! taking into account ecological! develop ental and equity considerations! shall have deter ined by law! the specific li its of the public do ain. &b' All lands of the public do ain in e#cess of the specific li its as deter ined by 6ongress in the preceding paragraph; &c' All other lands owned by the 9overn ent devoted to or suitable for agriculture; and &d' All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon. !ectio+ 5. Schedule of Implementation. K The distribution of all lands covered by this Act shall be i ple ented i ediately and co pleted within ten &:?' years fro the effectivity thereof. !ectio+ -. Retention Limits. K 3#cept as otherwise provided in this Act! no person ay own or retain! directly or indirectly! any public or private agricultural land! the si,e of which shall vary according to factors governing a viable fa ilysi,e far ! such as co odity produced! terrain! infrastructure! and soil fertility as deter ined by the )residential Agrarian -efor 6ouncil &)A-6' created hereunder! but in no case shall retention by the landowner e#ceed five &A' hectares. Three &<' hectares ay be awarded to each child of the landowner! subject to the following qualifications% &:' that he is at least fifteen &:A' years of age; and &;' that he is actually tilling the land or directly anaging the far % provided! that landowners whose lands have been covered by )residential /ecree 0o. ;B shall be allowed to keep the areas originally retained by the thereunder% provided! further! that original ho estead grantees or their direct co pulsory heirs who still own the original ho estead at the ti e of the approval of this Act shall retain the sa e areas as long as they continue to cultivate said ho estead. The right to choose the area to be retained! which shall be co pact or contiguous! shall pertain to the landowner% provided! however! that in case the area selected for retention by the landowner is tenanted! the tenant shall have the option to choose whether to re ain therein or be a beneficiary in the sa e or another agricultural land with si ilar or co parable features.n case the tenant chooses to re ain in the retained area! he shall be considered a leaseholder and shall lose his right to be a beneficiary under this Act.n case the tenant chooses to be a beneficiary in another agricultural land! he loses his right as a leaseholder to the land retained by the landowner. The tenant ust e#ercise this option within a period of one &:' year fro the ti e the landowner anifests his choice of the area for retention.

In all cases! the security of tenure of the far ers or far workers on the land prior to the approval of this Act shall be respected. 8pon the effectivity of this Act! any sale! disposition! lease! anage ent! contract or transfer of possession of private lands e#ecuted by the original landowner in violation of the Act shall be null and void% provided! however! that those e#ecuted prior to this Act shall be valid only when registered with the -egister of /eeds within a period of three &<' onths after the effectivity of this Act. Thereafter! all -egisters of /eeds shall infor the /epart ent of Agrarian -efor &/A-' within thirty &<?' days of any transaction involving agricultural lands in e#cess of five &A' hectares. !ectio+ .. Priorities. K The /epart ent of Agrarian -efor &/A-' in coordination with the )residential Agrarian -efor 6ouncil &)A-6' shall plan and progra the acquisition and distribution of all agricultural lands through a period of ten &:?' years fro the effectivity of this Act. $ands shall be acquired and distributed as follows% )hase 1ne% -ice and corn lands under )residential /ecree 0o. ;B; all idle or abandoned lands; all private lands voluntarily offered by the owners for agrarian refor ; all lands foreclosed by the govern ent financial institutions; all lands acquired by the )residential 6o ission on 9ood 9overn ent &)699'; and all other lands owned by the govern ent devoted to or suitable for agriculture! which shall be acquired and distributed i ediately upon the effectivity of this Act! with the i ple entation to be co pleted within a period of not ore than four &=' years; )hase Two% All alienable and disposable public agricultural lands; all arable public agricultural lands under agro-forest! pasture and agricultural leases already cultivated and planted to crops in accordance with "ection >! Article FIII of the 6onstitution; all public agricultural lands which are to be opened for new develop ent and resettle ent; and all private agricultural lands in e#cess of fifty &A?' hectares! insofar as the e#cess hectarage is concerned! to i ple ent principally the rights of far ers and regular far workers! who are the landless! to own directly or collectively the lands they till! which shall be distributed i ediately upon the effectivity of this Act! with the i ple entation to be co pleted within a period of not ore than four &=' years. )hase Three% All other private agricultural lands co s all landholdings under the following schedule% encing with large landholdings and proceeding to ediu and

&a' $andholdings above twenty-four &;=' hectares up to fifty &A?' hectares! to begin on the fourth &=th' year fro the effectivity of this Act and to be co pleted within three &<' years; and &b' $andholdings fro the retention li it up to twenty-four &;=' hectares! to begin on the si#th &>th' year fro the effectivity of this Act and to be co pleted within four &=' years; to i ple ent principally the right of far ers and regular far workers who are landless! to own directly or collectively the lands they till. The schedule of acquisition and redistribution of all agricultural lands covered by this progra shall be ade in accordance with the above order of priority! which shall be provided in the i ple enting rules to be prepared by the )residential Agrarian -efor 6ouncil &)A-6'! taking into consideration the following; the need to distribute land to the tillers at the earliest practicable ti e; the need to enhance agricultural productivity; and the availability of funds and resources to i ple ent and support the progra . In any case! the )A-6! upon reco endation by the )rovincial Agrarian -efor 6oordinating 6o ittee &)A-6612'! ay declare certain provinces or region as priority land refor areas! in which the acquisition and distribution of private agricultural lands therein ay be i ple ented ahead of the above schedules. In effecting the transfer within these guidelines! priority ust be given to lands that are tenanted.

The )A-6 shall establish guidelines to i ple ent the above priorities and distribution sche e! including the deter ination of who are qualified beneficiaries% provided! that an owner-tiller ay be a beneficiary of the land he does not own but is actually cultivating to the e#tent of the difference between the area of the land he owns and the award ceiling of three &<' hectares. !ectio+ /. %ultinational !orporations. K All lands of the public do ain leased! held or possessed by ultinational corporations or associations! and other lands owned by the govern ent or by govern ent-owned or controlled corporations! associations! institutions! or entities! devoted to e#isting and operational agri-business or agro-industrial enterprises! operated by ultinational corporations and associations! shall be progra ed for acquisition and distribution i ediately upon the effectivity of this Act! with the i ple entation to be co pleted within three &<' years.

$ands covered by the paragraph i ediately preceding! under lease! like! shall be disposed of as follows%

