REPUBLIC ACT No. 3844

AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND REFORMS IN THE

PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND THE CHANNELING OF CAPITAL INTO INDUSTRY,

PROVIDE FOR THE NECESSARY IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR OTHER

PURPOSES

PRELIMINARY CHAPTER

TITLE

DECLARATION OF POLICY AND COMPOSITION OF CODE

Section 1. Title - This Act shall be known as the Agricultural Land Reform Code.

Section 2. Declaration of Policy - It is the policy of the State:

(1) To establish owner-cultivatorship and the economic family-size farm as the basis of Philippine agriculture and, as a

consequence, divert landlord capital in agriculture to industrial development;

(2) To achieve a dignified existence for the small farmers free from pernicious institutional restraints and practices;

(3) To create a truly viable social and economic structure in agriculture conducive to greater productivity and higher farm

incomes;

(4) To apply all labor laws equally and without discrimination to both industrial and agricultural wage earners;

(5) To provide a more vigorous and systematic land resettlement program and public land distribution; and

(6) To make the small farmers more independent, self-reliant and responsible citizens, and a source of genuine strength in

our democratic society.

Section 3. Composition of Code - In pursuance of the policy enunciated in Section two, the following are established under this

Code:

(1) An agricultural leasehold system to replace all existing share tenancy systems in agriculture;

(2) A declaration of rights for agricultural labor;

(3) An authority for the acquisition and equitable distribution of agricultural land;

(4) An institution to finance the acquisition and distribution of agricultural land;

(5) A machinery to extend credit and similar assistance to agriculture;

(6) A machinery to provide marketing, management, and other technical services to agriculture;

(7) A unified administration for formulating and implementing projects of land reform;

(8) An expanded program of land capability survey, classification, and registration; and

(9) A judicial system to decide issues arising under this Code and other related laws and regulations.

CHAPTER I

AGRICULTURAL LEASEHOLD SYSTEM

Section 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: Provided, That existing share tenancy contracts may continue in force and effect

in any region or locality, to be governed in the meantime by the pertinent provisions of Republic Act Numbered Eleven hundred

and ninety-nine, as amended, until the end of the agricultural year when the National Land Reform Council proclaims that all the

government machineries and agencies in that region or locality relating to leasehold envisioned in this Code are operating, unless

such contracts provide for a shorter period or the tenant sooner exercise his option to elect the leasehold system: Provided,

further, That in order not to jeopardize international commitments, lands devoted to crops covered by marketing allotments shall

be made the subject of a separate proclamation that adequate provisions, such as the organization of cooperatives, marketing

agreements, or other similar workable arrangements, have been made to insure efficient management on all matters requiring

synchronization of the agricultural with the processing phases of such crops: Provided, furthermore, That where the agricultural

share tenancy contract has ceased to be operative by virtue of this Code, or where such a tenancy contract has been entered into

in violation of the provisions of this Code and is, therefore, null and void, and the tenant continues in possession of the land for

cultivation, there shall be presumed to exist a leasehold relationship under the provisions of this Code, without prejudice to the

right of the landowner and the former tenant to enter into any other lawful contract in relation to the land formerly under tenancy

contract, as long as in the interim the security of tenure of the former tenant under Republic Act Numbered Eleven hundred and

ninety-nine, as amended, and as provided in this Code, is not impaired: Provided, finally, That if a lawful leasehold tenancy

contract was entered into prior to the effectivity of this Code, the rights and obligations arising therefrom shall continue to subsist

until modified by the parties in accordance with the provisions of this Code.

Section 5. Establishment of Agricultural Leasehold Relation - The agricultural leasehold relation shall be established by operation

of law in accordance with Section four of this Code and, in other cases, either orally or in writing, expressly or impliedly.

Section 6. Parties to Agricultural Leasehold Relation - The agricultural leasehold relation shall be limited to the person who

furnishes the landholding, either as owner, civil law lessee, usufructuary, or legal possessor, and the person who personally

cultivates the same.

Section 7. 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 extinguished. The agricultural

lessee shall be entitled to security of tenure on his landholding and cannot be ejected therefrom unless authorized by the Court for

causes herein provided.

Section 8. Extinguishment of Agricultural Leasehold Relation - The agricultural leasehold relation established under this Code

shall be extinguished by:

(1) Abandonment of the landholding without the knowledge of the agricultural lessor;

(2) Voluntary surrender of the landholding by the agricultural lessee, written notice of which shall be served three months in

advance; or

(3) Absence of the persons under Section nine to succeed to the lessee, in the event of death or permanent incapacity of the

lessee.

Section 9. Agricultural Leasehold Relation Not Extinguished by Death or Incapacity of the Parties - In case of death or permanent

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 month from such death or

permanent incapacity, from among the following: (a) the surviving spouse; (b) the eldest direct descendant by consanguinity; or (c)

the next eldest descendant or descendants in the order of their age: Provided, That in case the death or permanent incapacity of

the agricultural lessee occurs during the agricultural year, such choice shall be exercised at the end of that agricultural year:

Provided, further, That in the event the agricultural lessor fails to exercise his choice within the periods herein provided, the priority

shall be in accordance with the order herein established.

In case of death or permanent incapacity of the agricultural lessor, the leasehold shall bind his legal heirs.

Section 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period, etc. - The agricultural leasehold relation

under this Code shall not be extinguished by mere expiration of the term 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.

Section 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 same under reasonable terms and conditions: Provided, That the entire landholding

offered for sale must be pre-empted by the Land Authority if the landowner so desires, unless the majority of the lessees object to

such acquisition: Provided, further, That where there are two or more agricultural lessees, each shall be entitled to said

preferential right only to the extent of the area actually cultivated by him. The right of pre-emption under this Section may be

exercised within ninety days from notice in writing which shall be served by the owner on all lessees affected.

Section 12. 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 redeem the same at a reasonable price and consideration: Provided, That the

entire landholding sold must be redeemed: Provided, further, That where these are two or more agricultural lessees, each shall be

entitled to said right of redemption only to the extent of the area actually cultivated by him. The right of redemption under this

Section may be exercised within two years from the registration of the sale, and shall have priority over any other right of legal

redemption.

Section 13. Affidavit Required in Sale of Land Subject to Right of Pre-emption - No deed of sale of agricultural land under

cultivation by an agricultural lessee or lessees shall be recorded in the Registry of Property unless accompanied by an affidavit of

the vendor that he has given the written notice required in Section eleven of this Chapter or that the land is not worked by an

agricultural lessee.

Section 14. Right of Pre-emption and Redemption Not Applicable to Land to be Converted into Residential, Industrial and Similar

Purposes - The right of pre-emption and redemption granted under Sections eleven and twelve of this Chapter cannot be

exercised over landholdings suitably located which the owner bought or holds for conversion into residential, commercial,

industrial or other similar non-agricultural purposes: Provided, however, That the conversion be in good faith and is substantially

carried out within one year from the date of sale. Should the owner fail to comply with the above condition, the agricultural lessee

shall have the right to repurchase under reasonable terms and conditions said landholding from said owner within one year after

the aforementioned period for conversion has expired: Provided, however, That the tenure of one year shall cease to run from the

time the agricultural lessee petitions the Land Authority to acquire the land under the provisions of paragraph 11 of Section fifty-

one.

Section 15. Agricultural Leasehold Contract in General - The agricultural lessor and the agricultural lessee shall be free to enter

into any kind of terms, conditions or stipulations in a leasehold contract, as long as they are not contrary to law, morals or public

policy. A term, condition or stipulation in an agricultural leasehold contract is considered contrary to law, morals or public policy:

(1) If the agricultural lessee is required to pay a rental in excess of that which is hereinafter provided for in this Chapter;

(2) If the agricultural lessee is required to pay a consideration in excess of the fair rental value as defined herein, for the use

of work animals and/or farm implements belonging to the agricultural lessor or to any other person; or

(3) If it is imposed as a condition in the agricultural leasehold contract: (a) that the agricultural lessee is required to rent work

animals or to hire farm implements from the agricultural lessor or a third person, or to make use of any store or services

operated by the agricultural lessor or a third person; or (b) that the agricultural lessee is required to perform any work or

render any service other than his duties and obligations provided in this Chapter with or without compensation; or (c) that the

agricultural lessee is required to answer for any fine, deductions and/or assessments.

Any contract by which the agricultural lessee is required to accept a loan or to make payment therefor in kind shall also be

contrary to law, morals or public policy.

Section 16. Nature and Continuity of Conditions of Leasehold Contract - In the absence of any agreement as to the period, the

terms and conditions of a leasehold contract shall continue until modified by the parties: Provided, That in no case shall any

modification of its terms and conditions prejudice the right of the agricultural lessee to the security of his tenure on the landholding:

Provided, further, That in case of a contract with a period an agricultural lessor may not, upon the expiration of the period increase

the rental except in accordance with the provisions of Section thirty-four.

Section 17. Form and Registration of Contract - Should the parties decide to reduce their agreement into writing, the agricultural

leasehold contract shall be drawn in quadruplicate in a language or dialect known to the agricultural lessee and signed or thumb-

marked both by the agricultural lessee personally and by the agricultural lessor or his authorized representative, before two

witnesses, to be chosen by each party. If the agricultural lessee does not know how to read, the contents of the document shall be

read and explained to him by his witness. The contracting parties shall acknowledge the execution of the contract before the

justice of the peace of the municipality where the land is situated. No fees or stamps of any kind shall be required in the

preparation and acknowledgment of the instrument. Each 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 municipal treasurer of the municipality where the land is located and

the fourth copy to the Office of the Agrarian Counsel.

Except in case of mistake, violence, intimidation, 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 impugned within thirty

days after its registration.

Section 18. Registration of Leasehold Contract - The municipal 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, time and place of registration as well as its entry or registration number.

Section 19. Registry of Agricultural Leasehold Contracts - The Municipal Treasurer of the municipality wherein the land is situated

shall keep a record of all such contracts drawn and executed within his jurisdiction, to be known as "Registry of Agricultural

Leasehold Contracts". He shall keep this registry together with a copy of each contract entered therein, and make annotations on

said registry of all subsequent acts relative to each contract, such as its renewal, novation, cancellation, etc. No registration fees

or documentary stamps shall be required in the registration of said contracts or of any subsequent acts relative thereto.

Section 20. Memorandum of Loans - No obligation to pay money on account of loans including interest thereon obtained by the

agricultural lessee from the agricultural lessor or his representative shall be enforceable unless the same or a memorandum

thereof be in writing in a language or dialect known to the agricultural lessee, and signed or thumb-marked by him, or by his agent.

Section 21. Exemption from Lien and/or Execution - The following shall be exempt from lien and/or execution against the

agricultural lessee:

(1) Twenty-five per centum of the entire produce of the land under cultivation; and

(2) Work animals and farm implements belonging to the agricultural lessee: Provided, That their value does not exceed one

thousand pesos. But no article or species of property mentioned in this Section shall be exempt from execution issued upon

a judgment recovered for its price or upon a judgment of foreclosure of a mortgage thereon.

Section 22. Use of Accepted Standards of Weights and Measures - In all transactions entered into between the agricultural

lessee and the agricultural lessor concerning agricultural products the official or, upon agreement of the parties, the accepted

standards of weights and measures shall be used.

Section 23. Rights of Agricultural Lessee in General - It shall be the right of the agricultural lessee:

(1) To have possession and peaceful enjoyment of the land;

(2) To manage and work on the land in a manner and method of cultivation and harvest which conform to proven farm

practices;

(3) To mechanize all or any phase of his farm work; and

(4) To deal with millers and processors and attend to the issuance of quedans and warehouse receipts for the produce due

him.

Section 24. Right to a Home Lot - The agricultural lessee shall have the right to continue in the exclusive possession and

enjoyment of any home lot he may have occupied upon the effectivity of this Code, which shall be considered as included in the

leasehold.

Section 25. Right to be Indemnified for Labor - The agricultural lessee shall have the right to be indemnified for the cost and

expenses incurred in the cultivation, planting or harvesting and other expenses incidental to the improvement of his crop in case

he surrenders or abandons his landholding for just cause or is ejected therefrom. In addition, he has the right to be indemnified for

one-half of the necessary and useful improvements made by him on the landholding: Provided, That these improvements are

tangible and have not yet lost their utility at the time of surrender and/or abandonment of the landholding, at which time their value

shall be determined for the purpose of the indemnity for improvements.

Section 26. Obligations of the Lessee - It shall be the obligation of the agricultural lessee:

(1) To cultivate and take care of the farm, growing crops, and other improvements on the landholding as a good father of a

family and perform all the work therein in accordance with proven farm practices;

(2) To inform the agricultural lessor within a reasonable time of any trespass committed by third persons upon the farm,

without prejudice to his direct action against the trespasser;

(3) To take reasonable care of the work animals and farm implements delivered to him 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: Provided, however, That if said work animals get lost or die, or said farm implements get lost or are

destroyed, through the negligence of the agricultural lessee, he shall be held responsible and made answerable therefor to

the extent of the value of the work animals and/or farm implements at the time of the loss, death or destruction;

(4) To keep his farm and growing crops attended to during the work season. In case of unjustified abandonment or neglect of

his farm, any or all of his expected produce may, upon order of the Court, be forfeited in favor of the agricultural lessor to the

extent of the damage caused thereby;

(5) To notify the agricultural lessor at least three days before the date of harvesting or, whenever applicable, of threshing;

and

(6) To pay the lease rental to the agricultural lessor when it falls due.

Section 27. Prohibitions to Agricultural Lessee - It shall be unlawful for the agricultural lessee:

(1) To contract to work additional landholdings belonging to a different agricultural lessor or to acquire and personally

cultivate an economic family-size farm, without the knowledge and consent of the agricultural lessor with whom he had

entered first into household, if the first landholding is of sufficient size to make him and the members of his immediate farm

household fully occupied in its cultivation; or

(2) To employ a sub-lessee on his landholding: Provided, however, That in case of illness or temporary incapacity he may

employ laborers whose services on his landholding shall be on his account.

Section 28. Termination of Leasehold by Agricultural Lessee During Agricultural Year - The agricultural lessee may terminate the

leasehold during the agricultural year for any of the following causes:

(1) Cruel, inhuman or offensive, treatment of the agricultural lessee or any member of his immediate farm household by the

agricultural lessor or his representative with the knowledge and consent of the lessor;

(2) Non-compliance on the part of the agricultural lessor with any of the obligations imposed upon him by the provisions of

this Code or by his contact with the agricultural lessee;

(3) Compulsion of the agricultural lessee or any member of his immediate farm household by the agricultural lessor to do any

work or render any service not in any way connected with farm work or even without compulsion if no compensation is paid;

(4) Commission of a crime by the agricultural lessor or his representative against the agricultural lessee or any member of

his immediate farm household; or

(5) Voluntary surrender due to circumstances more advantageous to him and his family.

Section 29. Rights of the Agricultural Lessor - It shall be the right of the agricultural lessor:

(1) To inspect and observe the extent of compliance with the terms and conditions of their contract and the provisions of this

Chapter;

(2) To propose a change in the use of the landholding to other agricultural purposes, or in the kind of crops to be planted:

Provided, That in case of disagreement as to the proposed change, the same shall be settled by the Court according to the

best interest of the parties concerned: Provided, further, That in no case shall an agricultural lessee be ejected as a

consequence of the conversion of the land to some other agricultural purpose or because of a change in the crop to be

planted;

(3) To require the agricultural lessee, taking into consideration his financial capacity and the credit facilities available to him,

to adopt in his farm proven farm practices necessary to the conservation of the land, improvement of its fertility and increase

of its productivity: Provided, That in case of disagreement as to what proven farm practice the lessee shall adopt, the same

shall be settled by the Court according to the best interest of the parties concerned; and

(4) To mortgage expected rentals.

Section 30. Obligations of the Agricultural Lessor - It shall be the obligation of the agricultural lessor:

(1) To keep the agricultural lessee in peaceful possession and cultivation of his landholding; and

(2) To keep intact such permanent useful improvements existing on the landholding at the start of the leasehold relation as

irrigation and drainage system and marketing allotments, which in the case of sugar quotas shall refer both to domestic and

export quotas, provisions of existing laws to the contrary notwithstanding.

Section 31. Prohibitions to the Agricultural Lessor - It shall be unlawful for the agricultural lessor:

(1) To dispossess the agricultural lessee of his landholding except upon authorization by the Court under Section thirty-six.

Should the agricultural lessee be dispossessed of his landholding without authorization from the Court, the agricultural lessor

shall be liable for damages suffered by the agricultural lessee in addition to the fine or imprisonment prescribed in this Code

for unauthorized dispossession;

(2) To require the agricultural lessee to assume, directly or indirectly, the payment of the taxes or part thereof levied by the

government on the landholding;

(3) To require the agricultural lessee to assume, 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;

(4) To deal with millers or processors without written authorization of the lessee in cases where the crop has to be sold in

processed form before payment of the rental; or

(5) To discourage, directly or indirectly, the formation, maintenance or growth of unions or organizations of agricultural

lessees in his landholding, or to initiate, dominate, assist or interfere in the formation or administration of any such union or

organization.

Section 32. Cost of Irrigation System - The cost of construction of a permanent irrigation system, including distributory canals,

may be borne exclusively by the agricultural lessor who shall be entitled to an increase in rental proportionate to the resultant

increase in production: Provided, That if the agricultural lessor refuses to bear the expenses of construction the agricultural lessee

or lessees may shoulder the same, in which case the former shall not be entitled to an increase in rental and shall, upon the

termination of the relationship, pay the lessee or his heir the reasonable value of the improvement at the time of the termination:

Provided, further, That if the irrigation system constructed does not work, it shall not be considered as an improvement within the

meaning of this Section.

Section 33. Manner, Time and Place of Rental Payment - The consideration for the lease of the land shall be paid in an amount

certain in money or in produce, or both, payable at the place agreed upon by the parties immediately after threshing or processing

if the consideration is in kind, or within a reasonable time thereafter, if not in kind.

In no case shall the agricultural lessor require the agricultural lessee to file a bond, make a deposit or pay the rental in advance, in

money 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 payment of the rental due in his favor.

Section 34. Consideration for the Lease of Riceland and Lands Devoted to Other Crops - The consideration for the lease of

riceland and lands devoted to other crops shall not be more than the equivalent of twenty-five per centum of the average normal

harvest during the three agricultural years immediately preceding the date the leasehold was established after deducting the

amount used for seeds and the cost of harvesting, threshing, loading, hauling and processing, whichever are applicable: Provided,

That if the land has been cultivated for a period of less than three years, the initial consideration shall be based on the average

normal 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 normal: Provided, further, That after the lapse of the first three normal harvests, the final

consideration shall be based on the average normal harvest during these three preceding agricultural years: Provided,

furthermore, That in the absence of any agreement between the parties as to the rental, the maximum allowed herein shall apply:

Provided, finally, That if capital improvements are introduced on the farm not by the lessee to increase its productivity, the rental

shall be increased proportionately to the consequent increase in production due to said improvements. In case of disagreement,

the Court shall determine the reasonable increase in rental.

Section 35. Exemption from Leasehold of Other Kinds of Lands - Notwithstanding the provisions of the preceding Sections, in the

case of fishponds, saltbeds, and lands principally planted to citrus, coconuts, cacao, coffee, durian, and other similar permanent

trees at the time of the approval of this Code, the consideration, as well as the tenancy system prevailing, shall be governed by

the provisions of Republic Act Numbered Eleven hundred and ninety-nine, as amended.

Section 36. Possession of Landholding; Exceptions - Notwithstanding any agreement as to the period or future surrender, of the

land, an agricultural lessee shall continue in the enjoyment and possession of his landholding except when his dispossession has

been authorized by the Court in a judgment that is final and executory if after due hearing it is shown that:

(1) The agricultural lessor-owner or a member of his immediate family will personally cultivate the landholding or will convert

the landholding, if suitably located, into residential, factory, hospital or school site or other useful non-agricultural purposes:

Provided; That the agricultural lessee shall be entitled to disturbance compensation equivalent to five years rental on his

landholding in addition to his rights under Sections twenty-five and thirty-four, except when the land owned and leased by

the agricultural lessor, is not more than five hectares, in which case instead of disturbance compensation the lessee may be

entitled to an advanced notice of at least one agricultural year before ejectment proceedings are filed against him: Provided,

further, That should the landholder not cultivate the land himself for three years or fail to substantially carry out such

conversion within one year after the dispossession of the tenant, it shall be presumed that he acted in bad faith and the

tenant shall have the right to demand possession of the land and recover damages for any loss incurred by him because of

said dispossessions.

(2) The agricultural lessee failed to substantially comply with any of the terms and conditions of the contract or any of the

provisions of this Code unless his failure is caused by fortuitous event or force majeure;

(3) The agricultural lessee planted crops or used the landholding for a purpose other than what had been previously agreed

upon;

(4) The agricultural lessee failed to adopt proven farm practices as determined under paragraph 3 of Section twenty-nine;

(5) The land or other substantial permanent improvement thereon is substantially damaged or destroyed or has

unreasonably deteriorated through the fault or negligence of the agricultural lessee;

(6) The agricultural lessee does not pay the lease rental when it falls due: Provided, That if the non-payment of the rental

shall be due to crop failure to the extent of seventy-five per centum as a result of a fortuitous event, the non-payment shall

not be a ground for dispossession, although the obligation to pay the rental due that particular crop is not thereby

extinguished; or

(7) The lessee employed a sub-lessee on his landholding in violation of the terms of paragraph 2 of Section twenty-seven.

Section 37. Burden of Proof - The burden of proof to show the existence of a lawful cause for the ejectment of an agricultural

lessee shall rest upon the agricultural lessor.

Section 38. Statute of Limitations - An action to enforce any cause of action under this Code shall be barred if not commenced

within three years after such cause of action accrued.

CHAPTER II

BILL OF RIGHTS FOR AGRICULTURAL LABOR

Section 39. Rights for Agricultural Labor - To enable the farm workers to enjoy the same rights and opportunities in life as

industrial workers, they shall enjoy the following:

(1) Right to self-organization;

(2) Right to engage in concerted activities;

(3) Right to minimum wage;

(4) Right to work for not more than eight hours;

(5) Right to claim for damages for death or injuries sustained while at work;

(6) Right to compensation for personal injuries, death or illness; and

(7) Right against suspension or lay-off.

Section 40. Right to Self-Organization - The farm workers shall have the right to self-organization and to form, join or assist farm

workers' organizations of their own choosing for the purpose of collective bargaining through representatives of their own

choosing: Provided, That this right shall be exercised in a manner as will not unduly interfere with the normal farm operations.

Individuals employed as supervisors shall not be eligible for membership in farm workers' organizations under their supervision

but may form separate organizations of their own.

Section 41. Right to Engage in Concerted Activities - The farm workers shall also have the right to engage in concerted activities

for the purpose of collective bargaining and other mutual aid or protection.

For the purpose of this and the preceding Section, it shall be the duty of the farm employer or manager to allow the farm workers,

labor leaders, organizers, advisers and helpers complete freedom to enter and leave the farm, plantation or compound at the

portion of the same where said farm workers live or stay permanently or temporarily.

Section 42. Right to Minimum Wage - Notwithstanding any provision of law or contract to the contrary, farm workers in farm

enterprises shall be entitled to at least P3.50 a day for eight hours' work: Provided, That this wage may, however, be increased by

the Minimum Wage Board as provided for in Republic Act Numbered Six hundred and two.

Section 43. Right to Eight Hours' Work - Notwithstanding the provision of existing laws to the contrary, farm workers shall not be

required to work for more than eight hours daily. When the work is not continuous, the time during which the farm worker is not

working and can leave his working place and can rest completely shall not be counted.

Work may be performed beyond eight hours a day in case of actual or impending emergencies caused by serious accidents, fire,

flood, typhoon, epidemic, or other disaster or calamity, or in case of urgent work to be performed on farm machines, equipment or

installations in order to avoid a serious loss which the farm employer or manager would otherwise suffer, or some other just cause

of a similar nature, but in all such cases the farm workers shall be entitled to receive compensation for the overtime work

performed at the same rate as their regular wages, plus at least twenty-five per centum additional, based on their daily wages.

No farm employer or manager shall compel a farm worker to work during Sundays and legal holidays: Provided, however, That

should the farm worker agree to work on said days, he shall be paid an additional sum of at least twenty-five per centum of his

regular compensation; Provided, further, That the farm employer or manager shall not be held liable for any claim for overtime

work which he had not previously authorized, except if the work rendered was to avoid damages to crops, produce, work animals

or implements, buildings or the like.

Any agreement or contract between the farm employer or manager and the farm worker contrary to the provisions of this Section

shall be null and void.

Section 44. Right of Action for Damages - Notwithstanding the provisions of existing laws to the contrary, Act Numbered Eighteen

hundred and seventy-four, as amended, entitled "An Act to extend and regulate the responsibility of employers for personal

injuries and death suffered by their employees while at work", shall apply to farm workers insofar as it may be applicable.

Section 45. Right to Compensation for Personal Injuries, Death, or Illness - Notwithstanding the provisions of existing laws to the

contrary, Act Numbered Thirty-four hundred and twenty-eight, as amended, entitled "An Act prescribing the compensation to be

received by employees for personal injuries, death or illness contracted in the performance of their duties", shall apply to farm

workers insofar as it may be applicable.

Section 46. Right Against Suspension of Lay-off - The landowner, farm employer or farm manager shall not suspend, lay-off or

dismiss any farm worker without just cause from the time a farm workers' organization or group of farm workers has presented to

the landowner a petition or complaint regarding any matter likely to cause a strike or lockout and a copy thereof furnished with the

Department of Labor, or while an agricultural dispute is pending before the Court of Agrarian Relations. If it is proved during the

said period that a worker has been suspended or dismissed without just cause, the Court may direct the reinstatement and the

payment of his wage during the time of his suspension or dismissal or of any sum he should have received had he not been

suspended or dismissed, without prejudice to any criminal liability of the landowner, farm employer or farm manager as prescribed

by Section twenty-four of Commonwealth Act Numbered One hundred and three, as amended.

Section 47. Other Applicable Provisions - All other existing laws applicable to non-agricultural workers in private enterprises which

are not inconsistent with this Code shall likewise apply to farm workers, farm labor organizations and agrarian disputes as defined

in this Code, as well as to relations between farm management and farm labor and the functions of the Department of Labor and

other agencies.

Section 48. Exceptions to Preceding Section - The preceding Sections of this Chapter, except Sections forty, forty-one, forty-two

and forty-three shall not apply to farm enterprises comprising not more than twelve hectares.

CHAPTER III

LAND AUTHORITY

ARTICLE I

Organization and Functions of the Land Authority

Section 49. Creation of the Land Authority - For the purpose of carrying out the policy of establishing owner-cultivatorship and the

economic family-size farm as the basis of Philippine agriculture and other policies enunciated in this Code, there is hereby created

a Land Authority, hereinafter called the Authority, which shall be directly under the control and supervision of the President of the

Philippines. The Authority shall be headed by a Governor who shall be appointed by the President with the consent of the

Commission on Appointments.

He shall be assisted by two Deputy Governors who shall be appointed by the President with the consent of the Commission on

Appointments, each of whom shall head such operating departments as may be set up by the Governor. The Governor and the

Deputy Governors shall hold office for five years.

Section 50. Qualifications and Compensation of Governors - No person shall be appointed Governor or Deputy Governor of the

Authority unless he is a natural-born citizen of the Philippines, with adequate background and experience in land reform here

and/or elsewhere, and at least thirty-five years of age.

The Governor shall receive an annual compensation of twenty-four thousand pesos; the Deputy Governors shall each receive an

annual compensation of eighteen thousand pesos.

Section 51. Powers and Functions - It shall be the responsibility of the Authority:

(1) To initiate and prosecute expropriation proceedings for the acquisition of private agricultural lands as defined in Section

one hundred sixty-six of Chapter XI of this Code for the purpose of subdivision into economic family-size farm units and

resale of said farm units to bona fide tenants, occupants and qualified farmers: Provided, That the powers herein granted

shall apply only to private agricultural lands subject to the terms and conditions and order of priority hereinbelow specified:

a. all idle or abandoned private agricultural lands, except those held or purchased within one year from the approval of

this Code by private individuals or corporations for the purpose of resale and subdivision into economic family-size farm

units in accordance with the policies enunciated in this Code: Provided, That the subdivision and resale shall be

substantially carried out within one year from the approval of this Code;

b. all private agricultural lands suitable for subdivision into economic family-size farm units, owned by private

individuals or corporations worked by lessees, no substantial portion of whose landholding in relation to the area

sought to be expropriated, is planted to permanent crops under labor administration, in excess of seventy-five hectares

except all private agricultural lands under labor administration and lands acquired under Section seventy-one of this

Code; and

c. in expropriating private agricultural lands declared by the National Land Reform Council or by the Land Authority

within a land reform district to be necessary for the implementation of the provisions of this Code, the following order of

priority shall be observed:

1. idle or abandoned lands;

2. those whose area exceeds 1,024 hectares;

3. those whose area exceeds 500 hectares but is not more than 1,024 hectares;

4. those whose area exceeds 144 hectares but is not more than 500 hectares; and

5. those whose area exceeds 75 hectares but is not more than 144 hectares.

(2) To help bona fide farmers without lands or agricultural owner-cultivators of uneconomic-size farms to acquire and own

economic family-size farm units;

(3) To administer and dispose of agricultural lands of the public domain under the custody and administration of the National

Resettlement and Rehabilitation Administration prior to the approval of this Code and such other public agricultural lands as

may hereafter be reserved by the President of the Philippines for resettlement and sale, in accordance with such terms and

conditions as are set forth under this Chapter: Provided, That the exercise of the authority granted herein, as well as in the

preceding sub-paragraph, shall not contravene public policy on the permanency of forest reserves or other laws intended for

the preservation and conservation of public forests;

(4) To develop plans and initiate actions for the systematic opening of alienable and disposable lands of the public domain

for speedy, distribution to and development by deserving and qualified persons or corporations;

(5) To recommend to the President, from time to time after previous consultation with the Secretary of Agriculture and

Natural Resources, what portion of the alienable or disposable public lands shall be reserved for settlement or disposition

under this chapter;

(6) To give economic family-size farms to landless citizens of the Philippines =who need, deserve, and are capable of

cultivating the land personally, through organized resettlement, under the terms and conditions the Authority may prescribe,

giving priority to qualified and deserving farmers in the province where such lands are located;

(7) To reclaim swamps and marshes, obtain titles thereto whenever feasible and subdivide them into economic family-size

farms for distribution to deserving and qualified farmers;

(8) To undertake measures which will insure the early issuance of titles to persons or corporations who have actually settled

and cultivated disposable alienable lands of the public domain;

(9) To survey, subdivide and set aside lands or areas of landholdings under its administration for economic family-size farms,

large-scale farm operations, town sites, roads, parks, government centers and other civic improvements as circumstances

may warrant and to submit subdivision survey plans conducted either by the government or private surveyors on parcels of

lands under its administration for verification and approval either by the Director of Lands or by the Land Registration

Commission;

(10) To inform the Agricultural Productivity Commission and the Office of the Agrarian Counsel of the problems of settlers

and farmers on lands under its administration;

(11) To acquire for agricultural lessees exercising their right of pre-emption under Chapter I of this Code, any landholdings

mentioned thereunder;

(12) To conduct land capability survey and classification of the entire country and print maps;

(13) To make such arrangements with the Land Bank with respect to titles of agricultural lands of the public domain under its

administration as will be necessary to carry out the objectives of this Code;

(14) To expropriate home lots occupied by agricultural lessees outside their landholdings for resale at cost to said

agricultural lessees; and

(15) To submit to the President of the Philippines and to both Houses of Congress through their presiding officers, to the

Secretary of Finance and to the Auditor General within sixty days of the close of the fiscal year, an annual report showing its

accomplishments during the year; the expropriation proceedings it has undertaken; the expenditures it has incurred and

other financial transactions undertaken with respect thereto.

Section 52. Appointment of Subordinate Officials and Employees - The Governor shall organize the personnel in such

departments, divisions and sections of the Authority as will insure their maximum efficiency. He shall appoint, subject to civil

service rules and regulations, fix the compensation, subject to WAPCO rules and regulations, and determine the duties of

subordinate officials and employees as the exigencies of the service may require.

ARTICLE II

Expropriation of Private Agricultural Lands

Section 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 Chapter VII of this Code, institute and prosecute expropriation proceedings for the

acquisition of private agricultural lands and home lots enumerated under Section fifty-one. In the event a landowner agrees to sell

his property under the terms specified in this Chapter and the National Land Reform Council finds it suitable and necessary to

acquire such property, a joint motion embodying the agreement, including the valuation of the property, shall be submitted by the

Land Authority and the land-owner to the Court for approval: Provided, That in such case, any person qualified to be a beneficiary

of such expropriation or purchase may object to the valuation as excessive, in which case the Court shall determine the just

compensation in accordance with Section fifty-six of this Code.

Section 54. Possession of the Land; Procedure - The Authority, after commencing the expropriation suit, may take immediate

possession of the land upon deposit with the Court that has acquired jurisdiction over the expropriation proceedings in accordance

with the Rules of Court, of money, and bonds of the Land Bank, in accordance with the proportions provided for under Section

eighty of this Code, equal to the value as determined by the Court in accordance with the provisions of Section fifty-six hereof.

Section 55. Expeditious Survey and Subdivision - Immediately after the Authority takes possession of lands to be acquired by it

under this Code, it shall undertake a subdivision survey of the land into economic family-size farms which shall be immediately

assigned to beneficiaries selected in accordance with Section one hundred and twenty-eight subject to such rules and regulations

as it may prescribe.

Section 56. Just Compensation - In determining the just compensation of the land to be expropriated pursuant to this Chapter, the

Court, in land under leasehold, shall consider as a basis, without prejudice to considering other factors also, the annual lease

rental income authorized by law capitalized at the rate of six per centum per annum.

The owner of the land expropriated shall be paid in accordance with Section eighty of this Act by the Land Bank and pursuant to

an arrangement herein authorized.

Section 57. Duty of Court in Expropriation Proceedings - In expropriation proceedings, it shall be the duty of the Court to include

in its resolution or order of expropriation a provision that the Land Authority shall, after taking possession of the land and after the

subdivision thereof, allow the Land Bank to have the title thereto for the purpose of paying the owner the just compensation

therefor.

Section 58. Issuance of Certificates of Title for Parcel or Lot - After the payment of just compensation on the land expropriated the

Land Bank shall cause the issuance of separate certificates of titles for each parcel or lot in accordance with the subdivision

survey made under Section fifty-five.

Section 59. Prohibition Against Alienation and Ejectment - Upon the filing of the petition referred to in Section fifty-three the

landowner may not alienate any portion of the land covered by such petition except in pursuance of the provisions of this Code, or

enter into any form of contract to defeat the purposes of this Code, and no ejectment proceedings against any lessee or occupant

of the land covered by the petition shall be instituted or prosecuted until it becomes certain that the land shall not be acquired by

the Authority.

Section 60. Disposition of Expropriated Land - After separate certificates of titles have been issued in accordance with Section

fifty-eight, the Land Authority, on behalf of the Republic of the Philippines and in representation of the Land Bank as the financing

agency, shall allot and sell each parcel or lot to a qualified beneficiary selected under Section fifty-five of this Code, subject to

uniform terms and conditions imposed by the Land Bank: Provided, That the resale shall be at cost which shall mean the

purchase price not more than six per centum per annum, which shall cover administrative expenses, and actual expenses for

subdivision, surveying, and registration: Provided, further, That such cost shall be paid on the basis of an amortization plan not

exceeding twenty-five years at the option of the beneficiary.

In case some agricultural lessees working portions of agricultural lands acquired by the government under this Code prefer to

remain as lessees thereof, which preference shall be expressed in writing and attested by a representative of the Office of

Agrarian Counsel, the resale and redistribution to them shall be deferred until such time that such lessees are ready and wil ling to

assume the obligations and responsibilities of independent owners, which shall be manifested by a written notice to this effect by

the lessees and which shall oblige the Land Authority forthwith to allot and sell such portions to such lessees under the same

uniform terms and conditions. Pending the sale, such lessees shall continue to work on their landholdings and receive the produce

thereof, subject, however, to the requirement that they pay the Land Bank the allowable rental established in Section thirty-four.

The Land Bank shall apply the rental to the six percent added to the acquisition price and credit the balance to the acquisition cost

in the name of the lessee as partial payment for the land.

The Land Authority shall administer said parcels of land during the period they are under lease. Competent management and

adequate production credit shall be provided in accordance with the program developed by the Land Reform Project Team for

such area.

Section 61. Organization of Cooperative Associations - For the purpose of more efficient management, adoption of modern farm

methods and techniques, and spreading risk, either through diversification of farm projects or mutual assumption of risks the

farmer beneficiaries may organize themselves into cooperative associations with the advice or assistance of the Agricultural

Productivity Commission and in accordance with the guidelines established by said Commission for such associations.

Section 62. Limitation on Land Rights - Except in case of hereditary succession by one heir, landholdings acquired under this

Code may not be resold, mortgaged, encumbered or transferred until after the lapse of ten years from the date of full payment and

acquisition and after such ten-year period, any transfer, sale or disposition may be made only in favor of persons qualified to

acquire economic family-size farm units in accordance with the provisions of this Code: Provided, That a purchaser who acquired

his landholding under a contract to sell may secure a loan on the same from any private lending institution or individual for an

amount not exceeding his equity on said landholding upon a guaranty by the Land Bank.

Section 63. Inscription of Specific Prohibition Against Resale and Subdivision of Landholding - Certificates of titles of landholdings

acquired by the Land Authority and resold to purchasers shall contain therein a specific inscription prohibiting further subdivision

and the resale, transfer or encumbrance of said landholdings except as provided in the preceding Section.

Section 64. Exemption from Attachment - Lands acquired under the provisions of this Chapter shall be exempt from execution

and attachment, except when the land itself is the property mortgaged, in accordance with Section sixty-two of this Code.

Section 65. Precedence of Expropriation Cases - Expropriation cases filed by the Authority under provisions of this Chapter shall

take precedence over all other civil cases pending before the Court and shall be terminated within a period not exceeding six

months from the date of filing.

ARTICLE III

Distribution of Agricultural Lands of the Public Domain

Section 66. Title to Public Agricultural Land - Upon reservation by the President of the Philippines of public agricultural land

available for disposition by the Land Authority, such land shall be surveyed, titled and transferred to the Land Bank, which shall

reduce said title into individual titles for specific parcels or lots in accordance with the subdivision survey conducted by the Land

Authority under paragraph 9 of Section fifty-one: Provided, however, That existing laws governing the acquisition of public lands

shall have been complied with.

The Land Authority shall thereupon distribute in accordance with the provisions of this Code, each parcel or lot, subject to the

terms and conditions of the Land Bank, to a beneficiary selected pursuant to Section seventy-one or in accordance with paragraph

3 of Section fifty-one, to a beneficiary selected pursuant to paragraph 3 of Section one hundred twenty-eight.

Section 67. Census of Settlements - The Authority shall take a census of all settlements already made or started by farmers 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 them, with or without legal sanction. The census shall include, among other things, the bona fide

character of the settlements, the character of the settlers or farmers, the exact status of the lands settled, the feasibility of

enlarging the settlements, particularly in connection with the resources of the land occupied and the neighboring areas, actual and

potential accessibility to markets, as well as strategic location of the settlement with respect to national security.

Section 68. Assistance to Settlers in Transporting Themselves and Their Belongings - The Authority may, in certain projects,

assist settlers in transporting themselves, their belongings, work animals and farm equipment, if any, from the communities from

which they are migrating to the settlement areas reserved for the purpose and for subsistence necessary until credit can be

provided by government financing agencies, or by any other credit institution by loaning to them the full amount required for such

purposes. These loans from the Land Authority shall be non-interest bearing, shall constitute a lien upon the land, and shall be

amortized over a period of ten years, payable annually beginning with the end of the third year, after the date of arrival in the

settlement areas, subject to the right of the borrower to pay in the full at any time prior to the maturity of the loan.

Section 69. Assistance to Settlers in Securing Equipment - The Authority may assist the settlers in securing equipment, supplies

and materials needed; or assist the cooperative associations of the new settlers in securing the most advantageous prices or

terms on farm implements and supplies needed.

Section 70. Providing Housing and Accommodations to Settlers - The Authority may help provide housing and other

accommodations for the new settlers upon their arrival in the settlement areas by the stationing them in properly surveyed and

subdivided lots reserved for the purpose: help them organize community activities; and cooperate with the Bureau of Health, the

Bureau of Public Schools and other pertinent agencies of the Government, in providing services necessary for the proper

establishment of community facilities.

Section 71. Power of the Land Authority to Sell to Holders of Bonds Issued to Former Landowners Whose Lands Have Been

Purchased for Redistribution - The Land Authority shall sell, for a price not less than the appraised value, any portion not

exceeding 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 Land Bank which is suitable for large-scale farm operations to any

holder, who is qualified to acquire agricultural lands through purchase, of bonds issued to former landowners whose lands have

been purchased for redistribution under this Code, subject to the condition that the purchaser shall, within two years after

acquisition, place under cultivation at least thirty per centum of the entire area under plantation administration and the remaining

seventy per centum within five years from the date of acquisition. The Governor of the Land Authority shall issue the title of said

land upon showing that the purchaser has begun the development and cultivation of his land under plantation administration:

Provided, That public agricultural land sold as hereinabove specified shall not be the object of any expropriation as long as the

same shall be developed and cultivated for large-scale production under farm labor management, except as allowed by the

Constitution.

The selling price of the portion of the public agricultural land sold under this Section shall be credited to the Government's

subscription to the Land Bank. As payment for the land sold under this Section, the Land Bank shall accept as sole instruments of

payment the bonds issued pursuant to Section seventy-six. Issued bonds accepted as payment for the land sold shall be

cancelled to the extent of the amount paid.

All sales under this Code shall be subject to the provision of Chapter V of the Public Land Act covering sales of public agricultural

lands insofar as they are not inconsistent with the provisions of this Code.

Section 72. Duplicate Records to be Furnished the Bureau of Lands - The Land Authority shall furnish the Bureau of Lands with

the duplicate records of proceedings on applications for the sale or other disposition of public agricultural lands under its

administration.

Section 73. Transfer of Appropriations, Powers, Functions, etc - The National Resettlement and Rehabilitation Administration and

the Land Tenure administration are hereby abolished and their powers and functions not inconsistent with this Code, balances of

all appropriations, funds, equipment, records and supplies, as well as agricultural lands, public and private, under their

administration, are hereby transferred to the Authority: Provided, That the function of the Land Tenure Administration with respect

to the expropriation of urban lands as provided by existing laws is hereby transferred to and all hereafter be undertaken by the

People's Homesite and housing Corporation.

In addition to the appropriations herein transferred there is hereby appropriated from the general funds in the National Treasury

not otherwise appropriated the sum of five million pesos, or so much thereof as may be necessary, to carry out the purposes of

this Code.

To carry out the land capability survey and classification mentioned in paragraph 12 of Section fifty-one and Section one hundred

thirty-two of this Code, there is hereby appropriated out of the unappropriated funds of the National Treasury the amount of ten

million pesos.

CHAPTER IV

LAND BANK

Section 74. Creation - To finance the acquisition by the Government of landed estates for division and resale to small

landholders, as well as the purchase of the landholding by the agricultural lessee from the landowner, there is hereby established

a body corporate to be known as the "Land Bank of the Philippines", hereinafter called the "Bank", which shall have its principal

place of business in Manila. The legal existence of the Bank shall be for a period of fifty years counting from the date of the

approval hereof. The Bank shall be subject to such rules and regulations as the Central Bank may from time to time promulgate.

Section 75. Powers in General - To carry out this main purpose, the Bank shall have the power:

(1) To prescribe, repeal, and alter its own by laws, to determine its operating policies, and to issue such rules and regulations

as may be necessary to achieve the main purpose for the creation of the Bank;

(2) To adopt, alter and use a corporate seal;

(3) To acquire and own real and personal property and to sell, mortgage or otherwise dispose of the same;

(4) To sue and be sued, make contracts, and borrow money from both local and foreign sources. Such loans shall be subject

to approval by the President of the Philippines and shall be fully guaranteed by the Government of the Philippines;

(5) Upon recommendation of the Committee on Investments, to hold, own, purchase, acquire, sell or otherwise invest, or

reinvest in stocks, bonds or other securities capable of giving the Bank a reasonably assured income sufficient to support its

financing activities and give its private stockholders a fair return on their holdings: Provided, however, That pending the

organization of the Committee on Investments, the Bank may exercise the powers herein provided without the

recommendation of said Committee on Investments: Provided, further, That in case of the dissolution of the Land Bank all

unsold public lands transferred to it which may be allocated to the Government of the Philippines in the course of liquidation

of the business of the Bank shall revert to the Department of Agriculture and Natural Resources; and

(6) To provide, free of charge, investment counselling and technical services to landowners whose lands have been acquired

by the Land Bank. For this purpose, the Land Bank may contract the services of private consultants.

Section 76. Issuance of Bonds - The Land Bank shall, upon recommendation by the Board of Trustees and approval of the

Monetary Board of the Central Bank, issue bonds, debentures and other evidences of indebtedness at such terms, rates and

conditions as the Bank may determine up to an aggregate amount not exceeding, at any one time, five times its unimpaired capital

and surplus. Such bonds and other obligations shall be secured by the assets of the Bank and shall be fully tax exempt both as to

principal and income. Said income shall be paid to the bondholder every six (6) months from the date of issue. These bonds and

other obligations shall be fully negotiable and unconditionally guaranteed by the Government of the Republic of the Philippines

and shall be redeemable at the option of the Bank at or prior to maturity, which in no case shall exceed twenty-five years. These

negotiable instruments of indebtedness shall be mortgageable in accordance with established banking procedures and practices

to government institutions not to exceed sixty per centum of their face value to enable the holders of such bonds to make use of

them in investments in productive enterprises. They shall also be accepted as payments for reparation equipment and materials.

The Board of Trustees shall have the power to prescribe rules and regulations for the registration of the bonds issued by the Bank

at the request of the holders thereof.

Section 77. Issuance of Preferred Shares of Stock to Finance Acquisition of Landed Estates - The Land Bank shall issue, from

time to time, preferred shares of stock in such quantities not exceeding six hundred million pesos worth of preferred shares as

may be necessary to pay the owners of landed estates in accordance with Sections eighty and eighty-one of this Code. The

amount of shares that the Bank may issue shall not exceed the aggregate amount need to pay for acquired estates in the

proportions prescribed in said Section eighty of this Code. The Board of Trustees shall include as a necessary part of the by-laws

that it shall issue under Section seventy-five of this Code, such formula as it deems adequate for determining 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 six per centum per annum. In the event that the earnings of the Bank for any

single fiscal year are not sufficient to enable the Bank, after making reasonable allowance for administration, contingencies and

growth, to declare dividends at the guaranteed rate, the amount equivalent to the difference between the Bank's earnings

available for dividends and that necessary to pay the guaranteed rate shall be paid by the Bank out of its own assets but the

Government shall, on the same day that the Bank makes such payment, reimburse the latter in full, for which purpose such

amounts as may be necessary to enable the Government to make such reimbursements are hereby appropriated out of any

moneys in the National Treasury not otherwise appropriated. The Bank shall give sufficient notice to the Budget Commissioner

and the President of the Philippines 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 from participating at a percentage higher than six

per centum should the earnings of the Bank for the corresponding fiscal period exceed the guaranteed rate of return. The Board of

Trustees shall declare and distribute dividends within three months after the close of each fiscal year at the guaranteed rate

unless a higher rate of return in justified by the Bank's earnings after making reasonable allowance for administration,

contingencies and growth, in which case dividends shall be declared and distributed at a higher rate. The capital gains derived

from the sale or transfer of such shares and all income derived therefrom in the form of dividends shall be fully exempt from taxes.

Section 78. Special Guaranty Fund - In the event that the Bank shall be unable to pay the bonds, debentures, and other

obligations issued by it, a fixed amount thereof shall be paid from a special guaranty fund to be set up by the Government, to

guarantee the obligation of the Land Bank, and established in accordance with this Section, and thereupon, to the extent of the

amounts so paid, the Government of the Republic of the Philippines shall succeed to all the rights of the holders of such bonds,

debentures or other obligations: Provided, however, That for the next four years after the establishment of the Bank, the payment

to the special guaranty fund should not exceed one million pesos per year, after which period, the Government shall pay into the

guaranty fund the sum of five hundred thousand pesos each year until the cumulative total of such guaranty fund is no less than

twenty percent of the outstanding net obligation of the Land Bank at the end of any single calendar year.

The guaranty fund shall be administered by the Central Bank of the Philippines in the manner most consistent with its charter. For

the purpose of such fund, there shall be appropriated annually the sum of one million pesos out of any moneys in the National

Treasury not otherwise appropriated, until the total amount of twenty million pesos shall have been attained.

Section 79. Receiving Payments and Time Deposits - The Bank, under the supervision of the Monetary Board and subject to the

provisions of the General Banking Act, shall receive savings and time deposits from the small landholders in whose favor public

lands or landed estates acquired by the Land Authority have been sold and, for this purpose, establish, and maintain branches

and offices in such areas as may be necessary to service such deposits. The Monetary Board shall supervise and authorize the

Bank to receive savings and time deposits from the public in areas where facilities for such a service do not exist or cannot be

adequately provided by other deposit institutions.

Section 80. Making Payment to Owners of Landed Estates - The Land bank shall make payments in the form herein prescribed to

the owners of land acquired by the Land Authority for division and resale under this Code. Such payment shall be made in the

following manner: ten per centum in cash and the remaining balance in six percent, tax-free, redeemable bonds issued by the

Bank in accordance with Section seventy-six, unless the landowner desires to be paid in shares of stock issued by the Land Bank

in accordance with Section seventy-seven in an amount not exceeding thirty per centum of the purchase price.

In the event there is an existing lien on encumbrance on the land in favor of any Government institution at the time of acquisition

by the Land Bank, the bonds and/or shares, in that order, shall be accepted as substitute collaterals to secure the indebtedness.

The profits accruing from payment shall be exempt from the tax on capital gains.

Section 81. Capital - The authorized capital stock of the Bank shall be one billion five hundred million pesos divided into ninety

million shares with a par value of ten pesos each, which shall be fully subscribed by the Government and sixty million preferred

shares with a par value of ten pesos each which shall be issued in accordance with the provisions of Sections seventy-seven and

eighty-three of this Code. Of the total capital subscribed by the Government, two hundred million pesos shall be paid by the

Government within one year from the approval of this Code, and one hundred million pesos every year thereafter for two years for

which purpose the amount of two hundred million pesos is hereby appropriated upon the effectivity of this Code, and one hundred

million pesos every year for the next two years thereafter, out of the funds in the National Treasury not otherwise appropriated for

the purpose: Provided, That if there are not enough funds in the National Treasury for the appropriation herein made, the

Secretary of Finance, with the approval of the President of the Philippines, shall issue bonds or other evidence of indebtedness to

be negotiated either locally or abroad in such amount as may be necessary to cover any deficiency in the amount above-

appropriated but not exceeding four hundred million pesos, the proceeds of which are hereby appropriated: Provided, further, That

the bonds to be issued locally shall not be supported by the Central Bank: Provided, finally, That there is automatically

appropriated out of the unappropriated funds in the National Treasury such amounts as is necessary to cover the losses which

shall include among other things loss of earnings occasioned by the limitation of the resale cost herein provided such that said

amount together with the administrative expenses mentioned in Section ninety hereof shall not exceed in the aggregate the

equivalent of two and one-half per centum of its assets limited therein.

Section 82. Government Shares - All shares of stock in the Bank subscribed or owned by the Government shall not be entitled to

participate in the income earned by the Bank from its investments and other operations, whether in the form of cash or stock

dividends or otherwise. Amounts expended for the administration of the Bank shall not be deemed as a participation of the

Government in income.

Section 83. Preferred Shares - All preferred shares of stock issued under Section seventy-seven of this Code shall be entitled to

the income earned by the Bank on its investments and other operations and shall have a limited right to elect annually one

member of the Board of Trustees and one member of the Committee on Investments: Provided, That the holders of such preferred

shares of stock shall not bring derivative suits against the Bank. Such preferred shares shall be fully transferable: Provided,

further, That upon the liquidation of the Bank, the redemption of such preferred shares shall be given priority and shall be

guaranteed at par value.

Section 84. Voting of Shares - The voting power of all the shares of stock of the Land Bank owned or controlled by the

Government shall be vested in the President of the Philippines or in such person or persons as he may from time to time

designate.

Section 85. Use of Bonds - The bonds issued by the Land Bank may be used by the holder thereof and shall be accepted in the

amount of their face value as any of the following:

(1) Payment for agricultural lands or other real properties purchased from the Government;

(2) Payment for the purchase of shares of stock of all or substantially all of the assets of the following Government owned or

controlled corporations: The National Development Company; Cebu Portland Cement Company; National Shipyards and

Steel Corporation; Manila Gas Corporation; and the Manila Hotel Company.

Upon offer by the bondholder, the corporation owned or controlled by the Government shall, through its Board of Directors,

negotiate with such bondholder with respect to the price and other terms and conditions of the sale. In case there are various

bondholders making the offer, the one willing to purchase under terms and conditions most favorable to the corporation shall

be preferred. If no price is acceptable to the corporation, the same shall be determined by a Committee of Appraisers

composed of three members, one to be appointed by the corporation, another by the bondholder making the highest or only

offer, and the third by the two members so chosen. The expenses of appraisal shall be borne equally by the corporation and

the successful purchaser.

Should the Government offer for sale to the public any or all of the shares of stock or the assets of any of the Government

owned or controlled corporations enumerated herein, the bidder who offers to pay in bonds of the Land Bank shall be

preferred provided that the various bids be equal in every respect except in the medium of payment.

(3) Surety or performance bonds in all cases where the Government may require or accept real property as bonds; and

(4) Payment for, reparations goods.

Section 86. Board of Trustees - The affairs and business of the Bank shall be directed, its powers exercised and its property

managed and preserved by a Board of Trustees. Such Board shall be composed of one Chairman and four members, one of

whom shall be the head of the Land Authority who shall be an ex-officio member of such Board and another to be elected by the

holders of preferred shares. The Chairman and two members of the Board of Trustees shall serve on full-time basis with the Bank.

With the exception of the head of the Land Authority and the member elected by the holders of preferred shares, the Chairman

and all members of the Board shall be appointed by the President with the consent of the Commission on Appointments for a term

of seven years, except that the first Chairman and members to be appointed under this Code shall serve for a period of three, five

and seven years, such terms to be specified in their respective appointments. Thereafter the Chairman and members, with the

exception of the ex-officio member, appointed after such initial appointment shall serve for a term of seven years including any

Chairman or member who is appointed in place of one who resigns or is removed or otherwise vacates his position before the

expiration of his seven-year term. The Chairman and the two full-time members of the Board shall act as the heads of such

operating departments as may be set up by the Board under the authority granted by Section eighty-seven of this Code. The

Chairman shall have authority, exerciseable at his discretion, to determine from time to time the organizational divisions to be

headed by each member serving full time and to make the corresponding shifts in designations pursuant thereto. The

compensation of the Chairman and the members of the Board of Trustees serving full time shall be twenty-four thousand and

eighteen thousand pesos, respectively. The other members of the Board shall receive a per diem of one hundred pesos for each

session of the Board that they attend.

Section 87. The Chairman and Vice-Chairman - The Chairman of the Board shall be the chief executive officer of the Bank. He

shall have direct control and supervision of the business of the Bank in all matters which are not by this Code or by the by-laws of

the Bank specifically reserved to be done by the Board of Trustees. He shall be assisted by an Executive Vice-Chairman and one

or more vice-chairman who shall be chosen and may be removed by the Board of Trustees. The salaries of the Vice-Chairmen

shall be fixed by the Board of Trustees with the approval of the President of the Philippines.

Section 88. Qualifications of Members - No person shall be appointed Chairman or member of the Board unless he is a man of

accepted integrity, probity, training and experience in the field of banking and finance, at least thirty-five years of age and

possessed of demonstrated administrative skill and ability.

Section 89. Committee on Investments - There shall be a Committee on Investments composed of three members; the member

of the Board of Trustees elected by the holders of preferred shares as Chairman, one member to be appointed by the President of

the Philippines from among the government members of the Board of Trustees, and another member to be selected by the

holders of preferred shares under Section eighty-three of this Code. The Committee on Investments shall recommend to the

Board of Trustees the corporations or entities from which the Land Bank shall purchase shares of stock.

The Land Bank shall not invest in any corporation, partnership or company wherein any member of the Board of Trustees or of the

Committee on Investments or his spouse, direct descendant or ascendant has substantial pecuniary interest or has participation in

the management or control of the enterprise except with the unanimous vote of the members of the Board of Trustees and of the

Committee on Investments, excluding the member interested, in a joint meeting held for that purpose where full and fair

information of the extent of such interest or participation has been adequately disclosed in writing and recorded in the minutes of

the meeting: Provided, That such interested member shall not in any manner participate in the deliberations and shall refrain from

exerting any pressure or influence whatever on any official or member of the Bank whose functions bear on or relate to the

investment of the funds of the Bank in the enterprise: Provided, further, That the total investment in any single corporation,

partnership, company, or association shall not exceed five per centum of the total investible funds.

Section 90. Personnel; Cost of Administration - The Administrative expenses of the Bank during any single fiscal year shall not in

any case exceed two and one-half per centum of its total assets. The Board of Trustees shall provide for an organization and staff

of officers and employees necessary to carry out the functions of the Bank, fix their compensation, and appoint and remove such

officers and employees for cause. The Bank officers and employees shall be subject to the rules and regulations issued by the

Civil Service Commission but shall not fall under the Wage and Position Classification Office. The Board of Trustees shall

recommend to the Civil Service Commission rules and regulations for the recruitment, appointment, compensation, administration,

conduct, promotion and removal of all Bank officers and employees under a strict merit system and prepare and conduct

examinations under the supervision of said Commission.

Section 91. Legal counsel - The Secretary of Justice shall be ex-officio legal adviser of the Bank. Any provision of law to the

contrary notwithstanding, the Land Bank shall have its own Legal Department, the chief and members of which shall be appointed

by the Board of Trustees. The composition, budget and operating expenses of the Office of the Legal Counsel and the salaries

and traveling expenses of its officers and employees shall be fixed by the Board of Trustees and paid by the Bank.

Section 92. Auditor - The Auditor General shall be the ex-officio auditor of the Bank and shall appoint a representative, who shall

be the auditor in charge of the auditing office of the Bank. The Auditor General shall, upon the recommendation of the auditor of

the Bank, appoint or remove the personnel of the auditing office. The compensation, budget and operating expenses of the

auditing office and the salaries and traveling expenses of the officers and employees thereof shall be fixed by the Board of

Trustees and paid by the Bank notwithstanding any provision of law to the contrary.

Section 93. Report on Condition of Bank - The representative of the Auditor General shall make a quarterly report on the

condition of the Bank to the President of the Philippines, to the Senate through its President, to the House of Representatives

through its Speaker, to the Secretary of Finance, to the Auditor General and to the Board of Trustees of the Bank. The report shall

contain, among other things, a statement of the resources and liabilities including earnings and expenses, the amount of capital

stock, surplus, reserve and profits, as well as losses, bad debts, and suspended and overdue paper carried in the books as assets

of the Bank, and a plantilla of the Bank.

Section 94. Auditing Rules and Regulations - The Auditor General shall, with respect to the Bank, formulate improved and

progressive auditing rules and regulations designed to expedite the operations of the Bank and prevent the occurrence of delays

and bottlenecks in its work.

Section 95. Removal of Members - The President of the Philippines may, at any time, remove the Chairman or any member of

the Board appointed by him if the interest of the Bank so requires, for any of the following causes:

(1) Mismanagement, grave abuse of discretion, infidelity in the conduct of fiduciary relations, or gross neglect in the

performance of duties;

(2) Dishonesty, corruption, or any act involving moral turpitude; and

(3) Any act or performance tending to prejudice or impair the substantial rights of the stockholders.

Conviction of the Chairman or a member for a crime carrying with it a penalty greater than arresto mayor shall cause the removal

of such Chairman or member without the necessity of Presidential action.

The Chairman or member may, in any of the above cases, be civilly liable for any damage that may have been suffered by the

stockholders.

Section 96. Transfer of Claims and Liabilities - The assets of the former Land Tenure Administration and the National

Resettlement and Rehabilitation Administration in the form of claims and receivables arising from the sale or transfer of private

and public lands, agricultural equipment, machinery, tools and work animals, but excluding advances made for subsistence, to

small landholders shall, after an exhaustive evaluation to determine their true asset value, be irrevocably transferred to the Bank

under such arrangements as the Land Authority and the Bank shall agree upon. Thereafter, the Bank shall have authority and

jurisdiction to administer the claims, to collect and make adjustments on the same and, generally, to do all other acts properly

pertaining to the administration of claims held by a financial institution. The Land Authority, upon request of the Bank, shall assist

the latter in the collection of such claims. The Land Authority shall be entitled to collect from the Bank no more than the actual cost

of such collection services as it may extend. The claims transferred under this Section shall not be considered as part of the

Government's subscription to the capital of the Bank.

Section 97. Regulation - The Bank shall not be subject to the laws, rules and regulations governing banks and other financial

institutions of whatever type except with respect to the receipt of savings and time deposits in accordance with Section seventy-

nine of this Code, in which case the legal reserve and other requirements prescribed by the Central Bank for such deposits shall

apply. The Bank shall be operated as an autonomous body and shall be under the supervision of the Central Bank.

Section 98. Tax Exemption - The operations, as well as holdings, equipment, property, income and earnings of the Bank from

whatever sources shall be fully exempt from taxation.

Section 99. Organization of Bank - The Bank shall be organized within one year from the date that this Code takes effect.

Section 100. Penalty for Violation of the Provisions of this Chapter - Any trustee, officer, employee or agent of the Bank who

violates or permits the violation of any of the provisions of this Chapter, or any person aiding or abetting the violations of any of the

provisions of this Chapter, shall be punished by a fine not to exceed ten thousand pesos or by imprisonment of not more than five

years, or both such fine and imprisonment at the discretion of the Court.

CHAPTER V

AGRICULTURAL CREDIT ADMINISTRATION

Section 101. Reorganization of ACCFA to Align Its Activities - The administrative machinery of the Agricultural Credit and

Cooperative Financing Administration created under Republic Act Numbered Eight hundred twenty-one, as amended by Republic

Act Numbered Twelve hundred and eighty-five, shall be reorganized to enable it to align its activities with the requirements and

objectives of this Code and shall be known as the Agricultural Credit Administration.

Section 102. Financing - To finance the additional credit functions of the Agricultural Credit Administration as a result of the land

reform program laid down in this Code, there is hereby appropriated the sum of one hundred fifty million pesos out of funds in the

National Treasury not otherwise appropriated in addition to existing appropriations for the Agricultural Credit and Cooperative

Financing Administration.

Section 103. Privilege of Rediscounting - The Agricultural Credit Administration is hereby granted the privilege of rediscounting

with the Central Bank of the Philippines, the Development Bank of the Philippines and the Philippine National Bank eligible

evidence of indebtedness acquired by it in carrying on its authorized activities, at an interest rate equal to the lowest charged by

the above financing institution on any private person or entity.

Section 104. Power to Obtain Additional Funds - Nothing in this Section shall limit the power of the Agricultural Credit

Administration to obtain from the Central Bank of the Philippines, the Development Bank of the Philippines, the Philippine National

Bank and other financing institutions, such additional funds as may be necessary for the effective implementation of this Act:

Provided, That such additional funds are to be utilized as loans to farmers and/or farmers' cooperatives.

Section 105. Loaning Activities - Loaning activities of the Agricultural Credit Administration shall be directed to stimulate the

development and operation of farmers' cooperatives. The term "Farmers' Cooperatives" shall be taken to include all cooperatives

relating to the production and marketing of agricultural products and those formed to manage and/or own, on a cooperative basis,

services and facilities, such as irrigation and transport system, established to support production and/or marketing of agricultural

products.

Under such rules and regulations in accordance with generally accepted banking practices and procedures as may be

promulgated by the Agricultural Credit Administration, Rural Banks and Development Banks may, in their respective localities, be

designated to act as agents of the Agricultural Credit Administration in regard to its loaning activities.

Section 106. Credit to Small Farmers - Production loans and loans for the purchase of work animals, tillage equipment, seeds,

fertilizers, poultry, livestock, feed and other similar items, may be extended to small farmers as defined in Republic Act Numbered

Eight hundred twenty-one, based upon their paying capacity and such securities as they can provide, and under such terms and

conditions as the Agricultural Credit Administration may impose, provided the amount thereof does not exceed two thousand

pesos, or such amount as may be fixed by the President, but in no case shall the amount of loan exceed eighty per centum of the

value of the collateral pledged. In instances where credit is extended for items which are not consumed in their use, such items

may be pledged as security therefor. The Agricultural Credit Administration shall promulgate such rules and regulations as may be

necessary in the extension of the loans herein authorized so as to assure their repayment: Provided, That such rules and

regulations shall follow and be in accordance with generally accepted financing practices and procedures.

Section 107. Security for Loans - The production of the borrower, after deducting the lease rental and/or liens thereon, shall be

accepted as security for loans: Provided, That said production is pledged to the Agricultural Credit Administration with appropriate

safeguards to insure against its unauthorized disposition: Provided, further, That the amount of loan shall not exceed sixty per

centum of the value of the estimated production.

Section 108. Loans to Cooperatives - The Agricultural Credit Administration is hereby authorized to extend such types of loans as

it may deem necessary for the effective implementation of this Code, to eligible farmers' cooperatives as herein defined, under

such terms and conditions as it may impose and with such securities as it may require. A farmers' cooperative that has been

registered with the Securities and Exchange Commission and affiliated with the Agricultural Credit Administration shall be eligible

for loans if, in the judgment of the latter, its organization, management and business policies are of such character as will insure

the safety and effective use of such loans.

Section 109. Loans for Construction or Acquisition by Purchase of Facilities - Loans for the construction or acquisition by

purchase of facilities of farmers' cooperatives may be granted by the Agricultural Credit Administration.

Section 110. Interest on Loans - The total charges including interest and insurance fees on all kinds of loans shall not be more

than eight per centum per annum: Provided, That if an impairment of the capitalization of the Agricultural Credit Administration is

imminent by reason of the limitation of the interest rate herein provided, there is automatically appropriated out of the

unappropriated funds in the National Treasury such amounts as is necessary to cover the losses of the Agricultural Credit

Administration, but not exceeding six million pesos for any one year.

Section 111. Institution of Supervised Credit - To provide for the effective use of credit by farmers, the Agricultural Credit

Administration may institute a program of supervised credit in cooperation with the Agricultural Productivity Commission.

Section 112. Guidance to Cooperatives - The Agricultural Credit Administration 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.

Section 113. Auditing of Operations - For the effective supervision of farmers' cooperatives, the head of the Agricultural Credit

Administration shall have the power to audit their operations, records and books of account and to issue subpoena and subpoena

duces tecum to compel the attendance of witnesses and the production of books, documents 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

tecum shall, upon application of the head of Agricultural Credit Administration with the proper court, be liable to punishment for

contempt in the manner provided by law and if he is an officer of the association, to suspension or removal from office.

Section 114. Prosecution of Officials - The Agricultural Credit Administration, through the appropriate provincial or city fiscal, shall

have the power to file and prosecute any and all actions which it may have against any and all officials or employees of farmers'

cooperatives arising from misfeasance or malfeasance in office.

Section 115. Free Notarial Services - Any justice of the peace, in his capacity as notary ex-officio, shall render service free of

charge to any person applying for a loan under this Code either in administering the oath or in the acknowledgment of instruments

relating to such loan.

Section 116. Free Registration of Deeds - Any register of deeds shall accept for registration, free of charge any instrument

relative to a loan made under this Code.

Section 117. Writing-off Unsecured and Outstanding Loans - Subject to the approval of the President upon recommendation of

the Auditor General, the Agricultural Credit Administration may write-off from its books, unsecured and outstanding loans and

accounts receivable which may become uncollectible by reason of the death or disappearance of the debtor, should there be no

visible means of collecting the same in the foreseeable future, or where the debtor has been verified to have no income or

property whatsoever with which to effect payment. In all cases, the writing-off shall be after five years from the date the debtor

defaults.

Section 118. Exemption from Duties, Taxes and Levies - The Agricultural Credit Administration is hereby exempted from the

payment of all duties, taxes, levies, and fees, including docket and sheriff's fees, of whatever nature or kind, in the performance of

its functions and in the exercise of its powers hereunder.

CHAPTER VI

AGRICULTURAL PRODUCTIVITY COMMISSION

Section 119. Creation of the Agricultural Productivity Commission - For the purpose of accelerating progressive improvement in

the productivity of farms, the advancement of farmers and the strengthening of existing agricultural extension services through the

consolidation of all/promotional, educational and informational activities pertaining to agriculture, the present Bureau of

Agricultural Extension of the Department of Agriculture and Natural Resources is hereby placed directly under the executive

supervision and control of the President and hereinafter renamed Agricultural Productivity Commission.

Upon the effectivity of this Code, the Agricultural Tenancy Commission of the Department of Justice, together with its powers,

duties, responsibilities, files, records supplies, equipment, personnel and unexpended balance of appropriations, is hereby placed

under the Agricultural Productivity Commission as a separate office thereof.

Section 120. Commissioner of the Agricultural Productivity Commission - The Agricultural Productivity Commission shall be

administered by an Agricultural Productivity Commissioner who shall be appointed by the President with the consent of the

Commission on Appointments and who shall have a compensation of sixteen thousand pesos per annum. No person shall be

appointed as a Agricultural Productivity Commissioner unless he be a holder of at least a Bachelor of Science degree in

Agricultural from a reputable school or college of agriculture and shall have practiced agriculture for at least five years, and who is

of recognized competence in agricultural economics or any of its equivalents.

Section 121. Powers and Duties - The Agricultural Productivity Commissioner shall exercise the same powers and duties vested

in the Director of the Bureau of Agricultural Extension.

Section 122. Division on Cooperatives - In addition to the existing divisions of the Bureau of Agriculture Extension, herein

renamed as Agricultural Productivity Commission, there shall be a Division of Cooperatives and such other divisions and sections

as the Agricultural Productivity Commissioner may deem necessary to organize in order to carry out the promotional and

educational activities of the Commission.

Section 123. Recruitment, Selection and Training of Extension Workers - The extension workers shall be recruited and selected

from graduates of agricultural college with adequate practical experience and training in actual crop, tree, poultry and livestock

farming: Provided, however, That in the event there are no graduates of agricultural colleges available, graduates of agricultural

high schools may be temporarily employed. Training of extension workers shall be done in conjunction with research institutions to

insure their maximum efficiency.

Section 124. Functions of Extension Workers - In addition to their functions under Republic Act Numbered Six hundred eighty, it

shall be the duty of extension workers:

(1) To reside in the locality where they are assigned, to disseminate technical information to farmers, and to demonstrate

improved farm management practices and techniques;

(2) To work with individual farmers in farm planning and budgeting, guide them in the proper conduct of farm business and

work out schedules of re-payment of loans obtained by farmers;

(3) To assist farmers in securing the services or assistance of other agencies, or their personnel, having to do with relevant

activities and problems of farmers;

(4) To visit newly-established independent farm operators either singly or collectively at least once a month;

(5) To conduct educational activities that will acquaint leaseholders and other independent farm operators with their rights

and responsibilities under this Code;

(6) To encourage the formation and growth of private associations, study clubs, committees and other organized groups of

farmers, familiarize them with modern methods of farming and interest them to actively participate, collaborate or take the

initiative in agricultural research, experimentation and implementation of projects in cooperation with the Agricultural

Productivity Commissioner and other agencies; and

(7) To promote, stimulate and assist in the organization of farmers' cooperatives.

Section 125. Appropriation - In addition to the funds herein transferred, there is hereby appropriated from the general funds in the

National Treasury not otherwise appropriated the sum of five million pesos, or so much thereof as may be necessary to carry out

the purposes of this Chapter.

CHAPTER VII

LAND REFORM PROJECT ADMINISTRATION

Section 126. Creation of National Land Reform Council - There is hereby created a National Land Reform Council, hereinafter

called the Council, which shall be composed of the Governor of the Land Authority, who shall act as Chairman, the Administrator

of the Agricultural Credit Administration, the Chairman of the Board of Trustees of the Land Bank, the Commissioner of the

Agricultural Productivity Commission and another member appointed by the President upon recommendation of the minority party

receiving the second largest number of votes in the last Presidential election who shall hold office at the pleasure of such minority

party, unless sooner removed for cause by the President as members and the Agrarian Counsel as legal counsel: Provided, That

the Council shall not be considered fully constituted and ready to function until after the member representing the minority party

has been appointed by the President of the Philippines: Provided, further, That the minority party shall submit its recommendation

to the President within sixty days from the approval of this Code, in the absence of which the Council shall be deemed to be so

constituted even without such member from the minority party: Provided, finally, That the minority representative shall receive a

per diem of fifty pesos for each day he attends a council meeting, chargeable to the appropriations of the Land Authority.

Section 127. Meetings; Resolutions - The Chairman of the Council shall convoke the Council as its responsibilities enumerated in

Section one hundred twenty-eight may warrant, and shall preside over its meetings.

It shall be the duty of the members to attend any meeting of the Council upon the call of the Chairman. In case of inability, a

member may require the officer next in rank in his agency to attend the meeting in his behalf.

A majority vote of the members present if there is a quorum shall be necessary for the approval of a resolution. Upon such

approval the resolution shall be final and binding upon all members of the Council and their respective agencies insofar as their

functions, powers and duties required under this Code are concerned.

The refusal of any member to implement any resolution or part thereof falling within the scope of the powers granted to his agency

shall be sufficient ground for the President of the Philippines to remove said member from office or to impose upon him

disciplinary or administrative sanctions.

Section 128. Functions of National Land Reform Council - It shall be the responsibility of the Council:

(1) To construct the general program of land reform contemplated by this Code;

(2) To establish guidelines, plans and policies for its member-agencies relative to any particular land reform project;

(3) To formulate such rules and regulations as may be necessary to carry out the provisions of this Code for (a) the selection

of agricultural land to be acquired and distributed under this Code; (b) the determination of sizes of family farms as defined in

Section one hundred sixty-six; and (c) the selection of beneficiaries to family farms available for distribution: Provided, That

priority shall be given in the following order: First, to members of the immediate family of the former owner of the land within

the first degree of consanguinity who will cultivate the land personally with the aid of labor available within his farm

household; Second, to the actual occupants personally cultivating the land either as agricultural lessees or otherwise with

respect to the area under their cultivation; Third, to farmers falling under the preceding category who are cultivating

uneconomic-size farms with respect to idle or abandoned lands; Fourth, to owner-operators of uneconomic-size farms; and

Fifth, to such other categories as may be fixed by virtue of this Code, taking into consideration the needs and qualifications

of the applicants:

(4) To revise, approve, or reject any land reform proposal or project; and

(5) To proclaim in accordance with the provisions of this Code, which proclamation shall be considered as having been

promulgated immediately after three successive weekly publications in at least two newspapers of general circulation in the

region or locality affected by the proclamation, preference being given to local newspapers, if any, that all the government

machineries and agencies in any region or locality relating to leasehold envisioned in this Code are operating: Provided, That

the conversion to leasehold in the proclaimed area shall become effective at the beginning of the next succeeding

agricultural year after such promulgation: Provided, further, That the proclamation shall be made after having considered

factors affecting feasibility and fund requirements and the other factors embodied in Sections one hundred twenty-nine, one

hundred thirty and one hundred thirty-one.

Section 129. Creation of Land Reform Districts - The Council shall exercise the functions enumerated in the preceding Section for

particular areas which the Council shall select and designate as land reform districts. A district shall constitute one or more reform

projects, each project to comprise either a large landed estate or several areas within small estates. In the selection of a district,

the Council shall consider factors affecting the feasibility of acquiring for redistribution the areas within the district, including:

(1) The productivity of the area;

(2) Its suitability for economic family-size farms;

(3) The tenancy rate in the area;

(4) The minimum fixed capital outlay required to develop the area;

(5) The proximity of the area to resettlement projects; and

(6) The number of farmers that cultivate uneconomic-size farms, the ability and readiness of such farmers to be resettled,

and the availability of idle or abandoned lands that may be acquired or expropriated as well as of other resettlement facilities.

Section 130. Regional Land Reform Committee - For the purpose of implementing the program and policies of the Council on the

local level, the Council shall establish in each region of the Philippines a Regional Land Reform Committee which shall be

composed of the representatives of the agencies composing the National Land Reform Council and shall be under the

chairmanship of the representative of the Land Authority. The committee shall recommend to the Council such plans for projects

of land reform in its jurisdiction as it may deem appropriate. The Committee shall conduct public hearings, gather and analyze

data, estimate the essentials of such plans for projects or programs and consolidate its findings in a report to be submitted to the

Council for its consideration. The decision of the Council upon such projects or programs shall be returned to the Committee,

within thirty days from the submission thereof, for early implementation or execution by said Committee and the agencies

represented therein.

Section 131. Land Reform Project Team - The Regional Land Reform Committee shall direct and assign a Land Reform Project

Team for any project or projects within the region, to be composed of an appropriate number of personnel from the member-

agencies. The team shall be headed by a representative of the Land Authority designated by the Committee, but each agency

shall, in every case, be duly represented by at least one member in the Team. On the basis of national, regional, and local policies

and programs formulated and approved by the Council through the Committee, the Team shall determine (a) the suitability of any

area for redistribution into economic family-size farms; (b) the economic size of farm units; (c) the feasibility of acquiring and

distributing the area; (d) the willingness of the lessees to assume the responsibilities of ownership; and (e) the financial and other

requirements of the project. For this purpose, it shall gather data, obtain opinions, conduct surveys, pursue investigations, and

incorporate any information thus established in a development program for the area concerned to be submitted in the form of a

consolidated report to the Committee.

CHAPTER VIII

LAND CAPABILITY SURVEY AND CLASSIFICATION

Section 132. Land Survey to Conform to Legal Requirements - To provide the necessary basis for the implementation of the land

reform program formulated under this Code, the Land Authority is hereby authorized 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 made to conform to the requirements of the Department of Agriculture and Natural Resources for implementation of

Agricultural programs and forestry inventory, of the Board of Technical Surveys and Maps, and of the National Economic Council

and other agencies for agricultural planning and other purposes.

Section 133. Cadastral Survey - To resolve the rights of landholders holding unregistered property, the Bureau of Lands is

directed to undertake an expanded cadastral survey and land registration program commencing within three months from the

passage of this Code.

Section 134. Costs of Fees and Charges - Notwithstanding any provisions of law to the contrary, the following rules shall apply

with respect to the costs, fees and charges in the survey, monumenting, and registration of lands of whatever description and

nature had in relation to cadastral proceedings undertaken by the National Government, either alone through its offices, agencies

and instrumentalities, or in conjunction with provincial and municipal governments.

Section 135. Apportionment of Cost of Survey - One-half of the cost of survey and monumenting 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 National Government. The amounts taxed against each of the lots or parcels of land shall be considered as a

special assessment of taxes against the respective parcels, shall constitute a first lien upon the land and shall be collected by the

Director of Lands or his duly authorized representatives in equal installments within a period of three years, bearing interest at the

rate of six per centum per annum. The first installment shall become due and payable at the same time as the general land taxes

for the year next succeeding the year in which the assessment of the cost shall be received by the Provincial Treasurer, and shall

be collected in the same manner as such general taxes. Each succeeding installment shall become due and payable at the same

time as the general land taxes for the corresponding current year and shall be collected in the same manner. The Director of

Lands shall for this purpose send to the officer in charge of such collection a copy of said assessment of costs: Provided,

however, That the amounts representing the proportional shares of the costs taxed against lots surveyed at the request and

expense of their owner and for which a plan other than the cadastral plan has been made by a duly authorized surveyor prior to

the decision in the cadastral proceeding, or which have been registered in accordance with the provisions of Act Numbered Four

hundred ninety-six, entitled "The Land Registration Act", or surveyed, patented, or leased under the Public Land and Mining Laws,

prior to the decision in the cadastral proceeding, or have been declared to the public lands by the Court, shall not constitute a lien

against said lot nor shall be collected from the owner thereof: Provided, further, That the owner of any lot may, if he so desires,

pay any installment of the costs taxed against his lot at any time before the same becomes due.

Section 136. Payment of Costs of Land in Its 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 payment of the total amount of the costs taxed against such property in accordance with the preceding Section

endorsed as an encumbrance 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 demand of the vendor, before

registering the deed for such sale, transfer, or conveyance of said property, that he exhibit a receipt signed by the Director of

Lands or his duly authorized representative showing that such encumbrance or lien has been paid.

Section 137. Costs of Registration Proceedings - The costs of the registration proceedings under the provisions of this Code shall

consist of a sum equivalent to ten per centum of the costs of the survey and monumenting of the land. The amount of the costs of

the proceeding so taxed shall be for all services rendered by the Land Registration Commission and the clerk or his deputies in

each cadastral proceeding, and the expense of publication, mailing, and posting notice, as well as the notices of the decision and

the order apportioning the cost shall be borne by the Land Registration Commission.

Section 138. Laws Covering Survey and Registration of Land in Forces - Unless otherwise provided in this Chapter, all provisions

of law covering the survey and registration of land shall remain in full force and effect.

Section 139. Revolving Fund - All amounts collected by the Bureau of Lands or its duly authorized representatives from the

owners of the various lots as costs of proceedings, survey, and monumenting in relation to the cadastral survey program herein

described shall be paid into a Special Cadastral Program Revolving Fund to finance the cadastral land survey and registration of

other unregistered lands.

Section 140. Appropriation - To finance and support the expanded cadastral land survey and registration program set forth

herein, the amount of one hundred million pesos is hereby appropriated out of funds in the National Treasury not otherwise

appropriated, which amount shall be paid into a "Special Cadastral Program Revolving Fund", to finance the cadastral land survey

and registration of other unregistered areas.

CHAPTER IX

COURTS OF AGRARIAN RELATIONS

Section 141. Creation - Courts of Agrarian Relations are hereby organized and established throughout the Philippines in

conformity with the provisions of this Chapter.

Section 142. Regional Districts - Regional districts for the Courts of Agrarian Relations in the Philippines are constituted as

follows:

The first Regional District shall consist of the provinces of Cagayan, Batanes, Isabela and Nueva Vizcaya, with seat in

Tuguegarao, Cagayan for Branch I and in Ilagan, Isabela for Branch II;

The second Regional District, of the provinces of Ilocos Norte, Ilocos Sur, Abra, Mountain Province, La Union and the City of

Baguio, with seat in Laoag, Ilocos Norte for Branch I and in San Fernando, La Union for Branch II;

The third Regional District of the provinces of Pangasinan and Zambales, and the City of Dagupan, with seat in Lingayen,

Pangasinan for Branch I, in Tayug, Pangasinan for Branch II and in Iba, Zambales for Branch III;

The fourth Regional District, of the provinces of Nueva Ecija and Tarlac, and Cabanatuan City, with seat in Cabanatuan City

for Branch I, in Guimba, Nueva Ecija for Branch II, in Tarlac, Tarlac for Branch III and in Moncada, Tarlac for Branch IV;

The fifth Regional District, of the provinces of Pampanga, Bataan and Bulacan, with seat in Malolos, Bulacan for Branch I, in

San Fernando, Pampanga for Branch II, in Angeles, Pampanga for Branch III and in Balanga, Bataan for Branch IV;

The sixth Regional District, of the City of Manila, Quezon City, Pasay City, the province of Rizal, the City of Cavite, the

province of Cavite, the City of Tagaytay, Trece Martires City, and the province of Palawan, with seat in Manila for Branch I

(Executive Judge), in Cavite City for Branch II and in Pasig, Rizal for Branch III; The seventh Regional District, of the

province of Laguna, the City of San Pablo, the province of Batangas, the City of Lipa, and the provinces of Oriental Mindoro

and Occidental Mindoro, with seat in Los Baños, Laguna for Branch I, in Batangas, Batangas for Branch II and in Mamburao,

Mindoro Occidental for Branch III;

The eight Regional District, of the province of Quezon, the subprovince of Aurora, the City of Lucena, and the province of

Camarines Norte, with seat in the City of Lucena for Branch I and in Daet, Camarines Norte for Branch II;

The ninth Regional District, of the province of Camarines Sur, Naga City, Legaspi City and the provinces of Albay,

Catanduanes, Sorsogon and Masbate, with seat in Naga City for Branch I, in Legaspi City for Branch II and in Sorsogon,

Sorsogon for Branch III;

The tenth Regional District, of the province of Capiz, Roxas City, the provinces of Aklan, Romblon, Marinduque and Iloilo,

the City of Iloilo, and the province of Antique, with seat in the City of Iloilo for Branch I and in Roxas City for Branch II;

The eleventh Regional District, of the province of Occidental Negros, the Cities of Bacolod and Silay, the province of Oriental

Negros, Dumaguete City, and the subprovince of Siquijor, with seat in Bacolod City for Branch I, in Dumaguete City for

Branch II and in San Carlos City for Branch III;

The twelfth Regional District, of the province of Samar, the City of Calbayog, the province of Leyte, and the Cities of Ormoc

and Tacloban, with seat in Catbalogan, Samar for Branch I and in Ormoc City for Branch II;

The thirteenth Regional District, of the province of Cebu, the City of Cebu, and the province of Bohol, with seat in the City of

Cebu for Branch I and in Tagbilaran, Bohol for Branch II;

The fourteenth Regional District, of the provinces of Surigao and Agusan, Butuan City, the province of Oriental Misamis,

Cagayan de Oro City, the provinces of Bukidnon, Lanao del Sur and Lanao del Norte, and the Cities of Iligan and Marawi,

with seat in Cagayan de Oro City for Branch I and in Iligan City for Branch II;

The fifteenth Regional District, of the province of Davao the City of Davao, the provinces of Cotabato and Occidental

Misamis, Ozamiz City, the provinces of Zamboanga del Norte and Zamboanga del Sur, Zamboanga City, Basilan City and

the province of Sulu, with seat in the City of Davao for Branch I, Cotabato City for Branch II and Ozamiz City for Branch III.

Section 143. Judges of Agrarian Relations - The judicial function of the Courts of Agrarian Relations shall be vested in an

Executive Judge and the Regional District Judges, who shall be appointed from time to time, depending on the need for their

services, by the President of the Philippines with the consent of the Commission on Appointments: Provided, however, That the

Executive Judge and the eight Associate Judges, at the time of the approval of this Code, of the Court of Agrarian Relations

established and organized under Republic Act Numbered Twelve hundred and sixty-seven, shall continue as Agrarian Judges

without need of new appointments by the President of the Philippines and new confirmation of the Commission on Appointments:

Provided, further, That upon the approval of this Code, the said Executive Judge shall continue as such with authority to exercise

the usual administrative functions over the Court of Agrarian Relations not incompatible with the provisions of this Chapter and

shall have his office in Manila without prejudice to his holding court in any district where the requirements of the service so

warrant, and the eight Associate Judges shall be assigned as Regional District Judges by the Executive Judge to any of the

regional districts as constituted in the preceding Section.

Section 144. Qualifications of Judges; Tenure of Office; Compensation - No person shall be appointed as Executive Judge or

Regional District Judge unless he has been a citizen of the Philippines for ten years and has practiced law in the Philippines for a

period of not less than ten years or has held during a like period, within the Philippines, an office requiring admission to the

practice of law in the Philippines as an indispensable requisite.

Regional District Judges shall be appointed to serve during good behavior, until they reach the age of seventy years or become

incapacitated to discharge the duties of their office, unless sooner removed in accordance with law.

The judges may be suspended or removed in the same manner and upon the same grounds as judges of the Court of First

Instance:

The Executive Judge shall receive an annual compensation which shall be equal to that allowed or may hereafter be allowed for

judges of the Court of First Instance and the Regional District Judges shall receive an annual compensation of one thousand

pesos less than that of the Executive Judge.

Section 145. Leave Privileges; Traveling Expenses - Judges of the Courts of Agrarian Relations shall be entitled to same

retirement and leave privileges now granted or may hereafter be granted to judges of the court of First Instance. They shall be

entitled to traveling expenses when performing their duties outside official stations.

Section 146. Vacation of Courts of Agrarian Relations - The yearly vacation of Courts of Agrarian Relations shall begin with the

first of April and close with the first of June each year.

Section 147. Assignment of Judges to Vacation Duty - During the month of January of each year the Executive Judge shall issue

an order naming the judges who are to remain on duty during the court vacation of that year; and, consistently with the

requirements of the judicial service, the assignment shall be so made that no judge shall be assigned to vacation duty, unless

upon his own request, with greater frequency than once in two years.

Such 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 extend.

The Executive Judge may from time to time modify his order assigning the judges to vacation duty as newly arising conditions or

emergencies may require.

A judge assigned to vacation duty shall not ordinarily be required to hold court during such vacation; but the Executive Judge may,

when in his judgment the emergency shall require, direct any judge assigned to vacation duty to hold during the vacation a special

term of court in any district.

Section 148. Judges of Regional Districts - Four judges shall be commissioned for each of the fourth and fifth Regional Districts;

three judges shall be commissioned for each of the third, sixth, seventh, ninth, eleventh and fifteenth Regional Districts; and two

judges for each of the other Regional Districts.

Section 149. Oath of Office - Before 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 Section twenty-three of the Revised Administrative Code.

Section 150. Division of Business Between Branches - All business appertaining to the Courts of Agrarian Relations of each

Regional District shall be equitably distributed among the judges of the branches in such manner as shall be agreed upon by the

judges themselves. Should the judges fail to agree on the distribution of business, then the Executive Judge shall make the

distribution.

Section 151. Judges' Certification as to Work Completed - The judges of the Courts of Agrarian Relations shall certify at the end

of each month that all petitions and motions in all cases pending decision or resolution for a period of thirty days from submission

by the parties have been determined and decided before the date of the making of the certificate. No leave shall be granted and

no salary shall be paid without such certificate.

Section 152. Official Station of Regional District Judges - Within thirty days after the approval of this Code, the Executive Judge

shall issue an order designating the official station of the judges of the branches of each of the Regional Districts.

Section 153. Time and Place of Holding Court - Sessions of the Court 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 Court shall be from nine to

twelve in the morning, and from three to five in the afternoon, except on Saturdays, when a morning session only shall be

required: but the judge may extend the hours of session whenever in his judgment it is proper to do so. The judge, in his

discretion, may order that but one session per day shall be held instead of two, at such hours as he may deem expedient for the

convenience both of the Court and of the public; but the number of hours that the Court shall be in session per day shall be not

less than five.

Sessions of the Court shall be held at the places of the official station of the respective judges: Provided, however, That whenever

necessary in the interest of speedy and inexpensive justice and litigation, a judge shall hold court in the municipality where the

subject matter of the dispute is located, utilizing the sala of the local justice of the peace court for this purpose.

A brief monthly report which shall be submitted within the first five days of the succeeding month showing the number 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 made thereon shall be rendered by every judge under his signature and copies thereof shall be furnished the

Executive Judge, who shall compile and report in an appropriate form the decisions promulgated in important cases. A judge who

fails or neglects to make his report shall, upon first offense, be liable to warning by the Executive Judge, and upon repeated failure

or neglect may be suspended or removed from office.

Section 154. Jurisdiction of the Court - The Court shall have original and exclusive jurisdiction over:

(1) All cases or actions involving matters, controversies, disputes, or money claims arising from agrarian relations: Provided,

however, That all cases still pending in the Court of Agrarian Relations, established under Republic Act Numbered Twelve

hundred and sixty-seven, at the time of the effectivity of this Code, shall be transferred to and continued in the respective

Courts of Agrarian Relations within whose district the sites of the cases are located;

(2) All cases or actions involving violations of Chapters I and II of this Code and Republic Act Number Eight hundred and

nine; and

(3) Expropriations to be instituted by the Land Authority: Provided, however, That expropriation proceedings instituted by the

Land Tenure Administration pending in the Court of First Instance at the time of the effectivity of this Code shall be

transferred to and continued in the respective Courts of Agrarian Relations within whose district the subject matter or

property is located.

Section 155. Powers of the Court; Rules and Procedures - The Courts of Agrarian Relations shall have all the powers and

prerogatives inherent in or belonging to the Court of First Instance.

The Courts of Agrarian Relations shall be governed by the Rules of Court: Provided, That in the hearing, investigation and

determination of any question or controversy pending before them, the Courts without impairing substantial rights, shall not be

bound strictly by the technical rules of evidence and procedure, except in expropriation cases.

Section 156. Appeals - Appeals from an order or decision of the Courts of Agrarian Relations may be taken to the Court of

Appeals on questions of fact and of fact and law or to the Supreme Court on pure questions of law, as the case may be, in

accordance with rules governing appeals from the Court of First Instance as provided in the Rules of Court.

Section 157. Detail of Judges to Another District - Whenever any judge in any of the Court shall certify to the Executive Judge

that the condition of the docket in his Court is such as to require the assistance of an additional judge, or when there is any

vacancy in any Court, the Executive Judge may, in the interest of justice, with the approval of the Supreme Court, assign any

judge of the Court of Agrarian Relations whose docket permits his temporary absence from said Court, to hold session in the

Court needing such assistance or where such vacancy exists.

Whenever a judge appointed or assigned in any branch of the Court shall leave his district by transfer or assignment to another

Court of equal jurisdiction without having decided a case totally heard by him and which was duly argued or opportunity given for

argument to the parties of their counsel, it shall be lawful for him to prepare and sign his decision in said case anywhere within the

Philippines and send the same by registered mail to the clerk of court to be filed in the Court as of the date when the same was

received by the clerk, in the same manner as if the judge had been present in the Court to direct the filing of the judgment:

Provided, however, That if a case has been heard only in part, the Supreme Court, upon petition of any of the interested parties to

the case and the recommendation of the respective district judge, may also authorize the judge who has partly heard the case to

continue hearing and to decide said case notwithstanding his transfer or appointment to another court of equal jurisdiction.