anage ent! grower or service contracts! and the

&a' $ease! anage ent! grower or service contracts covering such lands covering an aggregate area in e#cess of :!??? hectares! leased or held by foreign individuals in e#cess of A?? hectares are dee ed a ended to confor with the li its set forth in "ection < of Article FII of the 6onstitution. &b' 6ontracts covering areas not in e#cess of :!??? hectares in the case of such corporations and associations! and A?? hectares! in the case of such individuals! shall be allowed to continue under their original ter s and conditions but not beyond August ;D! :DD;! or their valid ter ination! whichever co es sooner! after which! such agree ents shall continue only when confir ed by the appropriate govern ent agency. "uch contracts shall likewise continue even after the lands has been transferred to beneficiaries or awardees thereof! which transfer shall be i ediately co enced and i ple ented and co pleted within the period of three &<' years entioned in the first paragraph hereof. &c' In no case will such leases and other agree ents now being i ple ented e#tend beyond August ;D! :DD;! when all lands subject hereof shall have been distributed co pletely to qualified beneficiaries or awardees. "uch agree ents can continue thereafter only under a new contract between the govern ent or qualified beneficiaries or awardees! on the one hand! and said enterprises! on the other. $ands leased! held or possessed by ultinational corporations! owned by private individuals and private nongovern ental corporations! associations! institutions and entities! citi,ens of the )hilippines! shall be subject to i ediate co pulsory acquisition and distribution upon the e#piration of the applicable lease! anage ent! grower or service contract in effect as of August ;D! :DCB! or otherwise! upon its valid ter ination! whichever co es sooner! but not later than after ten &:?' years following the effectivity of the Act. .owever during the said period of effectivity! the govern ent shall take steps to acquire these lands for i ediate distribution thereafter. In general! lands shall be distributed directly to the individual worker-beneficiaries.n case it is not econo ically feasible and sound to divide the land! then they shall for a workers( cooperative or association which will deal with the corporation or business association or any other proper party for the purpose of entering into a lease or growers agree ent and for all other legiti ate purposes. 8ntil a new agree ent is entered into by and between the workers( cooperative or association and the corporation or business association or any other proper party! any agree ent e#isting at the ti e this Act takes effect between the for er and the previous landowner shall be respected by both the workers( cooperative or association and the corporation! business! association or such other proper party.n no case shall the i ple entation or application of this Act justify or result in the reduction of status or di inution of any benefits received or enjoyed by the worker-beneficiaries! or in which they ay have a vested right! at the ti e this Act beco es effective. The provisions of "ection <; of this Act! with regard to production and inco e-sharing shall apply to far s operated by ultinational corporations. /uring the transition period! the new owners shall be assisted in their efforts to learn odern technology in production. 3nterprises which show a willingness and co it ent and good-faith efforts to i part voluntarily such advanced technology will be given preferential treat ent where feasible. In no case shall a foreign corporation! association! entity or individual enjoy any rights or privileges better than those enjoyed by a do estic corporation! association! entity or individual. !ectio+ 9. Ancestral Lands. K *or purposes of this Act! ancestral lands of each indigenous cultural co unity shall include! but not be li ited to! lands in the actual! continuous and open possession and occupation of the co unity and its e bers% provided! that the Torrens "yste s shall be respected. The right of these co unities to their ancestral lands shall be protected to ensure their econo ic! social and cultural well-being.n line with the principles of self-deter ination and autono y! the syste s of land ownership! land use! and the odes of settling land disputes of all these co unities ust be recogni,ed and respected. Any provision of law to the contrary notwithstanding! the )A-6 ay suspend the i ple entation of this Act with respect to ancestral lands for the purpose of identifying and delineating such lands% provided! that in the autono ous regions! the respective legislatures ay enact their own laws on ancestral do ain subject to the provisions of the 6onstitution and the principles enunciated in this Act and other national laws.

!ectio+ 10. &'emptions and &'clusions. K $ands actually! directly and e#clusively used and found to be necessary for parks! wildlife! forest reserves! reforestation! fish sanctuaries and breeding grounds! watersheds! and angroves! national defense! school sites and ca puses including e#peri ental far stations operated by public or private schools for educational purposes! seeds and seedlings research and pilot production centers! church sites and convents appurtenant thereto! osque sites and Isla ic centers appurtenant thereto! co unal burial grounds and ce eteries! penal colonies and penal far s actually worked by the in ates! govern ent and private research and quarantine centers and all lands with eighteen percent &:C@' slope and over! e#cept those already developed shall be e#e pt fro the coverage of the Act. !ectio+ 11. !ommercial #arming. K 6o ercial far s! which are private agricultural lands devoted to co ercial livestock! poultry and swine raising! and aquaculture including saltbeds! fishponds and prawn ponds! fruit far s! orchards! vegetable and cut-flower far s! and cacao! coffee and rubber plantations! shall be subject to i ediate co pulsory acquisition and distribution after &:?' years fro the effectivity of the Act.n the case of new far s! the ten-year period shall begin fro the first year of co ercial production and operation! as deter ined by the /A-. /uring the ten-year period! the govern ent shall initiate the steps necessary to acquire these lands! upon pay ent of just co pensation for the land and the i prove ents thereon! preferably in favor of organi,ed cooperatives or associations! which shall hereafter anage the said lands for the worker-beneficiaries. If the /A- deter ines that the purposes for which this defer ent is granted no longer e#ist! such areas shall auto atically be subject to redistribution. The provisions of "ection <; of the Act! with regard to production-and inco e-sharing! shall apply to co CHA*TER 2p3o4e2e+t o< Te+u3i7l 7+; L7bo3 Rel7tio+s !ectio+ 1,. Determination of Lease Rentals. K In order to protect and i prove the tenurial and econo ic status of the far ers in tenanted lands under the retention li it and lands not yet acquired under this Act! the /A- is andated to deter ine and fi# i ediately the lease rentals thereof in accordance with "ection <= of -epublic Act 0o. <C==! as a ended% provided! that the /A- shall i ediately and periodically review and adjust the rental structure for different crops! including rice and corn! or different regions in order to i prove progressively the conditions of the far er! tenant or lessee. !ectio+ 13. Production4Sharing Plan. K Any enterprise adopting the sche e provided for in "ection <; or operating under a production venture! lease! anage ent contract or other si ilar arrange ent and any far covered by "ections C and :: hereof is hereby andated to e#ecute within ninety &D?' days fro the effectivity of this Act! a production-sharing plan! under guidelines prescribed by the appropriate govern ent agency. 0othing herein shall be construed to sanction the di inution of any benefits such as salaries! bonuses! leaves and working conditions granted to the e ployee-beneficiaries under e#isting laws! agree ents! and voluntary practice by the enterprise! nor shall the enterprise and its e ployee-beneficiaries be prevented fro entering into any agree ent with ter s ore favorable to the latter. CHA*TER V Regist37tio+ !ectio+ 14. Registration of Landowners. K +ithin one hundred eighty &:C?' days fro the effectivity of this Act! all persons! natural or juridical! including govern ent entities! that own or clai to own agricultural lands! whether in their na es or in the na e of others! e#cept those who have already registered pursuant to 3#ecutive 1rder 0o. ;;D! who shall be entitled to such incentives as ay be provided for the )A-6! shall file a sworn state ent in the proper assessor(s office in the for to be prescribed by the /A-! stating the following infor ation% &a' the description and area of the property; &b' the average gross inco e fro the property for at least three &<' years; ercial far s.

&c' the na es of all tenants and far workers therein; &d' the crops planted in the property and the area covered by each crop as of Eune :! :DCB;

&e' the ter s of

ortgages! lease! and

anage ent contracts subsisting as of Eune :! :DCB! and

&f' the latest declared

arket value of the land as deter ined by the city or provincial assessor.