Section 158. Personnel of the Courts of Agrarian Relations -

(1) Court Commissioners; Qualifications and Compensation - There shall be twenty-four Court Commissioners who shall

receive an annual compensation of nine thousand pesos each and shall be appointed by the President with the consent of

the Commission on Appointments. A Court Commissioner shall be a member of the Philippine Bar and must have been

engaged in the practice of law for five years or must have held a position in the government requiring the qualifications of a

lawyer for the same period. A Court Commissioner may be assigned by the Executive Judge to assist in the hearing and

investigation of cases. Subject to the latter's direction and supervision, he may hear evidence for the Court on any disputed

point or issue in any given case or cases and shall after said hearing submit a report of all the cases heard by him together

with the records thereof within the period prescribed by the Court. During the hearing he may rule upon questions of pleading

and procedure but not on the merits of the case.

(2) Clerks of Court; Qualifications, Duties, Compensation and Bond - There shall be as many Clerks of Court as there are

judges, who shall be appointed by the President of the Philippines with the consent of the Commission on Appointments.

Deputy Clerks of Court and such other employees as may be required shall be appointed by the Executive Judge, subject to

Civil Service law, rules and regulations.

No person shall be eligible for appointment as Clerk of Court unless he is duly authorized to practice law in the Philippines.

Before entering upon the discharge of the duties of his office, he shall file a bond in the amount of ten thousand pesos in the same

manner and form as required of the Clerk of the Supreme Court, such bond to be approved by, and filed with, the Treasurer of the

Philippines and shall be subject to inspection by interested parties. The Clerk of Court shall require his deputy to give an adequate

bond as security against loss by reason of his wrong-doing or gross negligence.

The Clerks of Court shall each receive an annual compensation of seven thousand two hundred pesos. They shall exercise the

same powers and perform the same duties on all matters within the jurisdiction of the Courts as those exercised by the Clerks of

Court of the Courts of First Instance.

Clerks of Courts and other subordinate employees of the Courts of Agrarian Relations shall, for administrative purposes, belong to

the Department of Justice; but in the performance of their duties, they shall be subject to the supervision of the judges of the Court

to which they respectively pertain.

The Commissioners, otherwise known as Hearing Officers of the Court of Agrarian Relations, as well as the Clerks of Court at the

time of the approval of this Code, shall continue as such without the need of new appointment by the President of the Philippines

and new confirmation by the Commission on Appointments.

Section 159. Appropriation - There is hereby appropriated the sum of three million five hundred thousand pesos, or so much

thereof as may be necessary, out of the unappropriated funds in the Philippine Treasury for expenses for courtrooms and court

offices, including equipment for the Courts and their personnel, for salaries, and for other necessary expenses that may be

incurred in carrying out the provisions of this Chapter. The amount appropriated shall be carried in succeeding appropriations for

the Courts of Agrarian Relations.

CHAPTER X

OFFICE OF AGRARIAN COUNSEL

Section 160. Creation of Office of Agrarian Counsel - To strengthen the legal assistance to agricultural lessees and agricultural

owner-cultivators referred to in this Code, the Tenancy Mediation Commission is hereby expanded and shall hereafter be known

as the Office of the Agrarian Counsel. The head of the Office shall hereafter be known as Agrarian Counsel and shall have the

rank, qualifications and salary of First Assistant Solicitor General. He shall be assisted by a Deputy Agrarian Counsel, who shall

have the rank, qualifications and salary of Assistant Solicitor General. The Agrarian Counsel and Deputy Agrarian Counsel shall

be appointed by the President with the consent of the Commission on Appointments of Congress and shall be under the direct

supervision of the Secretary of Justice.

Section 161. Special Attorneys - There is hereby created in the Office of the Agrarian Counsel eighty additional positions of

Special Attorneys, who shall be appointed by the President upon recommendation of the Secretary of Justice and with the consent

of the Commission on Appointments. They shall have the rank, qualifications and salary provided by law for a solicitor in the Office

of the Solicitor General with the lowest rank.

Section 162. Appointment of Subordinate Officials - The Agrarian Counsel shall appoint the subordinate officials and employees

of the Office of Agrarian Counsel, subject to civil service rules and regulations, fix their compensation and prescribe their duties.

The compensation of special attorneys transferred to the Office of Agrarian Counsel shall be fixed on salary scales corresponding

to solicitors of the Office of the Solicitor General: Provided, That in the fixing of their salary seniority in rank shall be taken into

account.

The Agrarian Counsel shall have the power to organize such divisions and sections as will insure maximum efficiency of the

Office.

Section 163. Functions of the Office of Agrarian Counsel - It shall be the responsibility of the Office of the Agrarian counsel, upon

proper notification by the party concerned or by the association or organization to which belongs, to represent agricultural lessees,

agricultural farm workers and agricultural owner-cultivators referred to in this Code who cannot engage the services of competent

private counsel in cases before the Court of Agrarian Relations.

Section 164. Authority to Administer Oath - The Agrarian Counsel, the Deputy Agrarian Counsel and the Special Attorneys of the

Office of Agrarian Counsel are hereby authorized to administer oaths free of charge.

Section 165. Appropriations - There is hereby appropriated, in addition to the appropriation of the Tenancy Mediation Commission

for Fiscal Year 1964, the sum of three million pesos, or so much thereof as may be necessary, out of the unappropriated funds in

the National Treasury, for salaries, wages, purchase of motor vehicles, supplies, equipment, and other sundry expenses. The

amount appropriated herein shall be carried in the appropriations for the Office of the Agrarian Counsel in the General

Appropriations Acts for succeeding fiscal years.

CHAPTER XI

GENERAL PROVISIONS

Section 166. Definition of Terms - As used in Chapter I of this Code:

(1) "Agricultural Land" means land devoted to any growth, including but not limited to crop lands, salt beds, fish ponds, idle

land and abandoned land as defined in paragraphs 18 and 19 of this Section, respectively.

(2) "Agricultural lessee" means a person who, by himself and with the aid available from within his immediate farm

household, cultivates the land belonging to, or possessed by, another with the latter's consent for purposes of production, for

a price certain in money or in produce or both. It is distinguished from civil lessee as understood in the Civil Code of the

Philippines.

(3) "Agricultural lessor" means 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.

(4) "Agricultural year" means the period of time 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: Provided, however,

That in case of crops yielding more than one harvest from planting, "agricultural year" shall be the period from the

preparation of the land to the first harvest and thereafter from harvest to harvest. In both cases, the period may be shorter or

longer than a calendar year.

(5) "Court" means the Court of Agrarian Relations.

(6) Fair rental value" means the value not in excess of allowable depreciation plus six per cent interest per annum on the

investment computed at its market value: Provided, That the fair rental value for work animal or animals and farm

implements used to produce the crop shall not exceed five per cent of the gross harvest for the work animal or animals and

five per cent for implements.

(7) "Farm implements" means hand tools or machines ordinarily employed in a farm enterprise.

(8) "Immediate farm household" means the members of the family of the lessee or lessor and other persons who are

dependent upon him for support and who usually help him in his activities.

(9) "Incapacity" means any cause or circumstance which prevents the lessee from fulfilling his contractual and other

obligations under this Code.

(10) "Inspect" means to enter, examine and observe. Under no circumstance, however, shall such entrance, examination

and observation be utilized to commit any act of intimidation or coercion nor shall it be utilized to impair the civil rights of the

individuals affected.

(11) "Proven farm practices" means sound farming practices generally accepted through usage or officially recommended by

the Agricultural Productivity Commission for a particular type of farm.

(12) "Work animals" means animals ordinarily employed in a farm enterprise, such as carabaos, horses, bullocks, etc.

(13) "Personal cultivation" means cultivation by the lessee or lessor in person and/or with the aid of labor from within his

immediate household.

As used in Chapter II:

(14) "Farm employer" includes any person acting directly or indirectly in the interest of a farm employer whether for profit or

not, as well as a labor contractor, but shall not include any labor organization (otherwise than when acting as a farm

employer) or anyone acting in the capacity of an officer or agent of such labor organization.

(15) "Farm worker" includes any agricultural wage, salary or piece but is not limited to a farm worker of a particular farm

employer unless this Code explicitly 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 employment.

Whenever the term "farm worker" is used in this Code, it shall be understood to include farm laborer and/or farm employee.

(16) "Farm workers' organization" includes any union or association of farm workers which exists, in whole or in part, for the

purpose of collective bargaining or dealing with farm employers concerning terms and conditions of employment.

(17) "Agrarian dispute" means any controversy relating to terms, tenure or conditions of employment, or concerning an

association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or

conditions of employment, regardless of whether the disputants stand in the proximate relation of farm employers and

employees.

As used in Chapter III of this Code:

(18) "Idle lands" means land not devoted directly to any crop or to any definite economic purpose for at least one year prior

to the notice of expropriation except for reasons other than force majeure 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

permanently or regularly to other essential and more productive purpose.

(19) "Abandoned lands" means lands devoted to any crop at least one year prior to the notice of expropriation, but which

was not utilized by the owner for his benefit for the past five years prior to such notice of expropriation.

(20) "Economic family-sized farm units" means an area of farm land that permits efficient use of labor and capital resources

of the farm family and will produce an income sufficient to provide a modest standard of living to meet a farm family's needs

for food, clothing, shelter, and education with possible allowance for payment of yearly installments on the land, and

reasonable reserves to absorb yearly fluctuations in income.

(21) "Suitably for economic family-size farm" refers to situations where a parcel of land whose characteristics, such as

climate, soil, topography, availability of water and location, will support a farm family if operated in economic family-size farm

units and does not include those where large-scale operations will result in greater production and more efficient use of land.

(22) "Agricultural owner-cultivator" means any person who, providing capital and management, personally cultivates his own

land with the aid of his immediate family and household.

(23) "Owner-manager" means the owner of a parcel of land devoted to agricultural production who provides the capital and

management in the farm enterprise.

(24) "Labor administration" means cases where farm workers are employed wholly in the agricultural production.

(25) "Share tenancy" as used in this Code means the relationship which exists 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 items of production, the tenant cultivating the land personally with the aid of labor

available from members of his immediate farm household, and the produce thereof to be divided between the landholder and

the tenant.

(26) "Tax free" in reference to bonds and shares of stock issued by the Land Bank as payment for acquired private

agricultural land shall mean all government taxes, except gift tax and inheritance tax.

Section 167. Penal Provisions -

(1) Violation of the provisions of Section thirteen and twenty-seven and paragraph 1 of Section thirty-one of this Code shall

be punished by a fine not exceeding one thousand pesos or imprisonment not exceeding one year or both in the discretion

of the court. In case of juridical persons, the manager or the person who has charge of the management or administration of

the property or, in his default, the person acting in his stead, shall be liable under this Section.

(2) Any person, natural or juridical, who induces another, as tenant, to execute or enter into a share tenancy contract with

himself or with another in violation of this Code shall be punished by a fine not exceeding five thousand pesos with

subsidiary imprisonment in accordance with the Revised Penal Code: Provided, That the execution of a share tenancy

contract shall be considered prima facie evidence of such inducement as to the owner, civil law lessee, usufructuary or legal

possessor. In case of juridical persons, the manager or the person who has charge of the management or administration of

the property or, in his default, the person acting in his stead, shall be liable under this Section.

(3) Any person who executes an affidavit as required by Section thirteen of Chapter I, knowing the contents thereof to be

false, shall be punished by a fine not exceeding one thousand pesos or imprisonment of not more than one year, or both, in

the discretion of the court.

(4) Any person who wilfully violates the provisions of Sections forty and forty-one of this Code shall be punished by a fine of

not less than one hundred pesos nor more than one thousand pesos or by imprisonment of not less than one month nor

more than one year, or both such fine and imprisonment, in the discretion of the court. If any violation of Sections forty and

forty-one of this Code is committed by a corporation, partnership or association, the manager or, in his default, the person

acting as such when the violation took place shall be criminally responsible.

(5) Any person who wilfully violates the provisions of Section forty-two of this Code shall, upon conviction thereof, be subject

to a fine of not more than two thousand pesos, or upon second conviction, to imprisonment of not more than one year or

both such fine and imprisonment, in the discretion of the court. If any violation of the provisions of Section forty-two of this

Code is committed by a corporation, partnership or association, the manager or, in his default, the person acting as such

when the violation took place shall be criminally responsible.

Section 168. Pending Application for Mechanization - Any provision of this Code to the contrary notwithstanding, any application

for mechanization where corresponding certifications for suitability for mechanization and for availability for resettlement by the

Agricultural Tenancy Commission and the National Resettlement and Rehabilitation Administration, respectively, have been

issued and proper notices served on the tenants at least two months prior to the approval of this Code shall be given due course

and decided in accordance with the pertinent provisions and requirements of Republic Act Numbered Eleven hundred and ninety-

nine, as amended.

Section 169. Personnel of Reorganized or Abolished Agencies - Permanent officials and employees of all existing government

agencies which are abolished or reorganized under this Code, subject to Civil Service Rules and regulations, shall be absorbed

and shall not be divested of their positions except presidential appointees: Provided, That those presidential appointees who

cannot be absorbed and such officials and employees who prefer to be laid-off shall be given gratuity equivalent to one month

salary for every year of service but in no case more than twenty-four month's salary, in addition to all benefits to which they are

entitled under existing laws and regulations.

To carry out the provisions of this Section, there is hereby appropriated the sum of five hundred thousand pesos out of the

unappropriated funds in the National Treasury.

Section 170. Budgeting and Disbursing of Appropriated Funds - Any provision of this Code or of any existing law to the contrary

notwithstanding, not more than sixty per centum of the specific appropriations provided in this Code for operating expenditures

shall be used for personnel services: Provided, That in the case of the appropriations for the Agricultural Productivity Commission

not more than twenty per centum shall be spent for office personnel and other administrative expenses thereof: Provided, further,

That the total operating expenditures of the Agricultural Credit Administration shall not exceed three per centum of its total

capitalization in addition to the allowance for losses under Section one hundred ten: Provided, furthermore, That all unexpended

balances of all appropriations provided in this Code for operating expenditures shall revert to the National Treasury at the end of

the fiscal year in conformity with the provisions of Section twenty-three of Republic Act Numbered Nine hundred ninety-two: And

provided, finally, That all the financial requirements of the various agencies established in this Code for their operation except the

Land Bank and the Agricultural Credit Administration shall be proposed in the President's budget in order that such appropriation

as may be necessary therefor may be provided in the General Appropriation Acts for the succeeding fiscal years.

Section 171. Separability of Provisions - If, for any reason, any section or provision of this Code shall be questioned in any court,

and shall be held to the unconstitutional or invalid, no other section or provision of this Code shall be affected thereby.

Section 172. Prior Inconsistent Laws - All laws or parts of any law inconsistent with the provisions of this Code are hereby

repealed.

Section 173. Effective Date - This Code shall take effect upon its approval.

Approved: August 8, 1963

EXECUTIVE ORDER NO. 129-A July 26, 1987

MODIFYING ORDER NO. 129 REORGANIZING AND STRENGTHENING THE DEPARTMENT OF AGRARIAN REFORM AND

FOR OTHER PURPOSES

WHEREAS, Executive Order No. 129 dated January 30, 1987 was suspended;

WHEREAS, Presidential Proclamation No. 131 and Executive Order No. 229, both dated July 22, 1987 instituted a

Comprehensive Agrarian Reform Program (CARP) and provided the mechanisms for its implementation;

WHEREAS, Executive Order No. 229 vests on the Department of Agrarian Reform quasi-judicial powers to determine and

adjudicate agrarian reform matters;

WHEREAS, there is a need to strengthen and expand the functions of the Department of Agrarian Reform to be more effective in

implementing the Comprehensive Agrarian Reform Program;

WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the President shall continue to exercise legislative powers

until the First Congress convenes;

NOW, THEREFORE, I, CORAZON C. AQUINO, PRESIDENT OF THE PHILIPPINES, by virtue of the powers vested in me by the

Constitution, do hereby order:

Sec. 1. Title. This Executive Order shall otherwise be known as the Reorganization Act of the Department of Agrarian Reform.

Sec. 2. Reorganization. The Department of Agrarian Reform is hereby reorganized structurally and functionally, hereinafter

referred to as the Department, in accordance with the provisions of this Executive Order.

Sec. 3. Declaration of Policy. It is the declared policy of the State of completely abolish all remnants of feudalism and all other

types of unjust tenurial arrangements, implement the comprehensive agrarian reform program, increase the productivity of the

direct producers, and strengthen the agricultural base for increased industrialization.

Pursuant to this policy, the State shall:

a) Establish owner-cultivated economic, family-size farms and collectively-owned/cooperatively-cultivated farms as the

foundation of Philippine agriculture;

b) Prohibit absentee land ownership;

c) Rechannel and divert landlord capital in agriculture to industrial development;

d) Assist in the preservation and conservation of prime lands for agricultural purposes;

e) Encourage the establishment and protect the autonomy and independence of institutions of farmers and farmworkers that

will safeguard their interests and ensure their dignified existence, free from pernicious restraints and practices;

f) Create just and viable socio-economic structures in agriculture conducive to greater productivity and higher incomes

through the cooperative system of production, processing, marketing, distribution, and credit services;

g) Accelerate the disposition of public alienable, disposable, and cultivable land to actual cultivators and other qualified

beneficiaries and develop agrarian communities for full utilization of land for human growth and development;

h) Institutionalize partnerships between government and organizations of farmers and farmworkers in agrarian reform policy

formulation, program implementation, and evaluation;

i) Provide specific investment opportunities, alternative employment, and other incentives for landowners affected by

agrarian reform;

j) Ensure adequate funding support for the agrarian reform program as well as timely, affordable, and appropriate financing

schemes to its beneficiaries;

k) Implement an agricultural land tax scheme that will prevent land hoarding and/or speculation.

Sec. 4. Mandate. The Department shall be responsible for implementing the Comprehensive Agrarian Reform Program and, for

such purpose, it is authorized to:

a) Acquire, determine the value of, subdivide into family-size farms or organize into collective of cooperative farms and

develop private agricultural lands for distribution to qualified tillers, actual occupants, and displaced urban poor;

b) Administer and dispose all cultivable portions of the public domain declared as alienable and disposable for agricultural

purposes transferred to it by the Department of Environment and Natural Resources;

c) Acquire, by purchase or grant, real estate properties suited for agriculture that have been foreclosed by the national

government;

d) Undertake land consolidation, land reclamation, land forming, and conservation in areas subject to agrarian reform;

e) Facilitate the compensation of landowners covered by agrarian reform;

f) Issue emancipation patents to farmers and farmworkers who have been given lands under the agrarian reform program as

may be provided for by law;

g) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts and land tenure problems;

h) Develop and implement alternative land tenure systems such as cooperative farming and agro-industrial estates, among

others;

i) Undertake land use management and land development studies and projects in agrarian reform areas;

k) Approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural uses;

l) Monitor and evaluate the progress of agrarian reform implementation;

m) Assist the Office of the Solicitor General in providing evidence for the reversion proceedings to be filed with respect to

lands of the public domain, occupied by private individuals and their tenants or farmworkers which are subject to land reform,

and real rights connected therewith which have been acquired in violation of the Constitution or the public land laws or

through corrupt practices;

n) Submit progress reports to the Office of the President, to Congress, and to the people at the end of each year and at all

times make available to the general public information on the current status of its programs.

Sec. 5. Powers and Functions. Pursuant to the mandate the Department, and in order to ensure the successful implementation of

the Comprehensive Agrarian Reform Program, the department is hereby authorized to:

a) Advise the President and the Presidential Agrarian Reform Council on the promulgation of executive/administrative

orders, other regulative issuances and legislative proposals designed to strengthen agrarian reform and protect the interests

of the benefeciaries thereof;

b) Implement all agrarian laws, and for this purpose, punish for contempt and issue subpoena, subpoena duces tecum, writs

of execution of its decisions, and other legal processes to ensure successful and expeditious program implementation; the

decisions of the Department may in proper cases, be appealed to the Regional Trial Courts but shall be immediately

executory notwithstanding such appeal;

c) Establish and promulgate operational policies, rules and regulations and priorities for agrarian reform implementation;

d) Coordinate program implementation with the Land Bank of the Philippines and other relevant civilian and military

government agencies mandated to support the agrarian reform program;

e) Acquire, administer, distribute, and develop agricultural lands for agrarian reform purposes;

f) Undertake surveys of lands covered by agrarian reform;

g) Issue emancipation patents to farmers and farmworkers covered by agrarian reform for both private and public lands and

when necessary make administrative corrections of the same;

h) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts and land-tenure related

problems as may be provided for by law;

i) Promote the organization and development of cooperatives and other associations of agrarian reform beneficiaries;

j) Conduct continuing education and promotion programs on agrarian reform for beneficiaries, land-owners, government

personnel, and the general public;

k) Institutionalize the participation of farmers, farmworkers, other beneficiaries, and agrarian reform advocates in agrarian

reform policy formulation, program implementation, and evaluation;

l) Have exclusive authority to approve or disapprove conversion of agricultural lands for residential, commercial, industrial,

and other land uses as may be provided for by law;

m) Call upon any government agency, including the Armed Forces of the Philippines, and non-governmental organizations

(NGOs) to extend full support and cooperation to program implementation;

n) Exercise such other powers and functions as may be provided for by law or directed by the President, to promote

efficiency and effectiveness in the delivery of public services.

Sec. 6. Structural Organization. The Department shall consist of the Department Proper, the staff offices, the staff bureaus and the

regional/provincial/municipal agrarian reform offices.

The Department Proper shall consist of the following:

a) Office of the Secretary;

b) Offices of the Undersecretaries;

c) Offices of the Assistant Secretaries;

d) Public Affairs Staff;

e) Special Concerns Staff;

f) Agrarian Reform Adjudication Board.

The staff sectoral bureaus, on the other hand, shall be composed of:

a) Bureau of Land Acquisition and Distribution;

b) Bureau of Land Development;

c) Bureau of Agrarian Legal Assistance;

d) Bureau of Agrarian Reform Information and Education;

e) Bureau of Agrarian Reform Beneficiaries Development.

The field offices shall consist of the Department regional offices, the provincial offices and the municipal agrarian reform office.

Sec. 7. Secretary of Agrarian Reform. The authority and responsibility for the exercise of the mandate of the Department and the

discharge of its powers and functions shall be vested in the Secretary of Agrarian Reform, hereinafter referred to as Secretary,

who shall have supervision and control over the Department and shall be appointed by the President.

Sec. 8. Office of the Secretary. The Office of the Secretary shall consist of the Secretary, his immediate staff, the Public Affairs

Staff and the Special Concerns Staff.

Sec. 9. Undersecretary. The Secretary shall be assisted by four (4) Undersecretaries who shall be appointed by the President

upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate, assign and/or reassign the

respective functional areas of responsibility of the Undersecretaries, provided, That such responsibility shall be with respect to the

mandate and objectives of the Department; and provided, Further, that no Undersecretary shall be assigned primarily

administrative responsibilities.

Sec. 10. Assistant Secretary. The Secretary and the Undersecretaries shall also be assisted by seven (7) Assistant Secretaries,

who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to

delineate, assign and/or reassign the respective functional areas of responsibility of the Assistant Secretaries, provided, That such

responsibility shall be with respect to the mandate and objectives of the Department.

Sec. 11. Public Affairs Staff. There is hereby created a Public Affairs Staff, under the office of the Secretary, to be headed by a

Director and assisted by an Assistant Director, which shall serve as the public information arm of the Department. It shall be

responsible for disseminating information and agrarian reform policies, plans, programs and projects; and respond to public

queries related to the implementation of the agrarian reform program.

Sec. 12. Special Concerns Staff. There is hereby created a Special Concerns Staff under the Office of the Secretary, to be

headed by a Director and assisted by an Assistant Director, which shall be responsible for handling priority areas/subjects

identified by the Secretary that necessitate special and immediate attention.

Sec. 13. Agrarian Reform Adjudication Board. There is hereby created an Agrarian Reform Adjudication Board under the Office of

the Secretary. The Board shall be composed of the Secretary as Chairman, two (2) Undersecretaries as may be designated by

the Secretary, the Assistant Secretary for Legal Affairs, and three (3) others to be appointed by the President upon the

recommendation of the Secretary as members. A Secretariat shall be constituted to support the Board. The Board shall assume

the powers and functions with respect to the adjudication of agrarian reform cases under Executive Order No. 229 and this

Executive Order. These powers and functions may be delegated to the regional offices of the Department in accordance with rules

and regulations to be promulgated by the Board.

Sec. 14. Planning and Project Management Office. There is hereby created a Planning and Project Management Office within the

Department Proper which shall be responsible for coordinating and initiating the development, integration and prioritization of

plans, programs and projects of the Department; monitoring and evaluating agrarian reform program implementation; establishing

linkages with foreign funding institutions; and coordinating the activities of the different Offices, Bureaus and Attached Agencies of

the Department.

Sec. 15. Policy and Strategic Research Office. There is hereby created a Policy and Strategic Research Office within the

Department Proper which shall be responsible for establishing and implementing a computerized management information system

as well as for coordinating and/or initiating research and studies for planning and policy formulation purposes.

Sec. 16. Finance, Management and Administrative Office. There is hereby created a Finance, Management and Administrative

Office within the Department Proper which shall be responsible for the proper and timely allocation of funds to support approved

programs, projects and activities; the appropriate management control and accounting of funds; the management of the

Department's physical assets; and the provision of services to ensure effective and efficient personnel management and

manpower career development, and for the establishment of management systems and procedures.

Sec. 17. Field Operations Office. There are hereby created Field Operations Offices for Luzon, Visayas and Mindanao within the

Department Proper which shall monitor and assess the implementation of the Department's policies, plans and programs at the

regional, provincial and municipal levels.

Sec. 18. Legal Affairs Office. There is hereby created a Legal Affairs Office within the Department Proper which shall be

responsible for the review of contracts and other legal matters, the rendition of legal assistance to Department personnel and

those who will be affected by the agrarian reform program.

Sec. 19. Bureau of Land Acquisition and Distribution. There is hereby created the Bureau of Land Acquisition and Distribution

which shall absorb the relevant functions of the Bureaus of Land Acquisition, Distribution and Development, and of Land Tenure

Improvement. The Bureau of Land Acquisition and Distribution, to be headed by a Director and assisted by an Assistant Director,

shall be responsible for the development of policies, plans, programs, standard operating procedures, and for providing technical

assistance, relative to the acquisition and distribution of private agricultural lands covered by the agrarian reform program,

including land tiller-landowner identification, land valuation, and landowners compensation, transfer of ownership to actual tillers,

leasehold arrangements, stewardship, and land transfer actions.

Sec. 20. Bureau of Land Development. There is hereby created the Bureau of Land Development which shall absorb the relevant

functions of the Bureau of Land Acquisition, Distribution and Development. The Bureau of Land Development, to be headed by a

Director and assisted by an Assistant Director, shall responsible for the development of policies, plans and programs, and for

providing technical assistance, relative to land surveys, land use, capability and classification, engineering services, and land

consolidation.

Sec. 21. Bureau of Agrarian Legal Assistance. The Bureau of Agrarian Legal Assistance shall be strengthened and shall be

responsible for developing guidelines, plans and programs for legal assistance including developing, maintaining and coordinating

para-legal services for those who will be affected by the Comprehensive Agrarian Reform Program. It shall be headed by a

Director and assisted by an Assistant Director.

Sec. 22. Bureau of Agrarian Reform Information and Education. There is hereby created the Bureau of Agrarian Reform

Information and Education which shall absorb the functions of the Agrarian Reform Education Service which is abolished by this

Executive Order. The Bureau of Agrarian Reform Information and Education, to be headed by a Director and assisted by an

Assistant Director, shall be responsible for developing and conducting continuing training and education programs for the

acquisition of knowledge, value formation, and development of skills and favorable attitudes among benefeciaries and personnel

of the Department and other agencies, and the increase of awareness, participation and acceptance of agrarian reform by the

public through the dissemination of information and communication materials.

Sec. 23. Bureau of Agrarian Reform Benefeciaries Development. There is hereby created the Bureau of Agrarian Reform

Beneficiaries Development which shall absorb the relevant functions of the Bureau of Resettlement. The Bureau of Agrarian

Reform Beneficiaries Development, to be headed by a Director and assisted by an Assistant Director, shall be responsible for the

development of policies, plans and programs, and for providing technical assistance, relative to the development of settlement

areas into viable agrarian communities. It shall also be responsible for promoting the organization of agrarian reform beneficiaries,

liaison with farmer and farm workers organizations to ensure the raising or farm incomes, the promotion of all forms of farm

cooperation, the achievement of a dignified existence and the creation of a viable economic structure conducive to greater

productivity and higher farm income.

Sec. 24. Regional Offices The Department shall have twelve (12) Regional Offices. Each Regional Office shall be headed by a

Regional Director who shall be assisted by an Assistant Regional Director for operations and an Assistant Regional Director for

Administration.

The Regional Offices shall be responsible for the implementation of laws, policies, plans, programs, projects, rules and regulations

of the Department in its administrative region. For such purpose, it shall have the following functions:

a) Prepare and submit plans and programs for the region on:

1) Land acquisition and distribution;

2) Information and education;

3) Land use management and land development;

4) Agrarian reform beneficiaries development;

b) Provide technical assistance to Provincial Offices and Municipal Agrarian Reform Offices in the implementation of

approved plans and programs;

c) Conduct operations research and evaluation of agrarian reform implementation within the region;

d) Coordinate with other government and private agencies and farmer and farm workers organizations at the regional level,

to carry out the programs/projects for the general welfare of agrarian reform beneficiaries;

e) Maintain an information system in coordination with the established monitoring systems;

f) Review and evaluate reports and other documents submitted by the Provincial Offices and Municipal Agrarian Reform

Offices and agrarian reform clientele;

g) Submit periodic feedback as may be necessary in the service of the Department's clientele.

Sec. 25. Provincial Offices. The Agrarian Reform District Offices are hereby abolished and in their stead the Department shall

create Provincial Agrarian Reform Offices as may be necessary in promoting efficiency and effectiveness in the delivery of its

services. Each Provincial Agrarian Reform Office shall be headed by a Provincial Agrarian Reform Officer.

The Provincial Agrarian Reform Offices shall be responsible for directing and coordinating the operations and activities of the

Municipal Agrarian Reform Offices operating within the province and has the following functions:

a) Set priorities, specific targets, schedules, and deadlines for the execution of approved plans, programs, and projects on:

1) Land acquisition, distribution, transfer of land ownership to actual tillers, including land-tiller-landowner identification,

tenurial security, leasehold arrangements, land surveys, land valuation and landowner's compensation as may be

provided for by law;

2) Continuing information and education programs on agrarian reform;

3) Encouraging the organizational development of agrarian reform beneficiaries cooperatives and other associations

and institutionalizing farmer-government partnership in agrarian reform policy formulation, program implementation,

and evaluation;

4) Landowners' compensation and rechanneling landowner capital to industrial development;

5) Development and implementation of alternative land tenure systems such as cooperative farming, cooperative

cultivatorship schemes, and agro-industrial estates, among others;

6) Land use management;

7) Compact farming, integrated farming system, sloping agricultural land technology, and other land conservation

measures in agrarian reform areas, in coordination with farmer and farm workers organizations;

8) Provision of legal services to those affected by agrarian reform and resolution of agrarian conflicts and land tenure

problems;

b) Provide administrative services to the Municipal Agrarian Reform Offices within the province;

c) Provide legal services to agrarian reform beneficiaries in cases arising from or connected with agrarian reform disputes,

handling of expropriation proceedings, registering cooperatives and reviewing and acting on all matters initially investigated

and elevated by Municipal Agrarian Reform Office;

d) Provide technical assistance to Municipal Agrarian Reform Offices in the implementation of approved plans and programs;

e) Coordinate with governmental, private agencies, and farmer and farm worker organizations at the provincial level, to carry

out programs;

f) Conduct periodic performance audit survey in collaboration with the regional office and monitor agrarian reform program

accomplishments, including operational problems and constraints, and recommend appropriate remedial measures for

effective program implementation;

g) Perform such other functions as may be necessary in the service of the Department's clientele;

Sec. 26. Municipal Agrarian Reform Offices. The Department shall have as many Municipal Agrarian Reform Offices as may be

necessary in promoting efficiency and effectiveness in the delivery of its services, which shall be headed by a Municipal Agrarian

Reform Officer.

The Municipal Agrarian Reform Office shall be responsible for directly implementing agrarian reform programs and delivering

expected results at the municipal level. For such purpose, it shall have the following functions:

a) Implement policies and programs on land acquisition and distribution and transfer of landowners to actual tillers, including

identification of farms, landowners, and beneficiaries, leasehold arrangements, land valuation, landowner's compensation

and transfer actions as determined in accordance with law;

b) Undertake continuing information and education programs on agrarian reform among the beneficiaries thereof;

c) Encourage and promote the organization and development of agrarian reform beneficiaries and assist in the registration of

organized cooperatives;

d) Institutionalize beneficiaries' participation in agrarian reform policy formulation and program implementation;

e) Organize/establish compact farms, land consolidation, integrated farm system, sloping agricultural land technology and

other cooperative-cultivatorship schemes;

f) Provide assistance in agrarian reform research;

g) Provide assistance to various legal services, including legal information and legal counselling, documentation and

preliminary processing of applications for patents and applications to purchase lots, preliminary investigation of conflicting

claims of lot boundaries and appraisal of properties, and mediation of different problems arising from implementation of the

agrarian reform program; execution and registration of lease contracts, initial investigation of administrative cases, and other

legal services;

h) Provide assistance on project identification, formulation, and development that would uplift the socio-economic status of

the beneficiaries including projects that would channel landlord capital to industrial development;

i) Cooperative with other government and private agencies and farmer and farm worker organizations within the area of

coverage for effective program/project implementation;

j) Submit periodic reports on program/projects accomplishments including identified problems and recommended solutions

thereto;

k) Implement projects supportive of national priority programs which the Department is committed to assist;

l) Perform such other functions as may be assigned from time to time, to promote efficiency and effectiveness in the delivery

of public services.

Sec. 27. Attached Agency

a) The Department shall, subject to the approval of the Presidential Agrarian Reform Council, create the Foundation for the

Agrarian Reform Movement of the Philippines (FARM-Philippines) to administer, operate, and manage programs and

projects developed by the Department and initiate alternative livelihood projects for displaced small landowners. It shall be

attached to the office of the Secretary and shall be governed by a Board of Trustees. The Foundation will be authorized to

raise funds and to contract foreign and domestic loans for its projects.

Sec. 28. Transitory Provisions. In accomplishing the acts of reorganization herein prescribed, the following transitory provisions

shall be complied with, unless otherwise provided elsewhere in this Executive Order;

a) The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, chosen

in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be

necessary, who shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the

corresponding salaries and benefits. Those personnel from the transferred unit whose positions are not included in the

Department's new position structure and staffing pattern approved and prescribed by the Secretary or who are not

reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second

paragraph of Section 29 hereof.

b) The transfer of functions which results in the abolition of the government unit that exercised them shall include the

appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets and personnel as may be

necessary to the proper discharge of the transferred functions. The abolished unit's remaining appropriations and funds, if

any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units as the

Secretary shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other

pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance with the Government

Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over capacity, continue to

perform their duties and responsibilities and receive their corresponding salaries and benefits. Its personnel whose positions

are not included in the Department's structure and staffing pattern approved and prescribed by the Secretary under Section

29 hereof or who are not reappointed, shall be deemed separated from the service and shall be entitled to the benefits

provided in the second paragraph of the same Section 29.

c) Any transfer of functions which does not result in the abolition of the government unit that has exercised them shall include

the appropriations, funds, records, equipment, facilities, chosen in action, rights, and assets and personnel as may be

necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred in

connection with the discharge of the transferred functions, shall be treated in accordance with the Government Auditing

Code and other pertinent laws, rules and regulations. Such personnel shall, in a hold-over capacity, continue to perform their

duties and responsibilities and receive their corresponding salaries and benefits unless in the meantime they are separated

from the service. Any personnel, whose positions are not included in the Department's new position structure and staffing

patter approved and prescribed by the Secretary under Section 29 hereof or who are not reappointed, shall be deemed

separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 29.

d) In case of the abolition of a government unit which does not result in the transfer of its functions to another unit, the

appropriations and funds of the abolished entity shall revert to the General Fund, while the records, equipment, facilities,

chosen in action, rights, and other assets thereof shall be allocated to such appropriate entities as the Secretary shall

determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules

and regulations, The liabilities of the abolished units shall be treated in accordance with the Government Auditing Code and

other pertinent laws, rules and regulations, while the personnel thereof, whose position, is not included in the Department's

new position structure and staffing pattern approved and prescribed by the Secretary under Section 29 hereof or who has

not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second

paragraph of the same Section 29.

e) In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions (subject to

the reorganization herein prescribed and the laws, rules and regulations pertinent to the exercise of such functions) and shall

acquire the appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets, liabilities, if any, and

personnel, as may be necessary, of the units that compose the merged unit shall in a hold-over capacity, continue to perform

their respective duties and responsibilities and receive their corresponding salaries and benefits unless in the meantime they

are separated from the service. Any such personnel, whose positions are not included in the Department's new position

structure and staffing pattern approved and prescribed by the Secretary under Section 29 hereof or who are not reappointed,

shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the

same Section 29.

f) In case of termination of a function which does not result in the abolition of the government unit which performed such

function, the appropriations and funds intended to finance the discharge of such function shall revert to the General Fund

while the records, equipment, facilities, chosen in action, rights and other assets used in connection with the discharge of

such function shall be allocated to the appropriate units as the Department shall determine or shall otherwise be disposed in

accordance with the Government Auditing Code and other pertinent laws, rules and regulations, The liabilities, if any, that

may have been incurred in connection with the discharge of such function shall likewise be treated in accordance with the

Government Auditing Code and other pertinent laws, rules and regulations. The personnel who have performed such

function, whose positions are not included in the Department's new position structure and staffing pattern approved and

prescribed by the Secretary under Section 29 hereof or who have not been reappointed, shall be deemed separated from

the service and shall be entitled to the benefits provided in the second paragraph of the same Section 29 hereof.

Sec. 29. New, Structure and Pattern. Upon approval of this Executive Order, the officers and employees of the Department shall,

in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and

benefits unless in the meantime they are separated from government service.

The new position structure and staffing pattern of the Department shall be approved and prescribed by the Secretary within sixty

(60) days from the effectivity of this Executive Order and the authorized positions created thereunder shall be filled with regular

appointments by him or by the President as the case may be. Those incumbents whose positions are not included therein or who

are not reappointed shall be deemed separated from the service. Those separated from the service shall receive the retirement

benefits to which they be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent of one (1)

month basic salary for every year of service in the government, or a fraction thereof, computed on the basis of the highest salary

received, but in no case shall such payment exceed the equivalent of twelve (12) months salary. lawphi1.net

Sec. 30. Periodic Performance Evaluation. The Department of Agrarian Reform is hereby required to formulate and enforce a

system of measuring and evaluating periodically and objectively the performance of the Department and submit the same annually

to the President.

Sec. 31. Notice or Consent Requirement. If any reorganizational change herein authorized is of such substance or materiality as

to prejudice third persons with rights recognized by law or contract such that notice to or consent of creditors is required to be

made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be

complied with prior to the implementation of such reorganizational change.

Sec. 32. Prohibition Against Structural Changes. No change in the reorganization herein prescribed shall be valid except upon

prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services.

Sec. 33. Funding. Funds needed to carry out the provisions of this Executive Order shall be taken from funds available in the

Department.

Sec. 34. Implementing Authority of the Secretary. The Secretary shall issue orders, rules and regulations and other issuances as

may be necessary to ensure the effective implementation of the provisions of this Executive Order.

Sec. 35. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the

effect of nullifying other portions or provisions hereof as long as such remaining portions or provisions can still subsist and be

given effect in their entirety. lawphi1.net

Sec. 36. Repealing Clause. All laws, ordinances, rules and regulations and other issuances or parts thereof, which are

inconsistent with this Executive Order, are hereby repealed or modified accordingly. lawphi1.net

Sec. 37. Effectivity. This Executive Order shall take effect immediately.

APPROVED in the City of Manila, Philippines, this 26th day of July, in the Year of Our Lord, Nineteen Hundred and Eighty-Seven.

July 17, 1987

EXECUTIVE ORDER NO. 228

DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER BENEFICIARIES COVERED BY PRESIDENTIAL DECREE

NO. 27: DETERMINING THE VALUE OF REMAINING UNVALUED RICE AND CORN LANDS SUBJECT TO P.D. NO. 27; AND

PROVIDING FOR THE MANNER OF PAYMENT BY THE FARMER BENEFICIARY AND MODE OF COMPENSATION TO THE

LANDOWNER

WHEREAS, Presidential Decree No. 27; for purposes of determining the cost of the land to be transferred to the tenant-

farmer; provided that valuation shall be determined by crop productivity;

WHEREAS, there is a need to complete Operation Land Transfer and accelerate the payment to the landowners of lands

transferred to tenant-farmers; and

WHEREAS, there is also a need to maintain the financial validity of the Land Bank of the Philippines, the financing arm of

the agrarian reform program of the government;

NOW THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the

Constitution, here order that:

SECTION 1. All qualified farmer beneficiaries are now deemed full owners as of October 21, 1972 of the land they

acquired by virtue of Presidential Decree No. 27 (hereinafter referred to as P.D. No. 27).

SECTION 2. Henceforth, the valuation of rice and corn lands covered by P.D. No. 27 shall be based on the average

gross production determined by the Barangay Committee on Land Production in accordance with Department Memorandum

Circular No. 26, Series of 1973, and related issuances and regulations of the Department of Agrarian Reform. The average

gross production per hectare shall be multiplied by two and a half (2.5), the product of which shall be multiplied by Thirty Five

Pesos (P35.00), the government support price for one cavan of 50 kilos of palay on October 21, 1972, or Thirty One Pesos

(P31.00), the government support price for one cavan of 50 kilos of corn on October 21, 1972, and the amount arrived at shall

be the value of the rice and corn land, as the case may be, for the purpose of determining its cost to the farmer and

compensation to the landowner.

Lease rentals paid to the landowner by the farmer beneficiary after October 21, 1972, shall be considered as advance

payment for the land. In the event of dispute with the land owner regarding the amount of lease rental paid by the farmer

beneficiary, the Department of Agrarian Reform and the Barangay Committee on Land Production concerned shall resolve the

dispute within thirty (30) days from its submission pursuant to Department of Agrarian Reform Memorandum Circular No. 26,

Series of 1973, and other pertinent issuances. In the event a party questions in court the resolution of the dispute, the

landowner's compensation claim shall still be processed for payment and the proceeds shall be held in trust by the Trust

Department of the Land Bank in accordance with the provisions of Section 5 hereof, pending the resolution of the dispute

before the court.

SECTION 3. Compensation shall be paid to the landowners in any of the following modes, at the option of the

landowners:

(a) Bond payment over ten (10) years, with ten percent (10%) of the value of the land payable immediately in cash, and the

balance in the form of LBP bonds bearing market rates of interest that are aligned with 90-day treasury bills rates, net of

applicable final withholding tax. One-tenth of the face value of the bonds shall mature every year from the date of issuance until

the tenth year.

The LBP bonds issued hereunder shall be eligible for the purchase of government assets to be privatized.

(b) Direct payment in cash or in kind by the farmer-beneficiaries with the terms to be mutually agreed upon by the

beneficiaries and landowners and subject to the approval of the Department of Agrarian Reform; and

(c) Other modes of payment as may be prescribed or approved by the Presidential Agrarian Reform Council.

SECTION 4. All outstanding Land Bank bonds that are retained by the original landowners-payee or by their heirs,

are deemed matured up to on-twenty fifth (1/25) of their yearly face value from their date of issue to the date of this Executive

Order and may be claimed by the original landowner-payee by surrendering the bonds to the Land Bank. The original

landowner-payee may claim payment for the remaining unmatured period of the surrendered bonds under any of the modes of

compensation provided in Section 3, subsections (a) (b) or (c) hereof.

In order to meet the financial requirements mentioned in this Section, the Central Bank shall remit to the Land Bank such

sums as may b necessary from the Sinking Fund established by the Land Bank from the retirement of its bonds and other long-

term obligations and which Sinking Fund is administered by the Central Bank: Provided, however, That there is no change in

maturity of other outstanding Land Bank bonds acquired and held by transferees from original bondholders.

The landowner is exempt from capital gains tax on the compensation paid to him under this Executive Order.

SECTION 5. In the event that the landowner does not accept payment of the compensation due him, his

compensation shall be held in trust for him by the Trust Department of the Land Bank. The cash portion of the compensation

and such portions that mature yearly shall be invested by the Trust Department only in government securities fully guaranteed

by the Republic of the Philippines. All the net earnings of the investment shall be for the benefit of the landowner, his heirs or

successors in interest.

The rights of the landowners may be exercised by his heirs upon his death.

SECTION 6. The total costs of the land including interest at the rate of six percent (6%) per annum with a two

percent (2%) interest rebate for amortizations paid on time, shall be paid by the farmer-beneficiary or his heirs to the Land Bank

over a period up to twenty (20) years in twenty (20) equal annual amortizations. Lands already valued and financed by the

Land Bank are likewise extended a 20-year period of payment of twenty (20) equal annual amortizations. However, the farmer-

beneficiary if he so elects, may pay in full before the twentieth year or may request the Land Bank to structure a repayment

period of less than twenty (20) years if the amount to be financed and the corresponding annual obligations are well within the

farmer's capacity to meet. Ownership of lands acquired by the farmer-beneficiary may be transferred after full payment of

amortizations.

SECTION 7. As of the date of this Executive Order, a lien by way of mortgage shall exist in favor of the Land Bank

on all lands it has financed and acquired by the farmer-beneficiary by virtue of P.D. No. 27 for all amortizations, both principal

and interest, due from the farmer-beneficiary or a valid transferee until the amortizations are paid in full.

SECTION 8. Henceforth, failure on the part of the farmer-beneficiary to pay three (3) annual amortizations shall be

sufficient cause for the Land Bank to foreclose on the mortgage.

SECTION 9. Thirty (30) days after final notice for payment to the defaulting tenant-farmer, a copy of which notice

shall be furnished to the Department of Agrarian Reform, the Land Bank may foreclose on the mortgage by registering a

certification under oath of its intent to foreclose with the Registry of Deeds of the city or province where the land is located

attaching thereto: a copy of the final notice for payment; proof of service to the tenant-farmer and the Department of Agrarian

Reform of the final notice for payment; and a certification that at least three (3) annual amortizations on the land or the sum

thereof remain unpaid. The mortgage is deemed foreclosed upon registration of said documents with the Registry of Deeds.

In the event the defaulting tenant-farmer could not be served the final notice for payment, the Land Bank shall post the

notice for payment in the town hall, public market and barangay hall or any other suitable place frequented by the public of the

barangay where the defaulting tenant-farmer resides. A certification by the Land Bank to this effect will substitute for the proof

of service of the final notice of payment for purposes of foreclosure.

The Register of Deeds of all cities and provinces are directed to have a separate registry book to enter all the

requirements of foreclosure as provided herein.

SECTION 10. The tenant-farmer, or any of his compulsory heirs may lift the foreclosure within a period of two (2)

years from its registration by paying the Land Bank all unpaid amortizations on the land with interest thereon of six percent

(6%) per annum. In case of failure to lift the foreclosure within the said period, ownership of the land shall be deemed

transferred to the Land Bank.