!ectio+ 15. Registration of 3eneficiaries. K The /A- in coordination with the 4arangay Agrarian -efor 6o ittee &4A-6' as organi,ed in this Act! shall register all agricultural lessees! tenants and far workers who are qualified to be beneficiaries of the 6A-). These potential beneficiaries with the assistance of the 4A-6 and the /A- shall provide the following data% &a' na es and e bers of their i ediate far household;

&b' owners or ad inistrators of the lands they work on and the length of tenurial relationship; &c' location and area of the land they work; &d' crops planted; and &e' their share in the harvest or a ount of rental paid or wages received. A copy of the registry or list of all potential 6A-) beneficiaries in the barangay shall be posted in the barangay hall! school or other public buildings in the barangay where it shall be open to inspection by the public at all reasonable hours. CHA*TER V L7+; AcDuisitio+ !ectio+ 1-. Procedure for Ac9uisition of Pri ate Lands. K *or purposes of acquisition of private lands! the following procedures shall be followed% &a' After having identified the land! the landowners and the beneficiaries! the /A- shall send its notice to acquire the land to the owners thereof! by personal delivery or registered ail! and post the sa e in a conspicuous place in the unicipal building and barangay hall of the place where the property is located. "aid notice shall contain the offer of the /A- to pay a corresponding value in accordance with the valuation set forth in "ections :B! :C! and other pertinent provisions hereof. &b' +ithin thirty &<?' days fro the date of receipt of written notice by personal delivery or registered ail! the landowner! his ad inistrator or representative shall infor the /A- of his acceptance or rejection of the offer. &c' If the landowner accepts the offer of the /A-! the $and 4ank of the )hilippines &$4)' shall pay the landowner the purchase price of the land within thirty &<?' days after he e#ecutes and delivers a deed of transfer in favor of the govern ent and surrenders the 6ertificate of Title and other uni ents of title. &d' In case of rejection or failure to reply! the /A- shall conduct su ary ad inistrative proceedings to deter ine the co pensation for the land requiring the landowner! the $4) and other interested parties to sub it evidence as to the just co pensation for the land! within fifteen &:A' days fro the receipt of the notice. After the e#piration of the above period! the atter is dee ed sub itted for decision. The /A- shall decide the case within thirty &<?' days after it is sub itted for decision. &e' 8pon receipt by the landowner of the corresponding pay ent or! in case of rejection or no response fro the landowner! upon the deposit with an accessible bank designated by the /A- of the co pensation in cash or in $4) bonds in accordance with this Act! the /A- shall take i ediate possession of the land and shall request the proper -egister of /eeds to issue a Transfer 6ertificate of Title &T6T' in the na e of the -epublic of the )hilippines. The /A- shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. &f' Any party who disagrees with the decision deter ination of just co pensation. ay bring the atter to the court of proper jurisdiction for final

CHA*TER V Co2pe+s7tio+

!ectio+ 1.. Determination of /ust !ompensation. K In deter ining just co pensation! the cost of acquisition of the land! the current value of the like properties! its nature! actual use and inco e! the sworn valuation by the owner! the ta# declarations! and the assess ent ade by govern ent assessors shall be considered. The social and econo ic benefits contributed by the far ers and the far workers and by the 9overn ent to the property as well as the non-pay ent of ta#es or loans secured fro any govern ent financing institution on the said land shall be considered as additional factors to deter ine its valuation. !ectio+ 1/. .aluation and %ode of !ompensation. K The $4) shall co pensate the landowner in such a ounts as ay be agreed upon by the landowner and the /A- and the $4)! in accordance with the criteria provided for in "ections :> and :B! and other pertinent provisions hereof! or as ay be finally deter ined by the court! as the just co pensation for the land. The co pensation shall be paid on one of the following odes! at the option of the landowner%

&:' 6ash pay ent! under the following ter s and conditions; &a' *or lands above fifty &A?' hectares! insofar as the e#cess hectarage is concerned. &b' *or lands above twenty-four &;=' hectares and up to fifty &A?' hectares. &c' *or lands twenty-four &;=' hectares and below. K Twenty-five percent &;A@' cash! the balance to be paid in govern ent financial instru ents negotiable at any ti e. Thirty percent &<?@' cash! the balance to be paid in govern ent financial instru ents negotiable at any ti e. Thirty-five percent &<A@' cash! the balance to be paid in govern ent financial instru ents negotiable at any ti e.

&;' "hares of stock in govern ent-owned or controlled corporations! $4) preferred shares! physical assets or other qualified invest ents in accordance with guidelines set by the )A-6; &<' Ta# credits which can be used against any ta# liability; &=' $4) bonds! which shall have the following features% &a' 2arket interest rates aligned with D:-day treasury bill rates. Ten percent &:?@' of the face value of the bonds shall ature every year fro the date of issuance until the tenth &:?th' year% provided! that should the landowner choose to forego the cash portion! whether in full or in part! he shall be paid correspondingly in $4) bonds; &b' Transferability and negotiability. "uch $4) bonds ay be used by the landowner! his successors in interest or his assigns! up to the a ount of their face value! for any of the following% &i' Acquisition of land or other real properties of the govern ent! including assets under the Asset )rivati,ation )rogra and other assets foreclosed by govern ent financial institutions in the sa e province or region where the lands for which the bonds were paid are situated; &ii' Acquisition of shares of stock of govern ent-owned or -controlled corporations or shares of stocks owned by the govern ent in private corporations; &iii' "ubstitution for surety or bail bonds for the provisional release of accused persons! or perfor ance bonds; &iv' "ecurity for loans with any govern ent financial institution! provided the proceeds of the loans shall be invested in an econo ic enterprise! preferably in a s all-and ediu -scale industry! in the sa e province or region as the land for which the bonds are paid;

&v' )ay ent for various ta#es and fees to govern ent; provided! that the use of these bonds for these purposes will be li ited to a certain percentage of the outstanding balance of the financial instru ents% provided! further! that the )A-6 shall deter ine the percentage entioned above; &vi' )ay ent for tuition fees of the i ediate fa ily of the original bondholder in govern ent universities! colleges! trade schools! and other institutions; &vii' )ay ent for fees of the i and ediate fa ily of the original bondholder in govern ent hospitals;

&viii' "uch other uses as the )A-6

ay fro

ti e to ti e allow. easures to protect the econo y.

In case of e#traordinary inflation! the )A-6 shall take appropriate

!ectio+ 19. Incenti es for .oluntary *ffers for Sales. K $andowners! other than banks and other financial institutions! who voluntarily offer their lands for sale shall be entitled to an additional five percent &A@' cash pay ent. !ectio+ ,0. .oluntary Land Transfer. K $andowners of agricultural lands subject to acquisition under this Act ay enter into a voluntary arrange ent for direct transfer of their lands to qualified beneficiaries subject to the following guidelines% &a' All notices for voluntary land transfer ust be sub itted to the /A- within the first year of the i ple entation of the 6A-). 0egotiations between the landowners and qualified beneficiaries covering any voluntary land transfer which re ain unresolved after one &:' year shall not be recogni,ed and such land shall instead be acquired by the govern ent and transferred pursuant to this Act. &b' The ter s and conditions of such transfer shall not be less favorable to the transferee than those of the govern ent(s standing offer to purchase fro the landowner and to resell to the beneficiaries! if such offers have been ade and are fully known to both parties. &c' The voluntary agree ent shall include sanctions for non-co pliance by either party and shall be duly recorded and its i ple entation onitored by the /A-. !ectio+ ,1. Payment of !ompensation by 3eneficiaries )nder .oluntary Land Transfer . K /irect pay ents in cash or in kind ay be by the far er-beneficiary to the landowner under ter s to be utually agreed upon by both parties! which shall be binding upon the ! upon registration with the approval by the /A-. "aid approval shall be considered given! unless notice of disapproval is received by the far er-beneficiary within thirty &<?' days fro the date of registration. In the event they cannot agree on the price of land! the procedure for co pulsory acquisition as provided in "ection :> shall apply. The $4) shall e#tend financing to the beneficiaries for purposes of acquiring the land. CHA*TER V L7+; Re;ist3ibutio+ !ectio+ ,,. :ualified 3eneficiaries. K The lands covered by the 6A-) shall be distributed as uch as possible to landless residents of the sa e barangay! or in the absence thereof! landless residents of the sa e unicipality in the following order of priority% &a' agricultural lessees and share tenants; &b' regular far workers; &c' seasonal far workers; &d' other far workers; &e' actual tillers or occupants of public lands;