SECTION 11. The Land Bank, not later than three (3) months after its acquisition of the land, shall sell the foreclosed

land to any interested landless farmer duly certified to as a bona fide landless farmer by the Department of Agrarian Reform of

the barangay or the two closest barangays where the land is situated. The cost of the land is the unpaid amortizations due on

the lands as of the date of the sale with interest thereon of six percent (6%) per annum. In the event that there is more than one

interested buyer, the actual buyer shall be determined by lottery in the presence of all the buyers or their representatives and a

representative of the Department of Agrarian Reform. The Deed of Conveyance executed by the Land Bank in favor of the

farmer transferee shall be registered with the Register of Deeds of the city or province where the land is located. Ownership

shall transfer to the farmer transferee only upon registration with the Registry of Deeds. The lien of the Land Bank by way of

mortgage on the remaining unpaid amortizations shall subsists on the title of the transferee.

SECTION 12. The Land Bank, at least one (1) month prior to the sale, shall furnish the Department of Agrarian

Reform with a notice of sale and shall post a similar notice in the town hall, public market and barangay hall or any other

suitable place frequented by the public of the barangay where the property is located. The notice shall state the description of

the property subject of the sale, the price, the date and place of sale.

SECTION 13. The National Land Titles and Deeds Registration Administration is hereby authorized to issue such

rules and regulations as may be necessary relative to the registration with the Register of Deeds of all transactions/activities

required herein taking into consideration the need to protect the integrity of the Torrens System, the interests of the parties and

innocent third parties.

All transactions/activities and their corresponding documents that are registered with the Register of Deeds pursuant to

the requirements of P.D. No. 27 and this Executive Order shall be free from all documentary stamps and registration fees.

SECTION 14. The Department of Agrarian Reform and the Land Bank are authorized to issue the additional

implementing guidelines of this Executive Order which shall not be later than sixty (60) days from the date hereof.

SECTION 15. To ensure the successful implementation of the Agrarian Reform Program, an Agrarian Reform

Operating Fund (Agrarian Fund) shall be set up by the National Government in the Land Bank. The amount of this Agrarian

Fund, to be determined by the Government Corporation Monitoring and Coordinating Committee hereinafter referred to as

GCMCC), will source the funding requirements for Land Bank to carry out the full implementation of this program which will

include the net operating losses directly and indirectly attributable to this program and the credit facilities to farmers and

farmers' organizations. Within thirty (30) days from the effectivity of this Executive Order, the Land Bank shall submit to the

GCMCC its funding requirements for 1987. Thereafter, within sixty (60) days after the end of each calendar year, the Land

Bank shall submit to the GCMCC an accounting of all drawings the Land Bank had made against the Fund. At the same time, it

will also submit its prospective funding requirements for the current year for review and validation of the GCMCC. The amount

approved by the GCMCC shall be deemed appropriate and the amount programmed for release in coordination with the

Department of Finance, Budget and Management and the National Economic and Development Authority. Within thirty (30)

days from GCMCC's approval, such funds shall be remitted to the Land Bank for credit to the Agrarian Fund.

September 30, 2011

DAR ADMINISTRATIVE ORDER NO. 07-11

SUBJECT : Revised Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural Lands Under

Republic Act (R.A.) No. 6657, As Amended

PREFATORY STATEMENT

{ HYPERLINK "http://www.lis.dar.gov.ph/documents/456" }, otherwise known as The Rules and Procedures Governing the

Acquisition and Distribution of Agricultural Lands under { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended

by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, is revised to streamline the Land Acquisition and Distribution

(LAD) Process of the Department of Agrarian Reform (DAR), strengthen the due process requirement for Comprehensive

Agrarian Reform Program (CARP) coverage, and ensure the completion of land acquisition and distribution within the prescribed

period provided in { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }. AHCaED

CHAPTER 1

Applicability

SECTION 1. Applicability. — These rules and procedures shall govern the acquisition and distribution of:

1. All private agricultural lands covered under Section 4 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, but

which have not been issued Notices of Coverage (NOCs); and

2. Private agricultural lands issued with NOCs but where the list of potential beneficiaries has not been finalized by the

Municipal Agrarian Reform Officer (MARO) concerned as of 1 July 2009.

CHAPTER 2

Definition of Terms

SECTION 2. Definition of Terms. — For purposes of these Rules, the following terms are defined as follows:

A. Advance Survey Plan (AdSP) refers to the segregation/subdivision survey plan prepared by a licensed geodetic engineer

who conducted the survey which is submitted by the DAR to the Land Management Service (LMS) of the Department of

Environment and Natural Resources (DENR) for verification and approval to be used as reference in the conduct of the joint

field investigation of the subject lot and in the valuation of landowner's compensation.

B. Approved Survey Plan (ASP) refers to the survey plan verified and approved by the LMS-DENR or the Land Registration

Authority (LRA).

C. Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or

otherwise, over lands devoted to agriculture, including disputes concerning farmworkers' associations, or representation of

persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms and conditions of such tenurial arrangements.

It includes any controversy relating to the compensation of lands acquired under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/226" } and other terms and conditions of transfer of ownership from landowners (LOs) to

farmworkers, tenants, and other Agrarian Reform Beneficiaries (ARBs), whether the disputants stand in proximate relation of

farm operator and beneficiary, LO and tenant, or lessor and lessee.

D. Agricultural lessee refers to a person who, by himself and with the aid available from within his immediate farm household,

cultivates the land, belonging to or lawfully possessed by another, with the latter's consent, for purposes of agricultural

production, for a price certain in money or in produce or both. The term is distinguished from a civil lessee as understood in the

{ HYPERLINK "http://www.lis.dar.gov.ph/documents/3088" }.

E. Civil Society Organizations (CSOs) refers to voluntary organizations or associations bonded by a common interest which are

distinct from the government or the market organizations. For purposes of this A.O., CSOs include farmer organizations, non-

governmental organizations, faith-based organizations, farmer cooperatives, irrigators' association, etc.

F. Cooperatives refer to organizations composed primarily of small agricultural producers, farmers, farmworkers, or other ARBs

who voluntarily organize themselves for the purpose of pooling land, human, technological, financial, or other economic

resources, and operate on the principle of one member, one vote. A juridical person may be a member of a cooperative, with

the same rights and duties as a natural person.

G. Direct Management, insofar as preferred beneficiaries are concerned, refers to the cultivation of the land through personal

supervision under the system of labor administration. It shall be interpreted along the lines of farm management as an actual

major activity being performed by the LO's child from which he/she derives his/her primary source of income.

H. Farmworker refers to a natural person employed by an LO to perform in the subject landholding the cultivation of the soil,

planting of crops, growing of fruit trees, harvesting of farm products, or other similar farm activities and practices.

I. Installation refers to a series of activities spearheaded by the DAR to achieve the effective possession and peaceful control

by ARBs of the awarded land. DaAIHC

J. Landless Beneficiary is any farmer/tiller who owns less than three (3) hectares of agricultural land.

K. Newspaper of General Circulation refers to a newspaper or publication of national circulation.

L. Other Farmworkers refer to farmworkers who are not regular or seasonal farmworkers.

M. Perimeter Land Use Map (PLUM) refers to the findings of the survey work in which a CARP-covered lot is divided into sub-

lots based on existing crop/s and/or land use to produce Perimeter Land Use Map.

N. Regular Farmworker refers to a farmworker who is employed on a permanent basis by an LO to do functions that are

actually necessary and desirable in the farm operations.

O. Seasonal Farmworker refers to a farmworker who is employed on a recurrent, periodic, or intermittent basis by an

agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like.

P. Segregation Survey refers to survey work conducted by a licensed geodetic engineer wherein a CARP-covered lot is divided

into two (2) or more sub-lots for coverable and non-coverable areas to produce segregation plan which shall be used as

reference for award to co-owners, cooperative or farmer association.

Q. Share Tenant refers to a person who himself and with the aid available from within his immediate farm household, cultivates

the land belonging to or lawfully possessed by another, with the latter's consent, for purposes of agricultural production, sharing

the produce with the landholder under the share tenancy system, or paying the landholder a price certain or ascertainable in

produce or in money or both under the leasehold tenancy system. This arrangement has been abolished by { HYPERLINK

"http://www.lis.dar.gov.ph/documents/3221" }, as amended, which automatically converted the same into an agricultural lease

arrangement.

R. Subdivision survey refers to survey work in which a CARP-covered lot is divided into two (2) or more sub-lots for coverable

and non-coverable areas, with the former further subdivided into smaller sub-lots for award to individual ARBs.

S. Untenanted land refers to any agricultural landholding which is not the subject of any tenancy agreement.

T. Usufruct refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits of the property of another with the

obligation of preserving its form, substance, and productivity.

CHAPTER 3

Coverage: Schedule, Exclusions, and Special Rules

SECTION 3. LAD CARP Extension with Reform (CARPER) Balance Database and List of Lands with NOCs. — Upon the

effectivity of these Rules, the DAR Provincial Office (DARPO) shall provide the DAR Municipal Office (DARMO) with a copy of the

relevant portion of the LAD CARP Extension with Reform (CARPER) balance database, which lists down the LAD balances under

the DARMO's area of jurisdiction, and the schedule of coverage of each landholding therein. The generated list of landholdings

must be grouped according to the prioritized phasing under Section 7 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, and Section 5 of this A.O.

At the same time, the DARPO shall provide the MARO with a list of the lands for which NOCs had already been issued and

served. The MARO must continue with the process of land acquisition and distribution, unless the landholding falls under a

different schedule as provided in Section 5 hereof.

Landholdings not listed in the LAD CARPER Balance Database may be included in the said database upon issuance of the

Provincial Agrarian Reform Officer's (PARO) Certification of Coverage and the Provincial Agrarian Reform Coordinating

Committee (PARCCOM) Resolution, duly approved by the LAD Balance Technical Review Committee pursuant to { HYPERLINK

"http://www.lis.dar.gov.ph/documents/178" }.

SECTION 4. When Lands Deemed Private. — As a general rule, untitled public alienable and disposable (A & D) lands are

within the jurisdiction of the DENR pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" } (Public Land Act).

However, such lands are deemed "private" and for coverage by the DAR, if all the requisites specified in { HYPERLINK

"http://www.lis.dar.gov.ph/documents/2968" }, as amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/8764" }, for the

determination of whether or not private rights over a landholding have already been acquired exist, based on the following:

a. Continuous occupancy and cultivation by oneself or through one's predecessors-in-interest on or prior to 04 December 1972;

DTEAHI

b. Classification of the land as alienable and disposable on or prior to 04 December 1972;

c. Payment of the real estate tax thereon; and

d. Non-existence of adverse claims on the land.

In cases where the DAR and DENR have jointly identified specific untitled properties that may be covered under the LAD

component of CARP, the DENR-Community Environment and Natural Resources Office (CENRO)/Provincial Environment and

Natural Resources Office (PENRO) or Regional Technical Director (RTD)-LMS shall issue the certification that the subject tract of

land is within an area classified as A & D. The MARO shall, thereafter, initiate the acquisition process for the landholding

concerned.

SECTION 5. LAD Phasing. — The schedule of the acquisition and distribution of lands covered by the CARP shall be, as

follows:

Schedule Phases

Phase 1

a. All large single private agricultura lands above fifty (50) hectares (with or without

Notice of Coverage [NOC])

b. All large aggregate privateagricultural

lands (PALs) of landowners with total

area greater than 50 hectares with (NOC) as of December 10, 2008

c. { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" } lands (rice and

corn), regardless of size

d. All idle or abandoned agricultural lands, regardless of size

Starting 1 July 2009 up to 30 June 2012 e. All lands offered under Voluntary Offer to Sell (VOS), regardless of size

f. Lands covered by Voluntary Land

Transfer (VLT), regardless of size,

submitted as of June 30, 2009, subject to the provisions of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7050" }, Series of 2003

g. Government Financial Institutions (GFI)- foreclosed lands, regardless of size

h. PCGG-acquired lands, regardless of size

i. All other government-owned alienable

and disposable agricultural lands,

regardless of size

Phase 2-A

a. All remaining large single agricultural

lands with an area of 24 to 50 hectares

(with or without NOC)

b. All PALs of landowners with an aggregate

area of above 24 to 50 hectares with NOC

as of December 10, 2008

c. All agricultural lands provided in the

preceding phase yet to be completed

Phase 2-B

a. All remaining PALs of landowners with

an aggregate area in excess of 24 hectares

with or without NOC

b. All agricultural lands provided in the

preceding phases yet to be completed

Starting 1 July 2012 up to 30 June 2013 Phase 3-A

a. All PALs with an aggregate area of above

10 hectares up to 24 hectares, with respect

to the excess above 10 hectares

b. All agricultural lands provided in the

preceding phases yet to be completed

Starting 1 July 2013 up to 30 June 2014 Phase 3-B

a. All PALs with an aggregate area from

(Notwithstanding the aforementioned above 5 hectares up to 10 hectares,

schedule, in no case may Phase 3-B begin with respect to the excess above

on a particular province unless the LAD 5 hectares

balance of the same province that are

covered by Phases 1, 2-A, 2-B, and 3-A, b. All agricultural lands provided in the

except lands under the jurisdiction of preceding phases yet to be completed

DENR, have been successfully

completed.)

The Presidential Agrarian Reform Council (PARC) or the PARC Executive Committee, upon the recommendation of the

PARCCOM, may authorize particular provinces to proceed with the acquisition and distribution of agricultural lands of a particular

Phase ahead of its schedule by declaring them as Priority Land Reform Areas, provided that that particular province has

completed the LAD of all the other Phases prior to the one to proceed ahead of schedule.

SECTION 6. Phase of a Co-Owned Landholding. — In case a landholding is co-owned, the following rules shall apply in

determining which phase that particular landholding shall be acquired and distributed:

i. if the landholding is co-owned due to the non-settlement of the estate of a deceased LO: the phase shall be based on the

aggregate size of all the landholdings of the deceased LO; aHIEcS

ii. if the landholding is co-owned due to other reasons:

a. if the aggregate size of all the landholdings of each co-owner coincidentally belongs to the same phase: the phase shall

be based on the aggregate size of all the landholdings of one of the co-owners; or

b. if the aggregate size of all the landholdings of each co-owner belongs to different phases: the co-owners, as a group,

shall be treated as a single LO for the sole purpose of determining the phase that that particular landholding shall be

acquired and distributed, provided that the share of a co-owner to that landholding shall be incorporated in determining

his/her/its aggregate size of landholdings owned to determine the schedule of acquisition and distribution of his/her/its other

landholdings.

SECTION 7. Excluded from Coverage. — Excluded from coverage are:

a. All undeveloped lands with eighteen percent (18%) slope and over;

b. All lands duly classified by the proper Local Government Unit (LGU) as commercial, industrial, or residential as of 15 June

1988;

c. All ancestral lands/domains that may be identified in accordance with rules that may be jointly issued by the DAR, DENR,

LRA, and the National Commission on Indigenous People;

d. Retention areas granted to LOs who exercised their retention rights; and

e. All agricultural landholdings of a LO with an aggregate size of five (5) hectares or less.

SECTION 8. Exempted from Coverage. — Exempted from coverage are lands actually, directly, and exclusively used, and

found to be necessary for, the following purposes:

a. Parks;

b. Wildlife;

c. Forest reserves;

d. Reforestation;

e. Fish sanctuaries and breeding grounds;

f. Watersheds;

g. Mangroves;

h. National defense;

i. School sites and campuses, including experimental farm stations operated by public or private schools for educational

purposes;

j. Seeds and seedlings research and pilot production centers;

k. Church sites and Islamic centers appurtenant thereto;

l. Communal burial grounds and cemeteries;

m. Penal colonies and penal farms actually worked by the inmates;

n. Government and private research and quarantine centers;

o. Fish ponds and prawn farms; and

p. Livestock, poultry, and swine raising since 15 June 1988.

SECTION 9. Coverage of Previously Exempted Agricultural Lands. — If any of the private agricultural lands stated in Section 8

hereof is discovered not to be actually, directly, and exclusively used, and/or not necessary, anymore for the purpose for which it

is exempted, the PARO shall immediately issue an NOC for the subject landholding or the portions thereof.

SECTION 10. Conversion Proceeding Not a Bar to Coverage. — Absent any final order granting conversion, no act or attempt

directed to changing the use of the land from agricultural to non-agricultural, shall affect the land's coverage pursuant to the

CARP.

SECTION 11. Automatic Coverage of Converted Lands Not Developed. — Pursuant to Section 65 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, the failure to fully implement the conversion plan within five (5) years from the

issuance of DAR conversion order, or any violation of the conditions of the conversion order, in the event such failure or violation

was due to the fault of the applicant, shall cause the land subject thereof to automatically be covered by CARP, subject to the

rights of retention. ATcaID

Pursuant to this rule, an ocular inspection of all landholdings subject of a conversion order shall be conducted by the PARO on an

annual basis, or immediately after reports of violations of the conditions of a conversion order are presented before his/her office.

The PARO must prepare and submit a report that contains his/her findings regarding the status of implementation of the

conversion plan and/or existence of violations of the conversion order. This report shall be sent to the Regional Director (RD) or

the Center for Land Use Policy, Planning, and Implementation (CLUPPI), depending on their jurisdiction per the Rules on

Conversion. The RD or the Secretary, as the case may be, shall take appropriate actions pursuant to the existing implementing

rules and regulations on land use conversion.

SECTION 12. DENR Distributed Lands Under CARP. — Landholdings distributed by the DENR under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, shall no longer be acquired and distributed by the DAR.

SECTION 13. Agricultural Lands Reclassified to Non-Agricultural Uses Before June 15, 1988 but Subsequently Reclassified to

Agricultural Uses are Covered by CARP. — Landholdings within zones classified as non-agricultural before 15 June 1988 but

subsequently reclassified as agricultural by the LGU concerned are covered by CARP. Any exemption order issued therein shall

be reviewed by the RD to determine whether the subject landholding is still agricultural in land use, and if found to be such, said

exemption order shall be immediately revoked. An NOC shall thereupon be issued to the LO.

SECTION 14. Reallocation of Foreclosed Agricultural Land. — The DAR shall take possession of awarded agricultural lands

which were foreclosed for failure to pay the amortizations for three (3) aggregate years, where the two (2)-year redemption period

has already expired by negotiating for redistribution. The Land Bank of the Philippines (LBP) shall certify the lands' availability for

reallocation, and the DAR shall identify new ARBs therefor.

CHAPTER 4

Notice of Coverage

SECTION 15. Issuance of Notice of Coverage. — The NOC shall be issued to the registered landowner (RLO) of the

landholding, as stated in the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), or, in case of untitled private

agricultural lands, the Tax Declaration, preferably not later than one hundred and eighty (180) days prior to the first day of the

scheduled date of acquisition and distribution as provided for in Section 5 of this Rule.

In case the RLO stated in the TCT or OCT is different from that stated in the Tax Declaration, the NOC shall be served to the RLO

stated in the TCT or OCT.

The NOC must state the periods for the LO to file a protest on coverage, nomination of preferred beneficiary/ies, manifestation for

exemption/exclusion, and manifestation to exercise the right of retention, as well as to submit a duly attested list of the agricultural

lessees, regular farmers, and/or tenants in his/her/its landholding. The NOC must explicitly warn the LO that failure on their part to

exercise their right during the said periods shall be regarded as a waiver on their part to exercise these.

SECTION 16. Service of NOC. — The NOC shall be served in the following manner:

a. Personal Service: The NOC shall be served primarily by personally handing a copy thereof to the "person authorized to

receive" as enumerated under Section 17 hereof. Personal service is effected when the person authorized to receive affixes his

signature or thumb mark on the receiving copy of the NOC in the presence of a witness who also affixes his signature.

Personal service of the NOC shall be done by the Bureau of Land Acquisition and Distribution (BLAD) in the DAR Central

Office if the last known address of the person authorized to receive is within Metro Manila, or the MARO who has jurisdiction

over the last known address of the person authorized to receive, if living in a province outside Metro Manila.

b. Substituted Service: If the "person authorized to receive" is not present in his/her last known address, or refuses to receive

the NOC, the MARO shall immediately avail of substituted service and serve the NOC by leaving a copy of the NOC at the

residence of the person authorized to receive with some person of suitable age and discretion residing therein, or by leaving a

copy of the NOC at the RLO's office or regular place of business with some competent person in charge thereof.

The MARO shall thereafter immediately prepare and send a Return of Service of the NOC to the concerned PARO who has

jurisdiction over the subject landholding the fact of completed/failed substituted service.

The PARO shall thereafter immediately inform the BLAD the fact of substituted service and send it a copy of the NOC. The

BLAD shall thereafter publish the NOC in accordance with Section 18 hereof. DSAacC

c. Extraterritorial Service: If upon diligent investigation, the MARO who has jurisdiction over the subject landholding finds out

that the last known address of the persons authorized to receive is outside the territory of the Philippines, he shall send a copy

of the NOC to the last known address of the person authorized to receive abroad by registered mail.

The MARO shall immediately prepare and send a Return of Service of the NOC to the concerned PARO and request the

latter for the publication of the NOC through the BLAD. The BLAD shall then cause the publication of the NOC in accordance

with Section 18 hereof.

d. Immediate Publication: If the address of the person authorized to receive is unknown, or substituted person is not available,

the MARO who has jurisdiction over the subject landholding shall immediately file a written report as to the investigation made

and the failure to know the address of the LO to the PARO, and the latter shall send a copy of the NOC to the BLAD. The BLAD

shall thereafter cause the publication of the NOC.

Immediate publication shall also be effected if the person authorized to receive the NOC is that stated in Section 17 (vii) (b)

hereof. As such, the PARO who has jurisdiction over the subject landholding shall also send a copy of the NOC to the BLAD.

The BLAD shall thereafter publish the NOC in accordance with Section 18 hereof.

SECTION 17. Persons Authorized to Receive. — Service of the NOC shall be made to the following persons:

i. Service upon the RLO who is a natural person — The NOC shall be served to the RLO.

ii. Service upon co-owners — In case the RLO of the landholding are multiple persons as co-owners, the NOC shall be served

upon each and every registered co-owner, unless one is specifically authorized, in a written public document, to receive for the

co-owners;

iii. Service upon minors — When the RLO is a minor, service shall be made upon his/her father and/or mother, whoever has

lawful custody of the said minor. If the RLO has no parents, service shall be made upon his/her legal guardian if he/she has

one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR;

iv. Service upon incompetents — When the RLO is insane or otherwise incompetent, service shall be made upon his/her legal

guardian if he/she has one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR;

v. Service upon entity without juridical personality — When the RLOs who are persons associated through an entity without

juridical personality are issued an NOC under the name by which they are generally or commonly known, service may be

effected upon all the RLOs by serving upon any one of them, or upon the person in charge of the office or place of business

maintained in such name, provided that service shall not individually bind any person whose connection with the entity has,

upon due notice, been severed before the proceeding was brought;

vi. Service upon domestic private juridical entity — When the RLO is a corporation, partnership, or association organized under

the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general

manager, corporate secretary, treasurer, or in-house counsel; and

vii.Service upon the heirs of a deceased RLO — When the RLO has died prior to the service of the NOC, the NOC shall be

served to:

a. if the settlement of the Estate is currently pending with the court, the Executor or the Administrator of the Estate; or

b. if the settlement of the Estate is not pending with the court or if there is no executor or administrator, the NOC shall be

served to all known heirs and shall also be published.

SECTION 18. Publication of NOC. — If any of the circumstances under Sections 16 and 17 requires publication of the NOC, the

NOC shall be published in a newspaper of general circulation.

NOCs required to be published shall be sent by the PARO concerned to the BLAD which shall be responsible for publishing the

same. All NOCs sent to the BLAD for publication shall be published on the fifteenth or thirtieth day of the month they were

received by the BLAD, whichever is soonest.

Service by publication shall be evidenced by the affidavit of the editor-in-chief, or circulation/advertising manager, attesting to the

fact of said publication and a copy of the said publication. The publication need not state the entire contents of the NOC but only

the following essential particulars: IaHSCc

1. Coverage of the subject landholding under CARP on the specific land acquisition schedule based on the prioritized phasing

under Section 7 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };

2. OCT/TCT/Latest Tax Declaration No/s. and corresponding area;

3. Complete name/s of the RLO/s and last known address, if available;

4. Address or location of the subject landholding (barangay, city/municipality, province); and

5. The period for the LO to nominate his/her preferred beneficiary/ies, to submit a duly attested list of tenants, lessees and/or

regular farmworkers, if any, in his/her/its landholding, to file a manifestation to exercise the right of retention, to file a protest on

coverage, and to file a manifestation for exemption/exclusion, as well as the consequences of the failure to exercise these

rights during the prescribed period.

SECTION 19. Posting of the NOC. — In all cases, the MARO or any authorized DAR Personnel shall post a copy of the NOC at

a conspicuous place at the subject landholding, and ensure that the notice is clearly visible. For this purpose, waterproof and

environmentally-friendly materials, measuring two (2) by three (3) feet, shall be used. The BARC Chairman or his authorized

representative shall thereafter issue the corresponding Certification of Posting Compliance.

Additionally, a certified true copy of the NOC shall also be posted for seven (7) days at the bulletin board of the Municipal/City Hall

and the Barangay Hall where the land covered is located. The Municipal/City Administrator and the Barangay Secretary shall

thereupon issue their corresponding Certification of Posting Compliance.

SECTION 20. Date of Receipt of NOC. — For RLOs who did not receive the NOC through personal service, the date of posting

or the date of publication, whichever is later, shall be deemed the date of receipt of the same.

CHAPTER 5

Voluntary Offer to Sell

SECTION 21. VOS Conditions. — LOs may voluntarily offer their private agricultural lands for coverage under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, by submitting a notarized Letter-Offer, in a form that shall be provided by the DAR,

to the PARO where the offered landholding is located.

Upon its acceptance by the DAR, the Letter-Offer for coverage under VOS can no longer be withdrawn. A VOS is deemed

accepted by the DAR upon receipt by the LO of the Letter of Acceptance of the PARO. The Letter of Acceptance shall be served

to the LO in the same manner as the NOC, as provided by Sections 16 and 18 of this A.O.

SECTION 22. Landholding Under Five (5) Hectares Voluntarily Offered. — The DAR shall not accept the VOS of any LO who

owns one or more agricultural landholdings which, combined, has an aggregate size of five (5) hectares or less.

To ensure this, it is incumbent upon the PARO to verify the extent of the landholdings owned by the LO prior to executing and

issuing the letter of acceptance.

SECTION 23. VOS to Cover the Entire Area of the Land Offered. — An LO who wishes to offer his/her/its land under VOS must

offer the entire area of the same parcel of land, subject, however, to the last paragraph of Section 27 of this A.O.

SECTION 24. Landholding Owned by a Corporation or Co-Owned. — In case the agricultural landholding is owned by a

corporation, the Letter-Offer for coverage under VOS must be filed together with a Resolution by the Corporation's Board of

Directors giving specific authority to the person who executed the Letter-Offer to voluntarily offer the landholding.

In case the agricultural landholding is co-owned by several persons or is owned by an unsettled estate of a deceased person, the

Letter-Offer must be executed by all the co-owners/heirs, except if the person(s) executing the Letter-Offer has/have been

specifically authorized in a public instrument by all the co-owners/heirs to execute the same on behalf of them.

SECTION 25. When Shifting from CA to VOS Allowed. — LOs who received NOCs for their landholdings under Compulsory

Acquisition (CA) may be allowed to shift to VOS, provided that the Claim Folder (CF) for the subject landholding has not yet been

received by the Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for

valuation.

The LO may shift to VOS from CA by filing a written Letter-Offer received by the PARO of the area where the land is located.

An LO who shifts to VOS who fails to nominate a preferred beneficiary and to submit his/her duly attested list of tenants, lessees

and/or regular farmworkers, if any, during the thirty (30) day period from receipt of NOC is disqualified to nominate one and/or is

deemed to have waived his right to attest. DaScAI

SECTION 26. Voluntary Land Transfer/Direct Payment Scheme. — Only VLT/DPS applications duly submitted to DAR on or

before 30 June 2009 shall be allowed.

CHAPTER 6

Retention, Protest of Coverage, Nomination of Preferred Beneficiary/ies, Application for Exemption or Exclusion

SECTION 27. Period to Protest Coverage, Nominate Preferred Beneficiary/ies, File a Manifestation for Exemption/Exclusion, and

File a Manifestation to Exercise Retention Rights. — Within a non-extendible period of thirty (30) days from his/her/its/their receipt

of the NOC, the LO may do the following:

1. Protest against coverage, which must be filed before the PARO and should contain the substantial bases thereof;

2. Nominate child/ren who may qualify as preferred beneficiary/ies;

3. File a Manifestation for Exemption or Exclusion from CARP coverage before the PARO; and

4. File a Manifestation to Exercise the Right of Retention before the PARO.

The failure to do any of the foregoing within the abovementioned reglementary periods shall be construed as a waiver on the part

of the LO of the right to protest coverage, to nominate child/ren as preferred beneficiary/ies, to file a petition for exemption or

exclusion from CARP coverage, and/or to exercise the right of retention, as the case may be. All protests, nominations, and

manifestations/petitions made after this period shall no longer be accepted.

For landholdings under VOS, the LO shall exercise his right of retention and the right to nominate child/ren as preferred

beneficiaries by submitting a notarized notice thereof to the PARO who has jurisdiction over the landholding offered at any time

prior to the completion of service of the Letter of Acceptance. The failure to exercise the said rights in this case at the prescribed

time shall be construed as a waiver thereof.

SECTION 28. Period to File an Application/Petition for Exemption/Exclusion. — The Application/Petition for Exemption or

Exclusion from CARP coverage may be filed together with the above-mentioned Manifestation. If it is not filed jointly, the LO can

file it, together with the documents required by the rules on exemption or exclusion, within sixty (60) days from receipt of the NOC.

Non-submission thereof within this reglementary period shall be construed as a waiver or abandonment of his/her/its right to file

said Petition for Exemption or Exclusion from CARP coverage with respect to the landholding covered.

For landholdings under VOS, the LO is deemed to have waived his/her/its right to file such a Petition for Exemption or Exclusion

from CARP coverage upon DAR's acceptance of his/her/its offer.

SECTION 29. Petition for Protest of Coverage and/or Petition for Exemption or Exclusion Not Bar to Continue LAD Process. —

Despite the pendency of a protest against coverage or a petition for exemption or exclusion, the land acquisition process shall

nevertheless continue until the issuance of the Memorandum of Valuation (MOV) with the attached Land Valuation Worksheet

(LVW) by the LBP, unless otherwise suspended sooner through a Cease and Desist Order (CDO) by the RD or the Secretary.

Notwithstanding a Petition for Certiorari filed with the courts, the PARO shall issue and serve the Notice of Land Valuation and

Acquisition (NLVA) and proceed with the rest of the land acquisition and distribution process thereafter as soon as the protest

against coverage or petition for exemption or exclusion has been denied by the RD, or if appealed, by the Secretary, or if further

appealed, by the President of the Republic of the Philippines, unless otherwise ordered suspended by the Supreme Court.

The submission of the Manifestation for Exemption or Exclusion alone, without the Application/Petition, shall not affect the land

acquisition process as provided in this A.O., nor give ground for the issuance of a CDO by the RD or the Secretary.

SECTION 30. Period to Exercise Right of Retention. — The LO may choose a retention area at the same time that he/she/it

manifested to exercise the right of retention. If this is not done at the same time, the LO can choose the area within a non-

extendible period of fifteen (15) days after manifesting his/her/its desire to exercise the said right.

In case the landholding is owned by co-owners, or by an unsettled Estate of an LO who died prior to the issuance of the NOC,

such co-owners or heirs may only choose a retention area through a joint application executed by all of them, agreeing therein the

retention area of each of the said co-owners or heirs, provided that the right of retention of the heirs, in case of an unsettled

Estate, shall be subject to Section 37 of this A.O. In case one or more of the co-owners or heirs refuses or fails to join with the

others in the application, the rest of the co-owners or heirs may not choose a retention area unless they have partitioned their co-

ownership or the Estate, whichever is applicable. Some or all of the co-owners or heirs may file, together with their manifestation

to exercise their right of retention, a manifestation to partition their co-ownership or the Estate. If such manifestation to partition is

filed, the co-owners or heirs must partition the co-ownership or Estate and choose a retention area within sixty (60) days from

receipt of the NOC. If such manifestation to partition is not filed, the co-owners or heirs must accomplish such partition and choose

a retention area within the fifteen (15) days allotted to a single LO. EcICSA

The failure to choose his/her/its/their desired area within the fifteen (15)-day or sixty (60)-day period, whichever is applicable, shall

be deemed a waiver to do so, and shall automatically authorize the MARO to choose the area to be retained.

SECTION 31. Factors to Consider in Choosing Retained Areas. — When the LO waives his/her/its right to choose the area to be

retained, the MARO shall choose, on or before the conduct of the Survey, in the LO's behalf, taking into consideration the

following factors:

1. commodity produced;

2. terrain;

3. available infrastructure; and

4. soil fertility.

As soon as the MARO shall have identified the area, the DAR shall notify the LO, by registered mail with return card, the portion

selected as his/her retention area. The same notice shall indicate that the Retained Area chosen may not be contested.

SECTION 32. Retained Area Must be Compact and Contiguous. — No retention area may be chosen by the LO or the MARO

unless such area is compact and contiguous.

In case of a co-ownership or an unsettled Estate mentioned in Section 30 hereof, each co-owner or heir may choose an area not

contiguous with that chosen by his/her/its co-owner/co-heir, provided, that if it is the MARO who shall choose the retention area on

their behalf, the retention area of all co-owners/co-heirs must, as far as practicable, be compact and contiguous with each other.

SECTION 33. Certificate of Retention. — The PARO shall issue Certifications of Retention to LOs who had already availed of

their Retention Rights. LOs who own lands with an aggregate area of five (5) hectares or less may be issued by the PARO a

Certification of Retention upon request.

In case the LO opts for the immediate issuance of a title for his/her retention area after the issuance of Certification of Retention

by the PARO, prior to the acquisition process in accordance with the schedule stated in Section 5 of this A.O., he can request, in

coordination with the PARO, the Registry of Deeds (ROD) to issue a title in the LO's name on the portion of his/her retained area

based on the Owner's Duplicate Copy of title from the LO, Approved Segregation Plan, and technical description, and Certificate

of Retention. All fees for the said immediate segregation survey of the LO's retention area and the issuance of title on the same by

the ROD shall be chargeable to the account of the LO.

SECTION 34. Retention for VOS Lands Prior to 1 July 2009. — For VOS lands submitted prior to 1 July 2009 where the master

list of ARBs has been finalized, the retention areas of LOs covered under said VOS shall be processed under the existing

guidelines of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, before July 1, 2009.

SECTION 35. Retention Under { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" }. — Landholdings covered by

homestead grants and Free Patents issued pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" } still owned by

the original grantees or their direct compulsory heirs shall be retained by them as long as they were cultivating the said

landholdings and continue to cultivate the same.

SECTION 36. Retention under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }. — LOs or heirs of LOs not qualified

to retain lands under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" } cannot claim retention under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, or even under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, over

their landholdings that were covered under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }. The same LOs or heirs of

LOs, however, may still exercise their right of retention over other landholdings that hereafter shall be covered by { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }.

SECTION 37. Retention of Landowner's Heirs. — Heirs of deceased LOs who died after 15 June 1988 are only entitled to the

five (5) hectare retention area of the deceased LO.

SECTION 38. Retention of Spouses. — For marriages covered by the Conjugal Property of Gains Regime, spouses whose

agricultural lands are all conjugal in nature may retain a total of not more than five (5) hectares of such properties. However, if

either or both of them are LOs in their own respective rights (capital and/or paraphernal), they may each retain not more than five

(5) hectares of their respective landholdings. In no case shall the total retention area of such couple exceed ten (10) hectares.

For marriages covered by the Absolute Community of Property Regime, the spouses, together, may retain not more than five (5)

hectares. All properties (capital, paraphernal, and conjugal) shall be considered to be held in absolute community, i.e., the

ownership relationship is one, and, therefore, only a total area of five (5) hectares may be retained by the couple.

For marriages covered by a Complete Separation of Property Regime, each of them may retain not more than five (5) hectares of

their respective landholdings.

The property regime of a married couple whose marriage was celebrated prior to 03 August 1988 shall be presumed to be the

Conjugal Property of Gains, unless otherwise stated in a valid marriage settlement. The property regime of those whose marriage

was celebrated on or after 03 August 1988 shall be presumed to be the Absolute Community of Property, unless otherwise stated

in a valid marriage settlement. TDcCIS

SECTION 39. Tenant Chooses to Remain in the Retention Area. — In case a tenant chooses to remain in the LO's retained

area, the former shall be a leaseholder in the said land and shall not qualify as a beneficiary under CARP. Conversely, if the

tenant chooses to be a beneficiary in another agricultural land, he/she cannot be a leaseholder in the land retained by the LO. The

tenant must exercise this option within a period of one (1) year from the time the LO manifests his/her choice of the area for

retention.

Tenants/lessees in the retained areas who do not wish to become leaseholders in the retained lands shall be given preference in

other landholdings whether or not these lands belong to the same LO, without prejudice to the farmers who are already in place in

said other landholdings and subject to the priorities under Section 22 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }.

In all cases, the security of tenure of the farmers or farmworkers on the LO's retained land prior to the approval of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, shall be respected. Further, actual tenant-farmers in the landholdings shall not be

ejected or removed therefrom.

SECTION 40. DAR Clearance on Land Transactions. — Land transactions executed prior to 15 June 1988 shall be valid only

when registered with the Registry of Deeds on or before 13 September 1988 in accordance with Section 6 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }.

With respect to those executed on or after 15 June 1988, where the transfer/sale of a landholding involves a total area of five (5)

hectares and below and such landholding is the retention area of or subject of retention by the transferor, and where the

transferee will not own an aggregate area of more than five (5) hectares as a result of the sale, the transfer is legal and proper.

However, a DAR clearance is needed for monitoring purposes and as a requisite for the registration of the title in the name of the

transferee with the ROD.

With respect to LOs who have yet to exercise their right of retention, where more than five (5) hectares of the landholding is sold

or transferred, whether through a single transaction, multiple transactions, or a series of transfers/sales, only the first five (5)

hectares sold/conveyed and the corresponding titles therefor issued by the ROD in the name of the transferee shall be considered

valid and treated as the transferor's retained area, but in no case shall the transferee exceed the five (5)-hectare landholding

ceiling pursuant to Sections 6, 70, and 73 (a) of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }. Insofar as the

excess area beyond the five (5) hectares sold and conveyed is concerned, the same shall be covered under CARP, regardless of

whoever is the current title-holder to the land, and even if the said current title-holder owns less than five (5) hectares of

agricultural landholding, considering that the transferor has no right to dispose of these lands since CARP coverage of these lands

is mandated by law as of 15 June 1988. Any landholding still registered in the name of the LO after earlier dispositions up to an

aggregate of five (5) hectares are no longer part of his retention area and therefore shall be covered under CARP.

In cases where there has been an improper, invalid, or unlawful transfer, the NOC shall be sent to the last lawful owner of the

landholding and to such person who is registered as the owner of the same, and its coverage shall be done in accordance with the

pertinent guidelines on the matter.

SECTION 41. Conditions for LGU Retention Limit Exemption. — CARP covered agricultural lands which are to be expropriated

or acquired LGUs for actual, direct, and exclusive public purposes, such as roads and bridges, public markets, school sites,

resettlement sites, local government facilities, public parks, and barangay plazas or squares, consistent with the approved local

government land use plan, shall not be subject to the five (5)-hectare retention limit. However, prior to the expropriation/acquisition

by the LGU concerned, the subject land shall first undergo the land acquisition and distribution process of the CARP, and the

ARBs therein shall be paid just compensation without prejudice to their qualifying as ARBs in other landholdings under the CARP.

SECTION 42. Agricultural Lands Subject of Expropriation. — Pursuant to Section 6-A of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, an LGU may, through its Chief Executive and/or pursuant to an ordinance, exercise

the power of eminent domain on agricultural lands for public use, purpose, or welfare of the poor and the landless, upon payment

of just compensation to the ARBs on these lands, pursuant to the provisions of the Constitution and pertinent laws. The power of

eminent domain may not be exercised unless a valid and definite offer has been previously made to the ARBs, and such offer was

not accepted. In cases where the land sought to be acquired has been issued with an NOC or is already subject to VOS (with a

letter-offer submitted to DAR), the concerned LGU shall suspend the exercise of its power of eminent domain until after the LAD

process has been completed and the title to the property has been transferred to the ARBs.

Where agricultural lands have been subjected to expropriation, the ARBs therein shall be paid just compensation.

CHAPTER 7

Farmer Beneficiary Identification, Screening and Selection

SECTION 43. Who are Qualified Beneficiaries. — Farmers/Tillers and farmworkers who meet the following qualifications shall be

eligible as beneficiaries under the Comprehensive Agrarian Reform Program:

a. General Qualifications. All ARBs must be:

i. A farmer/tiller who owns less than three (3) hectares of agricultural land; TDEASC

ii. A Filipino citizen;

iii. A resident of the barangay (or the municipality if there are not enough qualified ARBs in the barangay);

iv. At least fifteen (15) years of age at the time of identification, screening, and selection of farmer-beneficiaries; and

v. Willing, able, and equipped with the aptitude to cultivate and make the land productive.

b. Specific Qualifications for Regular Farmworkers in Commercial Farms and Plantations. In case the subject landholding is a

commercial farm or plantation, in addition to the General Qualifications stated above, the applicant must be employed in the

landholding covered under CARP to be deemed a regular farmworker.

All farmworkers who are holding managerial or supervisory positions as of the issuance of the NOC shall not qualify as

ARBs. However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened, and

selected shall remain as qualified ARBs.

SECTION 44. Disqualification of a Landowner-Mortgagor from Being an ARB. — A landowner-mortgagor, including his/her

children, of a foreclosed agricultural land where the redemption period has already expired and which land is to be subsequently

covered under CARP, cannot qualify as an ARB on the foreclosed land, notwithstanding his/her/their being in actual possession

and cultivation thereof.

The former LO/actual occupant and his/her children may reacquire the foreclosed landholding through normal banking

transactions up to a maximum of five (5) hectares each, and if there is any excess, the same shall be covered under CARP in the

name of the foreclosing bank for distribution to qualified ARBs.

SECTION 45. Prioritization of Qualified Beneficiaries. — Qualified beneficiaries shall be prioritized in the following order:

i. Agricultural lessees and tenants;

ii. Regular farmworkers;

iii. Seasonal farmworkers;

iv. Other farmworkers;

v. Actual tillers or occupants of public lands, only insofar as untitled private agricultural lands are concerned; and

vi. Others directly working on the land.

For the purpose of the prioritization listed herein, agricultural lessees described in Section 47 hereof are deemed tenants of the

area they selected.

SECTION 46. Farmer Children of Landowner as Preferred Beneficiaries. — Pursuant to existing rules and regulations, the child

of an LO shall be given preference in the distribution of his/her parent's land provided he/she meets all of the following criteria:

i. Filipino citizen;

ii. At least fifteen (15) years of age as of the issuance of 15 June 1988; and

iii. Actually tilling or directly managing the farm as of the time of the conduct of the field investigation of the landholding under

CARP.

In no case may the distribution of lands to preferred beneficiaries deprive each of the agricultural lessees and tenants of being

awarded the portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares.

SECTION 47. Tenants of Retained Areas as Priority Beneficiaries. — An agricultural lessee or tenant of a portion of a

landholding chosen as a retained area who opted not to stay therein as a tenant may choose any CARP-covered landholding

which is not entirely tenanted and manifest to the PARO which has jurisdiction over the said landholding his intention to be a

beneficiary thereof. The PARO shall consider such agricultural lessee or tenant, duly attested by the retaining LO, as priority in the

selection, subject to the rights of those who are already in place.

SECTION 48. Landowners Availing of VOS are Disqualified to be ARBs. — LOs who have voluntarily offered their landholdings

for coverage under CARP, and those who have previously waived their rights to retain, are disqualified from becoming ARBs of

other landholding/s being covered or to be covered under CARP. The LO's voluntary offer or his previous waiver is construed to

be an inability and/or unwillingness to cultivate the land and make it productive. THEcAS

SECTION 49. Disqualification of ARBs. — The following are grounds for the disqualification of ARBs of the CARP:

a.) Failure to meet the qualifications provided under Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };

b.) Voluntary execution of a waiver of right to become an ARB in exchange for due compensation, and such waiver has not

been questioned in the proper government entity as of the effectivity of this A.O.;

c.) Deliberate and absolute failure of the ARB to pay an aggregate of three (3) annual amortizations to the LBP and subsequent

failure to exercise the right of redemption/repurchase within two (2) years, provided an amortization table has been issued to

the ARB, and provided further that the amortizations shall start one (1) year from the ARB's actual occupancy pursuant to

Section 26 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };

d.) Deliberate and absolute non-payment of three (3) consecutive amortizations in case of a voluntary land transfer/direct

payment scheme, provided that the ARB has been installed and is in actual possession of the land, and provided further that

the last proviso will not apply if the non-possession of the ARB is attributable to his or her own fault;

e.) With respect to commercial farms, termination from the service for cause as of the date of effectivity of this A.O., unless a

complaint for illegal dismissal regarding the said termination is pending, in which case the termination must be affirmed with

finality by the proper entity of the government;

f.) Voluntary resignation or voluntary retirement from the service, provided this was not attended by coercion and/or deception,

and there is no case questioning said voluntary retirement or voluntary resignation by the applicant as of the date of effectivity

of this A.O.;

g.) Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" };

h.) Negligence or misuse of the land or any support extended by the government as provided in Section 22 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" };

i.) Material misrepresentation of the ARB's basic qualifications under Section 22 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/226" }, as amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, {

HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }, and other agrarian laws;

j.) Sale, transfer, lease, or any other form of conveyance by a beneficiary of the right of ownership, right to use, or any other

usufructuary right over the land acquired by virtue of being such beneficiary, in order to violate or circumvent the provisions of

Sections 27 and 73 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended by { HYPERLINK

"http://www.lis.dar.gov.ph/documents/3194" }, { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }, and other agrarian

laws;

k.) Premature conversion by the ARB pursuant to Section 11 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/3307" };

l.) Final judgment for forcible entry or illegal detainer by persons who are originally not qualified beneficiaries as agrarian reform

beneficiaries, the unlawful entry of which would have allowed them to avail the rights and benefits of an agrarian reform

beneficiary;

m.) With respect to foreclosed landholdings, the LO thereof and/or his children, but only insofar as the same foreclosed

landholding is concerned; and

n.) Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality

after proper proceedings by the appropriate tribunal or agency.

SECTION 50. Period to Prepare and Submit the Duly Attested List of Tenants, Lessees and/or Regular Farmworkers. — Within a

non-extendible period of thirty (30) days from receipt of the NOC, the LO must submit to the MARO, furnishing a copy to the

PARO, a duly attested list of all his/her tenants, agricultural lessees, and regular farm workers, in his/her landholding at the time of

the issuance of the NOC. The list shall be submitted with a sworn statement that to the best of his personal knowledge and based

on all documents in his possession, all those listed are tenants, lessees, and/or regular farm workers in his/her landholding, and

that he/she has not omitted any tenants, agricultural lessees, and/or regular farm workers from the said list.

The LO must also attest whether or not the subject landholding is a subject of a civil law lease. If it is, the attested list must contain

both his/her/its regular farmworkers and those of his/her/its civil law lessees.