&f' collectives or cooperatives of the above beneficiaries; and &g' others directly working on the land. )rovided! however! that the children of landowners who are qualified under "ection > of this Act shall be given preference in the distribution of the land of their parents% and provided! further! that actual tenant-tillers in the landholdings shall not be ejected or re oved therefro . 4eneficiaries under )residential /ecree 0o. ;B who have culpably sold! disposed of! or abandoned their land are disqualified to beco e beneficiaries under this )rogra . A basic qualification of a beneficiary shall be his willingness! aptitude! and ability to cultivate and ake the land as productive as possible. The /A- shall adopt a syste of onitoring the record or perfor ance of each beneficiary! so that any beneficiary guilty of negligence or isuse of the land or any support e#tended to hi shall forfeit his right to continue as such beneficiary. The /A- shall sub it periodic reports on the perfor ance of the beneficiaries to the )A-6. If! due to the landowner(s retention rights or to the nu ber of tenants! lessees! or workers on the land! there is not enough land to acco odate any or so e of the ! they ay be granted ownership of other lands available for distribution under this Act! at the option of the beneficiaries. *ar ers already in place and those not acco odated in the distribution of privately-owned lands will be given preferential rights in the distribution of lands fro the public do ain. !ectio+ ,3. Distribution Limit. K 0o qualified beneficiary ay own ore than three &<' hectares of agricultural land.

!ectio+ ,4. Award to 3eneficiaries. K The rights and responsibilities of the beneficiary shall co ence fro the ti e the /A- akes an award of the land to hi ! which award shall be co pleted within one hundred eighty &:C?' days fro the ti e the /A- takes actual possession of the land. 1wnership of the beneficiary shall be evidenced by a 6ertificate of $and 1wnership Award! which shall contain the restrictions and conditions provided for in this Act! and shall be recorded in the -egister of /eeds concerned and annotated on the 6ertificate of Title. !ectio+ ,5. Award !eilings for 3eneficiaries. K 4eneficiaries shall be awarded an area not e#ceeding three &<' hectares which ay cover a contiguous tract of land or several parcels of land cu ulated up to the prescribed award li its. *or purposes of this Act! a landless beneficiary is one who owns less than three &<' hectares of agricultural land. The beneficiaries ay opt for collective ownership! such as co-ownership or far ers cooperative or so e other for of collective organi,ation% provided! that the total area that ay be awarded shall not e#ceed the total nu ber of co-owners or e ber of the cooperative or collective organi,ation ultiplied by the award li it above prescribed! e#cept in eritorious cases as deter ined by the )A-6. Title to the property shall be issued in the na e of the co-owners or the cooperative or collective organi,ation as the case ay be. !ectio+ ,-. Payment by 3eneficiaries. K $ands awarded pursuant to this Act shall be paid for by the beneficiaries to the $4) in thirty &<?' annual a orti,ations at si# percent &>@' interest per annu . The pay ents for the first three &<' years after the award ay be at reduced a ounts as established by the )A-6% provided! that the first five &A' annual pay ents ay not be ore than five percent &A@' of the value of the annual gross production as established by the /A-. "hould the scheduled annual pay ents after the fifth year e#ceed ten percent &:?@' of the annual gross production and the failure to produce accordingly is not due to the beneficiary(s fault! the $4) ay reduce the interest rate or reduce the principal obligations to ake the repay ent affordable. The $4) shall have a lien by way of ortgage on the land awarded to the beneficiary; and this ortgage ay be foreclosed by the $4) for non-pay ent of an aggregate of three &<' annual a orti,ations. The $4) shall advise the /Aof such proceedings and the latter shall subsequently award the forfeited landholdings to other qualified beneficiaries. A beneficiary whose land! as provided herein! has been foreclosed shall thereafter be per anently disqualified fro beco ing a beneficiary under this Act. !ectio+ ,.. Transferability of Awarded Lands. K $ands acquired by beneficiaries under this Act ay not be sold! transferred or conveyed e#cept through hereditary succession! or to the govern ent! or the $4)! or to other qualified

beneficiaries for a period of ten &:?' years% provided! however! that the children or the spouse of the transferor shall have a right to repurchase the land fro the govern ent or $4) within a period of two &;' years. /ue notice of the availability of the land shall be given by the $4) to the 4arangay Agrarian -efor 6o ittee &4A-6' of the barangay where the land is situated. The )rovincial Agrarian -efor 6oordinating 6o ittee &)A-6612' as herein provided! shall! in turn! be given due notice thereof by the 4A-6. If the land has not yet been fully paid by the beneficiary! the rights to the land ay be transferred or conveyed! with prior approval of the /A-! to any heir of the beneficiary or to any other beneficiary who! as a condition for such transfer or conveyance! shall cultivate the land hi self. *ailing co pliance herewith! the land shall be transferred to the $4) which shall give due notice of the availability of the land in the anner specified in the i ediately preceding paragraph. In the event of such transfer to the $4)! the latter shall co pensate the beneficiary in one lu p su latter has already paid! together with the value of i prove ents he has ade on the land. for the a ounts the

!ectio+ ,/. Standing !rops at the Time of Ac9uisition. K The landowner shall retain his share of any standing crops unharvested at the ti e the /A- shall take possession of the land under "ection :> of the Act! and shall be given a reasonable ti e to harvest the sa e. CHA*TER V Co3po37te %732s !ectio+ ,9. #arms *wned or *perated by !orporations or *ther 3usiness Associations . K In the case of far s owned or operated by corporations or other business associations! the following rules shall be observed by the )A-6% In general! lands shall be distributed directly to the individual worker-beneficiaries. In case it is not econo ically feasible and sound to divide the land! then it shall be owned collectively by the workers( cooperative or association which will deal with the corporation or business association. 8ntil a new agree ent is entered into by and between the workers( cooperative or association and the corporation or business association! any agree ent e#isting at the ti e this Act takes effect between the for er and the previous landowner shall be respected by both the workers( cooperative or association and the corporation or business association. !ectio+ 30. Homelots and #armlots for %embers of !ooperati es. K The individual e bers of the cooperatives or corporations entioned in the preceding section shall be provided with ho elots and s all far lots for their fa ily use! to be taken fro the land owned by the cooperative or corporation. !ectio+ 31. !orporate Landowners. K 6orporate landowners ay voluntarily transfer ownership over their agricultural landholdings to the -epublic of the )hilippines pursuant to "ection ;? hereof or to qualified beneficiaries! under such ter s and conditions! consistent with this Act! as they ay agree upon! subject to confir ation by the /A-. 8pon certification by the /A-! corporations owning agricultural lands ay give their qualified beneficiaries the right to purchase such proportion of the capital stock of the corporation that the agricultural land! actually devoted to agricultural activities! bears in relation to the co pany(s total assets! under such ter s and conditions as ay be agreed upon by the .n no case shall the co pensation received by the workers at the ti e the shares of stocks are distributed be reduced. The sa e principle shall be applied to associations! with respect to their equity or participation. 6orporations or associations which voluntarily divest a proportion of their capital stock! equity or participation in favor of their workers or other qualified beneficiaries under this section shall be dee ed to have co plied with the provisions of the Act% provided! that the following conditions are co plied with% a' In order to safeguard the right of beneficiaries who own shares of stocks to dividends and other financial benefits! the books of the corporation or association shall be subject to periodic audit by certified public accountants chosen by the beneficiaries; b' Irrespective of the value of their equity in the corporation or association! the beneficiaries shall be assured of at least one &:' representative in the board of directors! or in a anage ent or e#ecutive co ittee! if one e#ists! of the corporation or association; and

c' Any shares acquired by such workers and beneficiaries shall have the sa e rights and features as all other shares. d' Any transfer of shares of stocks by the original beneficiaries shall be void ab initio unless said transaction is in favor of a qualified and registered beneficiary within the sa e corporation. If within two &;' years fro the approval of this Act! the land or stock transfer envisioned above is not ade or reali,ed or the plan for such stock distribution approved by the )A-6 within the sa e period! the agricultural land of the corporate owners or corporation shall be subject to the co pulsory coverage of this Act. !ectio+ 3,. Production4Sharing. K )ending final land transfer! individuals or entities owning! or operating under lease or anage ent contract! agricultural lands are hereby andated to e#ecute a production-sharing plan with their far workers or far workers( reorgani,ation! if any! whereby three percent &<@' of the gross sales fro the production of such lands are distributed within si#ty &>?' days of the end of the fiscal year as co pensation to regular and other far workers in such lands over and above the co pensation they currently receive% provided! that these individuals or entities reali,e gross sales in e#cess of five illion pesos per annu unless the /A-! upon proper application! deter ines a lower ceiling. In the event that the individual or entity reali,es a profit! an additional ten percent &:?@' of the net profit after ta# shall be distributed to said regular and other far workers within ninety &D?' days of the end of the fiscal year. To forestall any disruption in the nor al operation of lands to be turned over to the far worker-beneficiaries above! a transitory period! the length of which shall be deter ined by the /A-! shall be established. entioned

/uring this transitory period! at least one percent &:@' of the gross sales of the entity shall be distributed to the anagerial! supervisory and technical group in place at the ti e of the effectivity of this Act! as co pensation for such transitory anagerial and technical functions as it will perfor ! pursuant to an agree ent that the far workerbeneficiaries and the anagerial! supervisory and technical group ay conclude! subject to the approval of the /A-. !ectio+ 33. Payment of Shares of !ooperati e or Association. K "hares of a cooperative or association acquired by far ers-beneficiaries or workers-beneficiaries shall be fully paid for in an a ount corresponding to the valuation as deter ined in the i ediately succeeding section. The landowner and the $4) shall assist the far ers-beneficiaries and workers-beneficiaries in the pay ent for said shares by providing credit financing. !ectio+ 34. .aluation of Lands. K A valuation sche e for the land shall be for ulated by the )A-6! taking into account the factors enu erated in "ection :B! in addition to the need to sti ulate the growth of cooperatives and the objective of fostering responsible participation of the workers-beneficiaries in the creation of wealth. In the deter ination of price that is just not only to the individuals but to society as well! the )A-6 shall consult closely with the landowner and the workers-beneficiaries. In case of disagree ent! the price as deter ined by the )A-6! if accepted by the workers-beneficiaries! shall be followed! without prejudice to the landowner(s right to petition the "pecial Agrarian 6ourt to resolve the issue of valuation. CHA*TER @ !uppo3t !e34ices !ectio+ 35. !reation of Support Ser ices *ffice. K There is hereby created the 1ffice of "upport "ervices under the /A- to be headed by an 8ndersecretary. The 1ffice shall provide general support and coordinative services in the i ple entation of the progra carrying out the provisions of the following services to far er-beneficiaries and affected landowners% :' Irrigation facilities! especially second crop or dry season irrigation facilities; ;' Infrastructure develop ent and public works projects in areas and settle ents that co e under agrarian refor ! and for this purpose! the preparation of the physical develop ent plan of such settle ents providing suitable barangay sites! potable water and power resources! irrigation syste s and other facilities for a sound agricultural develop ent plan; particularly in

<' 9overn ent subsidies for the use of irrigation facilities; =' )rice support and guarantee for all agricultural produce; A' 3#tending to s all landowners! far ers( organi,ations the necessary credit! like concessional and collateralfree loans! for agro-industriali,ation based on social collaterals like the guarantees of far ers( organi,ation% >' )ro oting! developing and e#tending financial assistance to s all-and refor areas; ediu -scale industries in agrarian

B' Assigning sufficient nu bers of agricultural e#tension workers to far ers( organi,ations; C' 8ndertake research! develop ent and disse ination of infor ation on agrarian refor and low-cost and ecologically sound far inputs and technologies to ini i,e reliance on e#pensive and i ported agricultural inputs; D' /evelop ent of cooperative anage ent skills through intensive training; arkets for agricultural produce and training in other various

:?' Assistance in the identification of ready prospects of arketing; andtai

::' Ad inistration operation anage ent and funding of support services! progra s and projects including pilot projects and odels related to agrarian refor as developed by the /A-. !ectio+ 3-. #unding for Support Ser ices. K In order to cover the e#penses and cost of support services! at least twenty-five percent &;A@' of all appropriations for agrarian refor shall be i ediately set aside and ade available for this purpose.n addition! the /A- shall be authori,ed to package proposals and receive grants! aid and other for s of financial assistance fro any source. !ectio+ 3.. Support Ser ices to the 3eneficiaries. K The )A-6 shall ensure that support services to far ersbeneficiaries are provided! such as% &a' $and surveys and titling; &b' $iberali,ed ter s on credit facilities and production loans; &c' 3#tension services by way of planting! cropping! production and post-harvest technology transfer! as well as arketing and anage ent assistance and support to cooperatives and far ers( organi,ations; &d' Infrastructure such as access trails! ini-da s! public utilities! arketing and storage facilities; and

&e' -esearch! production and use of organic fertili,ers and other local substances necessary in far ing and cultivation. The )A-6 shall for ulate policies to ensure that support services to far er-beneficiaries shall be provided at all stages of land refor . The 4agong Lilusang Labuhayan sa Launlaran &4LLL' "ecretariat shall be transferred and attached to the $4)! for its supervision including all its applicable and e#isting funds! personnel! properties! equip ent and records. 2isuse or diversion of the financial and support services herein provided shall result in sanctions against the beneficiary guilty thereof! including the forfeiture of the land transferred to hi or lesser sanctions as ay be provided by the )A-6! without prejudice to cri inal prosecution. !ectio+ 3/. Support Ser ices to Landowners. K The )A-6 with the assistance of such other govern ent agencies and instru entalities as it ay direct! shall provide landowners affected by the 6A-) and prior agrarian refor progra s with the following services%

&a' Invest ent infor ation financial and counseling assistance; &b' *acilities! progra s and sche es for the conversion or e#change of bonds issued for pay ent of the lands acquired with stocks and bonds issued by the 0ational 9overn ent! the 6entral 4ank and other govern ent institutions and instru entalities; &c' 2arketing of $4) bonds! as well as pro oting the financial arkets and stock e#changes; and arketability of said bonds in traditional and non-traditional

&d' 1ther services designed to utili,e productively the proceeds of the sale of such lands for rural industriali,ation. A landowner who invests in rural-based industries shall be entitled to the incentives granted to a registered enterprise engaged in a pioneer or preferred area of invest ent as provided for in the 1 nibus Invest ent 6ode of :DCB! or to such other incentives as the )A-6! the $4)! or other govern ent financial institutions ay provide. The $4) shall redee a landowner(s $4) bonds at face value! provided that the proceeds thereof shall be invested in a 41I-registered co pany or in any agri-business or agro-industrial enterprise in the region where the landowner has previously ade invest ents! to the e#tent of thirty percent &<?@' of the face value of said $4) bonds! subject to guidelines that shall be issued by the $4). !ectio+ 39. Land !onsolidation. K The /A- shall carry out land consolidation projects to pro ote equal distribution of landholdings! to provide the needed infrastructures in agriculture! and to conserve soil fertility and prevent erosion. CHA*TER @ !peci7l A3e7s o< Co+ce3+ !ectio+ 40. Special Areas of !oncern. K As an integral part of the 6o prehensive Agrarian -efor following principles in these special areas of concern shall be observed% )rogra ! the