The failure to submit the duly attested list and the sworn statement during the abovementioned reglementary periods shall be

construed as a waiver on the part of the LO to exercise his attestation rights as regards the tenants, lessees, and regular

farmworkers in his/her landholding. cHDEaC

Furthermore, the LO's failure or refusal to submit the attested list shall not, in any way, delay the LAD process.

SECTION 51. ARB Selection for Untenanted Lands. — For untenanted land, all the farmers/tillers/farmworkers therein who

qualify under the existing guidelines on the identification, screening, and selection of ARBs, shall be considered as potential

beneficiaries of the land, provided that the proportional share of each will not exceed three (3) hectares; otherwise, additional

farmworkers shall be considered.

For unoccupied lands, each qualified landless farmer shall be allowed the award ceiling of three (3) hectares.

SECTION 52. ARB Selection for Commercial Farms/Plantations. — For the purpose of screening and selection of qualified ARBs

in commercial farms/plantations, all concerned PAROs shall create a Beneficiary Screening Committee (BSC) whose members

shall be composed of the PARO as the Ex-Officio Chairperson, the MARO, the DARPO Legal Officer, the Provincial Agrarian

Reform Coordinating Committee (PARCCOM) Chairperson or his representative, and the Barangay Agrarian Reform Committee

(BARC) Chairperson, or if there is no BARC, the Barangay Council Chairperson, of the area where the landholding is located or

his representative, pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/7026" }. The Master list of ARBs prepared by

the BSC must be certified as correct and accurate by the BARC or, if there is no BARC, the Barangay Council.

The BSC may invite the LO/s and/or civil society organization (CSO) representatives in the area to serve as resource persons in

the ARB selection and screening process, as may be necessary.

The BSC shall exercise jurisdiction in the screening and selection of ARBs in commercial farms for collective distribution to ARBs.

The procedure enumerated in Sections 55 and 56 of this A.O. shall apply.

SECTION 53. Preliminary List of Potential ARBs for Non-Commercial Farms/Plantations. — Within three (3) days from his

receipt of the LO's attested list of lessees, tenants and/or regular farmworkers or after the lapse of the thirty (30)-day period for the

submission of said attested list, the MARO together with the BARC shall prepare the preliminary list of potential qualified ARBs of

the subject landholding, clearly stating therein whether a qualified ARB is classified as a lessee, tenant, regular farmworker,

seasonal farmworker, other farmworker, actual tiller or occupant of public land (only insofar as untitled private agricultural

landholdings are concerned), or others directly working on the land. The MARO shall post the preliminary list of potential ARBs for

seven (7) days at the subject landholding and ensure that the list is clearly visible to general public. For this purpose, waterproof

and environmentally-friendly materials, measuring two (2) by three (3) feet, unless a medium one is deemed necessary, shall be

used.

Additionally, the preliminary list shall also be posted for seven (7) days at the bulletin boards of the Municipal/City Hall and the

Barangay Hall where the land covered is located.

The MARO or such other authorized DAR personnel shall include in the CF a report stating the fact and date and time of the

posting thereof at the bulletin boards of the Municipal/City Hall and at the Barangay Hall, as well as at the premises, which report

shall be accompanied by a certificate of posting (containing, among others, the date when the notice was posted at said bulletin

boards and premises) to be executed by the Municipal/City Administrator, the Barangay Secretary, and the BARC concerned,

respectively.

Within seven (7) days from the last date of posting, all potential ARBs whose names appear on said preliminary list must submit

essential documents to prove his/her qualification as an ARB as provided in Section 43 of this A.O. The potential ARBs are as

responsible as the DARMO in proving their own qualification. The preliminary list of potential ARBs must also state instructions as

to the submission of written requests and other documentary proof.

Aside from the documents submitted by a potential ARB, the DARMO shall use available documentary evidence at hand, if any,

and exhaust all efforts to gather the necessary information/evidence as bases in the evaluation of the potential ARB's

qualifications and inclusion in the said list.

The preliminary list must also include instructions to farmers and farm workers not listed in the preliminary list as to how they can

prove that they are qualified. Such farmers and farm workers who believe that they are qualified ARBs, but whose names are not

included in the preliminary list must signify their intent to be included and submit documentary requirements within seven (7) days

from the last day of the posting of the preliminary list.

SECTION 54. Screening and Selection of Qualified Beneficiaries. — Upon receipt of the application and documentary

requirements, the MARO together with the BARC shall screen and select qualified beneficiaries pursuant to Section 22 of {

HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, in a particular landholding. The BARC shall certify the Master List

under oath within five (5) days after the screening and selection. The BARC certified Master List shall be provided to the PARO for

the latter's approval.

SECTION 55. Service and Posting of the Master List. — The Master List approved by the PARO shall be served by the MARO or

any DAR personnel authorized by the PARO, personally or by registered mail, to all those named therein and to all persons listed

in the preliminary list but is not included in the approved master list. The Master List shall clearly state whether a qualified ARB is

classified as a lessee, tenant, regular farmworker, seasonal farmworker, other farmworker, actual tiller or occupant of public land

(only insofar as untitled private agricultural landholdings are concerned), or others directly working on the land. It shall also

provide the length of service or tenure, in days, of each of the said qualified ARBs. HAIaEc

The Master List shall be accompanied by a notice to the qualified ARBs listed therein that they will be required to execute and sign

the APFU and that failure to do so shall be considered a waiver of their right to become beneficiaries of the landholding.

The Master List approved by the PARO shall also be posted by the MARO or any other DAR personnel authorized by the PARO

for seven (7) days at the Barangay Hall where the landholding covered is located. In addition to the foregoing, the MARO or such

other DAR personnel authorized by the PARO shall simultaneously cause the production and installation of a billboard, preferably

made of tarpaulin or any visible waterproof and environmentally-friendly material, of said Master List, measuring two (2) by three

(3) feet, unless a medium one is deemed necessary, at a conspicuous location within the premises of the landholding. The MARO

or such other DAR personnel shall include in the CF a report stating the fact and date and time of the posting thereof at the

bulletin board of the said Barangay Hall and at the premises, which report shall be accompanied by a certificate of posting

(containing, among others, the date when the notice was posted at the bulletin board) to be executed by the Barangay Secretary

concerned.

SECTION 56. Compulsory Arbitration. — Within fifteen (15) days after the posting of the BARC Certified Master List, the LO or

any of the potential beneficiaries may file a written protest thereon. The parties concerned, specially the persons to be excluded

shall be duly notified by the PARO of the proceedings and the decision. The PARO shall conduct compulsory arbitration within ten

(10) days from receipt of said protest to resolve the same. The PARO's decision shall be final insofar as the Master List is

concerned, copy of which shall be furnished to the parties concerned.

In case the decision of the PARO in the arbitration results into an amendment of the Master List, the amended list shall be posted

again for another seven (7) days in the manner and places provided by Section 55 of this A.O.

SECTION 57. PARO's Authority on Inclusion/Exclusion Protest. — The BARC Certified Master List of qualified ARBs becomes

final after the lapse of fifteen (15) days from issuance of the PARO's decision on the protest and receipt of the same by the

parties.

The authority of the PARO to decide is specifically limited to protests and petitions on the ARBs' qualifications to be included in

the BARC Certified Master List. After this phase, other issues related to the ARBs' qualifications under specific issuances shall be

filed as an agrarian law implementation (ALI) case to the RD.

Any person who disagrees with the PARO's decision/s or order/s for inclusion/exclusion of potential ARBs in/from the Master List

may file a verified petition for inclusion/exclusion against the ARBs therein in accordance with existing ALI rules.

SECTION 58. Filing of Inclusion/Exclusion Petition with the RD within 1-year from Registration of RP Title. — The filing of a

verified petition for inclusion/exclusion against the ARBs before the RD must be initiated within one (1) year from the registration

of the Republic of the Philippines (RP) title, or, in case the landholding is untitled, from the issuance of the COD. A petition for

inclusion/exclusion filed beyond said one (1)-year period is already barred and must be dismissed.

SECTION 59. Distribution Pending Inclusion/Exclusion. — In case an action for inclusion/exclusion of qualified beneficiaries is

pending, the distribution process shall nevertheless continue.

If the action for inclusion/exclusion is still pending at the time that the Certificates of Landownership Award (CLOAs) are to be

generated, the ARBs shall be notified by the MARO on or before the date of the generation of the CLOAs that the land allocated

may still change depending on the final conclusion of the aforementioned action. The PARO shall annotate on the back of the

CLOA that the award is not yet final until such time that a final and executory decision has been rendered on the pending

inclusion/exclusion case. This annotation shall be removed by the PARO in his own instance upon the termination of the said

case.

SECTION 60. ARB's Oath Before the Judge. — The ARBs who qualify under the screening process shall state under oath before

the judge of the city or municipal court that he/she is willing to work on the land to make it productive and to assume the obligation

of paying the amortization for the compensation of the land as well as the land taxes thereon as stipulated in the Application to

Purchase and Farmer's Undertaking (APFU). The MARO shall arrange a schedule and transportation for the ARBs to take this

oath before the judge or the judge to go to the places of the ARBs.

ARBs in the Master List who fail or refuse to execute and sign the APFU shall be given thirty (30) days from the date of receipt

thereof to sign it. The failure to sign the same within the said thirty (30) days shall be considered a waiver of the right to become

an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to sign and execute the APFU

within the prescribed period. Such notice shall be served together with the Master List, as provided in Section 55 of this A.O.

ISHCcT

CHAPTER 8

Land Acquisition

SECTION 61. Leaseholders Continue to Pay Rentals Before COD. — For tenanted lands or lands under leasehold, the ARBs

shall continue to pay their lease rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues

a COD.

SECTION 62. CARP Volume. — The current list of all lands covered by NOCs and all remaining unacquired and undistributed

landholdings covered under CARP, including those covered by conversion orders but deemed to have been reverted into

agricultural lands due to the failure of the LOs to comply with the conditions thereof, as well as those which are in the process of

acquisition and distribution or will be acquired based on the schedule of priorities under Section 7 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, shall be submitted by the DARPO to the ROD concerned for segregation of the

corresponding original copy of the Certificates of Title of all these lands from the regular volume or files of the Registry, and for the

compilation of the same in a new separate volume (CARP Volume) until the customary number of titles constituting a regular

volume is reached. This CARP Volume shall be treated as a restricted volume, and any voluntary transaction on any of the titles

included in this restricted file shall be subject to clearance in writing from the PARO. The maintenance of the CARP Volume shall

be undertaken by the LRA-CARP personnel under the supervision of the ROD.

Any certificate of title contained in the CARP Volume shall only be returned to the general/regular file upon proof that the property

covered by said title is exempted, excluded, or ascertained to be outside CARP coverage. Such proof may be in the form of a

Court Order or DAR Order which has become final and executory.

SECTION 63. Validation and Projections of Landholdings Subject to Acquisition. — Landholdings subject of acquisition shall be

validated based on ownership documents and on the projection by the DAR on DENR land classification maps to determine

whether or not the areas are alienable and disposable.

All projections undertaken by the DARPO on land titles, whether administratively or judicially (where the survey was based on the

cadastral map of the DENR) issued, shall be confirmed or validated by the DENR-CENRO/PENRO as to the land classification

status of said lands. The projections should be prioritized by the PARO and may be done even prior to the issuance of NOC.

All projections undertaken by the DARPO on lands covered by judicially issued titles and whose survey was based on the Private

Survey (PSU) Plan of the LRA shall be confirmed or validated by the LRA that these lands do not overlap with other titled or

decreed properties.

Titles judicially issued prior to 1919 based on { HYPERLINK "http://www.lis.dar.gov.ph/documents/223" } need not be validated or

confirmed by the DENR-CENRO/PENRO as to their land classification status, as such lands are classified as alienable and

disposable. However, the DARPO, through the Bureau of Land Development (BLD), shall obtain a Certification from the LRA that

the subject property does not overlap with a titled or decreed property. Such certification shall include, among others, the Judicial

Decree number, date of issuance of Decree, name of adjudicatee, location, and area.

SECTION 64. Segregation of Overlapping Titles. — Such properties that partially overlap with other titled or decreed properties

shall be segregated accordingly during the conduct of the survey on the landholdings subject of acquisition. The acquisition and

distribution of such landholdings with an area of more than five (5) hectares that either partially or fully overlap with decreed

properties shall continue regardless in whose name the decree has been issued.

SECTION 65. Survey Activities Before Field Investigation. — The conduct of the survey to determine land use, the segregation

of coverable and not coverable areas, and the subdivision survey shall be undertaken prior to Field Investigation (FI). The PARO

shall ensure that all field survey activities shall be completed before the conduct of FI. A licensed geodetic engineer must

participate in the survey.

SECTION 66. Discrepancy in Area or Size. — In case the area or size of the landholding stated in the TCT or OCT is different

from that stated in the Tax Declaration, the area stated in the TCT or OCT shall be controlling and shall be deemed the correct

one.

In cases of untitled private agricultural landholdings, if there is a discrepancy as to the area or size between the findings on the

survey and that in the Tax Declaration, the results of the survey activities shall be deemed the correct one.

SECTION 67. Utilization of LUMD Fund. — The Land Use Management and Development (LUMD) Fund shall be released and

utilized only for CARP covered lands with Requisition Survey Services (RSS) approved by the PARO, with a copy thereof

furnished to the BLD, pursuant to existing guidelines on requisition, approval, and monitoring of survey services. DaHSIT

SECTION 68. Conduct of the Field Investigation. — If the Survey was conducted prior to the FI and the Master List has already

been finalized, the DARPO shall, within three (3) days from the accomplishment of the Survey, submit a request for the conduct of

an FI of the landholding to the LBP. Attached to the request shall be the finalized Master List of ARBs, the PLUM, and either the

ASP or, if the DAR has not yet been furnished the ASP by the LMS, the AdSP.

The DARPO shall identify, notify, and invite the LO and the ARBs, through a Notice, to the conduct of the FI. The Notice must be

served by the MARO no later than (15) days prior to the scheduled date of the conduct of the FI. Proof of service shall be included

in the CF. The failure of the LO or the identified ARB to participate in the FI, despite being notified, shall be a waiver on their part

to question the findings thereof.

The FI shall be accomplished to verify the reports currently contained in the CF for the purpose of its valuation. It shall be

conducted jointly by the MARO, a member of the BARC, and representatives of the LBP. A representative of the

Municipal/Provincial Agricultural Office shall be invited if there is an issue on the suitability of the landholding for agriculture. A

representative from the DENR-CENRO/PENRO shall be invited whenever there is any issue as to the slope.

As a rule, there should be at least three (3) concrete cylindrical monuments (also referred to as "Mojon") and/or natural boundary

points remaining at the landholding at the time of the said investigation. This is to ensure that the landholding being investigated is

the same as that indicated in the AdSP. In such case, the FI may be conducted even in the absence of a geodetic engineer. In the

event, however, that there are less than three (3) monuments and/or natural boundary points remaining at the site, then the FI

may not be conducted unless it is done with the participation of a licensed geodetic engineer.

SECTION 69. Preparation and Transmittal of the CF. — After the execution of the Field Investigation Report (FIR) and the

APFU, the DARMO shall transmit the CF to the DARPO. The CF must be submitted within three (3) days after its completion,

which may not be later than fifteen (15) days after the execution of the FIR or the APFU, whichever is later. The PARO shall then

endorse and transmit the CF to the DAR-LBP Pre-Processing Unit (PPU). The PPU shall have three (3) days to verify the contents

of the CF after which it shall transmit the same to the LBP.

An AdSP shall be included in the CF in lieu of the ASP, if the said ASP is the only item not available for the completion of the CF.

The LBP may thereafter begin its process of determining the value of just compensation, on the basis of the ASP, or, in its

absence, the AdSP.

SECTION 70. Acquisition May Proceed Pending Case of Inclusion/Exclusion of ARBs. — In the event the finalization of the

Master List of the ARBs will necessitate the resolution of petitions for inclusion and exclusion of the ARBs therein, the PARO shall

inform the LBP regarding the matter, in which case, the conduct of the subdivision survey will come after the FI or upon the

finalization of the Master List of the ARBs so as not to delay the land acquisition process. Consequently, the LBP shall proceed

with the preparation and release of the MOV to the PARO.

SECTION 71. Submission of the Approved Survey Plan. — The PARO shall submit the ASP to the LBP within three (3) days

from its receipt thereof from the LMS. If the ASP is not different from the AdSP included in the CF, then the LBP may determine

the initial valuation of the covered landholding. If the ASP/AdSP is different from the findings in the FIR, a resurvey must be

conducted to allow the ASP/AdSP to conform with the findings in the FIR.

No MOV may be issued by the LBP prior to its receipt of the ASP.

SECTION 72. Valuation by the LBP. — The LBP shall determine the initial valuation of the covered landholding in accordance

with Chapter 10 of this A.O., other issuances of DAR, and LBP's own internal rules. It shall inform the DAR of its initial valuation,

including the computation and factors from which the initial valuation was arrived at, by submitting to the PARO an MOV. An LVW

shall be attached to, and form an integral part of, the MOV.

Certified true copies of the contents of the CF of the LBP that did not originate from DAR with respect to the LO of the subject

landholding, except internal memoranda and other documents therein deemed confidential by the LBP, shall be transmitted by the

LBP to the PARO at the same time that it transmits the MOV or within seven (7) days thereafter. The DAR shall reimburse the

LBP for the cost of its reproduction of the said contents.

SECTION 73. Period to Issue and Serve the Notice of Valuation and Acquisition. — Within three (3) days after the PARO

receives the MOV with the LVW and the copy of the abovementioned contents of the CF from the LBP, he/she shall immediately

issue the NLVA attached thereto a copy of the MOV with the LVW, transmit the same to the MARO, and direct the latter to serve

the NLVA and MOV with the LVW to the LO within five (5) days from his receipt thereof, in the manner provided in Section 74

hereof. aSAHCE

The addresses of the LBP and the Provincial Agrarian Reform Adjudicator (PARAD), Regional Agrarian Reform Adjudicator

(RARAD), and the Department of Agrarian Reform Adjudication Board (DARAB) must be stated in the NLVA.

SECTION 74. Service of NLVA. — If the LO was served with the NOC through personal or substituted service, or, regardless of

the type of service, in case the DAR has already ascertained the address of the LO, the NLVA and MOV with the LVW shall be

served to the LO by Registered Mail. The registered mail envelope shall be marked "Deliver to Addressee Only" and "Return to

Sender" based on the possibilities that the LO has moved out, address is erroneous or insufficient, or the LO refuses to accept or

receive the mailed NLVA.

If the address of the LO is unknown despite substantial investigation by the DAR, or if the registered mail was sent back to the

PARO or remained unserved for fifteen (15) days or more, the PARO shall effect the publication of a Notice in a newspaper locally

circulating within the locality both where the subject landholding is located and the last known address of the LO. The Notice shall

state the name of the LO, the location of the landholding, the fact that the landholding has been valued and is to be acquired, a

notice that the LO may inspect and obtain a copy of the NLVA from the PARO and the BLAD, and that the LO has thirty (30) days

from the date of publication to accept or reject the valuation otherwise it shall be deemed rejected. The address of the PARO and

the BLAD shall be indicated in the same Notice.

SECTION 75. Notice of Land Acquisition to be Posted at the Site of the Land Holding, the Barangay, and the Municipal/City Hall.

— A Notice stating that the landholding is to be acquired by the DAR shall be posted by the MARO, or any authorized personnel

of the DAR, at a conspicuous location at the site of the landholding and on the bulletin boards of the Barangay Hall and the

Municipal/City Hall where the land covered is located within five (5) days from his receipt of the same. The Notice shall state the

name of the LO and the location of the landholding. In case the circumstances requiring publication in Section 74 hereof is

present, the Notice to be posted shall also state that the LO may inspect and obtain a copy of the NLVA from the PARO and the

BLAD, and that the LO has thirty (30) days from the date of publication to accept or reject the valuation otherwise it shall be

deemed rejected.

The Barangay Secretary and Municipal/City Administrator, respectively, shall thereupon issue the corresponding Certification of

Posting Compliance.

The failure to post this Notice shall not be a ground for the LO to contest the acquisition process, insofar as he/she/it has received

the NLVA or the NLVA has been published.

SECTION 76. Acceptance, Rejection, or Failure to Reply by the LO. — The LO must file a written letter of acceptance or

rejection to the PARO within thirty (30) days from his/her/its receipt of the NLVA, or from the date of posting, whichever is later.

The PARO shall, upon acceptance, rejection, or lapse of the thirty (30) day period, submit a notice to the LBP stating the action of

the LO.

In case the valuation was rejected by the LO, or there was no written letter of acceptance or rejection filed within the thirty (30) day

reglementary period, the valuation shall be resolved administratively by the DARAB or Adjudicator concerned in accordance with

its rules, without prejudice to the right of the LO to question the valuation of the DAR and LBP with the proper Special Agrarian

Court (SAC). As such, the PARO shall, within three (3) days from receipt of the rejection letter or from the end of the thirty (30)

day reglementary period, advise the DARAB/Adjudicator to conduct administrative proceedings by transmitting a Certified True

Copy of the entire contents of the CF, together with either a copy of the rejection letter or a Memorandum stating that no reply was

received from the LO within the thirty (30) day period, whichever is applicable, to the appropriate Adjudicator or the DARAB,

indicating in a transmittal letter that the valuation has been rejected by the LO.

SECTION 77. Transmittal of the Order to Deposit Landowner Compensation. — The PARO shall, at the same day of its

transmittal of the NLVA to the MARO concerned, transmit its Order to Deposit Landowner's Compensation to the LBP. The delay

of the posting of the Notice provided by Section 75 of this A.O. shall not suspend the transmittal of the Order to Deposit

Landowner's Compensation to the LBP and any other procedure hereof.

SECTION 78. Service of the COD and Request for Registration. — The LBP shall issue to the PARO a COD upon its receipt of

the Order to Deposit Landowner's Compensation. Within ten (10) days from the PARO's receipt from the LBP of a copy of the

COD, he/she shall immediately transmit the COD, together with a copy of the ASP and a written request for the issuance of a TCT

in the name of the Republic of the Philippines (RP Title), to the ROD. aSIHcT

SECTION 79. Withdrawal of Deposited Amount for Land Compensation. — In cases of rejection, LOs may withdraw the original

value of the landholding as determined by the DAR and LBP per MOV, subject to their submission of the requirements for

payment. The withdrawal of the value by the LO shall not automatically terminate the adjudication of the just compensation case

pending with the appropriate Adjudicator or the DARAB.

When the LO later accepts the original value or subsequent value as recomputed by the LBP based on existing valuation

guidelines, the mere filing of a manifestation by the LO regarding the acceptance of the original value or of a joint manifestation by

the LO and the LBP on the recomputed value with the Adjudicator or DARAB shall automatically terminate the just compensation

case pending thereat.

SECTION 80. Just Compensation from Agrarian Reform Fund Only. — The just compensation of the LO shall be drawn solely

from the Agrarian Reform Fund. It shall not be drawn from or executed against the general funds and/or assets of the LBP.

SECTION 81. DAR Possession Upon Issuance of COD. — As a general rule, the DAR shall take immediate possession of a

landholding upon the issuance of a COD by the LBP, and shall thereafter immediately proceed with the distribution process to the

qualified ARBs of the landholding pursuant to Section 16 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.

SECTION 82. ROD's Duty to Issue RP Title Upon Receipt of COD. — Upon receipt of the PARO's request for the issuance of an

RP Title, the ROD shall immediately issue the RP title for the CARP covered area and a separate title to the retention and non-

coverable area in the name of the LO.

SECTION 83. Accelerated ALI Case Resolution for Pipeline Cases. — Notwithstanding the pendency of an ALI case involving a

landholding included in the CARPER balance, its acquisition and distribution shall continue. If there is an ALI or DARAB case

involving said land and its pendency is prejudicial to the acquisition or distribution process, the PARO shall recommend to the

Regional Director, if the case is pending with him, or to the Head Executive Assistant of the Office of the Secretary, if the case is

pending with the Office of the Secretary, the Legal Affairs Office, the DARAB, or the Center for Land Use Policy, Planning, and

Implementation, as the case may be, that the case be certified as urgent and its resolution be accelerated.

CHAPTER 9

Land Valuation and Landowner Compensation

SECTION 84. Just Compensation. — The compensation for lands covered under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, shall be: a) the amount determined in accordance with the criteria provided for in

Section 17 of the said law and existing guidelines on land valuation; or b) the value based on the order of the DARAB or the

regular court, which has become final and executory.

SECTION 85. Formula for Valuation. — The basic formula for the valuation of lands covered by VOS or CA shall be:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

Where: LV = Land Value

CNI 1 = Capitalized Net Income (based on land use and

productivity)

CS 2 = Comparable Sales (based on fair market value equivalent

to 70% of BIR Zonal Value)

MV 3 = Market Value per Tax Declaration (based on Government

assessment)

The CS factor refers to the Market Data Approach under the standard appraisal approaches which is based primarily on the

principle of substitution where a prudent individual will pay no more for a property than it would cost to purchase a comparable

substitute property. This factor is determined by the use of 70% of the BIR zonal valuation.

The CNI factor, on the other hand, refers to the Income Capitalization Approach under the standard appraisal approaches which is

considered the most applicable valuation technique for income-producing properties such as agricultural landholdings. Under this

approach, the value of the land is determined by taking the sum of the net present value of the streams of income, in perpetuity,

that will be forgone by the LO due to the coverage of his landholding under CARP.

The MV factor is equivalent to the Market Data Approach, except that this is intended for taxation purposes only. ASTcEa

Valuation cases:

a. If three factors are present

When the CNI, CS and MV are present, the formula shall be:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

b. If two factors are present

b.1) When the CS factor is not present and CNI and MV are applicable, the formula shall be:

LV = (CNI x 0.90) + (MV x 0.10)

b.2) When the CNI factor is not present, and CS and MV are applicable, the formula shall be:

LV = (CS x 0.90) + (MV x 0.10)

c. If only one factor is present

When both the CS and CNI are not present and only MV is applicable, the formula shall be:

LV = MV x 2

In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same Estate

under consideration or within the same barangay, municipality, or province (in that order) approved by the LBP within one (1) year

from receipt of the CF.

SECTION 86. Determination of Annual Gross Production. — In the determination of the Annual Gross Production (AGP), Selling

Price (SP), and Cost of Operation (CO) to be used in the determination of the CNI factor, the audited financial statement filed with

the Bureau of Internal Revenue (BIR) shall be obtained by the DARMO from the LO fifteen (15) days prior to the date of FI. If the

LO fails to submit the same, the DAR and the LBP may adopt applicable industry data or, in the absence thereof, conduct an

industry study on the specific crop concerned.

SECTION 87. Lands Awarded to Preferred Beneficiaries, Non-Compensable. — In the determination of the just compensation,

the area to be awarded to preferred beneficiaries shall not be included. The LO shall not be compensated for the portion of the

land to be awarded to the preferred beneficiaries.

SECTION 88. Pending Land Valuation Cases. — All previously acquired lands where valuation is subject to challenge by LOs

shall be completed and finally resolved pursuant to Section 17 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.

SECTION 89. Additional 5% Cash for VOS. — LOs, other than banks and financial institutions, who voluntarily offer their lands

for sale, shall be entitled to an additional five percent (5%) cash payment.

SECTION 90. Whom to Pay if Subject Land is Transferred. — For landholdings which were conveyed and thereafter registered

after the effectivity of { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, the LBP may consider the transferee as the

payee, provided that the transfer is valid and proof of the transfer is presented.

Subject to the rules in { HYPERLINK "http://www.lis.dar.gov.ph/documents/352" } and other pertinent A.O.s, for transfers made

not in accordance with { HYPERLINK "http://www.lis.dar.gov.ph/documents/102" }, the Deed of Conveyance shall be treated as a

Deed of Assignment to the proceeds from the just compensation, for purposes of the release of payment.

CHAPTER 10

Land Distribution

SECTION 91. Agreement as to the Allocation of Awarded Lands. — The qualified beneficiaries may agree among themselves as

to how the land shall be allocated to each of them. The agreement must be signed by all the qualified beneficiaries.

If no agreement is made, the equitable allocation of the land shall be observed in the manner provided by Sections 92, 93, 94, and

95 of this A.O.

SECTION 92. Three (3) Hectares to Regular Farmworkers and Tenants. — Unless an agreement among the qualified

beneficiaries to the contrary is made, only after the agricultural lessees, tenants, and regular farmworkers, have each been

awarded three (3) hectares pursuant to Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, shall the other

qualified beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as

untitled private agricultural landholdings are concerned), and others directly working on the land, be accommodated.

SECTION 93. Allocation of Awarded Lands. — The equitable allocation of the land shall be observed in the following manner:

a. Landholdings covered by CARP shall be allocated first to agricultural lessees, tenants, and regular farm workers of the same

landholding up to a maximum of three (3) hectares each. In case the landholding is not sufficient to award each agricultural

lessee, tenant, and regular farm worker three (3) hectares each, it shall be distributed in the manner provided in Section 94 of

this A.O. aIcETS

b. After complying with the three (3)-hectare allocation requirement for lessees, tenants, and regular farm workers, as the case

may be, the MARO shall determine the remaining area left for distribution to seasonal farm workers, other farm workers, actual

tillers or occupants of public lands, and others directly working on the land, in the manner provided by Section 95 of this A.O.

c. Excess areas, if any, after the allocation mentioned in the preceding paragraph shall be awarded to collectives or

cooperatives of the above beneficiaries. However, the tenants/lessees in such excess areas shall be given a reasonable time to

harvest the produce of his/her crop, subject to the rules on standing crops.

In cases, however, where there are preferred beneficiaries approved upon nomination of the LO, each preferred beneficiary may

select a contiguous and compact area, no medium than three (3) hectares, to be allocated to them prior to determining the

allocation for the ARBs, provided that in no case may the distribution of lands to preferred beneficiaries deprive each of the

agricultural lessees and tenants of being awarded the portion of the landholding they are actually tenanting/leasing, which in no

case shall be more than three (3) hectares.

SECTION 94. If Land Not Enough for Agricultural Lessees, Tenants, and Regular Farmworkers. — In cases where the land area

is not enough to meet the three (3)-hectare award ceiling for each agricultural lessee, tenant, and regular farmworkers in a

particular landholding, then the landholding shall be divided equally among them, provided that in no case may the allocation of

lands deprive each of the agricultural lessees and tenants of being awarded the portion of the landholding they are actually

tenanting/leasing, which in no case shall be more than three (3) hectares. However, in the extreme cases that the land area is not

enough to provide all them one thousand (1,000) square meters each, the names of the said agricultural lessee, tenant, and

regular farmworkers shall be listed from the ARB who has leased/served the most aggregate time to him/her who has

leased/served least. Each ARB shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at

the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall

then be distributed equally among those who received one thousand (1,000) square meters each.

Other qualified beneficiaries under Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, who are displaced

after the distribution of all available land to tenants/lessees, may still qualify as ARBs in other lands covered under the CARP.

SECTION 95. Allocation of Seasonal Farmworkers, Other Farmworkers, Actual Tillers or Occupants of Public Lands, and Others

Directly Working on the Land. — The remaining land shall be allocated to the seasonal farmworkers, other farmworkers, actual

tillers or occupants of public lands, and others directly working on the land in the following manner:

(a)The remaining area shall be distributed equally among seasonal farmworkers, but in no case shall each be awarded more

than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the seasonal farmworkers one

thousand (1,000) square meters each, the names of the said seasonal farmworkers shall be listed from the farmworker who has

served the most aggregate time to him/her who has served least. Each seasonal farmworker shall, thereafter, be awarded one

thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one

thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who received

one thousand (1,000) square meters each.

(b)If after all the seasonal farmworkers have been allocated three (3) hectares each there still remains a land area, or if there

are no seasonal farmworkers, it shall be distributed equally among the other farmworkers, but in no case shall each be awarded

more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the other farmworkers

one thousand (1,000) square meters each, the names of the said other farmworkers shall be listed from the farmworker who

has served the most aggregate time to him/her who has served least. Each of the other farmworkers shall, thereafter, be

awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less

than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who

received one thousand (1,000) square meters each.

(c) If after all the other farmworkers have been allocated three (3) hectares each there still remains a land area, and if the

landholding is an untitled private agricultural land, it shall be distributed equally among the actual tillers or occupants of that

public land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is

not enough to provide all the actual tiller/occupant one thousand (1,000) square meters each, the names of the said actual

tiller/occupant shall be listed from the actual tiller/occupant who has tilled/occupied the said land the most aggregate time to

him/her who has tilled/occupied least. Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000)

square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000)

square meters. The remaining land area, if any, shall then be distributed equally among those who received one thousand

(1,000) square meters each. DHaECI

(d)Finally, if after all the actual tiller/occupant have been allocated three (3) hectares each there still remains a land area, or if

the landholding is not an untitled private agricultural land, it shall be distributed equally among the other persons directly

working on the land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the

land area is not enough to provide all these other persons one thousand (1,000) square meters each, the names of these other

persons shall be listed from him/her who has worked the said land the most aggregate time to him/her who has worked least.

Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000) square meters each starting from the

person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area,

if any, shall then be distributed equally among those who received one thousand (1,000) square meters each.

SECTION 96. Award of CLOA. — In general, the land awarded to an ARB should be under an individual CLOA-title covering one

(1) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares.

Qualified beneficiaries may opt for collective ownership, through a co-workers or farmers' cooperative/association or some other

form of collective organization, for the issuance of collective ownership titles: Provided, That the total area to be awarded shall not

exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award limit of

three (3) hectares, except in meritorious cases as may be determined by the PARC, and provided further that the conditions for

the grant of collective CLOAs under this A.O. are met.

Under collective ownership, a collective CLOA to the property shall be issued in the names of the co-owners, who may form a

farmers' cooperative/association or collective organization. If the CLOAs are issued collectively, the names of all the beneficiaries

must be listed in the CLOA. If the subject land is legally transferred, the transferee, if qualified, can be substituted as beneficiary of

the individual CLOA upon the approval of the PARO.

Collective CLOAs may be issued under the following instances:

i. The current farm management system of the land covered by CARP is not appropriate for either individual farming or division

of the landholding into farm parcels;

ii. The farm labor system is specialized, where the farmworkers are organized by functions such as spraying, weeding,

packing, and other similar activities, and not by specific parcels;

iii. The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas;

and

iv. The farm consists of multiple crops being farmed in an integrated manner, or includes non-crop production areas that are

necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that

cannot be subdivided or assigned to individual farmers.

The names of the ARBs sharing a collective CLOA issued in the name of a farmers' cooperative/association or collective

organization shall be listed at the back thereof. Those listed shall be deemed as the owners of the landholding covered by the said

collective CLOA.

SECTION 97. Collective Ownership of Idle, Abandoned, or Undeveloped Land. — For idle and abandoned lands or undeveloped

agricultural lands to be covered by CARP, collective ownership shall be allowed only if the beneficiaries opt for it and in case there

is a clear development plan that would require collective farming or integrated farm operations exhibiting the conditions described

in Section 96 of this A.O. Otherwise, such lands awarded to ARBs should be under individual CLOAs/titles, covering one (1)

contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares.

SECTION 98. Period to Select Type of CLOA. — With respect to ARBs who may opt for collective CLOAs under Sections 96 and

97 of this A.O., the ARB must file a manifestation to the PARO as to whether he/she opts for an individual CLOA or a collective

one within a non-extendible period of fifteen (15) days from the posting of the Master List of ARBs.

The failure to file said manifestation within this fifteen (15)-day reglementary period shall be construed as a waiver of the right to

choose, and the ARB shall be deemed to have opted for an Individual CLOA.

SECTION 99. Specification of Actual Area to be Awarded. — After the ARBs have decided whether they wanted to be awarded

an individual CLOA or a collective one, the MARO shall allocate the actual portion of the landholding to be awarded to the ARBs.

In allocating the area, the MARO shall decide in accordance with the preference of the ARBs, subject to the following factors in

the following order: CTHDcS

i. The area of the individual ARBs sharing a collective CLOA shall be adjacent and contiguous with each other;

ii. The area tenanted by an ARB shall be that awarded to him/her.

SECTION 100. Usufructuary Right of ARBs. — Notwithstanding Section 108 of this A.O., the ARBs have the right of usufruct

over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA.

Pending the award of the CLOA and for the purpose of establishing usufructuary rights, the DAR, upon issuance of the COD and

upon actual possession of the land, shall immediately inform the ARBs that they have been identified and qualified to receive the

land.

SECTION 101. Labor-Related Issues Not a Deterrence to the Acquisition and Distribution of Landholding. — The existence of

labor-related issues between the LO and the farmworkers, including questions on ownership of the subject landholding and

payment of just compensation, shall in no case deter or delay the process of land acquisition and distribution.

SECTION 102. When Other Rights and Obligation of ARBs Commence. — The rights of the ARBs, other than the usufructuary

rights provided in Section 100 hereof, and their responsibilities shall commence from their receipt of a certified true copy of the

duly registered Certificate of Land Ownership Award (CLOA) and actual physical possession of the awarded property. The

following are the obligations of ARBs:

a. All ARBs shall exercise diligence in the use, cultivation, and maintenance of the land, including the improvements thereon.

Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the

forfeiture of one's right as an ARB.

b. Amortization payments shall commence one (1) year from the date of actual occupancy of the ARB, provided that the CLOA

has already been registered. Subject to existing rules on computation of amortization based on the principle of affordability and

provision for government subsidy, ARBs shall have the obligation to pay the LBP in thirty (30) annual amortizations with interest

at six percent (6%) per annum, unless the ARB opts to accelerate payment. Amortizations shall not include interest due for the

delay in payment of just compensation to the LOs.

c. ARBs shall have the obligation to pay the real property taxes due on their awarded lands.

Furthermore, lands awarded to ARBs under this Act may not be sold, transferred, or conveyed, except through hereditary

succession or to the Government, or to the LBP, or to other qualified beneficiaries within a period of ten (10) years and while the

amortization payments have yet to be fully paid; provided, however, that the children or the spouse of the transferor shall have a

right to repurchase the land from the government or the LBP within a period of two (2) years from the date of transfer.

SECTION 103. Real Property Tax Liability of ARB Cooperative. — The ARB Cooperative/Association may assume the

responsibility of paying the local government unit (LGU) the real property tax (RPT) due on collectively awarded land, subject to

the provisions of the { HYPERLINK "http://www.lis.dar.gov.ph/documents/8684" }.

SECTION 104. Facilities for Common Use and Award. — Land improvements and facilities that are not property of public

dominion, such as private roads and bridges, warehouses, and the like, which are for common use and benefit as may be defined

by DAR, shall be transferred to all of the ARBs in the landholding through a Farmers' Association or Cooperative, or in the

absence thereof, through co-ownership, and equally shared payments covered under either individual or collective land

amortizations, as the case may be.

SECTION 105. Award to Qualified Spouses. — Agricultural lessees and tenants, regular farmworkers, and other qualified

beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as untitled

private agricultural landholdings are concerned), members of collectives or cooperatives of the above beneficiaries, and others

directly working on the land who are husband and wife may be entitled to three (3) hectares each, provided that they qualify as

ARBs in their own individual right and that their respective vested rights to the land have been duly established. A separate CLOA

shall be issued to each spouse in such cases.

For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be preceded by the word

"spouses". Should the couple qualify as individual ARBs, their names shall be registered in the title, to wit: Juan married to Maria

or Maria married to Juan to indicate that the first name is the awardee. In the case of a common-law relationship, the names of

both parties shall likewise appear in the CLOA with the conjunctive word "and" between their names. Should they likewise qualify

as individual ARBs, their names shall be registered without the other. The same provisions shall apply in cases where the married

ARBs or ARBs in a common-law relationship are covered by a collective/co-ownership CLOA and their names are annotated at

the back of the said CLOA. CEHcSI

For purposes of ARB inventory and reporting, spouses or parties whose names appear in a single CLOA shall be counted as one

ARB.

SECTION 106. Ministerial Duty of ROD in CARP Implementation. — It is the ministerial duty of the ROD to:

1. Issue the title of the land in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds

have been deposited in the name of the LO constituting full payment in cash and bonds, with due notice to the LO;

2. Register the CLOA generated by DAR;

3. Cancel previous titles pertaining thereto; and

4. Issue title for the LO's retained area and other non-CARPable areas.

SECTION 107. Repository of Registered CLOAs. — All registered CLOAs shall be released by the ROD to the LBP as the

mortgagee financing institution. The LBP shall provide two (2) sets of certified true copies of the CLOA, closely simulating the

appearance, color, and paper of the same, to the PARO. The PARO shall thereafter transmit one set of the copies to the ARBs

within fifteen (15) days from his/her receipt of the CLOAs. The LBP shall be the responsible repository of the encumbered CLOAs

until the time of their release to the concerned ARBs upon full payment of the land amortization, and the cancellation of the

encumbrance.

CHAPTER 11

Installation of Agrarian Reform Beneficiaries on Awarded Lands

SECTION 108. ARB's Right of Possession. — As owner/s of awarded lands under CARP, the ARB/s shall take possession of the

land covered by his/her/their titles from the time the same is awarded to them through a registered CLOA.

SECTION 109. Writ of Installation. — In case taking possession of the awarded land by the ARBs would imperil or endanger

their lives, the DAR shall assume responsibility for the installation of the ARB/s on the subject land with the assistance of the

police or military until they are settled and in constructive and physical control of the property.

In pursuance of this mandate, the PARO may issue a Writ of Installation directing the Sheriff of the PARAD or the RARAD who

has jurisdiction over the landholding, alone or with the assistance of the police or military, to conduct all necessary lawful acts to

physically install the ARB/s on the subject landholding.

In case the installation activities would necessitate the provision of police and/or military forces to assist the Sheriff, the PARO

shall coordinate the said activities with the Department of National Defense-Armed Forces of the Philippines (DND-AFP) and the

Department of Interior and Local Government-Philippine National Police (DILG-PNP), pursuant to the existing guidelines per

Memorandum of Agreement executed by the DAR, Department of Interior and Local Government (DILG), and Department of

National Defense (DND).

SECTION 110. Continuing Responsibility. — The DAR, in cooperation with the AFP, PNP, and/or the LGU, shall ensure that

installed ARBs shall continue to enjoy their right of ownership and possession over the lands awarded to them. ARBs may seek

assistance from the DAR when they are facing threats, harassment, or ejection attempts by the LO or other parties. Assistance

shall include, among others, the duty of the DAR to assist ARBs in reporting these cases to the police and the military, and the

filing of the appropriate legal action against those responsible, if warranted. If dispossessed, the ARBs must be given assistance

so that they can re-occupy their land.

SECTION 111. Harassment of ARBs. — In the event the former LO harasses or threatens the ARB/s installed by the DAR, the

affected ARB/s shall immediately report the matter to the concerned PNP and the DAR. The ARBs should be assisted by the DAR

Regional/Provincial Legal Division, Public Attorney's Office (PAO), and the Office of the City/Provincial Prosecutors.

In the event that ARBs are driven out of the land against their will, the said ARBs shall take the initiative in filing a criminal case

against the perpetrator, with the DAR providing legal assistance. The affected ARBs shall be re-installed notwithstanding the

pendency and result of the case filed against the perpetrator conformably with { HYPERLINK

"http://www.lis.dar.gov.ph/documents/137" }.

SECTION 112. Obstruction of Landowner. — If the former LO deliberately acts to delay, stall, or obstruct the installation of the

ARBs, the DAR shall initiate a criminal case against him/her for violation of Section 73 (d) of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }, without prejudice to any other case that may be filed by any other person.

Moreover, the DAR shall ask that the LO be held liable by the Court for actual, compensatory, and moral damages suffered by the

ARB/s.

SECTION 113. DAR Referral to DOJ. — In cases of failed installation and/or dispossession of FBs due to LO harassment, the

DAR may refer the matter to the DOJ for the proper investigation of possible violation of Section 73 of { HYPERLINK

"http://www.lis.dar.gov.ph/documents/7014" }. TIHDAa

SECTION 114. Protective Injunction Order. — The RD and the DAR Secretary, motu proprio, can grant a protective injunction

order within two (2) years from the issuance of the CLOA to preserve the covered lands and ensure the peaceful and effective

ownership of the ARBs. A protective injunction order may be a mandatory one to enjoin the performance of a ministerial duty

sanctioned by the laws or prohibitory in nature to refrain the doing of an act that is detrimental to the rights of the parties in an

agrarian controversy. The failure to comply with such an order is punishable as an obstruction to CARP implementation under

Section 73 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.

CHAPTER 12

Final Provisions

SECTION 115. Power of Secretary to Suspend the Rules. — In order to serve and protect the interest of CARP implementation

and justice, the DAR Secretary may suspend the rules embodied in this A.O.

SECTION 116. Transitory Provision. — The DAR shall not be required to serve new NOCs to LOs properly served with such

prior to the effectivity of these Rules. Those LOs shall be bound by the periods to exercise rights stated in the appropriate A.O.

Within thirty (30) days from the effectivity of these Rules, the MARO shall make an inventory of all NOCs previously sent but not

received by the LOs. New NOCs shall then be sent to these LOs immediately, in accordance with these Rules.

SECTION 117. Repealing Clause. — All A.O.s inconsistent herewith are hereby accordingly repealed, modified, and/or

amended.

SECTION 118. Separability Clause. — Any judicial pronouncement declaring as unconstitutional any provision of this A.O. shall

have no effect on the validity of the other provisions not affected thereby.

SECTION 119. Effectivity Clause. — These Rules shall take effect ten (10) days after its publication in two (2) newspapers of

general circulation.

Diliman, Quezon City, September 30, 2011.

October 15, 2009

DAR ADMINISTRATIVE ORDER NO. 02-09

SUBJECT : Rules and Procedures Governing the Acquisition and Distribution of Agricultural Lands Under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/226" }, as Amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }

I. Prefatory Statement

{ HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, which amends { HYPERLINK

"http://www.lis.dar.gov.ph/documents/226" }, provides for, among others, the continuing acquisition and distribution of agricultural

lands covered under the Comprehensive Agrarian Reform Program (CARP) for a period of five (5) years under various phases,

and the simultaneous provision of support services and the delivery of agrarian justice to Agrarian Reform Beneficiaries (ARBs). It

further provides that after June 30, 2009, the modes of acquisition shall be limited to voluntary offer to sell (VOS) and compulsory

acquisition (CA) and that voluntary land transfer (VLT) shall be allowed only for landholdings submitted for VLT as of June 30,

2009.

The agrarian reform program is founded on the right of farmers and regular farmworkers, who are landless, to own directly or

collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the State

shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and retention limits set forth

under { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, taking into account ecological, developmental, and equity

considerations, and subject to the payment of just compensation. Owners of agricultural land have the obligation to cultivate

directly or through labor administration the lands they own and thereby make the land productive.

The principles of agrarian reform or stewardship shall be in accordance with law in the disposition or utilization of other natural

resources, including lands of the public domain, under lease or concession, suitable to agriculture, subject to prior rights,

homestead rights of small settlers and the rights of indigenous communities to their ancestral lands.

To ensure the completion of land acquisition and distribution within the prescribed period, the following rules and procedures are

hereby promulgated.

II. Coverage

These rules and regulations shall govern the acquisition and distribution of all agricultural lands yet to be acquired and/or to be

distributed under the CARP in accordance with { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended by {

HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }. TCDcSE

III. Definition of Terms

1. Landless Beneficiary is any farmer/tiller who owns less than three (3) hectares of agricultural land.

2. Share Tenant refers to a person who himself and with the aid available from within his immediate farm 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 system, or paying the landholder a price certain or ascertainable in produce or in

money or both, under the leasehold tenancy system. This arrangement has been abolished by{ HYPERLINK

"http://www.lis.dar.gov.ph/documents/3259" }, which automatically converted the relations under leasehold.

3. Agricultural lessee refers to a person who, by himself and with the aid available from within his immediate farm household,

cultivates the land, belonging to or lawfully possessed by another, with the latter’s consent for purposes of agricultural production,

for a price certain in money or in produce or both. It is distinguished from civil lessee as understood in the { HYPERLINK

"http://www.lis.dar.gov.ph/documents/3088" }.

4. Farmworker refers to a natural person who renders service for value as an employee or laborer in an agricultural

enterprise or farm regardless of whether his/her compensation is paid on a daily, weekly, monthly or “pakyaw” basis. The term

includes an individual whose work has ceased as a consequence of, or in connection with, a pending agrarian or labor dispute

and who has not obtained a substantially equivalent and regular farm employment.

5. Regular Farmworker refers to a natural person who is considered employed on a permanent basis by a landowner

engaged in an agricultural enterprise or farm.

6. Seasonal farmworker refers to a natural person who is employed on a recurrent, periodic or intermittent basis by an

agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as “dumaan”, “sacada”, and the like.

7. Other farmworkers refer to farmworkers who do not fall under Items 5 and 6 of this Section.

8. Cooperatives refer to organizations composed primarily of small agricultural producers, farmers, farmworkers, or other

agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human, technological, financial

or other economic resources, and operate on the principle of one member, one vote. A juridical person may be a member of a

cooperative, with the same rights and duties as a natural person.

9. Substantially Equivalent and Regular Employment means any employment or profession from which the applicant farmer

derives income equivalent to the income of a regular farmworker at the time of ARB identification, screening and

selection. IcAaSD

10. Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or

otherwise, over lands devoted to agriculture, including disputes concerning farmworkers’ associations, or representation of

persons in negotiating, fixing, maintaining, changing or seeking to arrange terms and conditions of such tenurial arrangements.

It includes any controversy relating to compensation of lands acquired under { HYPERLINK

"http://www.lis.dar.gov.ph/documents/226" } and other terms and conditions of transfer of ownership from landowners to

farmworkers, tenants and other ARBs, whether the disputants stand in proximate relation of farm operator and beneficiary,

landowner and tenant, or lessor and lessee.

11. Usufruct refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits of the property of another with the

obligation of preserving its form, substance, and productivity.

12. Direct Management in so far as preferred beneficiaries are concerned, refers to the cultivation of the land through personal

supervision under the system of labor administration. It shall be interpreted along the lines of farm management as an actual

major activity being performed by the landowner’s child from which he/she derives his/her primary source of income.

13. Newspaper of General Circulation refers to newspaper or publication of general circulation, which may be national or local

to where the property is located.

14. Award is the conferment of Certificate of Land Ownership Award (CLOA) title to qualified agrarian reform beneficiaries.

IV. Statement of Policies

A. Notice of Coverage

1. The acquisition and distribution of agricultural lands under CARP shall be completed by June 30, 2014. However, the

process of acquisition and distribution for landholdings which were issued with Notices of Coverage (NOCs) on or before June 30,

2014 shall continue even after June 30, 2014 until the said lands have been awarded to qualified beneficiaries.

2. The schedule of the acquisition and distribution of lands covered by CARP shall be as follows:

2.1 All landholdings of landowners owning more than twenty four (24) hectares which have been issued Notices of Coverage

(NOCs) as of December 10, 2008, shall be subject to immediate acquisition and distribution under compulsory acquisition and

shall be completed by June 30, 2012. The landholdings of landowners owning more than fifty (50) hectares shall be prioritized for

coverage within this same period. HcDATC

2.2 All private agricultural lands voluntarily offered before July 1, 2009 by the landowner for agrarian reform shall be subject to

immediate acquisition and distribution under voluntary offer to sell (VOS) and shall be completed by June 30, 2012.

2.3 Lands under voluntary land transfer (VLT) received by DAR before July 1, 2009 shall be subject to immediate acquisition

and distribution and shall be completed by June 30, 2012.

2.4 The following types of lands shall likewise be subject of immediate acquisition and distribution under CARP and shall be

completed by June 30, 2012:

a. Rice and corn lands under Presidential Decree { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" };

b. All idle and abandoned lands;

c. All lands foreclosed by government financial institutions;

d. All lands acquired by the Presidential Commission on Good Government (PCGG); and

e. All other lands owned by the government.

2.5 All landholdings of landowners owning more than 24 hectares but have not been issued with NOC as of December 10,

2008 shall be subject to land acquisition and distribution (LAD) by July 1, 2012 and completed by June 30, 2013.

2.6 All landholdings of landowners owning more than 10 hectares up to 24 hectares, in so far as the excess hectarage above

10 hectares is concerned, shall be covered under land acquisition and distribution starting July 1, 2012 and be completed by June

30, 2013.

2.7 All landholdings of landowners owning more than five (5) hectares up to 10 hectares shall be covered under land

acquisition and distribution starting July 1, 2013 and be completed by June 30, 2014. Notwithstanding this schedule, coverage of

landholdings more than five (5) hectares up to 10 hectares may commence when the LAD balance of the concerned province,

reckoned as of January 1, 2009, is already 90 percent complete, as certified to by the Provincial Agrarian Reform Coordinating

Committee (PARCCOM) under existing guidelines of the Presidential Agrarian Reform Council (PARC). EcTaSC

3. For provinces declared by the Presidential Agrarian Reform Council (PARC) as priority land reform areas, the acquisition

and distribution of private agricultural lands therein under advanced phases may be implemented ahead of the above schedules

on the condition that prior phases in these provinces have been completed pursuant to the PARC implementing rules and

regulations on the matter.

4. The Notice of Coverage (NOC) shall be issued to landowners not later than 90 days prior to the scheduled date of

acquisition and distribution of their landholding except for landowners owning more than five (5) up to ten (10) hectares, in which

case, the NOCs shall be issued on or after July 1, 2013.

5. In the case of lands for which NOCs have already been issued, the DAR Provincial Office (DARPO) shall send a

memorandum to the Municipal Agrarian Reform Officer (MARO), copy furnished the LO, directing him/her to proceed with the

process of land acquisition and distribution of the landholdings under the CARP, either immediately or on the specific schedule

provided under Item IV (A) (2) of this Order.

6. For lands already in the Inventory of CARP Scope (ICS), the DARPO shall transmit to the DAR Municipal Office (DARMO)

on or before October 30, 2009 the list of LAD balances and the schedule of coverage of each landholding therein, based on the

prioritized phasing under Section 5 of R.A. No. 9700.

In the case of other landholdings still unacquired and undistributed but coverable under CARP, the DARMO shall submit

the list of such lands to the DARPO which shall prepare and issue NOCs and transmit these to the DARMO for service to the

landowners (LOs) based on specific schedules under Item IV (A) (2) of this Order.

7. Landholdings subject of expropriation or acquisition by the Local Government Units (LGUs) or any portions thereof not

actually, directly and exclusively used for non-agricultural purposes are subject to CARP coverage if one or more of the following

conditions apply:

7.1 There is agricultural activity;

7.2 The land is suitable for agriculture; or

7.3 The land is presently occupied and tilled by farmer/s.

8. Excluded from coverage are lands actually, directly and exclusively used and found to be necessary for the following

purposes:

8.1 Parks;

8.2 Wildlife;

8.3 Forest reserves; AHDaET

8.4 Reforestation;

8.5 Fish sanctuaries and breeding grounds;

8.6 Watersheds;

8.7 Mangroves;

8.8 National defense;

8.9 School sites and campuses including experimental farm stations operated by public or private schools for educational

purposes;

8.10 Seeds and seedlings research and pilot production centers;

8.11 Church sites and Islamic centers appurtenant thereto;

8.12 Communal burial grounds and cemeteries;

8.13 Penal colonies and penal farms actually worked by the inmates;

8.14 Government and private research and quarantine centers;

Also excluded from coverage are:

8.15 All undeveloped lands with eighteen percent (18%) slope and over;

8.16. All lands actually, directly and exclusively used for commercial, industrial or residential purposes and classified as such

before June 15, 1988;

8.17. Fish ponds and prawn farms;

8.18. All lands actually, directly and exclusively used for livestock raising;

8.19. Ancestral lands and domain; and

8.20. Retention areas granted to landowners.

The MARO, together with a representative of the DARPO, shall conduct an inventory and ocular inspection of all

agricultural lands within their area which are used for the above purposes. A report on the inventoried and inspected lands shall

be submitted by the MARO and the DARPO representative to the Provincial Agrarian Reform Officer (PARO) indicating the

following:

• Name of landowner;

• Location of property and area;

• OCT/TCT or Tax Declaration Number;

• Actual land use; TIaCHA

• Existence of agricultural activity;

• Land Classification documents available; and

• Other information vital to the determination of coverage of the land or portions thereof under CARP.

9. Any act of the landowner to change or convert his/her agricultural land to non-agricultural uses shall not affect the

coverage of the landholding. Any diversification or change in the agricultural use of the landholding, or shift from crop production

to non-agricultural uses and purposes shall be subject to the guidelines on land use conversion.

10. Land subject to a conversion order but not developed within the five-year period starting from the issuance of the

conversion order or the specific time frame stipulated therein, or if there is a violation of other conditions so provided, shall be

reverted to agricultural use and Notice of Coverage thereon shall be issued by the PARO. An ocular inspection shall be conducted

by the PARO on all lands covered by conversion orders and shall submit a factual finding on land development or violations of

conditions on the conversion orders if any, to the Regional Director, copy furnished the Center for Land Use Policy, Planning and

Implementation (CLUPPI), for appropriate action pursuant to the existing implementing rules and regulations (IRR) on land use

conversion. CcAITa

11. As a general rule, the Notice of Coverage (NOC) shall be addressed to and received by the LO through the following

modes of service:

11.1 Personal Service — This is made by handing a copy of the NOC to the LO in person and having him receive it by affixing

his signature or thumbmark with a witness to the thumbmark who will set his signature in the receiving copy.

11.2 Substituted Service — If personal service of the NOC cannot be served directly to the LO within a reasonable time, service

may be made by leaving copies of the NOC and having this duly received at the LO’s:

a. residence with some person of suitable age and discretion residing therein; or

b. office or regular place of business with some competent person in charge thereof.

11.3 Service by Registered Mail — If personal or substituted service is not practicable, the Notice of Coverage shall be sent by

registered mail to the last known address of the LO. The registered mail envelope shall be marked “Deliver to Addressee

Only” and “Return to Sender” based on the possibilities that the LO has moved out, address is erroneous or insufficient, or the LO

refuses to accept or receive the mailed NOC.

11.4 Service by Publication — The mode of service by publication shall apply if the LO is outside the Philippines, or

whereabouts is unknown, or LO refused to receive the NOC. If any of the three (3) modes of service {Items IV (A) (11.1 to 11.3) of

this Order} fails, the NOC will be published in a newspaper of general circulation in such places. Service by publication shall be

evidenced by the affidavit of the editor-in-chief, or circulation/advertising manager attesting to the fact of said publication and a

copy of the said publication. A “Return to Sender” stamped on the mailing envelope for registered mail will serve as proof that the

NOC was not received by the LO. The publication need not state the entire contents of the NOC but only the following essential

particulars:

11.4.1 Coverage of the subject landholding under CARP on the specific land acquisition schedule based on the prioritized phasing

under Section 5 of R.A. No. 9700;

11.4.2 Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT)/Latest Tax Declaration No/s.;

11.4.3 Complete name/s of the LO/s and last known address, if available; HTCIcE

11.4.4 Address or location of the subject landholding (barangay, city/municipality, province); and

11.4.5 A statement that the LO has thirty (30) calendar days from date of NOC publication to reply to the NOC, and that failure to

do so shall be a waiver of the right to choose his retention area, the privilege to nominate child/children who may qualify as

preferred beneficiaries and to apply for exemption/exclusion from CARP coverage.

12. The other modes of service/delivery/receipt of the NOC shall be as follows:

12.1 Service upon co-owners — In case of co-ownership, the NOC shall be served upon each and every co-owner, unless one

is specifically authorized to receive for the co-owners.

12.2 Service upon minors or incompetents — When the LO is a minor, insane or otherwise incompetent, service shall be made

upon him/her personally and to his/her legal guardian if he/she has one, or if none, upon his/her guardian ad litem whose

appointment shall be applied for by the Department of Agrarian Reform (DAR). In the case of a minor, service may also be made

on his/her father and/or mother.

12.3 Service upon entity without juridical personality — When the LOs who are persons associated through an entity without

juridical personality are issued a NOC under the name by which they are generally or commonly known, service may be effected

upon all the LOs by serving upon any one of them, or upon the person in charge of the office or place of business maintained in

such name. Such service shall not individually bind any person whose connection with the entity has, upon due notice, been

severed before the proceeding was brought.

12.4 Service upon domestic private juridical entity — When the LO is a corporation, partnership or association organized under

the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general manager,

corporate secretary, treasurer, in-house counsel or administrator.

13. Within thirty (30) calendar days from receipt of NOC or from its date of publication, the LO has:

13.1 The right to choose a retention area not exceeding five (5) hectares pursuant to Section 6 of R.A. No. 6657, as amended;

and

13.2 The privilege to nominate child/ren who may qualify as preferred beneficiary/ies. SaETCI

The landowner is likewise given the same thirty (30)-day prescribed period from receipt or date of publication of NOC,

whichever is applicable, within which to protest coverage. Upon receipt of the protest of coverage by DAR, the LO is given another

thirty (30) days to substantiate his/her protest and/or application for exemption or exclusion from CARP coverage. Failure to

comply within the aforementioned 30-day reglementary periods shall be construed as a waiver or abandonment of the right to

protest and/or to file for an application for exemption or exclusion from CARP coverage.

14. Notwithstanding a protest of coverage or an application for exemption or exclusion by a landowner, the processing of the

claim folder, including valuation and the issuance of Certification of Deposit (COD) by the Land Bank of the Philippines (LBP) and

the transfer of title to the Republic of the Philippines, shall continue unless the Regional Director or the DAR Secretary, as the

case may be, suspends the processing based on preliminary findings on grounds for exemption or exclusion or the Supreme

Court issues a Temporary Restraining Order (TRO) on the processing of the claim folder.

B. Retention

1. All landholdings five (5) hectares and below shall not be subject to CARP coverage except for landholdings submitted for

voluntary offer to sell (VOS) before July 1, 2009 wherein the retention right has been waived. The PAROs shall issue Certification

of Retention to landowners who have already availed of the same and cover all areas in excess thereof.

2. For VOS lands submitted prior to July 1, 2009 where the master list of ARBs has been finalized, the retention areas of

landowners covered under said VOS shall be processed under the existing guidelines of R.A. No. 6657, as amended, before July

1, 2009.

3. Landowners who own lands five (5) hectares or less may file a request for the issuance of Certification of Retention.

4. Landholdings covered by homestead grants and Free Patents issued pursuant to Commonwealth Act (C.A.) No. 141 still

owned by the original grantees or their direct compulsory heirs shall be retained by them as long as they were cultivating the said

landholdings at the time of the approval of R.A. No. 9700 and continue to cultivate the same.

5. Heirs of deceased landowners who died after June 15, 1988 and whose lands are covered under CARP are only entitled

to the five (5) hectare retention area of the deceased landowner.

6. For landholdings under compulsory acquisition (CA), the landowner shall choose his retained area within thirty (30) days

from receipt of Notice of Coverage (NOC) or date of publication of NOC. TEaADS

Failure to exercise the right to choose within the prescribed period shall constitute a waiver thereof. In which case the

DAR, through the MARO, shall automatically choose for the landowner his/her retention area.

For landholdings under voluntary offer to sell (VOS), the landowner shall exercise his right of retention simultaneously at

the time of the offer for sale of the subject landholding.

7. When landowners waive their right of choice, the following factors shall be considered in choosing their retention area:

6.1 commodity produced;

6.2 terrain;

6.3 infrastructure available; and

6.4 soil fertility.

8. For marriages covered by the New Civil Code, in the absence of an agreement for the judicial separation of property,

spouses whose agricultural land properties are all conjugal may retain a total of not more than five (5) hectares of such properties.

However, if either or both of them are landowners in their respective rights (capital and/or paraphernal), they may each retain not

more than five (5) hectares of their respective landholdings. In no case shall the total retention of such couple exceed ten (10)

hectares.

9. For marriages covered by the Family Code, which took effect on August 03, 1988, a husband owning capital property

and/or a wife owning paraphernal property may retain not more than five (5) hectares each, provided they executed a judicial

separation of properties prior to entering into such marriage. In the absence of such an agreement, all properties (capital,

paraphernal and conjugal) shall be considered to be held in absolute community, i.e., the ownership relationship is one, and,

therefore, only a total of five (5) hectares may be retained by each couple.

10. The DAR shall notify the LO, through personal service with proof of receipt or by registered mail with return card, the

portion selected as his/her retention area if the LO fails to exercise such right within the prescribed period.

11. In case a tenant chooses to remain in the LO’s retained area, he/she shall be a leaseholder in the said land and shall not

qualify to be a beneficiary under CARP. Conversely, if the tenant chooses to be a beneficiary in another agricultural land, he/she

cannot be a leaseholder in the land retained by the LO. The tenant must exercise this option within a period of one (1) year from

the time the LO manifests his/her choice of the area for retention.

12. Tenants/lessees in the retained areas who do not wish to become leaseholders in the retained lands shall be given

preference in other landholdings whether or not these lands belong to the same landowner, without prejudice to the farmers who

are already in place and subject to the priorities under Section 22 of R.A. No. 6657, as amended. IcESDA

13. In all cases, the security of tenure of the farmers or farmworkers on the LO’s retained land prior to the approval of R.A. No.

6657, as amended, shall be respected. Further, actual tenant-farmers in the landholdings shall not be ejected or removed

therefrom.

14. Land transactions executed prior to R.A. No. 6657, as amended, shall be valid only when registered with the Registry of

Deeds within a period of three (3) months after June 15, 1988 in accordance with Section 6 of R.A. No. 6657, as amended.

Where the transfer/sale of a landholding involves a total of five (5) hectares and below and such landholding is the

retention area of the transferor or subject of retention by the transferor, and the transferee will not own an aggregate of more than

five (5) hectares as a result of the sale, the transfer is legal and proper. However, a DAR clearance is needed for the purpose of

monitoring and as requisite for the registration of the title in the name of the transferee with the Registry of Deeds (ROD).

In the case of multiple or a series of transfers/sales, only the first five (5) hectares sold/conveyed and the corresponding

titles issued by the ROD in the name of the transferee shall be considered valid and be treated as the transferor’s retained area,

but in no case shall the transferee exceed the five (5)-hectare landholding ceiling pursuant to Sections 6, 70 and 73 (a) of R.A. No.

6657, as amended. In so far as the excess area beyond five (5) hectares sold and conveyed is concerned, the same shall be

covered under CARP, regardless of whoever is the current title-holder to the land, considering that the transferor has no right of

disposition of these lands since CARP coverage of these lands is mandated by law as of June 15, 1988. Any landholding still

registered in the name of the landowner after earlier dispositions up to an aggregate of five (5) hectares are no longer part of his

retention area and therefore shall be covered under CARP.

15. CARP covered agricultural lands which are to be expropriated or acquired by the local government units (LGUs) and to be

used for actual, direct and exclusive public purposes, such as roads and bridges, public markets, school sites, resettlement sites,

local government facilities, public parks and barangay plazas or squares, consistent with the approved local government land use

plan, shall not be subject to the five-hectare retention limit. However, prior to the expropriation/acquisition by the LGU, the subject

land shall first undergo the land acquisition and distribution process of the CARP, and the ARBs therein shall be paid just

compensation without prejudice to their qualifying as ARBs in other landholdings under the CARP.

16. The title of the land awarded under the agrarian reform program must indicate that it is an Emancipation Patent (EP) or

Certificate of Land Ownership Award (CLOA) and any subsequent transfer of title must also indicate that it is an EP or a CLOA.

17. Pursuant to Section 4 of R.A. No. 9700, an LGU may, through its Chief Executive and/or an ordinance, exercise the power

of eminent domain on agricultural lands for public use, purpose, or welfare of the poor and the landless, upon payment of just

compensation to agrarian reform beneficiaries (ARBs) on these lands, pursuant to the provisions of the Constitution and pertinent

laws. The power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the ARBs,

and such offer was not accepted. In cases where the land sought to be acquired has been issued with a Notice of Coverage or is

already subject to voluntary offer to sell (with letter-offer submitted to DAR) the concerned LGU shall suspend the exercise of its

power of eminent domain until after the LAD process has been completed and the title to the property has been transferred to the

ARBs. cDACST

Where agricultural lands have been subjected to expropriation, the ARBs therein shall be paid just compensation. For this

purpose, lands ―subjected to expropriation‖ includes all agricultural lands which have been reviewed and approved by the DAR to

be actually, directly and exclusively used by the LGU for public purpose with a case for expropriation already filed by the LGU

before a judicial court. ARBs are those who have been certified by the Barangay Agrarian Reform Council (BARC) and DAR as

beneficiaries of the subject landholdings.

18. The expropriation/conversion of agricultural lands shall be subject to the existing guidelines of DAR on land conversion.

Irrigable and irrigated lands where (1) there is agricultural activity, (2) land is suitable for agriculture, or (3) the land is presently

occupied and tilled by farmers shall not be subject of expropriation by the LGUs.

C. Land Acquisition

1. Pursuant to Section 3 of R.A. No. 9700, the landholdings of LOs owning a total of five (5) hectares or less shall not be

subject of acquisition and distribution under CARP.

2. Landholdings above five (5) hectares which were offered under voluntary land transfer (VLT) and not approved by the

DAR shall be covered under compulsory acquisition (CA).

All VLT applications submitted to DAR after June 30, 2009 shall no longer be processed.

3. Landowners (LOs) may voluntarily offer their private agricultural lands for coverage under R.A. No. 6657, as amended or

under R.A. No. 9700. Upon its acceptance by the DAR, the Letter-Offer for coverage under Voluntary Offer to Sell (VOS) can no

longer be withdrawn. In any case, the DAR can immediately subject such landholding to coverage under compulsory acquisition

and distribution under CARP notwithstanding the schedule of prioritized phasing under R.A. No. 9700.

The acceptance letter for VOS shall stipulate that upon offer under VOS, the schedule of coverage under R.A. No. 9700 is

deemed waived.

Landowners who received NOCs for their landholdings under Compulsory Acquisition (CA) may be allowed to shift to

Voluntary Offer to Sell (VOS), provided, that the claim folder (CF) for the subject landholding has not yet been received by the

Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for valuation.

4. Landowners who have voluntarily offered their landholdings for coverage under CARP and those who have previously

waived their rights to retain are disqualified from becoming ARBs of other landholding/s being covered or to be covered under

CARP. The LO’s voluntary offer or his previous waiver is construed to be his inability and/or unwillingness to cultivate the land and

make it productive. EcIDaA

Likewise, children of the same landowners who were not nominated as preferred beneficiaries are disqualified from

becoming an ARB in another landholding following the qualification criteria pursuant to Section 22 of R.A. No. 6657, as amended.

5. For tenanted lands or lands under leasehold, the Agrarian Reform Beneficiary/ies (ARB/s) shall continue to pay their lease

rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues a Certification of Deposit (COD).

6. As a general rule, untitled public alienable and disposable (A & D) lands are within the jurisdiction of the Department of

Environment and Natural Resources (DENR) pursuant to Commonwealth Act (C.A.) No. 141 (Public Land Act). However, subject

lands are deemed ―private‖ and for coverage by the DAR, if all the requisites specified in R.A. No. 6940, as amended by R.A. No.

9176 for the determination whether or not private rights over a landholding have already been acquired based on the following:

a. Continuous occupancy and cultivation by oneself or through one’s predecessors-in-interest for at least thirty (30) years

prior to the effectivity of R.A. No. 9176 on December 4, 2002 (i.e., December 1972);

b. The land must have been classified as alienable and disposable for at least thirty (30) years prior to the effectivity of R.A.

No. 9176;

c. One must have paid the real estate tax thereon; and

d. There are no adverse claims on the land.

In cases where the DAR and DENR have jointly identified specific untitled properties that may be covered under the LAD

component of CARP, the DENR-Community Environment and Natural Resources Office (CENRO)/Provincial Environment and

Natural Resources Office (PENRO) or Regional Technical Director (RTD) — Land Management Service (LMS) shall issue the

certification that the subject tract of land is within an area classified as alienable and disposable.

7. The current list of all lands covered by NOCs and all remaining unacquired and undistributed landholdings covered under

CARP that are in the process of acquisition and distribution or will be acquired based on the schedule of priorities under Section 5

of R.A. No. 9700 shall be submitted by the DARPO to the ROD concerned for segregation of the corresponding original copy of

the Certificates of Title of all these lands from the regular volume or files of the Registry, and the compilation of the same in a new

separate volume (CARP Volume) until the customary number of titles constituting a regular volume is reached. This CARP

Volume shall be treated as a restricted volume and any voluntary transaction on any of the titles included in this restricted file shall

be subject to clearance in writing from the PARO. The maintenance of the CARP Volume shall be undertaken by the LRA-CARP

personnel under the supervision of the ROD. AHaDSI

8. Any title contained in the CARP Volume shall only be returned to the general/regular file upon proof that the property

covered by said title is exempted, excluded or ascertained to be outside CARP coverage. Such proof may be in the form of a

Court Order or DAR Order which has become final and executory.

9. The ROD shall issue a Transfer Certificate of Title (for titled properties) and an Original Certificate of Title (for untitled

properties) in the name of the Republic of the Philippines (RP title) upon receipt of a copy of the LBP’s Certification of Deposit

(COD) from the DARPO.

10. Landholdings distributed by the DENR under R.A. No. 6657, as amended shall no longer be acquired and distributed by

the DAR.

11. Landholdings subject of acquisition shall be validated based on ownership documents and on the projection by the DAR

on DENR land classification maps to determine whether or not the areas are alienable and disposable.

12. All projections undertaken by the DARPO on land titles, whether administratively or judicially (survey was based on the

cadastral map of the Department of Environment and Natural Resources {DENR}) issued, shall be confirmed or validated by the

DENR-Community Environment and Natural Resources Office (CENRO) or Provincial Environment and Natural Resources Office

(PENRO) as to the land classification status of said lands.

All projections undertaken by the DARPO on lands covered by judicially issued titles and whose survey was based on the

Private Survey (Psu) Plan of the Land Registration Authority (LRA) shall be confirmed or validated by the LRA on whether these

lands do not overlap with other titled or decreed property.

13. Titles judicially issued prior to 1921 based on Act No. 2874 need not be validated or confirmed by the DENR-

CENRO/PENRO as to their land classification status as such lands are classified as alienable and disposable. However, the

DARPO shall:

13.1 Undertake the projection as to land classification status; and

13.2 Obtain a certification from the Land Registration Authority (LRA) that the property does not overlap with a titled or decreed

property. Such certification shall include, among others, the Judicial Decree number, date of issuance of Decree, name of

adjudicatee, location and area.

Such properties that partially overlap with other titled or decreed properties shall be segregated accordingly during the

conduct of survey by the landholdings subject of acquisition. The acquisition and distribution of such landholdings that either

partially or fully overlap with decreed properties shall continue regardless in whose name the decree is. TCaEIc

14. As a general rule, the conduct of survey to determine land use, segregation of coverable and not coverable area, and

subdivision survey shall be undertaken prior to field investigation (FI). The PARO shall ensure that all field survey activities shall

be completed before the conduct of field investigation (FI).

However, in the event that the finalization of the master list of ARBs will necessitate resolution of petitions for inclusion and

exclusion of ARBs in the master list, the PARO shall inform the Land Bank of the Philippines (LBP) regarding the matter, in which

case, the conduct of subdivision survey will come after the field investigation (FI) or upon the finalization of the master list of ARBs

so as not to delay the land acquisition process.

15. The Land Use Management and Development (LUMD) fund shall be released and utilized only for CARP covered lands

with Requisition Survey Services (RSS) approved by the DAR’s Bureau of Land Development (BLD), pursuant to existing

guidelines on requisition, approval and monitoring of survey services.

16. A landowner-mortgagor of a foreclosed agricultural land where the two-year right of redemption period has already expired

and is subsequently to be covered under CARP, cannot qualify as an ARB on the foreclosed land notwithstanding his/her being in

actual possession and cultivation thereof. The DAR shall be responsible for taking possession of the land by negotiating or filing of

the appropriate case, if necessary, and to successfully install the qualified ARB/s.

D. Land Valuation and Landowner Compensation

1. The compensation for lands covered under R.A. No. 9700 shall be: a) the amount determined in accordance with the

criteria provided for in Section 7 of the said law and existing guidelines on land valuation; or b) the value based on the order of the

DAR Adjudication Board (DARAB) or the regular court, which has become final and executory.

The basic formula for the valuation of lands covered by VOS or CA shall be:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

Where: LV = Land Value

CNI = Capitalized Net Income (based on land use and productivity)

CS = Comparable Sales (based on fair market value equivalent to 70% of BIR Zonal Value)

MV = Market Value per Tax Declaration (based on Government assessment)

1.1 If three factors are present ATcEDS

When the CNI, CS and MV are present, the formula shall be:

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)

1.2 If two factors are present

1.2.1 When the CS factor is not present and CNI and MV are applicable, the formula shall be:

LV = (CNI x 0.90) + (MV x 0.10)

1.2.2 When the CNI factor is not present, and CS and MV are applicable, the formula shall be:

LV = (CS x 0.90) + (MV x 0.10)

1.3 If only one factor is present

When both the CS and CNI are not present and only MV is applicable, the formula shall be:

LV = MV x 2

In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same estate

under consideration or within the same barangay, municipality or province (in that order) approved by LBP within one (1) year

from receipt of Claim Folder (CF.)

The specific guidelines governing the valuation of lands under voluntary offer to sell (VOS) or compulsory acquisition (CA)

pursuant to R.A. No. 6657, as amended by R.A. No. 9700 are provided in CARP-LAD Annex A of this Order.

2. All previously acquired lands wherein valuation is subject to challenge by landowners shall be completed and finally

resolved pursuant to Section 17 of R.A. No. 6657, as amended.

In like manner, claims over tenanted rice and corn lands under P.D. No. 27 and Executive Order (E.O.) No. 228 whether

submitted or not to the Land Bank of the Philippines (LBP) and not yet approved for payment shall be valued under R.A. No. 6657,

as amended.

Landholdings covered by P.D. No. 27 and falling under Phase I of R.A. No. 9700 shall be valued under R.A. No. 9700.

3. In cases of rejection, landowners may withdraw the original value of the landholding as determined by the Department of

Agrarian Reform (DAR) and Land Bank of the Philippines (LBP) per Memorandum of Valuation (MOV) and subsequently

deposited in their names, subject to their submission of the requirements for payment. ATESCc

When the LO later accepts the original value or as recomputed by the LBP based on existing valuation guidelines, mere

filing of a manifestation by the LO as regards the acceptance of the original value or a joint manifestation by the LO and the LBP

on the recomputed value with the DAR Adjudication Board (DARAB) shall automatically terminate the just compensation case

pending thereat.

4. Landowners, other than banks and financial institutions, who voluntarily offer their lands for sale, shall be entitled to an

additional five percent (5%) cash payment.

5. For landholdings which were conveyed after the effectivity of R.A. No. 6657, the LBP shall consider the transferor as the

payee.

However, payment must be released to the LO-transferee if the LO-transferor issues a Special Power of Attorney (SPA) or

Deed of Assignment in favor of the former.

6. In the determination of the Annual Gross Production (AGP), Selling Price (SP) and Cost of Operation (CO) to be used in

the land valuation, the audited financial statement filed with the Bureau of Internal Revenue (BIR) shall be obtained by the

DARMO from the LO fifteen (15) days prior to the date of field investigation. If the landowner fails to submit the same, the DAR

and LBP may adopt applicable industry data or, in the absence thereof, conduct an industry study on the specific crop.

7. Small portions or patches within the covered landholdings which are determined to be less productive than the bigger

portion during the conduct of joint field investigation shall be valued based on the current use of the adjacent portions, provided

that said small portions or patches shall not exceed 10% of the productive area.

Likewise, small portions or patches of landholdings above 18 percent slope, undeveloped and of no use to the landowner

shall be valued as idle provided it shall not exceed 10% of the covered landholding.

E. Farmer Beneficiary Identification, Screening and Selection

1. Farmers/Tillers and farmworkers who meet the following qualifications shall be eligible as beneficiaries under the

Comprehensive Agrarian Reform Program:

1.1 General Qualifications. All agrarian reform beneficiaries must be:

1.1.1 Landless as defined by R.A. No. 6657, as amended and under Item III (1) of this Order;

1.1.2 Filipino citizen;

1.1.3 Permanent resident of the barangay and/or municipality where the landholding is located as provided under Section 22 of

R.A. No. 6657, as amended.

1.1.4 At least fifteen (15) years of age at the time of identification, screening and selection of farmer-beneficiaries; and

1.1.5 Willing, able, and equipped with the aptitude to cultivate and make the land productive.

1.2 Specific Qualifications for Farmworkers in Commercial Farms and Plantations. In addition to Item 1.1 above, the applicant

must have been employed as of June 15, 1988 in the landholding covered under CARP.

All farmworkers who are holding managerial or supervisory positions as of June 15, 1988 shall not qualify as ARBs.

However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened and

selected shall remain as qualified ARBs. TIcEDC

2. Qualified beneficiaries shall be prioritized as follows:

2.1 agricultural lessees, share tenants and regular farmworkers;

2.2 seasonal farmworkers;

2.3 other farmworkers;

2.4 actual tillers or occupants of public lands;

2.5 collectives or cooperatives of the above beneficiaries; and

2.6 others directly working on the land.

3. The following are grounds for disqualification in the identification of ARBs of the CARP:

3.1 Failure to meet the qualifications as provided for under Section 22 of R.A. No. 6657, as amended;

3.2 Execution of a waiver of right to become an ARB in exchange for due compensation and such waiver has not been

questioned in the proper government entity as of the approval of this Order;

3.3 Non-payment of an aggregate of three (3) annual amortizations and failure to exercise the right of redemption/repurchase

within two (2) years resulting in the foreclosure of mortgage by the LBP of a previously awarded land;

3.4 Deliberate non-payment of three (3) annual amortizations to the landowner (LO) resulting in the repossession by the

landowner (in the case of voluntary land transfer/direct payment scheme or VLT/DPS) of the awarded land;

3.5 Dismissal from the service for cause upon a judgment that is final and executory (and there is no case filed questioning

said dismissal) as of the approval of this Order and if there is any such case, the same has been affirmed with finality by the

proper entity of government;

3.6 Obtaining a substantially equivalent and regular employment, as defined in Item III (9) of this Order;

3.7 Retirement from the service, whether optional or mandatory, or voluntary resignation, provided this was not attended by

coercion and/or deception, and there is no case questioning said retirement or voluntary resignation by the applicant as of the

date of approval of this Order;

3.8 Misuse or diversion of financial support services extended by government (Section 37 of R.A. No. 6657, as amended);

3.9. Negligence or misuse of the land or any support extended by government (Section 22 of R.A. No. 6657, as amended);

3.10 Material misrepresentation of the ARB’s basic qualifications as provided for under Section 22 of R.A. No. 6657, as

amended, P.D. No. 27, and other agrarian laws;

3.11 Sale, disposition, or abandonment of the lands awarded by government under CARP or P.D. No. 27 which is violative of

the agrarian laws;

3.12 Conversion of agricultural lands to non-agricultural use without prior approval from the DAR;

3.13 Final judgment for forcible entry into the property or for unlawful detainer; and IDETCA

3.14 Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality

after proper proceedings by the appropriate tribunal or agency.

4. Only after the agricultural lessees and share tenants, and regular farmworkers have each been awarded three (3) hectares

pursuant to Section 8 of R.A. No. 9700, shall other qualified beneficiaries such as seasonal farmworkers, other farmworkers,

actual tillers/occupants of public lands, collectives or cooperatives of the above beneficiaries, and others directly working on the

land, be accommodated.

5. The child of an LO shall be given preference in the distribution of his/her parent’s land pursuant to existing rules and

regulations on award to children of LOs provided he/she meets all of the following criteria:

5.1 Filipino citizen;

5.2 At least fifteen (15) years of age; and

5.3 Actual tiller or directly managing the farm as of the time of the conduct of field investigation of the landholding under

CARP.

However, only untenanted portions of the landholding may be subject to award to qualified children of the LO and actual

tenant-tillers in the landholding shall not be ejected or removed therefrom. An LO’s child cannot claim that he/she is directly

managing the farm or a specific area of tillage, if the same has tenants or lessees, considering that the tenants on the land have

the right to directly manage the land or area of tillage with the obligation to pay the LO lease rental therefor.

6. In the event that the agricultural land for distribution in commercial farms or plantations is sufficient following the order of

priority under Section 22 of R.A. No. 6657, as amended, the farmworker-beneficiaries therein on or prior to 15 June 1988, shall

enjoy priority of award of a maximum of three (3) hectares.

On the other hand, farmworkers who were hired after the effectivity of R.A. No. 6657 shall be accommodated based on

their length of service, reckoned from 15 June 1988, and subject to Item IV (F) (1.2) of this Order.

7. All potential ARBs of a landholding who have been included in the preliminary list, including those who have signified their

intent or interest with the DARMO to be included in the preliminary list of potential ARBs thereof, must submit the essential

documents to prove their qualifications as ARBs as provided under Item V (D.1.d) of this Order within fifteen (15) days from

posting of the said list.

Potential ARBs who fail to comply with the submission of the required documents to prove their qualifications fifteen (15)

days from the last day of posting of the preliminary list of ARBs shall not be delisted from the preliminary list of ARBs. The

DARMO shall use available documentary evidence at hand, if any, or exhaust all efforts to gather the necessary

information/evidence as bases in the evaluation of the potential ARB’s qualifications and inclusion in the said list.

8. For the purpose of screening and selection of qualified ARBs in commercial farms, plantations and other landholdings that

qualify for collective distribution under Item IV (F) (4) of this Order, all concerned PAROs shall create a Beneficiary Screening

Committee (BSC) whose members shall be composed of the PARO as the Ex-Officio Chairperson, the MARO, the DARPO Legal

Offer, the Provincial Agrarian Reform Coordinating Committee (PARCCOM) Chairman or his representative and the BARC

Chairman of the area where the landholding is located or his representative, pursuant to DAR A.O. No. 7, Series of 2003.

The BSC may invite the landowner/s and/or civil society organization (CSO) representatives in the area to serve as

resource persons in the ARB selection and screening process, as may be necessary.

The BSC shall exercise exclusive jurisdiction in the screening and selection of ARBs in commercial farms, plantations and

other landholdings for collective distribution to ARBs.

9. Qualified beneficiaries in a particular landholding shall include those determined/identified by the DAR during the actual

investigation and documentation process. The master list of ARBs selected by the MAROs or the Beneficiaries Screening

Committee (BSC) in the case of commercial farms or plantations, shall be certified under oath by the BARC and further attested to

under oath by the LO in so far as his tenants, lessees and regular farmworkers in the landholding are concerned, pursuant to Item

IV (E) (10) of this Order. TacADE

10. The right of the LO to attest to the master list of ARBs in so far as the tenants, lessees and regular farmworkers in his/her

landholdings are concerned, is deemed waived after the lapse of fifteen (15) days from his/her receipt of the said master list of

ARBs, if he fails to act on it within the said period. Thereafter, the master list of ARBs shall become final and executory.

Landowners who fail, refuse or delay the issuance of the attestation despite proof of qualification of the beneficiaries, shall be

liable under Sections 24 and 25 of R.A. No. 9700.

In case of partial or full non-attestation or repudiation by the LO of the ARBs in the master list, the LO shall be required to

submit evidence to sustain his partial or full non-attestation, repudiation of ARBs, and/or substitution or addition to the master list

of ARBs.

The landowner’s refusal to attest to all or specific ARB/s in the master list despite the presentation of proof of their being

either tenants or lessees or regular farmworkers shall not in any way delay the LAD process. The MARO shall submit a report on

this to the PARO.

11. The DARPO shall, within fifteen (15) days from receipt of the DARMO’s report, conduct a revalidation of the qualifications

of the ARBs’ being tenants or lessees or regular farmworkers in cases where the landowner refuses to attest to:

11.1 Specific ARBs in the master list of ARBs (partial attestation);

11.2 Specific ARBs in the master list of ARBs (partial attestation) and identifies other ARBs either by substitution or addition

whom the LO claims are his tenants, lessees or regular farmworkers; or

11.3 All ARBs in the master list of ARBs (full non-attestation) and identifies other ARBs either by substitution or addition whom

the LO claims are his tenants, lessees or regular farmworkers.

Should the PARO find that there is possible merit to the LO’s partial or full non-attestation of the master list of ARBs, he

shall order the BARC to conduct compulsory arbitration within thirty (30) days to pass upon the issue.

The BARC shall submit a report of its findings within five (5) days after arbitration to the PARO who shall then evaluate

and finally determine the qualifications of the ARBs in the master list. The PARO’s decision shall be final in so far as the master

list is concerned.

12. Protests for inclusion/exclusion from the master list of qualified ARBs may be filed in writing at the DARPO by an

interested party not later than fifteen (15) days from the last day of posting of the master list, for resolution within thirty (30) days

from receipt of the same.

13. The master list of qualified ARBs becomes final after the lapse of fifteen (15) days from issuance of the PARO’s decision

on the protest and receipt of the same by the parties.

14. The authority of the PARO to determine ARBs’ qualifications is specifically limited in the context of partial attestation or full

non-attestation by the LO and to resolve protests and petitions on the ARBs’ qualifications to be included in the master list. After

this phase, the other processes and the authority to decide on the determination of ARBs’ qualifications under specific issuances

(e.g., inclusion/exclusion of ARBs issued with CLOA from the master list of ARBs under agrarian law implementation cases) shall

remain.

15. In case an appeal/motion for reconsideration is filed on the PARO’s decision/s or order/s for inclusion/exclusion of potential

ARBs in/from the master list, the rules and procedures provided under the existing agrarian law implementation (ALI) rules shall

be followed.

16. The ARBs who qualify under the screening process shall state under oath before the judge of the city or municipal court

that he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the

compensation of the land and the land taxes thereon as stipulated in the Application to Purchase and Farmer’s Undertaking

(APFU).

ARBs in the master list who fail or refuse to execute and sign the APFU shall be given thirty (30) days from the date of

receipt of the APFU to sign it. Failure to sign the APFU within the reglementary period of thirty (30) days shall be considered as a

waiver of right to become an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to

sign and execute the APFU within the prescribed period.

F. Land Distribution

1. Equitable distribution of the land shall be observed subject to the following considerations:

1.1 Landholdings covered by CARP shall be distributed first to agricultural lessees and share tenants and regular farmworkers

of the same landholding up to a maximum of three (3) hectares each. Only when the qualified agricultural lessees and tenants and

regular farmworkers by order of priority under Section 22 of R.A. No. 6657, as amended, shall have received three (3) hectares

each, shall the remaining portion of the subject landholding, if any, be distributed to seasonal and other farmworkers, actual tillers

or occupants of public lands, collectives or cooperatives of the beneficiaries and others directly working on the land, pursuant to

R.A. No. 9700.

1.2 Excess areas subsequent to the three-hectare award to entitled beneficiaries pursuant to R.A. No. 9700, shall be

distributed to other qualified beneficiaries without prejudice to the consideration of immediate family members of agricultural

lessees/tenants/farmworkers who are actually tilling/cultivating such lands as ARBs, subject to the procedures on screening and

selection of ARBs. However, the tenants/lessees in such excess areas shall be given reasonable time to harvest the produce of

his/her crop, subject to the rules on standing crops.

In cases where the land area is not enough to meet the three-hectare award ceiling for each agricultural lessee and tenant

in a particular landholding, the area to be distributed to them shall be based on the actual size of tillage by each tenant/lessee.

Other qualified beneficiaries under Section 22 of R.A. No. 6657, as amended, who are displaced after the distribution of all

available land to tenants/lessees, may still qualify as ARBs in other lands covered under the CARP.

In cases where the three-hectare award limit is satisfied for tenants, lessees and regular farmworkers, the remaining lands

shall be distributed to agrarian reform beneficiaries following the order of priority under Section 22, Items c to f of R.A. No. 6657,

as amended, at an award limit of three (3) hectares each, using the following as the criteria for prioritization in case the land is not

economically feasible and sound to distribute among all the remaining ARBs: ISTHED

a. willingness, aptitude and ability to cultivate and make the land as productive as possible;

b. physical capacity; and

c. length of service.

If there are ARBs who equally meet the foregoing criteria, priority shall be given to ARBs who have continuously worked

on the subject landholding.

The other farmworkers on the land who cannot be accommodated shall be put in a wait list of potential ARBs who will be

awarded in other landholdings covered by the CARP.

1.3 For untenanted land, all the farmers/tillers/farmworkers therein who qualify under the existing guidelines on the

identification, screening and selection of Agrarian Reform Beneficiaries (ARBs), shall be considered as potential beneficiaries in

the estate, provided that the proportional share of each will not exceed three (3) hectares, otherwise, additional farmworkers shall

be considered.

1.4 For unoccupied lands, each qualified landless farmer shall be allowed the award ceiling of three (3) hectares.

2. In general, the land awarded to an ARB should be under an individual CLOA-title covering one (1) contiguous tract or

several parcels of land cumulated up to a maximum of three (3) hectares.

3. Qualified beneficiaries may opt for collective ownership, through a co-workers or farmers’ cooperative/association or some

other form of collective organization and for the issuance of collective ownership titles: Provided, That the total area to be awarded

shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award

limit of three (3) hectares, except in meritorious cases as may be determined by the Presidential Agrarian Reform Council (PARC)

and that the conditions for the grant of collective CLOAs under Item IV (F) (4.1 to 4.4) of this Order are met.

Under collective ownership, a collective CLOA to the property shall be issued in the name of the co-owners or the farmers’

cooperative/association or collective organization, as the case may be. If the CLOAs are issued to co-owners or to a farmers’

cooperatives/association, the names of the beneficiaries must be listed in the CLOA.

4. Collective CLOAs may be issued to farmers’ cooperatives/associations under the following instances:

4.1 The current farm management system of the land covered by CARP is not appropriate for either individual farming or

division of the landholding into farm parcels;

4.2 The farm labor system is specialized, where the farmworkers are organized by functions such as spraying, weeding,

packing and other similar activities and not by specific parcels;

4.3 The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas;

and

4.4 The farm consists of multiple crops being farmed in an integrated manner or includes non-crop production areas that are

necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot

be subdivided or assigned to individual farmers.

5. If the conditions for the issuance of collective CLOAs no longer exist, the landholding shall be parcelized/subdivided and

the ARBs subsequently issued individual CLOA-titles.