&:' Subsistence )ishing. K " all fisherfolk! including seaweed far ers! shall be assured of greater access to the utili,ation of water resources. &;' Logging and *ining Concessions. K "ubject to the require ent of a balanced ecology and conservation of water resources! suitable areas! as deter ined by the /epart ent of 3nviron ent and 0atural -esources &/30-'! in logging! ining and pasture areas! shall be opened up for agrarian settle ents whose beneficiaries shall be required to undertake reforestation and conservation production ethods. "ubject to e#isting laws! rules and regulations! settlers and e bers of tribal co unities shall be allowed to enjoy and e#ploit the products of the forest other than ti er within the logging concessions. &<' Sparsely /ccupied Public Agricultural Lands. K "parsely occupied agricultural lands of the public do ain shall be surveyed! proclai ed and developed as far settle ents for qualified landless people based on an organi,ed progra to ensure their orderly and early develop ent. Agricultural land allocations shall be ade for ideal fa ily-si,e far s as deter ined by the )A-6. )ioneers and other settlers shall be treated equally in every respect. "ubject to the prior rights of qualified beneficiaries! uncultivated lands of the public do ain shall be ade available on a lease basis to interested and qualified parties. )arties who will engaged in the develop ent of capital-intensive! traditional or pioneering crops shall be given priority. The lease period! which shall not be ore than a total of fifty &A?' years! shall be proportionate to the a ount of invest ent and production goals of the lessee. A syste of evaluation and audit shall be instituted. &=' dle! Abandoned! )oreclosed and Se&uestered Lands. K Idle! abandoned! foreclosed and sequestered lands shall be planned for distribution as ho e lots and fa ily-si,e far lots to actual occupants.f land area per its! other landless fa ilies shall be acco odated in these lands.

&A' Rural -omen. K All qualified wo en e bers of the agricultural labor force ust be guaranteed and assured equal right to ownership of the land! equal shares of the far (s produce! and representation in advisory or appropriate decision- aking bodies. &>' 9eterans and Retirees. K In accordance with "ection B of Article F7I of the 6onstitution! landless war veterans and veterans of ilitary ca paigns! their surviving spouse and orphans! retirees of the Ar ed *orces of the )hilippines &A*)' and the Integrated 0ational )olice &I0)'! returnees! surrenderees! and si ilar beneficiaries shall be given due consideration in the disposition of agricultural lands of the public do ain. &B' Agriculture (raduates. K 9raduates of agricultural schools who are landless shall be assisted by the govern ent! through the /A-! in their desire to own and till agricultural lands. CHA*TER @ *3og372 2ple2e+t7tio+ !ectio+ 41. The Presidential Agrarian Reform !ouncil. K The )residential Agrarian -efor 6ouncil &)A-6' shall be co posed of the )resident of the )hilippines as 6hair an! the "ecretary of Agrarian -efor as 7ice-6hair an and the following as e bers; "ecretaries of the /epart ents of Agriculture; 3nviron ent and 0atural -esources; 4udget and 2anage ent; $ocal 9overn ent% )ublic +orks and .ighways; Trade and Industry; *inance; $abor and 3 ploy ent; /irector-9eneral of the 0ational 3cono ic and /evelop ent Authority; )resident! $and 4ank of the )hilippines; Ad inistrator! 0ational Irrigation Ad inistration; and three &<' representatives of affected landowners to represent $u,on! 7isayas and 2indanao; si# &>' representatives of agrarian refor beneficiaries! two &;' each fro $u,on! 7isayas and 2indanao! provided that one of the shall be fro the cultural co unities. !ectio+ 4,. &'ecuti e !ommittee. K There shall be an 3#ecutive 6o ittee &3F612' of the )A-6 co posed of the "ecretary of the /A- as 6hair an! and such other e bers as the )resident ay designate! taking into account Article FIII! "ection A of the 6onstitution. 8nless otherwise directed by )A-6! the 3F612 ay eet and decide on any and all atters in between eetings of the )A-6% provided! however! that its decisions ust be reported to the )A-6 i ediately and not later than the ne#t eeting. !ectio+ 43. Secretariat. K A )A-6 "ecretariat is hereby established to provide general support and coordinative services such as inter-agency linkages; progra and project appraisal and evaluation and general operations onitoring for the )A-6. The "ecretariat shall be headed by the "ecretary of Agrarian -efor who shall be assisted by an 8ndersecretary and supported by a staff whose co position shall be deter ined by the )A-6 3#ecutive 6o ittee and whose co pensation shall be chargeable against the Agrarian -efor *und. All officers and e ployees of the "ecretariat shall be appointed by the "ecretary of Agrarian -efor . !ectio+ 44. Pro incial Agrarian Reform !oordinating !ommittee ;PAR!!*%< . K A )rovincial Agrarian -efor 6oordinating 6o ittee &)A-6612' is hereby created in each province! co posed of a 6hair an! who shall be appointed by the )resident upon the reco endation of the 3F612! the )rovincial Agrarian -efor 1fficer as 3#ecutive 1fficer! and one representative each fro the /epart ents of Agriculture! and of 3nviron ent and 0atural -esources and fro the $4)! one representative each fro e#isting far ers( organi,ations! agricultural cooperatives and nongovern ental organi,ations in the province; two representatives fro landowners! at least one of who shall be a producer representing the principal crop of the province! and two representatives fro far er and far workerbeneficiaries! at least one of who shall be a far er or far worker representing the principal crop of the province! as e bers% provided! that in areas where there are cultural co unities! the latter shall likewise have one representative. The )A-6612 shall coordinate and onitor the i ple entation of the 6A-) in the province.t shall provide infor ation on the provisions of the 6A-)! guidelines issued by the )A-6 and on the progress of the 6A-) in the province. !ectio+ 45. Pro ince4by4Pro ince Implementation. K The )A-6 shall provide the guidelines for a province-byprovince i ple entation of the 6A-). The ten-year progra of distribution of public and private lands in each province shall be adjusted fro year by the province(s )A-6612 in accordance with the level of operations previously established by the )A-6! in every case ensuring that support services are available or have been progra ed before actual distribution is effected.

!ectio+ 4-. 3arangay Agrarian Reform !ommittee ;3AR!< . K 8nless otherwise provided in this Act! the provisions of 3#ecutive 1rder 0o. ;;D regarding the organi,ation of the 4arangay Agrarian -efor 6o ittee &4A-6' shall be in effect. !ectio+ 4.. #unctions of the 3AR!. K In addition to those provided in 3#ecutive 1rder 0o. ;;D! the 4A-6 shall have the following functions% &a' 2ediate and conciliate between parties involved in an agrarian dispute including and financial arrange ents; atters related to tenurial

&b' Assist in the identification of qualified beneficiaries and landowners within the barangay; &c' Attest to the accuracy of the initial parcellary apping of the beneficiary(s tillage; lending institutions;

&d' Assist qualified beneficiaries in obtaining credit fro

&e' Assist in the initial deter ination of the value of the land; &f' Assist the /A- representatives in the preparation of periodic reports on the 6A-) i ple entation for sub ission to the /A-; &g' 6oordinate the delivery of support services to beneficiaries; and &h' )erfor such other functions as ay be assigned by the /A-.