6. For idle and abandoned lands or undeveloped agricultural lands to be covered by CARP, collective ownership shall be

allowed only if the beneficiaries opt for it and there is a clear development plan that would require collective farming or integrated

farm operations exhibiting the conditions described in Item IV (F) (4.1-4.4) of this Order. Otherwise, such lands awarded to ARBs

should be under individual CLOAs/titles, covering one (1) contiguous tract or several parcels of land cumulated up to a maximum

of three (3) hectares.

7. As a general rule, the DAR shall take immediate possession of a landholding upon the issuance of Transfer Certificate of

Title (TCT) or Original Certificate of Title (OCT) in the name of the Republic of the Philippines (RP) by the concerned Registry of

Deeds (ROD), and shall thereafter immediately proceed with the distribution process to the qualified agrarian reform beneficiaries

of the landholding pursuant to Section 16 of R.A. No. 6657, as amended.

8. The ARBs have the right of usufruct over the land from the time the DAR takes constructive and actual possession of the

same until the award of a CLOA.

Pending the award of the CLOA and for the purpose of establishing usufructuary rights, the DAR, upon transfer of the title

in the name of the Republic of the Philippines and it takes actual possession of the land, shall immediately inform the ARBs that

they have been identified and qualified to receive the land.

9. The existence of labor-related problems between the landowner and the farmworkers, including questions on ownership of

the subject landholding and payment of just compensation shall in no case deter or delay the process of land acquisition and

distribution.

10. The rights and responsibilities of the ARB shall commence from their receipt of a duly registered Certificate of Land

Ownership Award (CLOA) and their actual physical possession of the awarded land.

10.1 All ARBs shall exercise diligence in the use, cultivation and maintenance of the land including the improvements thereon.

Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the

forfeiture of one’s right as an ARB.

10.2 Lands awarded to ARBs under this Act may not be sold, transferred or conveyed except through hereditary succession or

to the Government, or to the LBP, or to other qualified beneficiaries within a period of ten (10) years; Provided, however, that the

children or the spouse of the transferor shall have a right to repurchase the land from the government or the LBP within a period of

two (2) years from the date of transfer.

10.3 ARBs have the obligation to pay the LBP in thirty (30) annual amortizations with interest at six percent (6%) per annum

unless the ARB opts to accelerate payment.

10.4 Amortization payments shall commence one (1) year from the date of the CLOA registration. However, if the actual

occupancy of the ARB takes place after the CLOA registration, the amortization shall start one (1) year after the constructive and

physical occupation of the land by the ARB.

11. The ARB Cooperative/Association shall assume the responsibility of paying the local government unit (LGU) the real

property tax (RPT) of collectively awarded land subject to the provisions of the Cooperative Code of the Philippines.

12. Land improvements and facilities such as roads, bridges, warehouses, irrigation systems and the like, for common use and

benefit as may be defined by DAR, may be transferred through a Farmers’ Association or Cooperative, or in the absence thereof,

through co-ownership, and equally shared payments covered under either individual or collective land amortizations, as the case

may be.

13. Agricultural lessees and tenants, regular farmworkers and other qualified beneficiaries such as seasonal farmworkers,

other farmworkers, actual tillers/occupants of public lands, members of collectives or cooperatives of the above beneficiaries, and

others directly working on the land who are husband and wife may be entitled to three (3) hectares each provided that they qualify

as ARBs in their own individual rights and that their respective vested rights to the land have been duly established. A separate

CLOA shall be issued to each spouse in such cases. ATCaDE

14. For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be preceded by the

word ―spouses‖. Should the couple qualify as individual ARBs, their names shall be registered in the title, to wit: Juan married to

Maria or Maria married to Juan to indicate that the first name is the awardee. In the case of common-law relationship, the names

of both parties shall likewise appear in the CLOA with the conjunctive word ―and‖ between their names. Should they likewise

qualify as individual ARBs, their names shall be registered without the other. The same provisions shall apply in cases where the

married ARBs or ARBs in a common-law relationship are covered by a collective/co-ownership CLOA and their names annotated

at the back of the said CLOA.

For purposes of ARB inventory and reporting, spouses or parties whose names appear in a single CLOA shall be counted

as one ARB.

15. It is the ministerial duty of the ROD to:

15.1 Issue the title of the land in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds

have been deposited in the name of the landowner constituting full payment in cash and bonds, with due notice to the landowner;

15.2 Register the CLOA generated by DAR;

15.3 Cancel previous titles pertaining thereto; and

15.4 Issue title to the LO’s retained area.

16. All registered CLOAs shall be released by the Registry of Deeds (ROD) to LBP as the mortgagee financing institution. The

LBP shall be the responsible repository of the encumbered CLOAs until the time of their release to the concerned ARBs upon full

payment of the land amortization, and the cancellation of the encumbrance.

G. Installation of Agrarian Reform Beneficiaries on Awarded Lands

1. As owners of awarded lands under CARP, the ARB/s shall take possession of the land covered by his/her/their titles from

the time the same is awarded to them through a registered CLOA.

In case taking possession of the awarded land by the ARBs would imperil or endanger their lives, the DAR shall assume

responsibility for the installation of the ARB/s on the subject land with the assistance of the police or military until they are settled

and in constructive and physical control of the property.

2. As a general rule, there shall only be a one time installation of ARBs on their specific area of tillage as indicated in their

CLOAs, rendering them in constructive and physical possession of the same.

The DAR shall assist the ARBs in reporting cases of threat/harassment or ejection attempts by the former landowner or

other parties to the police or military, and the filing of appropriate legal action against those responsible, if warranted.

3. In case the installation activities would necessitate the provision of police and/or military forces to assist the DARMO

personnel, the Provincial Agrarian Reform Officer (PARO) shall coordinate the said activities with the Department of National

Defense-Armed Forces of the Philippines (DND-AFP) and the Department of Interior and Local Government-Philippine National

Police (DILG-PNP), pursuant to the existing guidelines per Memorandum of Agreement executed by the DAR, Department of

Interior and Local Government (DILG), and Department of National Defense (DND).

4. In the event that the former landowner harasses or threatens the ARB/s installed by the DAR, the affected ARB/s shall

immediately report the matter to the concerned PNP and the DAR. The ARBs should be assisted by the DAR Regional/Provincial

Legal Division, Public Attorney’s Office (PAO) and the Office of the City/Provincial Prosecutors.

5. If upon the effectivity of this Order, the former landowner deliberately acts to delay, stall or obstruct the installation of the

ARBs, a criminal case shall be filed against him/her for violation of Sec. 73 (d) of R.A. No. 6657, as amended. Moreover, the DAR

shall ask that the landowner be held liable by the Court for actual, compensatory and moral damages suffered by the ARB/s.

V. Operating Procedures for the Land Acquisition and Distribution Process

Steps DAR Office/ Activity Forms/Documents

Agency/ Required

Person

Responsible

A. PREPARATION, ISSUANCE AND PUBLICATION OF THE

NOTICE OF COVERAGE

(See CARP-LAD Annex ―E‖ for the Process Flow)

A.1 Projection of Lands for Coverage

A.1.a DARPO Project landholdings for coverage

under CARP in the Department

of Environment and Natural

Resources (DENR) Land

Classification Maps to determine

whether or not the areas are

alienable and disposable, and do

not overlap with any decreed

property. CSaIAc

• If the land is found to be

adjacent to forest or timber

land, determine the date of

issuance of the title. In case

the title was issued prior to

1921 based on Act No. 2874,

the subject land is definitively

considered as alienable and

disposable, and the procedure

in Item V(A)(2) of this Order

shall be undertaken.

• If the title was issued on or

after 1921 based on Act No.

2874, determine whether

these were issued

administratively or judicially.

• For landholdings covered by

judicial titles and the

survey was based on the

Land Registration Authority

(LRA)-Private Survey (PSu)

Plan, the procedure outlined

in Item V(A)(3.1) of this

Order shall be followed.

• For landholdings covered by

administrative titles or

judicial titles and the survey

was based on the DENR

Cadastral Plan, the procedure

outlined in Item V(A)(3.2)

of this Order shall apply.

A.1.b DARPO In the case of untitled properties,

a certification from the LRA

and DENR regarding the status

of the landholding shall be

obtained observing the

following procedures: cTaDHS

• Submit the list of untitled

properties to the DENR-

CENRO/PENRO for

validation on whether

or not the said landholdings

are alienable and disposable,

and for subsequent issuance

of a certification on the matter.

Likewise, submit the same

list to the Bureau of Land

Development (BLD) for it

to obtain the same certification

from the LRA informing

whether these landholdings

are within or outside a

decreed property.

• Upon receipt of both

certifications, undertake

the following:

1. If the untitled land totally

overlaps with a decreed

property, continue with

the acquisition and

distribution of the decreed

property regardless in

whose name the decree is.

2. If the untitled property is

totally not alienable and

disposable, discontinue

with the coverage of the

subject land.

3. If the untitled land partially

overlaps with a decreed

property, or it is partially

alienable and disposable,

ensure that the portions

of the said lands that are

within the decreed property

and those that are not

alienable and disposable

are segregated during the

conduct of survey.

Likewise, continue with

the acquisition and

distribution of both the

landholding that partially

overlaps with a decreed

property as well as the

latter regardless in

whose name the

landholdings are.

A.1.c DARPO Prepare, in coordination with • CARP-LAD Form

the DARMO, the preliminary No. 1 (Preliminary

information on all Information on

landholdings which were Landholdings

validated and projected by the Validated and

DARPO and subject of joint Projected and

field investigation using Subject of Joint

CARP-LAD Form No. 1. Field Investigation)

A.2 Validation of Landholdings for Coverage

A.2.a DARPO Submit to the BLD list of

landholdings with titles or

decrees issued prior to 1921

based on Act No. 2874.

A.2.b BLD Obtain a certification from

the LRA that the subject

landholdings do not overlap

with a titled or decreed

property.

A.2.c LRA Validate if the subject

landholding overlaps with

a titled or decreed property

based on records and

projections.

Prepare and transmit to

the BLD a certification

regarding the status of the

subject landholding which

should include the following

information: AaHcIT

– Judicial Decree No.;

– Date of issuance of

Decree;

– Name of Adjudicatee;

– Location; and

– Area.

A.2.d BLD Upon receipt of the LRA’s

certification, record and

forward the same to the

DARPO.

A.2.e DARPO • If the subject landholding

partially overlaps with a

titled or decreed property,

ensure that the overlapping

portions thereof are

segregated during the

conduct of survey. Likewise,

continue with the acquisition

and distribution of both the

landholding that partially

overlaps with a decreed

property as well as the

latter regardless in whose

name the landholdings are.

• If the subject landholding

totally overlaps with a

decreed property, continue

with the acquisition and

distribution of the decreed

property regardless in

whose name the decree is.

A.2.f DARPO Prepare, in coordination with • CARP-LAD Form

the DARMO, the preliminary No. 1 (Preliminary

information on all Information on

landholdings which were Landholdings

validated and projected by the Validated and

DARPO and subject of joint Projected and

field investigation using Subject of Joint

CARP-LAD Form No. 1. Field Investigation)

A.3 Landholdings Adjacent to Forest or Timber Land and the Decree was

Issued on or After 1921 Based on Act No. 2874

A.3.1 Landholdings Covered by Judicial Titles and the Survey was Based

on the LRA-PSu Plan

A.3.1.a DARPO Send to BLD the list of

landholdings adjacent to

forest or timber land for

revalidation to ensure that

these are alienable and

disposable.

A.3.1.b BLD Revalidate the said

landholdings which are

adjacent to forest or timber

land vis-a-vis the DENR Land

Classification Map filed at

BLD.

• If the subject

landholding/s is/are found

to be alienable and

disposable, issue a

certification as to its

findings and transmit this

back to the DARPO.

• In case the subject

landholding/s is/are found

to be totally or partially

not alienable and

disposable, transmit these

to LRA with a request for

it to validate whether or

not these lands are

alienable and disposable.

A.3.1.c LRA • Validate the landholding/s

adjacent to forest or timber

land if this/these is/are

alienable and disposable

or not based on records

and projections. SHIcDT

• Prepare a certification

regarding the status of

the landholding/s (i.e.,

alienable and disposable,

partially or fully not

alienable and disposable).

If a landholding is found

to be partially alienable

and disposable, prepare

a sketch map indicating

the approximate size,

contour and portion of

the said landholding that

is considered alienable

and disposable.

• Transmit to BLD the

certification regarding the

status of the landholding,

including the sketch map,

if applicable.

A.3.1.d BLD Upon receipt of the

certification and sketch map,

if any, send these to DARPO

for appropriate action.

A.3.1.e DARPO • If the land is partially

alienable and disposable,

ensure that portions

thereof which are found to

be not alienable and

disposable are segregated

during the conduct of the

survey.

• In case the entire area is

totally not alienable and

disposable, discontinue

with the coverage of the

subject land.

A.3.1.f DARPO Prepare, in coordination with • CARP-LAD Form

the DARMO, the preliminary No. 1 (Preliminary

information on all Information on

landholdings which were Landholdings

validated and projected by the Validated and

DARPO and subject of joint Projected and

field investigation using Subject of Joint

CARP-LAD Form No. 1. Field Investigation)

A.3.2 Landholdings Covered by Judicial or Administrative Titles and the

Survey was Based on the DENR Cadastral Plan

A.3.2.a DARPO Forward to DENR-

CENRO/PENRO the list

of landholdings adjacent to

forest or timber land for

validation to ensure that

these are alienable and

disposable.

A.3.2.b DENR- • Validate the landholdings

CENRO/ adjacent to forest or timber

PENRO land based on its records

and projections.

• Prepare a certification

regarding the status of the

landholdings (i.e., alienable

and disposable, partially or

fully not alienable and

disposable). If a landholding

is found to be partially

alienable and disposable,

prepare a sketch map

indicating the approximate

size, contour and portion

found to be alienable and

disposable. SaITHC

• Transmit to DARPO the

certification regarding the

findings on the landholding,

including a sketch map, if

applicable.

A.3.2.c DARPO • If the land is partially

alienable and disposable,

ensure that said portions

found to be not alienable

and disposable are

segregated during the

conduct of the survey.

In case the land is totally

not alienable and disposable,

discontinue with the

coverage of the subject land.

A.3.2.d DARPO Prepare, in coordination with • CARP-LAD Form

the DARMO, the preliminary No. 1 (Preliminary

information on all Information on

landholdings which were Landholdings

validated and projected by the Validated and

DARPO and subject of joint Projected and

field investigation using Subject of Joint

CARP-LAD Form No. 1. Field Investigation)

A.4 Preparation and Issuance of Notices of Coverage (NOCs)

A.4.a DARPO • Transmit to the DARMO

the validated and projected

list of landholdings in the

ICS/F1 and other

landholdings still unacquired

and undistributed but

coverable under CARP,

indicating the concomitant

phasing schedule of said

lands, giving priority to

private agricultural lands.

• Prepare and send to the • CARP-LAD Form

DARMO the claim folder No. 2 (CF

(CF) documentation Documentation

memorandum for each Memorandum)

landholding, including • CARP-LAD Form

therein the following: No. 3 (Notice of

Coverage)

1. Notice of Coverage or • CARP-LAD Form

Memorandum to the No. 4 (Directive to

MARO directing MARO to Proceed

him/her to proceed with the Coverage

with the coverage of of Agricultural

agricultural lands for Lands with NOCs)

lands already issued

with NOCs, duly

signed by the PARO

and copy furnished the

landowner (LO), as the

case may be; and

2. Preliminary information • CARP-LAD Form

on all landholdings No. 1 (Preliminary

which were validated Information on

and projected by Landholdings

DARPO and subject of Validated and

field investigation (FI) Projected and

which shall form part Subject of Joint

of the claim folder. HDTCSI Field Investigation)

A.4.b DARMO Receive the Notices of • CARP-LAD Form

Coverage for landholdings No. 3 (Notice of

still unacquired and Coverage)

undistributed but coverable • CARP-LAD Form

under CARP or the No. 4) (Directive to

Memorandum to the MARO MARO to Proceed

on the coverage of with the Coverage

agricultural lands for lands of Agricultural

already issued with NOCs, as Lands with NOCs)

the case may be, and cause

the service of either

document to the LO, as the

case may be, pursuant to

Item IV(A)(11) of this Order.

A.4.c DARMO In case the LO’s residence is • CARP-LAD Form

outside the Philippines or No. 5 (Report on

unknown, or the LO refuses Failure to Serve the

to accept the NOC or there is NOC to the LO and

failure to notify the LO Request for NOC

through the regular mode of Publication)

service enumerated under • CARP-LAD Form

Item IV(A)(11) of this Order, No. 6 (NOC

submit a report of this to the Publication)

DARPO and request the

PARO to cause the

publication of the NOC in

a newspaper of general

circulation in accordance with

Item IV(A)(11.4) of this Order.

A.4.d DARMO • Post copies of the NOC for • CARP-LAD Form

at least seven (7) days in No. 3 (Notice of

the bulletin boards or any Coverage)

conspicuous places in the • CARP-LAD Form

city or municipality and the No. 7 (Certification

barangay where the of Posting

property is located and Compliance)

obtain from the proper

barangay or municipal

officer a Certification of

Posting Compliance.

• Commence with the

preparation of claim folder. TcCDIS

A.4.e Landowner Within thirty (30) calendar • CARP-LAD Form

days upon receipt of the NOC No. 8 (Landowner’s

or date of NOC publication, Letter of

submit to the DARMO the Submission of

following: Sketch Map of

Selected Retained

1. Sketch map of the entire Area and List of

property with delineation or Nominated

shading or any general Preferred

indication of the area Beneficiaries)

he/she intends to retain. In • CARP-LAD Form

case the LO fails to No. 9 (Sketch Map

identify his/her retained of the Selected

area and submit the said Retained Area)

sketch map, the DAR shall • Certified copies of

identify and choose the NSO birth

LO’s retention area; certificate/s of

preferred

2. List of name/s of beneficiary/ies

nominated child/ren as nominated by LO

preferred beneficiary/ies • Two (2) other

with address/es, documents

birthdate/s, certified true indicating parental

copies of child/ren’s birth relationship of LO

certificate/s and two (2) to each nominated

other documents with preferred

probative value showing beneficiary/ies

the parental relationship of

the LO to his/her

nominated preferred

beneficiary/ies.

In cases where the LO

contests the coverage of

his/her land under CARP, the

LO has thirty (30) calendar

days from receipt of the NOC,

or if the NOC was served

through newspaper publication,

within thirty (30) days from

date of publication to file

his/her protest/application

for exemption or exclusion

with the DARPO.

A.4.f DARMO Receive from the LO the letter • CARP-LAD Form

of submission of sketch map No. 8 (Landowner’s

of his/her retention area and Letter of

the list of nominated child/ren Submission of

as preferred beneficiary/ies Sketch Map of

and supporting documents Selected Retained

indicating parental Area and List of

relationship to preferred Nominated

beneficiary/ies. Preferred

Beneficiaries)

• CARP-LAD Form

No. 9 (Sketch Map

of Selected Retained

Area)

• Certified copies of

NSO birth certificate/s

of preferred

beneficiary/ies

nominated by LO

• Two (2) other

documents indicating

parental relationship

of LO to nominated

preferred

beneficiary/ies

B. PROCESSING OF LANDOWNER’S RETENTION AREAS

(See CARP-LAD Annex ―F‖ for the Process Flow)

B.1 Landholdings Above Five (5) Hectares

B.1.a DARMO Conduct an Ocular Inspection • CARP-LAD Form

(OCI) for reconnaissance No. 10 (OCI

purposes and to validate the Report)

following: IASEca

a. The status of the • CARP-LAD Form

landholding/s subject of No. 9 (Sketch Map

coverage and the retention of Selected

area chosen by the LO as Retained Area)

identified in the sketch

map; and

b. Names and qualifications • CARP-LAD Form

of nominated children as No. 8 (Landowner’s

preferred beneficiaries Letter of

fifteen (15) years old and Submission of

actually cultivating or Sketch Map of

directly managing the farm Selected Retained

at the time of the conduct Area and List of

of field investigation of the Nominated

landholding under CARP. Preferred

Beneficiaries)

In case the LO fails to choose • CARP-LAD Form

his/her retention area within No. 11 (Notice to

the reglementary period Landowner on the

provided in this Order, the Portion Selected as

MARO identifies the location Retention Area)

and area of the LO’s retention

area based on Item IV(B)(7)

of this Order. The MARO

shall notify the concerned LO

through personal service with

proof of receipt or by

registered mail with return

card on the portion selected

as his/her retention area.

B.1.b DARMO Prepare the Retention Folder • Retention Folder

which should include the OCI – Copy of CARP-

Report, the sketch map or LAD Form No. 8

plan of the retained area (Landowner’s

identified either by the LO or Letter of

the MARO, and copy of Submission of

Notice to Landowner on the Sketch Map of

Portion Selected as Retention Selected

Area and proof of service of Retained Area

said notice, when applicable. and List of

Nominated

Preferred

Beneficiaries)

– CARP-LAD

Form No. 9

(Sketch Map of

the Selected

Retained Area)

– CARP-LAD

Form No. 10

(OCI Report)

– Copy of CARP-

LAD Form No.

11 (Notice to

Landowner on

the Portion

Selected as

Retention Area,

if applicable)

– Proof of Service

of the Notice to

LO on the Portion

Selected as

Retention Area

B.1.c DARMO Submit Retention Folder to • Retention Folder

DARPO for review and

evaluation.

B.1.d DARPO Receive, record, review, and • Retention Folder

evaluate the Retention Folder • CARP-LAD Form

submitted by DARMO. If the No. 12

Retention Folder is in order, (Certification of

prepare the Certification of Retention)

Retention signed by the PARO

and issue the same to

the landowner through

personal service with proof

of receipt or by registered

mail with return card. In

case of incomplete data or

information, notify the

DARMO for appropriate

action.

B.1.e Landowner In case the LO opts for the • CARP-LAD Form

immediate issuance of a title No. 12

for his/her retention area after (Certification of

the issuance of Certification of Retention)

Retention by the PARO, he

can request, in coordination

with the PARO, the Registry

of Deeds (ROD) to issue a

title in the LO’s name on the

portion of his/her retained

area based on the Owner’s

Duplicate Copy of title from

the LO, Approved

Segregation Plan, and

technical description, and

Certificate of Retention.

All fees for the immediate

segregation survey of the

LO’s retention area and the

issuance of title on the same

by the ROD shall be chargeable

to the account of the LO.

B.2 Landholdings Five (5) Hectares and Below

B.2.a Landowner LOs who own lands five (5) • CARP-LAD Form

hectares or less may file a No. 13 (Request for

request for the issuance of a Certification of

Certification of Retention with Retention)

the DAR Regional Office • LO’s Affidavit of

(DARRO), DARPO or sole and aggregate

DARMO, which should be ownership of

accompanied by an affidavit agricultural land

by the LO that the said nationwide

landholding is his/her sole

and aggregate ownership of

agricultural land nationwide.

B.2.b DARRO/ Upon receipt of the request • CARP-LAD Form

DARMO for the issuance of No. 13 (Request

Certification of Retention and for Certification of

LO’s Affidavit of sole and Retention)

aggregate ownership of • LO’s Affidavit of

agricultural land nationwide, sole and aggregate

record and forward the same ownership of

to the DARPO. agricultural land

nationwide

B.2.c DARPO Evaluate the LO’s request for • CARP-LAD Form

the issuance of Certification No. 13 (Request

of Retention and validate and for Certification of

ensure that the LO has no Retention)

other agricultural lands nor • LO’s Affidavit of

has he previously availed of sole and aggregate

the right to retention on any ownership of

CARP covered land. agricultural land

nationwide

B.2.d DARPO Issue Certification of • CARP-LAD Form

Retention to the LO. No. 12 (Certification

of Retention)

B.3 Landholdings with Previous Orders of Retention

B.3.a DARPO Based on its records, issue a • CARP-LAD Form

Certification of Retention to No. 12

LOs of all landholdings with (Certification of

Orders of Retention Retention)

previously issued by the

Regional Director.

B.4 Reports on All Lands Issued Certifications of Retention

B.4.a DARPO Prepare a list of all • CARP-LAD Form

landholdings issued with No. 14 (List of

Certifications of Retention Landholdings with

and submit the same to the Issued Certification

Bureau of Land Acquisition of Retention)

and Distribution (BLAD) for

purposes of creating a

database on all lands subject

of retention and landowners

who have filed for the

issuance of a Certification

of Retention (for landholdings

five (5) hectares and below),

copy furnished the DARRO.

This must be updated every

quarter. aCTHEA

C. LAND ACQUISITION PROCESS

(See CARP-LAD Annex ―G‖ for the Process Flow)

C.1 Lands Covered under Voluntary Offer to Sell (VOS)

C.1.a LO • Files VOS in any DAR FOR TITLED

office through a notarized PROPERTIES:

Letter-Offer with

supporting basic • CARP-LAD Form

ownership documents as No. 15

stipulated under the (Landowner’s

―Forms/Documents Letter-Offer)

required‖ per Item • CARP-LAD Form

V(C.1.a) of this Order. No. 15A (Checklist

of Required

Documents)

• Certified copy of

the original

OCT/TCI on file

with ROD and

photocopy of ODC,

if available

• Certified Copy

of latest Tax

Declaration in the

name of the

registered owner

duly certified by the

Municipal/City

Assessor

• Copy of Approved

Survey Plan

certified by the

DENR-LMS

• CARP-LAD Form

No. 16 (Landowner

Information Sheet

{LOIS} duly

accomplished and

signed by the LO)

FOR UNTITLED

PRIVATE

PROPERTIES:

• CARP-LAD Form

No. 15

(Landowner’s

Letter-Offer)

• CARP-LAD Form

No. 15A (Checklist

of Required

Documents)

• Certification of the

DENR-CENRO/

PENRO or Regional

Technical Director,

Lands Management

Service, that the

tract of land

covered by the

survey is within an

area classified as

alienable and

disposable

pursuant to DAR-

DENR-LBP Joint

Memorandum

Circular No. 12,

Series of 1994 as

reconciled with

R.A. No. 9176

• Certified Approved

Survey Plan or

cadastral map and

geographical

position and plane

coordination of the

points duly certified

by the Chief,

Survey Division

of DENR

• Certified copy of

the latest Tax

Declaration from

the Assessor’s file

in the name of the

claimant with

verified and correct

lot numbers and

area per approved

survey plan

• Instruments of

acquisition covering

the subject property,

such as deeds of

sale, donation,

transfer, etc. in

favor of claimant

and those of his

predecessor/s-

in-interest

• Certification of

the Assessor

concerned showing

the Tax Declaration

issued, the

declarant/s, the

area covered, and

the basis for the

issuances and

cancellations

thereof up to the

Tax Declaration

issued in the name

of the claimant, as

well as any existing

liens on the current

and previous Tax

Declaration, where

applicable

• Certification from

the Clerk of Court

concerned whether

or not the

property/ies identified

in the approved

survey plan is/are

covered by land

registration

proceedings or any

civil case, and if

the same has been

used as a bond in

other court actions

• Certification from

the Assessor’s

Office concerned

that per their

records, the

property/ies as

appearing in the

Approved Survey

Plan is/are free

from all liens

and encumbrances

• LRA certification

that the property

is not within any

decreed or titled

property

• CARP-LAD Form

No. 16 (Landowner

Information Sheet

{LOIS} duly

accomplished and

signed by the LO)

C.1.b DARMO/ Receive and review the basic • CARP-LAD Form

DARPO/ documents enumerated under No. 15

DARRO/ Item V(C.1.a) of this Order for (Landowner’s

DARCO- completeness and require Letter-Offer)

BLAD other applicable documents • CARP-LAD Form

under different situations. If No. 15A (Checklist

the documents are of Required

incomplete, require the LO to Documents)

submit the pertinent • Same documents

document/s within thirty (30) required under Item

days from submission of V(C.1.a)

Letter-Offer. The application • CARP-LAD Annex

shall not be accepted by any ―B‖ (List of

of the receiving offices (i.e., Documents

DARMO, DARPO, DARRO, Required under

DARCO-BLAD) until all the Different Situations)

basic documents are

complied with by the LO.

C.1.c DARMO/ Forward the duly

DARRO/ accomplished Letter-Offer

DARCO- filed by the LO together with

BLAD complete basic documents to

the DARPO of the province

where the property is located.

C.1.d DARPO • Upon receipt and • CARP-LAD Annex

recording of the ―B‖ (List of

documents forwarded by Documents

the DARMO/DARRO/ Required under

DARCO-BLAD, review Different Situations)

and evaluate the

documents applicable

under different situations

as stipulated in CARP-

LAD Annex ―B‖.

• Prepare and send to the • CARP-LAD Form

concerned LO the No. 17 (Acceptance

Acceptance Letter for VOS Letter for VOS)

duly signed by the PARO.

Thereafter, forward to the

DARMO a duplicate copy

of the Acceptance Letter

for VOS, together with the

Letter-Offer and basic

documents, with the

following instruction:

a. Post the Letter-Offer • CARP-LAD Form

and Acceptance Letter No. 7 (Certification

for VOS for seven (7) of Posting

days at the barangay Compliance)

and municipal/city halls

where the property is

located and

subsequently obtain

Certification of Posting

Compliance from the

proper municipal or

barangay official; and

b. Secure from LO the

latest BIR-filed Audited

Financial Statement

supported by accounting

records which shall be

submitted by the LO

fifteen (15) days prior

to the date of field

investigation (FI). DECcAS

C.1.e DARMO • Comply with the

requirements as

enumerated under Item

V(C.1.d) of this Order.

• Conduct preliminary field • CARP-LAD Form

verification on the No. 1 (Preliminary

landholding subject of joint Information on

field investigation using Landholdings

CARP-LAD Form No. 1. Validated and

Projected and

Subject of Joint

Field Investigation)

C.2 Lands Covered under Compulsory Acquisition (CA)

C.2.a DARMO Based on the Memorandum • Same documents

to the MARO on the coverage required under Item

of agricultural lands (for lands V(C.1.a) of this

already issued with NOC as Order except

of December 10, 2009) or CARP-LAD Form

based on the NOC and No. 15

posting of the same within (Landowner’s

seven (7) days at the Letter-Offer)

barangay and municipal/city • CARP-LAD Form

halls where the property is No. 1 (Preliminary

located and the issuance of Information on

the Certification of Posting Landholdings

Compliance by the proper Validated and

municipal and barangay Projected and

official (for lands issued with Subject of Joint

NOC under this Order), the Field Investigation)

DARMO shall: • CARP-LAD Form

No. 7 (Certification

1. conduct preliminary field of Posting

verification on the Compliance)

landholding subject of

joint investigation using

CARP-LAD Form No. 1;

and

2. gather basic ownership

documents per

landholding as listed in

CARP-LAD Form No. 1.

C.3. Lands Covered under Voluntary Offer to Sell (VOS) or Compulsory

Acquisition (CA)

C.3.a DARMO In the case of lands for • LGU-MAO

collective distribution, certification on

determine, in coordination whether or not land

with the Local Government is economically

Unit (LGU) — Municipal feasible and sound

Agriculture Office (MAO) and to divide

other concerned agencies,

whether or not it is

economically feasible and

sound to divide the land

based on the conditions

for the issuance of collective

CLOA-titles as provided

under Item IV(F)(4.1 to

4.4) of this Order. A

corresponding certification

of the LGU-MAO or

other concerned agencies

shall be obtained.

If the conditions for

collective ownership so

warrant, inform the

qualified ARBs of the

need to form a farmers’

cooperative/association for

purposes of collective

distribution of the land to

them, if not yet existing.

In the case of lands that do

not meet the conditions for

collective ownership, such

lands shall be programmed

for distribution under

individual CLOA-titles. SDHAcI

C.3.b DARMO and Proceed with the screening

BSC and selection of potential

ARBs and preparation of

master list of ARBs pursuant

to Item V(D) of this Order.

C.3.c DARMO Simultaneous with the on- • CARP-LAD Form

going preparation of the CF, No. 18 (Requisition

request the DARPO for land for Survey Services

use, segregation and {RSS} Involving

subdivision survey services Lands for

for landholdings subject of Acquisition and

acquisition and distribution. Distribution)

C.3.d DARPO Receive, record and

review/evaluate the request

for survey and the documents

submitted by DARMO. In

case of incomplete

documents, data or

information, notify the

DARMO for appropriate

action.

If the documents, data or

information are complete and

in order, approve the request

for survey based on the

priority areas of the province,

and prepare survey modules

by administration or by

contract in accordance with

the existing guidelines on

bidding and award of CARP

survey projects.

C.3.e DAR Geodetic In coordination with the • Copy of

Engineer/ concerned DARMO, conduct Segregation and

Surveyor- actual land use, segregation Subdivision Survey

Contractor and subdivision surveys of Returns

the landholding. Thereafter, • Copy of Land Use

prepare Land Use Map, and Map

Segregation and Subdivision

Survey Returns, and submit

the same to the DARPO.

During the conduct of survey,

the DARMO shall ensure that

the monuments of survey are

planted in the subject

landholding.

C.3.f DARPO • Ensure that the Land Use • Segregation and

Map, and Survey Returns Subdivision Survey

(segregation and Returns

subdivision) are in order • Copy of Land Use

and complete. Map

• Submit the Survey Returns

(segregation and survey)

to the DARRO.

C.3.g DARRO • Receive, review and evaluate

the Survey Returns and

submit the same to DENR-

LMS for approval.

C.3.h DARPO • Forward to DARMO the • Schedule of Field

following: Investigation (FI)

1. schedule of field

investigation (FI) of

landholdings for

barangays in proximity

of each other for

purposes of optimizing

time and resources;

2. Land Use Map; and

3. copy of segregation

and subdivision plans

pending approval at

the DENR-LMS.

• Coordinate with the LBP

regarding the conduct of

FI, particularly as regards

failure of LO, if applicable,

to submit BIR-filed Audited

Financial Statement. This

is for purposes of

gathering applicable

industry data by the LBP

staff for use during the FI.

C.3.i DARMO Upon receipt of the

documents enumerated in

Item V(C.3.h) of this Order,

the following shall be

undertaken:

a. Secure from the LO the • CARP-LAD Form

latest BIR-filed Audited No. 19

Financial Statement (Certification on

supported by accounting Landowner’s

records fifteen (15) days Failure to Submit

prior to the date of FI. In BIR-filed Audited

case the LO fails to submit Financial

the said document, issue a Statement) or LO’s

certification regarding this. BIR-filed Audited

Financial

Statement

supported by

accounting records

b. Prepare and submit to • CARP-LAD Form

DARPO the corresponding No. 20 (CF

CF containing the Transmittal

following: Memorandum)

– Basic documents

enumerated in Item

V(C.1.a) of this Order;

– BIR-filed Audited

Financial Statement or

in the absence thereof,

certification on LO’s

failure to submit the

said document;

– CARP-LAD Form No. 1

(Preliminary

Information on

Landholding Validated

and Projected and

Subject of Joint Field

Investigation)

– Land Use Map,

Segregation and

Subdivision Plans still

pending approval; and

– Other pertinent

documents

c. Send notice to Barangay • CARP-LAD Form

Agrarian Reform Council No. 21 (Notice to

(BARC) and potential Conduct Field

ARBs and invite the LO, Investigation)

DENR, LGU-MAO (if • CARP-LAD Form

necessary) to the No. 22 (Invitation

scheduled field Letter to the LO on

investigation (FI) at least the conduct of FI)

fifteen (15) days prior to

the date of the FI.

C.3.j DARPO Receive and review the CF

for completeness of initial

documentation. If the

documents, data or

information are complete,

provide a copy of documents

attached in the CF to LBP for

use in the FI. In case of

incomplete documents, data

or information, inform the

DARMO for appropriate

action. STaAcC

C.3.k DARMO, Conduct FI of the property on • CARP-LAD Form

BARC, LBP, the scheduled date together No. 23 (Field

LO, Potential with representatives of LBP, Investigation

ARBs BARC, LO and potential Report)

ARBs, and if necessary, the • LGU-MAO

DENR and/or LGU-MAO. Certification on the

Thereafter, prepare the Field suitability of land to

Investigation Report (FIR) and agriculture, if

submit the same to the necessary

DARPO. • DENR Certification

on the slope of the

land covered under

CARP, if necessary

C.3.l DARPO If there are discrepancies

between the Field

Investigation Report (FIR)

submitted by the DARMO and

the Segregation and

Subdivision Plans that are

pending approval at the

DENR-LMS, coordinate with

the Geodetic Engineer of

DAR/surveyor-contractor to

resolve the discrepancies and

submit the corrected

Segregation and Subdivision

Plan to the DARRO.

C.3.m DARRO Submit the corrected

Segregation and Subdivision

Plan to the DENR-Land

Management Service (LMS).

C.3.n DENR-LMS Issue to the DARRO the

approved segregation and

subdivision plan with

technical description.

C.3.o DARRO Upon return by the DENR-

LMS of the Approved

Segregation Plan and

Approved Subdivision Plan

(ASP), with technical

description, forward the same

to the DARPO.

C.3.p DARPO Upon receipt of the DENR- • Approved

LMS Approved Segregation Segregation Plan

Plan and Approved and Approved

Subdivision Plan (ASP) with Subdivision Plan

technical description of the with Technical

subject property from the Description

DARRO, record and furnish

the DARMO and Assessor’s

Office a copy of the same

for reference.

D. IDENTIFICATION, SCREENING AND SELECTION OF

AGRARIAN REFORM BENEFICIARIES (ARBs)

(See CARP-LAD Annex ―H‖ for the Process Flow)

D.1 Identification and Preparation of Preliminary List of Potential

Agrarian Reform Beneficiaries (ARBs)

D.1.a DARMO With the assistance of the

DARPO, and in coordination

with the BARC, or in the

absence thereof, the

Barangay Council and

concerned non-government

organizations/people’s

organizations (NGOs/POs),

undertake information

dissemination on the activities

for the identification,

screening and selection of

ARBs through ―bandillo‖

mobile system, distribution of

flyers, farmers’ assembly or

meetings and other means

such as the use of the tri-

media (e.g., radio, local

newspapers, local television

networks).

D.1.b DARMO Gather information on the

potential beneficiaries of the

subject landholding with the

assistance of the BARC, or in

the absence thereof, the

Barangay Council and all

other reliable sources of

information in the community,

to include pertinent

information drawn from the

initial OCI/reconnaissance

activity under Item V(B.1.a)

of this Order, employment

records or payrolls in the case

of commercial farms or

plantations.

D.1.c DARMO Prepare the preliminary list of • CARP-LAD Form

potential ARBs, including the No. 24 (Preliminary

names of LO’s preferred List of Potential

beneficiaries, if any. Agrarian Reform

Beneficiaries of

CARP)

D.1.d DARMO Cause the posting of the • CARP-LAD Form

preliminary list of potential No. 24 (Preliminary

beneficiaries in the specific List of Potential

landholding for a period of Agrarian Reform

fifteen (15) days in at least Beneficiaries of

three (3) conspicuous places: CARP)

1. in the respective barangay

halls of the barangays

where the landholding is

located;

2. in the municipal halls of

the municipalities where

the landholding is located;

and

3. in other conspicuous

places in the community,

commercial farm or

plantation, as the case

may be.

The preliminary list shall be

posted in a bulletin board

shielded from the elements

and with ample space to

accommodate all the names

of the potential ARBs.

The preliminary list of • CARP-LAD Form

potential beneficiaries in the No. 25, (Request/

specific landholding shall be Petition to be

accompanied by information Included as

on the inclusion of the Potential ARB in

potential ARBs in the the Preliminary List

preliminary list and a general of Agrarian Reform

announcement written in both Beneficiaries)

English and the local dialect,

enjoining other parties who

are not in the preliminary list,

if any, to signify their intent or

interest to the DARMO to be

included as potential ARBs in

the specific landholding if

qualified. Information shall

instruct the listed potential

ARBs and other concerned

parties to submit to the

DARMO within fifteen (15)

days from the last day of

posting of the said list, which

should be stipulated therein,

any or all of the following

documents as proof of their

identity and qualification as

an ARB:

a. Community Tax Certificate

(cedula) or barangay

certificate indicating

potential ARBs as

permanent or bonafide

residents of the barangay;

b. Social Security System

(SSS) identification card

for farmworkers; ACIESH

c. Voter’s identification card

or certified copy of voter’s

registration record;

d. Other identification

documents with probative

value.

e. Certificate of aggregate

land owned by the ARB

from the city/municipal

assessor, land titles, tax,

declarations, as the case

may be;

f. Leasehold contract and/or

proof of tenancy papers, if

available;

g. Employment certificate

indicating length of service

and/or periods of

employment in the

commercial farm or

plantation, if applicable;

h. Payslips or payroll if

applicable;

i. Original or certified copy

of notice of dismissal or

retrenchment for

farmworker beneficiaries;

j. Original or certified copy of

decision, order or ruling by

a court, quasi-judicial body

or administrative agency

in the event that there was

a case related to the

dismissal, retrenchment,

etc., of the potential ARB;

k. Original or certified copy of

letter of resignation for

farmworker beneficiaries;

and

l. Other documents which

can establish the

qualifications of the

potential beneficiary in a

landholding, commercial

farm, or plantation.

D.1.e DARMO After the required fifteen-day • CARP-LAD Form

period, obtain a Certification No. 26

of Posting Compliance from (Certification of

barangay/municipal officials, Posting

and/or other authorized Compliance for List

officials in the community, of ARBS)

indicating therein the inclusive

days of posting.

D.1.f DARMO • Schedule the conduct of a

meeting with potential

ARBs in the preliminary

list and those who may

have signified their

qualification and intent to

be included as farmer

beneficiary in the subject

landholding, commercial

farm or plantation, which

shall be held not later than

thirty (30) days from the

last day of posting of the

Preliminary List of ARBs.

• In the case of commercial

farms, plantations and

other landholdings

qualified for collective

distribution, the schedule

of this meeting must be

coordinated with the

Beneficiary Screening

Committee (BSC) at the

DARPO to ensure its

presence and participation

during the meeting with

the potential beneficiaries

as provided under Item V

(D.2.a) of this Order.

D.1.g DARMO • Send Invitation Letters by • (CARP-LAD Form

personal service or by No. 27 (Invitation

registered mail with return Letter)

card to potential

beneficiaries in the • (CARP-LAD Form

preliminary list and all No. 28 (General

those who may have Notice to All

signified their qualification Interested Parties)

and intent for inclusion in

the preliminary list

regarding the schedule of

meeting and post a

general notice on the

same at the three (3)

conspicuous places

enumerated under Item V

(D.1.d) of this Order. SCaTAc

The Invitation Letters

regarding the notice of

meeting shall state that

the potential beneficiaries

and other concerned

parties should bring with

them all pertinent and

available documents

provided under Item V

(D.1.d) of this Order as

proof of their identity and

qualification as an ARB, if

not yet submitted.

• For invitation letters • (CARP-LAD Form

regarding the schedule of No. 29 (Proof of

meeting served by mail or Service of Invitation

personal service and Letter)

positively acknowledged

or received by the

potential ARB and other

concerned parties, the

DARMO shall accomplish

Item I of CARP-LAD Form

No. 29 (Proof of Service of

Invitation Letter), as proof

of personal service to be

placed on file. In case the

potential ARB refuses to

receive/accept the

invitation letter on notice of

meeting, the DARMO shall

fill-up/accomplish Item II of

the same form.

D.2 Screening and Preparation of Updated Preliminary List of Agrarian

Reform Beneficiaries (ARBs)

D.2.a DARMO • With the assistance of the • CARP-LAD Form

BARC, conduct a meeting No. 30 (Agrarian

on the scheduled date with Reform Beneficiary

the potential beneficiaries Application Form)

in the preliminary list and

other concerned parties, if

any, and undertake the

following:

a. Explain in the local

dialect, the qualifications,

rights, responsibilities

and obligations of ARBs

and the identification and

screening process for

ARBs;

b. Individually interview all

potential ARBs in the

preliminary list and

concerned parties for the

determination of

qualifications and the

initial review of

documents;

c. Assist potential

beneficiary-applicants in

accomplishing the

Beneficiary Application

Form; and

d. Discuss issues and

concerns on

qualifications of potential

ARBs in the preliminary

list and those who may

have signified

qualification and intent

for inclusion in the

preliminary list.

• In the case of commercial

farms and plantations and

lands qualified for

collective distribution, the

BSC must be present at

this meeting and take the

lead, in coordination with

the MARO, in the

aforementioned activities

enumerated under Item V

(D.2.a)(a-d) of this Order.

D.2.b DARMO In close coordination with the

BARC, review and evaluate

the potential beneficiaries’

application forms vis-a-vis

documents/evidence

submitted and ensure that

based on the information from

the applicant himself or other

persons and the available

documents, the qualifications

provided in Item IV(E)(1) of

this Order are met.

D.2.c DARMO If the potential ARBs • CARP-LAD Form

evaluated qualify as No. 31 (Notice of

beneficiaries, sustain or Disqualification as

include, as the case may be, Agrarian Reform

their names in the preliminary Beneficiary)

list. The potential ARBs who

do not meet the qualifications

provided in Item IV(E)(1) of

this Order shall be excluded

from the preliminary list and

informed accordingly through

personal service or registered

mail with return card.

D.2.d DARMO Prepare an Updated • CARP-LAD Form

Preliminary List of Potential No. 32 (Updated

Beneficiaries of CARP for Preliminary List of

subsequent ranking and Potential

prioritization pursuant to Beneficiaries of

Section 8 of R.A. No. 9700 CARP)

and Section 22 of R.A. No.

6657, as amended, and Item V

(D.3.1.d) of this Order, and

the preparation of the master

list of ARBs.

D.2.e DARMO For commercial farms,

plantations and other

landholdings which qualify for

collective distribution under

Item IV(F)(4.1 to 4.4) of this

Order, DARMO shall submit

the updated preliminary list of

potential ARBs, together with

application forms and

supporting documents/

evidence, to the Beneficiary

Screening Committee (BSC)

through the Provincial

Agrarian Reform Officer

(PARO).

D.2.1.f DARMO For landholdings subject to

individual distribution, cause

the posting of the updated

preliminary list of potential

ARBs for fifteen (15) days in

at least three (3) conspicuous

places as enumerated under

Item V(D.1.d) of this Order:

The updated preliminary list

of potential ARBs shall

contain a statement written in

both English and in the local

dialect that concerned parties

may submit to the DARMO a

petition for inclusion or

exclusion from the said list

within fifteen (15) days from

the last day of posting, which

should be stipulated therein.

D.2.1.g DARMO Obtain certification of posting • CARP-LAD Form

compliance from the proper No. 26

municipal and barangay (Certification of

officials after the fifteen (15) Posting

day posting period, indicating Compliance for List

therein the inclusive dates of of ARBs)

posting. aSEDHC

D.3 Selection and Preparation of the Master List of Agrarian Reform

Beneficiaries (ARBs)

D.3.1 Agrarian Reform Beneficiaries (ARBs) in Landholdings Subject to

Individual Distribution

D.3.1.a DARMO After the lapse of the fifteen

(15) day posting period,

conduct a field validation in

the subject landholding on the

updated preliminary list of

ARBs to further verify the

identity and qualifications of

the potential beneficiary/ies

therein.

D.3.1.b DARMO Re-evaluate the potential

beneficiaries in the updated

preliminary list of potential

ARBs based on the field

validation and

documents/evidence

available.