&;' The 4A-6 shall endeavor to ediate! conciliate and settle agrarian disputes lodged before it within thirty &<?' days fro its taking cogni,ance thereof.f after the lapse of the thirty day period! it is unable to settle the dispute! it shall issue a certificate of its proceedings and shall furnish a copy thereof upon the parties within seven &B' days after the e#piration of the thirty-day period. !ectio+ 4/. Legal Assistance. K The 4A-6 or any e ber thereof ay! whenever necessary in the e#ercise of any of its functions hereunder! seek the legal assistance of the /A- and the provincial! city! or unicipal govern ent. !ectio+ 49. Rules and Regulations. K The )A-6 and the /A- shall have the power to issue rules and regulations! whether substantive or procedural! to carry out the objects and purposes of this Act. "aid rules shall take effect ten &:?' days after publication in two &;' national newspapers of general circulation. CHA*TER @ A;2i+ist37ti4e A;Eu;ic7tio+ !ectio+ 50. :uasi4/udicial Powers of the DAR. K The /A- is hereby vested with the pri ary jurisdiction to deter ine and adjudicate agrarian refor atters and shall have e#clusive original jurisdiction over all atters involving the i ple entation of agrarian refor e#cept those falling under the e#clusive jurisdiction of the /epart ent of Agriculture &/A' and the /epart ent of 3nviron ent and 0atural -esources &/30-'. It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and decide all cases! disputes or controversies in a ost e#peditious anner! e ploying all reasonable eans to ascertain the facts of every case in accordance with justice and equity and the erits of the case. Toward this end! it shall adopt a unifor rule of procedure to achieve a just! e#peditious and ine#pensive deter ination for every action or proceeding before it. It shall have the power to su on witnesses! ad inister oaths! take testi ony! require sub ission of reports! co pel the production of books and docu ents and answers to interrogatories and issue subpoena! and subpoena duces tecu ! and enforce its writs through sheriffs or other duly deputi,ed officers.t shall likewise have the power to punish direct and indirect conte pts in the sa e anner and subject to the sa e penalties as provided in the -ules of 6ourt. -esponsible far er leaders shall be allowed to represent the selves! their fellow far ers! or their organi,ations in any proceedings before the /A-% provided! however! that when there are two or ore representatives for any individual or

group! the representatives should choose only one a ong the selves to represent such party or group before any /Aproceedings. 0otwithstanding an appeal to the 6ourt of Appeals! the decision of the /A- shall be i ediately e#ecutory.

!ectio+ 51. #inality of Determination. K Any case or controversy before it shall be decided within thirty &<?' days after it is sub itted for resolution. 1nly one &:' otion for reconsideration shall be allowed. Any order! ruling or decision shall be final after the lapse of fifteen &:A' days fro receipt of a copy thereof. !ectio+ 5,. #ri olous Appeals. K To discourage frivolous or dilatory appeals fro the decisions or orders on the local or provincial levels! the /A- ay i pose reasonable penalties! including but not li ited to fines or censures upon erring parties. !ectio+ 53. !ertification of the 3AR!. K The /A- shall not take cogni,ance of any agrarian dispute or controversy unless a certification fro the 4A-6 that the dispute has been sub itted to it for ediation and conciliation without any success of settle ent is presented% provided! however! that if no certification is issued by the 4A-6 within thirty &<?' days after a atter or issue is sub itted to it for ediation or conciliation the case or dispute ay be brought before the )A-6. CHA*TER @ ?u;ici7l Re4ieF !ectio+ 54. !ertiorari. K Any decision! order! award or ruling of the /A- on any agrarian dispute or on any atter pertaining to the application! i ple entation! enforce ent! or interpretation of this Act and other pertinent laws on agrarian refor ay be brought to the 6ourt of Appeals by certiorari e#cept as otherwise provided in this Act within fifteen &:A' days fro the receipt of a copy thereof. The findings of fact of the /A- shall be final and conclusive if based on substantial evidence. !ectio+ 55. "o Restraining *rder or Preliminary In,unction . K 0o court in the )hilippines shall have jurisdiction to issue any restraining order or writ of preli inary injunction against the )A-6 or any of its duly authori,ed or designated agencies in any case! dispute or controversy arising fro ! necessary to! or in connection with the application! i ple entation! enforce ent! or interpretation of this Act and other pertinent laws on agrarian refor . !ectio+ 5-. Special Agrarian !ourt. K The "upre e 6ourt shall designate at least one &:' branch of the -egional Trial 6ourt &-T6' within each province to act as a "pecial Agrarian 6ourt. The "upre e 6ourt ay designate ore branches to constitute such additional "pecial Agrarian 6ourts as ay be necessary to cope with the nu ber of agrarian cases in each province.n the designation! the "upre e 6ourt shall give preference to the -egional Trial 6ourts which have been assigned to handle agrarian cases or whose presiding judges were for er judges of the defunct 6ourt of Agrarian -elations. The -egional Trial 6ourt &-T6' judges assigned to said courts shall e#ercise said special jurisdiction in addition to the regular jurisdiction of their respective courts. The "pecial Agrarian 6ourts shall have the powers and prerogatives inherent in or belonging to the -egional Trial 6ourts. !ectio+ 5.. Special /urisdiction. K The "pecial Agrarian 6ourts shall have original and e#clusive jurisdiction over all petitions for the deter ination of just co pensation to landowners! and the prosecution of all cri inal offenses under this Act. The -ules of 6ourt shall apply to all proceedings before the "pecial Agrarian 6ourts! unless odified by this Act. The "pecial Agrarian 6ourts shall decide all appropriate cases under their special jurisdiction within thirty &<?' days fro sub ission of the case for decision. !ectio+ 5/. Appointment of !ommissioners. K The "pecial Agrarian 6ourts! upon their own initiative or at the instance of any of the parties! ay appoint one or ore co issioners to e#a ine! investigate and ascertain facts relevant to the dispute including the valuation of properties! and to file a written report thereof with the court.

!ectio+ 59. *rders of the Special Agrarian !ourts . K 0o order of the "pecial Agrarian 6ourts on any issue! question! atter or incident raised before the shall be elevated to the appellate courts until the hearing shall have been ter inated and the case decided on the erits. !ectio+ -0. Appeals. K An appeal ay be taken fro the decision of the "pecial Agrarian 6ourts by filing a petition for review with the 6ourt of Appeals within fifteen &:A' days receipt of notice of the decision; otherwise! the decision shall beco e final. An appeal fro the decision of the 6ourt of Appeals! or fro any order! ruling or decision of the /A-! as the case ay be! shall be by a petition for review with the "upre e 6ourt within a non-e#tendible period of fifteen &:A' days fro receipt of a copy of said decision. !ectio+ -1. Procedure on Re iew. K -eview by the 6ourt of Appeals or the "upre e 6ourt! as the case ay be! shall be governed by the -ules of 6ourt. The 6ourt of Appeals! however! ay require the parties to file si ultaneous e oranda within a period of fifteen &:A' days fro notice! after which the case is dee ed sub itted for decision. !ectio+ -,. Preferential Attention in !ourts. K All courts in the )hilippines! both trial and appellate! shall give preferential attention to all cases arising fro or in connection with the i ple entation of the provisions of this Act. All cases pending in court arising fro or in connection with the i ple entation of this Act shall continue to be heard! tried and decided into their finality! notwithstanding the e#piration of the ten-year period entioned in "ection A hereof. CHA*TER @ V %i+7+ci+g !ectio+ -3. #unding Source. K The initial a ount needed to i ple ent this Act for the period of ten &:?' years upon approval hereof shall be funded fro the Agrarian -efor *und created under "ections ;? and ;: of 3#ecutive 1rder 0o. ;;D. Additional a ounts are hereby authori,ed to be appropriated as and when needed to aug ent the Agrarian -efor in order to fully i ple ent the provisions of this Act. "ources of funding or appropriations shall include the following% &a' )roceeds of the sales of the Assets )rivati,ation Trust; &b' All receipts fro assets recovered and fro 6o ission on 9ood 9overn ent; sales of ill-gotten wealth recovered through the )residential *und