D.3.1.c DARMO In case one or more • CARP-LAD Form

conditions for disqualification No. 31 (Notice of

provided under Item IV(E)(3) Disqualification as

of this Order is present, Agrarian Reform

exclude disqualified Beneficiary)

applicants from the updated

preliminary list of potential

ARBs. Thereafter, send a

Notice of Disqualification,

citing the reason/s therefor,

through personal delivery or

registered mail with return

card.

D.3.1.d DARMO • Prepare the master list of • CARP-LAD Form

ARBs and prioritize and No. 33 (Master List

classify each qualified of Agrarian Reform

ARB, pursuant to Section Beneficiaries)

22 of R.A. No. 6657, as:

a. Agricultural lessees

and share tenants;

b. Regular farmworkers;

c. Seasonal farmworkers;

d. Other farmworkers;

e. Actual tillers or

occupants of public

lands;

f. Collectives or

cooperatives of the

above beneficiaries;

and

g. Others directly working

on the land.

• Post the master list of • CARP-LAD Form

ARBs for fifteen (15) days No. 33 (Master List

in designated areas as of Agrarian Reform

provided in Item V(D.1.d) Beneficiaries)

of this Order. The master • CARP-LAD Form

list of ARBs shall be No. 34 (Notice —

accompanied by a notice Master List of

containing a statement Agrarian Reform

that concerned parties Beneficiaries)

may file protest on the

said master list of ARBs

within fifteen (15) days

from the last day of

posting.

D.3.1.e. DARMO Obtain a certification of • CARP-LAD Form

posting compliance from the No. 26

proper municipal and (Certification of

barangay officials after the Posting

fifteen (15) day posting Compliance for List

period, indicating therein the of ARBs)

inclusive dates of posting.

D.3.1.f DARMO If no protest is filed within • CARP-LAD Form

fifteen (15) days from the last No. 33-A (Master

day of posting of the master List of Agrarian

list, submit the master list of Reform

ARBs to the BARC for Beneficiaries with

certification and LO Provision on BARC

attestation. Certification and LO

Attestation)

D.3.2 Agrarian Reform Beneficiaries (ARBs) in Commercial Farms,

Plantations and Other Landholdings Qualified for Collective Distribution

D.3.2.a BSC Review, verify and validate • CARP-LAD Form

the updated preliminary list of No. 32 (Updated

potential ARBs submitted by Preliminary List of

the DARMO through the ARB Potential ARBs of

application forms and other CARP)

supporting documents, and

finalize the same based on its

evaluation, fifteen (15) days

from receipt of the updated

preliminary list of potential

ARBs from the DARMO. TcHCIS

D.3.2.b BSC Cause the posting of the

updated preliminary list of

potential ARBs for fifteen (15)

days in at least three (3)

conspicuous places as

enumerated under item

V(D.1.d) of this Order:

The updated preliminary list

of potential ARBs shall

contain a statement written in

both English and in the local

dialect that concerned parties

may submit to the BSC

through the PARO, a petition

for inclusion or exclusion from

the said list within fifteen (15)

days from the last day of

posting, which should be

stipulated therein.

D.3.2.c BSC Obtain Certification of Posting • CARP-LAD Form

Compliance from the proper No. 26

municipal and barangay (Certification of

officials after the fifteen (15) Posting

day posting period, indicating Compliance for List

therein the inclusive dates of of ARBs)

posting.

D.3.2.d BSC Schedule the conduct of a

public hearing for petitions for

inclusion and exclusion from

the updated preliminary list of

potential ARBs, if any. Said

public hearing/s should

commence no later than thirty

(30) days from the last day of

posting of the updated

preliminary list of potential

ARBs.

D.3.2.e BSC Send by registered mail with • CARP-LAD Form

return card, Notice of Public No. 35 (Notice of

Hearing to all potential ARBs, Public Hearing)

which should also be posted • CARP-LAD Form

in at least three (3) No. 35-A (General

conspicuous places in the Notice of Public

commercial farm, plantation Hearing)

or landholding qualified for

collective distribution.

D.3.2.f BSC Conduct the public hearing/s

on the scheduled date/s with

those who submitted petitions

or protests on the updated

preliminary list of potential

ARBs or other concerned

parties.

D.3.2.g BSC Within thirty (30) days after • CARP-LAD Form

the conclusion of public No. 31 (Notice of

hearing/s, evaluate the ARB’s Disqualification as

qualifications based on the Agrarian Reform

proceedings and documents. Beneficiary)

In case one or more

conditions for disqualification

provided under Item IV(E)(3)

of this Order is present,

exclude disqualified

applicants from the updated

preliminary list of potential

ARBs. Thereafter, send a

Notice of Disqualification

citing the reason/s therefor,

through personal delivery or

registered mail with return

card.

D.3.2.h BSC Prepare the master list of • CARP-LAD Form

ARBs, and prioritize and No. 33 (Master List

classify each qualified ARB, of Agrarian Reform

pursuant to Section 22 of R.A. Beneficiaries)

No. 6657, as amended:

a. Agricultural lessees and

share tenants;

b. Regular farmworkers;

c. Seasonal farmworkers;

d. Other farmworkers;

e. Actual tillers or occupants

of public lands;

f. Collectives or

cooperatives of the above

beneficiaries;

g. Others directly working on

the land.

D.3.2.i BSC Post the master list in the • CARP-LAD Form

same manner and for the No. 33 (Master List

same purpose as provided of Agrarian Reform

under Item V.D.1.d of this Beneficiaries)

Order. The Master List of • CARP-LAD Form

ARBs should be No. 34 (Notice —

accompanied by a notice Master List of

containing a statement that ARBs)

concerned parties may file

protest on the said Master

List of ARBs within fifteen

(15) days from the last day

of posting. HITAEC

D.3.2.j BSC Obtain a Certification of • CARP-LAD Form

Posting Compliance from the No. 26

proper municipal and (Certification of

barangay officials after the Posting

fifteen (15) day posting Compliance for List

period, indicating therein the of ARBs)

inclusive dates of posting.

D.3.2.k BSC In case no protest is filed • CARP-LAD Form

within fifteen (15) days from No. 33-A (Master

the last day of posting of the List of Agrarian

master list, transmit the Reform

master list to the DARMO for Beneficiaries with

BARC certification and LO Provision on BARC

attestation. Certification and

LO Attestation)

D.3.2.l DARMO In case majority of the

qualifying ARBs opt for

collective ownership and the

landholding is not feasible

and sound to divide, based on

the conditions for the

issuance of collective titles as

provided under Item IV(F)

(4.1 to 4.4) of this Order, the

following shall be undertaken:

1. Facilitate the

organization and

registration of the

association or cooperative

in coordination with the

appropriate government

agencies, i.e., Cooperative

Development Authority

(CDA), Securities and

Exchange Commission

(SEC) or appropriate

non-government agencies,

where applicable.

2. Require the ARBs’

cooperative/association

to submit the following

documents:

– Board Resolution

authorizing the specific

member/s of the

association or

cooperative to sign the

application form on

behalf of the

association or

cooperative; and

– Articles of

Incorporation and By-

Laws of the

cooperative or

association.

3. In the event that there are

two (2) or more

cooperatives or

associations in the

landholding, determine the

specific area to be allotted

to each cooperative or

association by the drawing

of lots in the presence of

all parties concerned.

D.4 Resolution of Protest in the Selection of

Agrarian Reform Beneficiaries (ARBs)

D.4.a Potential File a written protest for the

ARB/s or inclusion in or exclusion from

Concerned the master list of ARBs with

Parties the DARPO, not later than

fifteen (15) days from the last

day of posting of the master

list.

D.4.b PARO In the case of commercial

farms, plantations, and

landholdings qualified for

collective distribution, order

the BSC to submit all

pertinent records/documents

of the case and conduct an

investigation on the matter.

D.4.c PARO Resolve the petition/protest

within thirty (30) days from

receipt of petition/protest

through summary

proceedings.

D.4.d PARO Pursuant to his/her decision,

instruct the MARO and the

BSC, as the case may be, to

include in the master list the

names of qualified potential

ARBs and/or to exclude the

disqualified ARBs.

Simultaneously inform all

parties concerned of his

decision through registered

mail or personal service, copy

furnished the MARO. DECSIT

D.4.e DARMO Based on the PARO’s • CARP-LAD Form

and BSC decision and instruction/s, No. 33-A (Master

finalize the master list of List of Agrarian

ARBs for subsequent BARC Reform

certification and LO Beneficiaries with

attestation. Provision on BARC

Certification and

LO Attestation)

D.4.f BSC Transmit finalized master list • CARP-LAD Form

of ARBs to the MARO for No. 33-A (Master

BARC certification and LO List of Agrarian

attestation. Reform

Beneficiaries with

Provision on BARC

Certification and LO

Attestation)

D.5. Barangay Agrarian Reform Council (BARC) Certification and Landowner

(LO) Attestation of Master List of Agrarian Reform Beneficiaries (ARBs)

D.5.a DARMO Submit to the BARC the • CARP-LAD Form

master list of ARBs for No. 36 (Transmittal

certification, including the Letter to BARC,

concomitant BARC Re: Certification of

Certification form (CARP-LAD Master List of

Form No. 33.A.1). Agrarian Reform

Beneficiaries)

• CARP-LAD Form

No. 33-A (Master

List of Agrarian

Reform Beneficiaries

with Provision on

BARC Certification

and LO Attestation)

• CARP-LAD Form

No. 33-A.1 (BARC

Certification of

Master List of

ARBs)

D.5.b BARC • Upon receipt of the master • CARP-LAD Form

list of ARBs and BARC No. 33-A (Master

Certification form from the List of Agrarian

DARMO, the BARC Reform

Chairman or his Beneficiaries with

authorized representative, Provision on BARC

shall review the master list Certification and LO

of ARBs and certify the Attestation)

same under oath before • CARP-LAD Form

an authorized No. 33-A.1 (BARC

administering officer, Certification of

affixing his/her signature Master List of

on the said master list of ARBs)

ARBs and the BARC

Certification form, with one

(1) witness signing the

same.

• Return the certified master • CARP-LAD Form

list of ARBs and notarized No. 33-A (Master

BARC Certification to the List of Agrarian

DARMO within fifteen (15) Reform

days from receipt of the Beneficiaries with

master list. Provision on BARC

Certification and LO

Attestation)

• CARP-LAD Form

No. 33-A.1 (BARC

Certification of

Master List of

ARBs)

D.5.c DARMO • Receive and record the • CARP-LAD Form

BARC-certified master list No. 33-A (Master

of ARBs and BARC List of Agrarian

Certification. Reform

Beneficiaries with

Provision on BARC

Certification and

LO Attestation)

• CARP-LAD Form

No. 33-A.1 (BARC

Certification of

Master List of

ARBs)

• Send to the landowner the • CARP-LAD Form

BARC-certified master list No. 37 (Letter to

of ARBs including the LO, Re: Attestation

concomitant Landowner of Master List of

Attestation form (CARP- ARBs)

LAD Form No. 33.A.2) • CARP-LAD Form

through personal service No. 33-A (Master

or registered mail with List of Agrarian

return card for attestation Reform

of the LO of his/her/their Beneficiaries with

tenants/lessees/regular Provision on BARC

farmworkers. Certification and

LO Attestation)

• CARP-LAD Form

No. 33-A.2

(Landowner

Attestation of

Master List of

ARBs)

D.5.d Landowner • Upon receipt of the BARC- • CARP-LAD Form

certified master list of No. 33-A (Master

ARBs and Landowner List of Agrarian

Attestation form from the Reform

DARMO, attest under oath Beneficiaries with

to the master list of ARBs Provision on BARC

insofar as his/her/their Certification and LO

share tenants, lessees Attestation)

and/or regular

farmworkers in the • CARP-LAD Form

landholding are concerned No. 33-A.2

by indicating his tenant, (Landowner

lessee and regular Attestation of

farmworker among those Master List of

listed in the master list of ARBs)

ARBs, affixing his

signature on the same and

on the Landowner

Attestation form, with one

(1) witness signing the

same. CHTAIc

• Return the attested master • CARP-LAD Form

list and notarized No. 33-A (Master

Landowner Attestation List of Agrarian

form to the DARMO within Reform

fifteen (15) days from Beneficiaries with

receipt of the same. Provision on BARC

Certification and

LO Attestation)

• CARP-LAD Form

No. 33-A.2

(Landowner

Attestation of

Master List of

ARBs)

D.5.e DARMO • Upon receipt of the LO • CARP-LAD Form

attested master list of No. 33-A (Master

ARBs and Landowner List of Agrarian

Attestation on the master Reform

list of ARBs, proceed with Beneficiaries with

the preparation of the Provision on BARC

Application to Purchase Certification and LO

and Farmer’s Undertaking Attestation)

(APFU) in accordance • CARP-LAD Form

with Item V(D.7) of this No. 33-A.2

Order, if the LO attested (Landowner

to all the ARBs in the Attestation of

master list. Master List of

ARBs)

• In cases where the LO

does not to attest to

specific ARBs or to all

ARBs in the master list

of ARBs and identifies

other ARBs by substitution

or addition whom the LO

claims are his tenants,

lessees or regular

farmworkers, the MARO

shall require the LO to

submit evidence

supporting the

qualification of his

identified ARBs.

Thereafter, submit to the • CARP-LAD Form

DARPO a report No. 38 (Report on

regarding the LO’s refusal Partial/Full Non-

to attest to specific ARBs Attestation/Inaction

or to all ARBs in the by the LO of the

master list to which he Master List of

shall attach the Agrarian Reform

documents and other Beneficiaries)

evidence supporting the

ARB/s’ qualification as

share tenants, agricultural

lessees or regular

farmworkers, as

submitted by the LO.

• If the LO returns the • CARP-LAD Form

master list to the DARMO No. 38 (Report on

without attesting to any of Partial/Full Non-

the ARBs in the said list Attestation/Inaction

without comment by the LO on the

whatsoever, or does not Master List of

act at all upon the master Agrarian Reform

list of ARBs after fifteen Beneficiaries)

(15) days from receipt of

the same, submit to the

DARPO a report regarding

the matter.

D.5.f DARPO In case of inaction or refusal

of the LO to attest to the

master list of ARBs, instruct

the DARMO to proceed with

the preparation of the APFU

in accordance with Item V

(D.7) of this Order. The right

of the LO to attest to the

master list of ARBs in so far

as the tenants, lessees and

regular farmworkers in his/her

landholdings are concerned is

deemed waived if he fails to

act upon the master list of

ARBs within fifteen (15) days

from receipt thereof, and the

master list of ARBS becomes

final and executory pursuant

to Item IV(E)(10) of this

Order. HCTAEc

D.6 Resolution of Landowner (LO) Partial or Full Non-Attestation of

Tenants, Agricultural Lessees or Regular Farmworkers

in the Master List of Agrarian Reform Beneficiaries (ARBs)

D.6.a PARO Within fifteen (15) days from

receipt of the report from the

DARMO of the partial or full

non-attestation of the LO to

the master list of ARBs and

his substitution or addition of

other ARBs whom the LO

claims to be his tenants,

lessees or regular

farmworkers, conduct a

revalidation on the

qualifications of the ARBs in

the master list and those

submitted by the LO either as

substitutes or additions.

Should the PARO sustain the

master list prepared by the

MARO and certified to by the

BARC subsequent to his

revalidation of ARB

qualifications, return the same

to the DARMO with an

instruction to prepare the

APFUs in accordance with

Item V (D.7) of this Order.

If based on the PARO’s • CARP-LAD Form

revalidation, there is possible No. 39 (Letter to

merit to the LO’s partial or full BARC for the

non-attestation of the master Conduct of

list, and to the qualification of Compulsory

other ARBs whom the LO Arbitration)

claims to be his tenants,

lessees or regular

farmworkers, the PARO shall

instruct the BARC to conduct

compulsory arbitration to

resolve the matter and to

make a determination of the

qualifications of the ARBs

who were not attested to by

the LO vis-a-vis the

qualifications of the ARBs

substituted or added by the

LO as his alleged tenants,

lessees or regular

farmworkers, or those who

were simply repudiated by the

LO as his tenants/lessees/

regular farmworkers.

D.6.b BARC • Within thirty (30) days

from receipt of the

instruction from the PARO,

conduct a compulsory

arbitration to resolve the

matter and make a

determination of the

qualifications of the ARBs

who were not attested to

by the LO vis-a-vis the

qualifications of the ARBs

substituted or added by

the LOs as his alleged

tenants, lessees or regular

farmworkers or those who

were simply repudiated by

the LO as his

tenants/lessees/regular

farmworkers.

• Submit a report of its • CARP-LAD Form

findings and include No. 40 (BARC

therein all the pertinent Report of Findings

documents to the PARO on the Compulsory

within five (5) days after Arbitration)

the completion of the • Pertinent

compulsory arbitration. Documents

D.6.c PARO • Within fifteen (15) days • CARP-LAD Form

from receipt of the report No. 40 (BARC

and findings of the BARC Report of Findings

on the compulsory on the Compulsory

arbitration, the PARO shall Arbitration)

undertake an evaluation of

the BARC report and

render his decision.

• Should the PARO’s • CARP-LAD Form

decision affirm the ARBs in No. 33-A (Master

the BARC certified master List of Agrarian

list, return the same to the Reform

DARMO with an instruction Beneficiaries with

to proceed with the Provision on BARC

preparation of the APFU in Certification and LO

accordance with Item Attestation)

V(D.7) of this Order.

• If the PARO’s decision • CARP-LAD Form

fully or partially sustains No. 41 (Master List

the LO’s partial or full non- of Agrarian Reform

attestation of the master Beneficiaries as

list of ARBs and his Finalized by the

substitution or addition of PARO per

other potential ARBs, he Resolution on LO

shall finalize the master Non-Attestation)

list of ARBs and

thereafter, forward the

same to DARMO with the

instruction to proceed with

the preparation of the

APFU in accordance with

Item V(D.7) of this Order.

D.6.d DARMO Based on the master list of • CARP-LAD Form

ARBs finalized by the PARO, No. 41 (Master List

prepare the APFU for signing of Agrarian Reform

of the ARBs in accordance Beneficiaries as

with Item V(D.7) of this Order. Finalized by the

PARO per

Resolution on LO

Non-Attestation)

• CARP-LAD Form

No. 42 (Application

to Purchase and

Farmer’s Undertaking

{APFU})

D.7 Preparation of the Application to Purchase and

Farmer’s Undertaking (APFU)

D.7.a DARMO Upon receipt of the BARC • CARP-LAD Form

certified and LO-attested No. 42 (Application

master list of ARBs or the to Purchase and

master list of ARBs finalized Farmer’s

by the PARO, undertake the Undertaking

following: {APFU})

• CARP-LAD Form

1. Prepare the APFU; No. 43 (Letter to

ARBs Regarding

2. Coordinate with a city/ the Schedule of the

municipal judge on the APFU Signing)

schedule for the swearing

under oath of the APFU

by the ARBs; and

3. Notify the qualified ARBs

of the subject

landholding/s by personal

service or registered mail

with return card regarding

the schedule of a meeting

with the DARMO on the

APFU, and if applicable,

the signing and swearing

to under oath of the APFU

before a judge on the said

date.

D.7.b DARMO Conduct meeting with the

ARBs on the scheduled date

to:

1. Explain the following:

1.1 Importance,

necessity and

significance of

accomplishing and

signing the APFU in

the acquisition and

distribution of lands

covered by CARP;

1.2 Contents of the

APFU, i.e.,

willingness to work

on the land to make it

productive, obligation

to pay land

amortization and land

taxes thereon; and

1.3 Requirement to have

this signed and sworn

to under oath before

a city or municipal

judge.

2. Cause the signing and

swearing to under oath of

the AFPU by the

beneficiaries before a city/

municipal judge.

D.7.c ARB/s • Attend the meeting

scheduled by the DARMO

on the APFU.

• Sign and swear to the • CARP-LAD Form

APFU under oath before a No. 42 (Application

city or municipal judge to Purchase and

during the designated Farmer’s

schedule per Item Undertaking)

V(D.7.b) of this Order.

D.7.d DARMO • In case the concerned • CARP-LAD Form

ARB fails to attend the No. 44 (Notice to

scheduled meeting or Absent ARB Re:

refuses to sign the APFU Waiver of Rights as

during the meeting, issue an ARB for Failure

a letter to be duly received to Sign the APFU)

by the ARB, or send a • CARP-LAD Form

notice to the absent ARB No. 45 (Letter to

informing that they have Present ARB Re:

thirty (30) days from Waiver of Rights as

receipt of the letter or an ARB for Failure

notice, as the case may to Sign the APFU)

be, to report to the

DARMO and to sign the

APFU. The said letter or

notice shall state that

ARB’s failure to execute

and sign the APFU within

the prescribed period shall

constitute a waiver of right

to become an ARB. AIHDcC

D.7.e DARMO After the APFUs have been

signed and sworn to under

oath by the ARB/s, record and

transmit the same to the

DARPO for inclusion in the

claim folder. Simultaneously,

the MARO, with the

assistance of the BARC shall

undertake the activities

necessary for the ARB

carding and identification

system pursuant to DAR A.O.

No. 03, Series of 2008.

D.7.f MARO • In case the qualified ARB

fails to report to the

DARMO within thirty (30)

days from receipt of letter

or notice on the waiver of

rights as an ARB if APFU

is not signed and sworn to

under oath within the

prescribed period pursuant

to Item IV(E.16) of this

Order, the DARMO shall

identify and select other

qualified ARB/s as

replacement giving

consideration to the

desisting ARB’s immediate

farm household member/s,

if qualified, in accordance

with Item IV(F)(1.2) of this

Order.

• In the case of commercial • CARP-LAD Form

farms and plantations, No. 46 (Report on

prepare a report on the the ARB’s Failure

ARB’s failure or refusal to or Refusal to Sign

sign the APFU and send APFU)

the same to the BSC,

through the DARPO, for

identification and selection

of another qualified ARB

as replacement.

E. REVIEW, EVALUATION AND PROCESSING OF CLAIM FOLDERS (CFs)

(See CARP-LAD Annex ―I‖ for the Process Flow)

E.1 DARPO • Attach the Field • CARP-LAD Form

Investigation Report (FIR), No. 23 (Field

ASP, land use map, APFU Investigation

and Land Distribution Report)

Information Schedule • ASP

(LDIS) to the claim folder • Land Use Map

(CF) for verification and • CARP-LAD Form

evaluation by the DAR- No. 42 (Application

LBP-Pre-Processing Unit to Purchase and

(PPU). Farmer’s

Undertaking)

• CARP-LAD Form

No. 47 (Land

Distribution

Information

Schedule)

E.2 DAR-LBP- • Verify and evaluate the • CARP-LAD Form

PPU CF. If found sufficient and No. 48 (Checklist of

complete, prepare Required

checklist of required Documents with

documents in the Recommendation

processing of claim folder Signed Jointly by

and corresponding the DAR-LBP-PPU)

recommendation on the • CF

matter, and forward the

same to DARPO for

appropriate action.

Otherwise, facilitate the

completion of the

data/documents.

E.3 DARPO • Based on the • CARP-LAD Form

recommendation of the No. 49

DAR-LBP-PPU, prepare (Memorandum

request to value the land Request to Value

and forward the same, Land)

together with the CF to

LBP-AOC.

F. LAND VALUATION AND COMPENSATION

(See CARP-LAD Annex ―J‖ for the Process Flow)

F.1 Determination of Land Value

F.1.a LBP-AOC Acknowledge receipt of CF • LBP

from the DARPO. Acknowledgement

F.1.b LBP-AOC • Determine the land value. • CF

If the land value exceeds • LBP Transmittal

the approving limit of the Letter

LBP-Agrarian Operations

Center (AOC)/Regional

Head, forward the CF

using the LBP Transmittal

Letter, together with the

determined land value of

the subject landholding, to

LBP-Head Office (HO) for

further evaluation and

approval.

• Furnish the DARPO a • Copy of LBP

copy of its Transmittal Transmittal Letter

Letter to LBP-HO, for

reference.

F.1.c LBP-AOC/HO Upon completion of the land • CARP-LAD Form

valuation of the landholding, No. 50

prepare and send (Memorandum of

Memorandum of Valuation Valuation)

(MOV) with Land Valuation • Land Valuation

Worksheet (LVW) to DARPO. Worksheet

F.1.d DARPO Receive and review the MOV

with LVW from LBP and

undertake the following: HSEcTC

a. Prepare and send the • CARP-LAD Form

Notice of Land Valuation No. 51 (Notice of

and Acquisition (NLVA) to Land Valuation and

LO together with copies of Acquisition)

the MOV, LVW and LO’s • CARP-LAD Form

Reply Form through No. 50

personal service with proof (Memorandum of

of receipt or by registered Valuation) with

mail with return card; Land Valuation

Worksheet

• CARP-LAD Form

No. 52 (LO’s Reply

to NLVA)

b. Send a copy of the NLVA • CARP-LAD Form

to DARMO for posting for No. 51 (Notice of

seven (7) days at the Land Valuation and

barangay and Acquisition)

municipal/city halls where • CARP-LAD Form

the property is located. No. 7 (Certification

Thereafter, the DARMO of Posting

shall obtain a Certification Compliance)

of Posting Compliance

from proper municipal or

barangay official; and

F.1.e DARPO Prepare and send to LBP the • CARP-LAD Form

Order to Deposit LO No. 53 (Order to

Compensation. Deposit LO

Compensation)

F.1.f LBP-AOC/HO • Upon receipt of the Order • CARP-LAD Form

to Deposit, issue a No. 54

Certification of Deposit (Certification of

(COD), pre-numbered per Deposit)

region, to DARPO.

• Notify the LO regarding • LBP Notification to

the Certification of Deposit LO on COD

(COD) issued to DARPO, Issuance

including therein the LBP • Checklist of pre-

Checklist of Pre-Payment payment

Requirements for Release requirements for

of Claims. release of claims

F.1.g DARPO Receive the Certification of • CARP-LAD Form

Deposit (COD) from LBP- No. 54

AOC/HO. (Certification of

Deposit)

F.1.h LO Within thirty (30) days from • CARP-LAD Form

receipt of the NLVA, send No. 52 (LO’s Reply

reply on the same to DARPO to NLVA)

using CARP-LAD Form

No. 52.

F.1.i DARPO Receive and forward LO’s • CARP-LAD Form

reply to LBP on whether the No. 52 (LO’s Reply

land value is accepted or to NLVA)

rejected by the LO. • CARP-LAD Form

No. 55 (Transmittal

In case the LO fails to reply of LO’s Reply to

within thirty (30) days from NLVA)

receipt of the NLVA, notify

the LBP on the matter.

F.1.j LO Submit to LBP-AOC/HO the • Required

documents required for documents for

payment of compensation payment of

claim compensation

claims

F.2 Compensation to Landowner (LO)

F.2.1 Landowner (LO) Accepts the Land Valuation

F.2.1.a DARPO Forward the Certification of • CARP-LAD Form

Deposit to the ROD together No. 56 (Request to

with the ASP and Technical Issue TCT/OCT in

Description of the the Name of RP)

landholding, and request for • CARP-LAD Form

the: (1) cancellation of LO’s No. 54

title for the landholding (Certification of

covered by CARP; (2) Deposit)

issuance of Transfer

Certificate of Title (TCT)/

Original Certificate of Title

(OCT) in the name of RP; and

(3) issuance of title to the

LO’s retained area if still

applicable per Item V(B.1.e)

of this Order.

F.2.1.b ROD Issue TCT (for titled lands) or • Owner’s Duplicate

OCT (for untitled lands) in the Copy of TCT/OCT

name of RP and forward the in the name of the

Owner’s Duplicate Certificate RP

of RP Title to DARPO. • Owner’s Duplicate

Likewise, issue TCT for the Copy of TCT/OCT

LO’s retained area and send in the name of the

the Owner’s Duplicate LO

Certificate (ODC) of title to

LO.

F.2.1.c DARPO Receive and record the • CARP-LAD Form

Owner’s Duplicate Certificate No. 57 Transmittal

of RP Title from the ROD and to LBP of Copy of

furnish a certified photocopy RP Title)

of the same to the LBP-

AOC/HO and the DARRO.

F.2.1.d LBP- Upon receipt of a certified

AOC/HO photocopy of ODC of RP Title

from DARPO and compliance

of all pre-payment

requirements by the LO,

undertake the following: HSCcTD

a. Accomplish the LBP • LBP Payment

Payment Release Form; Release Form

and

b. Pay the concerned LO and

mortgagee-banks/

creditors, if encumbered.

F.2.2 Landowner (LO) Rejects Land Valuation or Fails to Respond

F.2.2.a LBP-AOC/HO • Receive LO’s reply • CARP-LAD Form

rejecting the land valuation No. 52 (LO’s Reply

or notice of LO’s failure to to NLVA)

reply within thirty (30) days • CARP-LAD Form

from receipt of the NLVA No. 55 (Transmittal

from the DARPO. of LO’s Reply to

NLVA)

F.2.2.b DARPO • Forward a copy of the • CARP-LAD Form

Certification of Deposit to No. 54

the ROD together with the (Certification of

ASP, and Technical Deposit)

Description of the • CARP-LAD Form

landholding, and request No. 56 (Request to

for the: (1) cancellation of Issue TCT/OCT in

LO’s title for landholding the name of RP)

covered by CARP;

(2) issuance of TCT/OCT in

the name of RP; and (3)

issuance of title for the

LO’s retained area.

• Advise the Regional • CARP-LAD Form

Agrarian Reform No. 58 (Advice to

Adjudicator (RARAD)/ PARAD/RARAD)

Provincial Agrarian • Copy of CARP-LAD

Reform Adjudicator Form No. 52 (LO’s

(PARAD) to conduct Reply to NLVA) or

summary administrative proof of service if

proceedings in view of the no reply

LO’s rejection of the value • Copy of CARP-LAD

offered for his/her land or Form No. 51

LO’s failure to reply to the (Notice of Land

NLVA within the thirty-day Valuation and

prescribed period upon Acquisition)

receipt of the same. A

copy of LO’s Rejection

Letter and/or NLVA, as the

case may be, shall be

attached to CARP-LAD

Form No. 58 (Advice to

PARAD/RARAD).

F.2.2.c ROD Issue TCT/OCT in the name • Owner’ Duplicate

of RP and forward the Copy of TCT/OCT

Owner’s Duplicate Certificate in the name of the

of RP Title to DARPO. RP

Likewise, issue TCT/OCT for • Owner’ Duplicate

the LO’s retained area and Copy of title in the

send the Owner’s Duplicate name of the LO

Certificate of title to LO.

F.2.2.d DARPO Receive and record the

Owner’s Duplicate Certificate

of RP Title from the ROD and

furnish a certified photocopy

of the same to the LBP-

AOC/HO and the DARRO.

F.2.2.e PARAD/ Simultaneous with the

RARAD issuance of TCT/OCT in the

name of RP, conduct

summary administrative

proceedings, render a

decision and inform parties

concerned on the matter in

accordance with DARAB

Rules and Procedures, copy

furnished the DARPO and

DARRO.

F.2.2.f LO/LBP/ • In case the LO or

DARPO LBP/DAR rejects the

DARAB decision, the LO

or LBP/DAR files a land

valuation case with the

Special Agrarian Court

(SAC) within the

reglementary period of

fifteen (15) days.

• Should the decision attain

finality, DARPO/LBP/LO

moves for issuance of Writ

of Execution in

accordance with the

DARAB Rules and

Procedures.

Should the LO opt to

accept either the original

or recomputed value by

the LBP, he shall so

manifest in writing and

pray for a resolution based

on the same. AaITCS

• Forward to LBP the

original copy of the

Certificate of Finality/Writ

of execution. Thereafter

the LBP follows

procedures in Item V

(F.2.1.d) of this Order.

G. PREPARATION AND PROCESSING OF

LAND DISTRIBUTION FOLDER (LDF)

(See CARP-LAD Annex ―K‖ for the Process Flow)

G.1 DARPO Upon receipt of the LBP’s • CARP-LAD Form

Certification of Deposit (COD) No. 59 (PARO’s

and Owner’s Duplicate Directive to the

Certificate of RP title from MARO to Take

ROD, the PARO shall direct Actual and Physical

the Municipal Agrarian Reform Possession of the

Officer (MARO) to take Landholding

possession of the land and Acquired under

proceed with the preparation CARP), copy

of the Land Distribution Folder furnished the

of the subject land, attaching landowner

all the required documentation • Certified ODC of

relative to the transfer of the RP title

land to the Government of the • Certified Copy of

Philippines (GOP), and the Deed of Transfer

LBP’s COD. The LO shall be • Certified Copy of

furnished a copy of the Certification of

PARO’s memorandum to the Deposit from LBP

MARO (CARP-LAD Form

No. 59).

G.2 DARMO Upon receipt of the PARO’s

memorandum directing

him/her to take actual

possession of the landholding

and the related documents

forwarded by the DARPO,

record the same.

G.3 DARMO Based on the master list, • CARP LAD Form

APFU, and ASP, send a letter No. 60 (Letter to

to each qualified ARB Qualified ARB

informing him/her of the land Allocating Area of

allocated as his/her area of Award)

award under CARP, or to the

ARB cooperative association

in the case of commercial

farms, plantations and other

lands for collective

distribution, informing it on

the same.

G.4 DARMO Prepare and forward the Land • LDF containing the

Distribution Folder (LDF) to documents as

the DARPO. The LDF shall stipulated under the

contain the copies of the activity

following documents on file at • CARP LAD Form

DARMO: No. 61 (LDF

Transmittal Memo)

a. Master list of ARB/s of the

subject landholding

certified by the BARC and

attested by LO or passed

upon by the PARO in so

far as the tenants, lessees

and regular farmworkers

are concerned;

b. Application to Purchase

and Farmer’s Undertaking

(APFU)

c. Duly received copy of the

letters to qualified ARBs

allocating area of award;

d. DENR-LMS Approved

Survey Plan (ASP);

e. Copy of the TCT/OCT in

the name of the Republic

of the Philippines; and

f. LDF Transmittal

Memorandum.

H. GENERATION, REGISTRATION AND ISSUANCE OF CERTIFICATES OF

LAND OWNERSHIP AWARD (CLOAs)

(See CARP-LAD Annex ―L‖ for the Process Flow)

H.1 DARPO Upon receipt from DARMO of • LDF

the LDF pursuant to Items V

(G.4) of this Order, review all

documents contained in the

LDF to ensure that these are

complete and in order. In case

of incomplete documents,

require the DARMO to submit

the pertinent documents within

seven (7) days from receipt of

instructions from DARPO. HSIaAT

H.2 DARPO In case ARBs opt for • Judicial Forms

collective ownership and it is • CLOA-Titles

not feasible/sound to divide

the landholding, generate a

collective CLOA (Original and

Owner’s Duplicate Certificate)

for the landholding in favor of

the ARBs’ cooperative or

association, wherein all

names of the ARBs, following

the lead name on the face of

the certificate of title, shall be

typewritten on the succeeding

pages of the title, with each

name numbered

consecutively, from ―1‖

onwards, alphabetically

arranged and reflecting the

complete names (given,

middle & surnames) of the

ARBs. After the last

typewritten name of ARBs,

and immediately below a

demarcating line, the words

―nothing follows‖ shall be

typed.

In the case of individual

ownership, generate a CLOA

(original and owner’s duplicate)

in the name of each ARB,

based on existing

guidelines on the generation

of CLOA.

H.3 DARPO Ensure that all CLOAs shall

contain the following

annotation of lien in favor of

the LBP stipulating the

following:

ANNOTATION

The parcel of land described

in this CLOA is encumbered

in favor of:

LAND BANK OF THE

PHILIPPINES

to ensure full payment of its

value pursuant to R.A. No.

6657, as amended, by the

agrarian reform

beneficiaries/farmers’

cooperative or farmers’

association named herein

Date ____________

_____________________

Provincial Agrarian Reform

Officer.

The PARO shall affix his/her

initial on all copies of the

CLOA (original owners and

co-owners duplicate

certificates).

H.4 DARPO Prepare the corresponding • CARP-LAD Annex

Judicial Forms Utilization ―C‖ (Judicial Forms

Worksheet in accordance with Utilization

the systems and procedures Worksheet)

for the requisition, issuance,

utilization and accounting of

CLOA Judicial Forms.

H.5 DARPO Keep on file the LDF • LDF

containing the supporting • Generated CLOAs

documents and forward the • CARP-LAD Annex

generated CLOA including ―C‖ (Judicial Forms

Judicial Forms Utilization Utilization

Worksheet to DARRO. Worksheet)

H.6 DARRO Review and validate the • Generated CLOAs

generated CLOAs. If in order,

the Regional Director shall

affix his/her initial on all

duplicate copy of the CLOAs

original owner’s or co-owner’s

copy. In case of

inconsistencies and

incomplete data or

information, notify the DARPO

for appropriate action.

H.7 DARRO Return erroneously generated

CLOAs to DARPO for

correction, together with

pertinent documents. Only

error-free CLOAs shall be

recommended for signature of

the Secretary pursuant to

existing guidelines on judicial

forms and signing and sealing

machines.

H.8 DARRO Forward signed and sealed • Signed and sealed

CLOAs and the corresponding CLOAs

recording sheet with • CARP-LAD Form

transmittal memorandum to No. 62 (Transmittal

DARPO for registration. Memorandum Re:

Registration of

CLOA)

• CARP-LAD Annex

―D‖ (Signing and

Sealing Machine

Utilization

Recording and

Reporting Sheet)

H.9 DARPO Upon receipt from the DARRO

of the signed and sealed

CLOA, the following shall be

undertaken: SDHITE

1. Record signed and sealed

CLOAs and enter the

same in the CLOA

Registry Book of the

Registry of Deeds (ROD)

maintained in the DARPO;

and

2. Forward the signed and • Signed and Sealed

sealed CLOAs to the ROD CLOAs/Titles

for registration.

H.10 ROD Subsequent to the registration

of CLOA, release the original

Owner’s Duplicate Copy

(ODC) of CLOA-Titles to LBP-

AOC.

H.11 LBP-AOC Receive the original ODC of

CLOA-Title and provide two

(2) certified true copies of

each CLOA closely simulating

the appearance, color and

paper of the same, to DARPO

and the ARBs or the ARBs

cooperative/association in the

case of collective CLOAs. The

ODC of CLOA-title shall be

released to the ARBs upon full

payment of their amortizations

on the land.

H.12 DARPO • Upon receipt of the • Original LBP

original LBP certified true certified true copies

copies of the ODC of of the Owner’s

CLOA-Titles from LBP- Duplicate Copy

AOC, record title number (ODC) of CLOA-

and date of registration in Titles

the CLOA Registry Book.

• In the case of collective

CLOAs, reproduce and

certify the copy for each

member of the ARB

cooperative/association.

• Transmit to the DARMO a • Original LBP

copy of the LBP certified certified true copies

true copies of the ODC of of the ODC of

CLOA-Titles (in case of CLOA-Titles

individual CLOAs) or copy • Photocopy of the

of the LBP certified true certified true copies

copies of the ODC of of the ODC of

CLOA-Titles and the CLOA-Titles

certified photocopy of the

same (in case of collective

CLOAs) for distribution to

ARBs.

• Retain a copy of the

original LBP certified true

copies of ODC of CLOA

titles, a copy for DARPO’s

file and reference.

I. ISSUANCE OF CERTIFICATE OF LAND OWNERSHIP AWARD

(CLOA-TITLE)

(See CARP-LAD Annex ―M‖ for the Process Flow)

I.1 DARMO Subsequent to the receipt

from the DARPO of the

certified true copy of the ODC

of CLOA-Title and certified

photocopies of the same, in

case of collective CLOAs,

undertake the following:

1. Record ODC of CLOA- • Certified true

Title; copies of ODC of

CLOA-Title

2. Distribute LBP certified • Certified true

true copies of ODC of copies of ODC of

CLOA-title to the individual CLOA-Titles

ARB or the ARBs’

cooperative/association,

as the case may be;

3. In the case of collective

CLOAs, furnish each of

the ARB cooperative/

association members a

certified photocopy of the

ODC of CLOA-Title;

4. Assist ARBs in securing

the corresponding Tax

Declaration from the

Assessor’s/Treasurer’s

Office at the time the

CLOA-Title is distributed;

and

5. Maintain a Record Book of • Index Card of

all CLOA-titles issued ARBs

within the municipality and

received by the ARBs, and

prepare index cards for

each of the ARBs/ARB

cooperatives/

associations.

I.2 DARMO For purposes of monitoring • CARP-LAD Form

and the data base, prepare No. 63 (Monthly

and submit to the DARPO a Report on CLOA

monthly report on CLOA/s Distributed)

distributed to ARBs using

CARP-LAD Form No. 65.

J. INSTALLATION OF ARB CLOA-TITLE HOLDERS

(See CARP-LAD Annex ―N‖ for the Process Flow)

J.1 DARMO Upon receipt by the ARBs of

the certified true copy of ODC

CLOA, conduct a

briefing/orientation with the

concerned ARBs to:

1. explain the rights and

responsibilities of the

ARBs as the ―new‖

landowners, and ensure

that they understand that

they are empowered and it

is incumbent upon them,

even without the

assistance from the DAR,

to assert their rights at all

times to have peaceful

and productive possession

of the land; and

2. inform them that they may

take physical and actual

possession of the land

awarded to them under

CARP, and they shall start

paying Real Property

Taxes to the LGU —

Municipal Assessor’s

Office and the land

amortization payments to

the LBP one (1) year from

the date of CLOA

registration or if the

occupancy took place after

the CLOA registration, one

(1) year after the ARB’s

actual occupancy of the

land.

J.2 DARMO In case the ARB is unable to

take possession of the subject

land, or in the case of

contentious landholdings, the

following shall be undertaken

subsequent to the conduct of

briefing/orientation to

concerned ARBs under Item

J.1.1 of this Order: HCEaDI

1. Invite the concerned • CARP-LAD Form

ARB/ARBs’ No. 64 (Invitation to

representative, Barangay the ARB Installation

Agrarian Reform Council Planning

(BARC) Chair, or in the Conference/

absence thereof, the Meeting for ARB,

Barangay Council, Non- CLOA-Title

Governmental Holders,

Organizations/People’s BARC/Brgy.

Organization (NGOs/ Council,

POs), and other support or NGOs/POs/Other

interest groups to an Support Groups)

installation planning • CARP-LAD Form

conference/meeting; No. 65 (Invitation to

the ARB Installation

Planning

Conference/

Meeting for Co-

Owners/Collective

ARB CLOA-Title

Holders)

2. With the assistance of a

representative from the

DARPO, conduct an

installation planning

conference/meeting with

the abovementioned

stakeholders to:

– Define and clarify the

responsibilities and

role of the parties

involved in the

installation process;

– Determine the

schedule of installation

of the concerned

ARBs; and

– Determine the

necessity of police

and/or military support

in the installation

process.

3. If deemed necessary, • CARP-LAD Form

request the DARPO to No. 66 (Request for

coordinate with the DILG- Assistance of the

PNP and DND-AFP to DILG-PNP/DND-

provide assistance in the AFP in the

physical installation of Installation

concerned ARBs. Proceedings)

J.3 DARPO Upon receipt of the request

from the DARMO, the

following shall be undertaken:

1. Prepare and send a letter • CARP-LAD Form

duly signed by the PARO No. 67 (PARO’s

to the DILG-PNP or the Request for DILG-

DND-AFP requesting for PNP/DND-AFP

assistance in the physical Assistance in the

installation of ARB/s in the Installation of the

subject landholding; ARB CLOA-Title

Holders)

2. Provide the DILG-PNP/

DND-AFP the necessary

information/background of

the installation process;

3. Furnish a copy of the • Approved Request

approved request from from DILG-

DILG-PNP or DND-AFP PNP/DND-AFP

on the physical installation

of ARB/s and instruct the

DARMO to proceed with

the physical installation of

ARB/s. AcDHCS

J.4 DARMO Upon receipt of approved

request from the DILG-

PNP/DND-AFP and

instruction from the DARPO,

undertake the following:

1. Inform the concerned • CARP-LAD Form

ARBs on the scheduled No. 68-A (Notice to

date of installation Qualified ARBs

proceedings on the {For Co-Owners/

awarded land as agreed Collective CLOA-

upon during the planning Title Holders})

conference/meeting; • CARP-LAD Form

No. 68-B (Notice to

Qualified ARBs {For

Individual ARB

CLOA-Title

Holders})

2. Together with the • CARP-LAD Form

concerned police/military No. 69 (Report on

personnel, install the Physical Installation

ARBs on the scheduled of ARBs)

date and prepare report on

the matter for submission

to DARPO for reference.

3. In case the landowner • CARP-LAD Form

refuses to relinquish No. 70 (Report on

possession of the Landowner’s

landholding, report the Refusal to Give Up

same to DARPO for Possession of

evaluation and appropriate Landholding)

action.

J.5 DARPO Receive, record and evaluate

the report of DARMO. If

warranted, file a criminal case

against the concerned

landowner and inform the

DARMO on the matter.

J.6 DARMO Conduct monthly inspections

on installed ARB CLOA-title

holders for a period of at least

six (6) months or until the

situation stabilizes in the

subject landholding to

determine if the installed ARB

CLOA-title holder/s is/are still

in physical possession of the

land.

In case the installed ARB

CLOA-title holder/s is/are no

longer in physical possession

of the awarded land due to

harassment or ejection by the

landowner, the following shall

be undertaken:

1. Assist the concerned

ARB/s in reporting the

threat/harassment or

ejection attempts of the

landowner to the police/

military;

2. Prepare a comprehensive

documentation report; and

3. Submit the report to the • CARP-LAD Form

DARPO for the filing of No. 71 (Report on

appropriate legal action Harassment/

against the concerned Ejection of Installed

parties and plan for re- ARB CLOA-Title

possession of the subject Holders)

landholding by the

displaced ARBs.

VI. Transitory Provision

With respect to cases where the Master List of ARBs has been finalized on or before July 1, 2009 pursuant to Administrative

Order No. 7, Series of 2003, the acquisition and distribution of landholdings shall continue to be processed under the provisions of

R.A. No. 6657 prior to its amendment by R.A. No. 9700.

However, with respect to land valuation, all Claim Folders received by LBP prior to July 1, 2009 shall be valued in accordance with

Section 17 of R.A. No. 6657 prior to its amendment by R.A. No. 9700. DICSaH

VII. Repealing Clause

All orders, circulars, issuances or portions thereof inconsistent herewith are hereby revoked, cancelled or modified as the case

may be.

VIII. Effectivity

This Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49

of R.A. No. 6657.

Quezon City, Metro Manila, October 15, 2009.

(SGD.) NASSER C. PANGANDAMAN

Secretary

Published in The Philippine Star and Business Mirror on October 21, 2009.

ATTACHMENT

Republic of the Philippines

DEPARTMENT of AGRARIAN REFORM

CERTIFICATION

This is to certify that Administrative Order No. 2, Series of 2009 entitled ―RULES AND PROCEDURES GOVERNING THE

ACQUISITION AND DISTRIBUTION OF AGRICULTURAL LANDS UNDER REPUBLIC ACT (R.A.) NO. 6657, AS AMENDED BY

R.A. NO. 9700″ is published today, Wednesday, 21 October 2009 at Philippine Star and Business Mirror newspapers.

Issued this 21st day of October 2009 for whatever purpose it may serve.

(SGD.) HUGO D. YONZON III

Public Affairs Staff Director