&c' )roceeds of the disposition of the properties of the 9overn ent in foreign countries; &d' )ortion of a ounts accruing to the )hilippines fro all sources of official foreign grants and concessional financing fro all countries! to be used for the specific purposes of financing production credits! infrastructures! and other support services required by this Act; &e' 1ther govern ent funds not otherwise appropriated. All funds appropriated to i ple ent the provisions of this Act shall be considered continuing appropriations during the period of its i ple entation. !ectio+ -4. #inancial Intermediary for the !ARP. K The $and 4ank of the )hilippines shall be the financial inter ediary for the 6A-)! and shall insure that the social justice objectives of the 6A-) shall enjoy a preference a ong its priorities. CHA*TER @V Ge+e37l *3o4isio+s

!ectio+ -5. !on ersion of Lands. K After the lapse of five &A' years fro its award! when the land ceases to be econo ically feasible and sound for agricultural purposes! or the locality has beco e urbani,ed and the land will have a greater econo ic value for residential! co ercial or industrial purposes! the /A-! upon application of the beneficiary or the landowner! with due notice to the affected parties! and subject to e#isting laws! ay authori,e the reclassification or conversion of the land and its disposition% provided! that the beneficiary shall have fully paid his obligation. !ectio+ --. &'emptions from Ta'es and #ees of Land Transfers. K Transactions under this Act involving a transfer of ownership! whether fro natural or juridical persons! shall be e#e pted fro ta#es arising fro capital gains. These transactions shall also be e#e pted fro the pay ent of registration fees! and all other ta#es and fees for the conveyance or transfer thereof; provided! that all arrearages in real property ta#es! without penalty or interest! shall be deductible fro the co pensation to which the owner ay be entitled. !ectio+ -.. #ree Registration of Patents and Titles. K All -egisters of /eeds are hereby directed to register! free fro pay ent of all fees and other charges! patents! titles and docu ents required for the i ple entation of the 6A-). !ectio+ -/. Immunity of $o ernment Agencies from )ndue Interference . K 0o injunction! restraining order! prohibition or anda us shall be issued by the lower courts against the /epart ent of Agrarian -efor &/A-'! the /epart ent of Agriculture &/A'! the /epart ent of 3nviron ent and 0atural -esources &/30-'! and the /epart ent of Eustice &/1E' in their i ple entation of the progra . !ectio+ -9. Assistance of *ther $o ernment &ntities. K The )A-6! in the e#ercise of its functions! is hereby authori,ed to call upon the assistance and support of other govern ent agencies! bureaus and offices! including govern ent-owned or -controlled corporations. !ectio+ .0. Disposition of Pri ate Agricultural Lands. K The sale or disposition of agricultural lands retained by a landowner as a consequence of "ection > hereof shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not e#ceed the landholding ceilings provided for in this Act. Any sale or disposition of agricultural lands after the effectivity of this Act found to be contrary to the provisions hereof shall be null and void. Transferees of agricultural lands shall furnish the appropriate -egister of /eeds and the 4A-6 an affidavit attesting that his total landholdings as a result of the said acquisition do not e#ceed the landholding ceiling. The -egister of /eeds shall not register the transfer of any agricultural land without the sub ission of this sworn state ent together with proof of service of a copy thereof to the 4A-6. !ectio+ .1. 3an5 %ortgages. K 4anks and other financial institutions allowed by law to hold ortgage rights or security interests in agricultural lands to secure loans and other obligations of borrowers! ay acquire title to these ortgaged properties! regardless of area! subject to e#isting laws on co pulsory transfer of foreclosed assets and acquisition as prescribed under "ection :< of this Act. !ectio+ .,. Lease1 %anagement1 $rower or Ser ice !ontracts1 %ortgages and *ther !laims . K $ands covered by this Act under lease! anage ent! grower or service contracts! and the like shall be disposed of as follows% &a' $ease! anage ent! grower or service contracts covering private lands ay continue under their original ter s and conditions until the e#piration of the sa e even if such land has! in the eanti e! been transferred to qualified beneficiaries. &b' 2ortgages and other clai s registered with the -egister of /eeds shall be assu ed by the govern ent up to an a ount equivalent to the landowner(s co pensation value as provided in this Act. !ectio+ .3. Prohibited Acts and *missions. K The following are prohibited% &a' The ownership or possession! for the purpose of circu venting the provisions of this Act! of agricultural lands in e#cess of the total retention li its or award ceilings by any person! natural or juridical! e#cept those under collective ownership by far er-beneficiaries. &b' The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail the selves of the rights and benefits of the Agrarian -efor )rogra .

&c' The conversion by any landowner of his agricultural land into any non-agricultural use with intent to avoid the application of this Act to his landholdings and to dispossess his tenant far ers of the land tilled by the . &d' The willful prevention or obstruction by any person! association or entity of the i ple entation of the 6A-). &e' The sale! transfer! conveyance or change of the nature of lands outside of urban centers and city li its either in whole or in part after the effectivity of this Act. The date of the registration of the deed of conveyance in the -egister of /eeds with respect to titled lands and the date of the issuance of the ta# declaration to the transferee of the property with respect to unregistered lands! as the case ay be! shall be conclusive for the purpose of this Act. &f' The sale! transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he acquired by virtue of being a beneficiary! in order to circu vent the provisions of this Act. !ectio+ .4. Penalties. K Any person who knowingly or willfully violates the provisions of this Act shall be punished by i prison ent of not less than one &:' onth to not ore than three &<' years or a fine of not less than one thousand pesos &):!???.??' and not ore than fifteen thousand pesos &):A!???.??'! or both! at the discretion of the court. If the offender is a corporation or association! the officer responsible therefore shall be cri inally liable. !ectio+ .5. Suppletory Application of &'isting Legislation. K The provisions of -epublic Act 0o. <C== as a ended! )residential /ecree 0os. ;B and ;>> as a ended! 3#ecutive 1rder 0os. ;;C and ;;D! both "eries of :DCB; and other laws not inconsistent with this Act shall have suppletory effect. !ectio+ .-. Repealing !lause. K "ection <A of -epublic Act 0o. <C<=! )residential /ecree 0o. <:>! the last two paragraphs of "ection :; of )residential /ecree 0o. D=>! )residential /ecree 0o. :?<C! and all other laws! decrees e#ecutive orders! rules and regulations! issuances or parts thereof inconsistent with this Act are hereby repealed or a ended accordingly. !ectio+ ... Separability !lause. K If! for any reason! any section or provision of this Act is declared null and void! no other section! provision! or part thereof shall be affected and the sa e shall re ain in full force and effect. !ectio+ ./. &ffecti ity !lause. K This Act shall take effect i newspapers of general circulation. Approved% ?u+e 10, 19// ediately after publication in at least two &;' national