PROVIDING THAT LAND TRANSFER CERTIFICATES ISSUED PURSUANT TO PRESIDENTIAL DECREE NO. 27 SHALL BE ACCEPTED BY FINANCING INSTITUTIONS AS COLLATERAL FOR LOANS

• Number: Presidential Decree No. 315
• Sections: 3

Preamble

WHEREAS, under Presidential Decree No. 27 Land Transfer

Certificates are issued to tenant-farmers in agricultural lands

primarily devoted to the production of rice and corn found qualified to

acquire the land tilled by them;

WHEREAS, under Presidential Decree No. 266 these Land

Transfer Certificates are registerable as valid evidences of ownership;

and

WHEREAS, these tenant-farmers need financial assistance and

one measure of providing them assistance is to provide that Land

Transfer Certificates shall be accepted by financing institutions as

collateral for loans;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, as amended, do hereby order and

decree:

Section 1

SECTION 1. All financing institutions shall hereafter accept

as collateral for loans any duly registered Land Transfer Certificate

issued by the Government, through the Department of Agrarian Reform, to

tenant-farmers in an amount not less than sixty percent (60%) of the

value of the farmholding as determined under Presidential Decree No. 27:

Provided, That such loans shall be guaranteed by the Guarantee

Fund established by the Samahang Nayon (Barrio Association) in which a

tenant-farmer is a full-fledged member: Provided, further, That

the loans obtained shall be used in the improvement or development of

the farmholding of the tenant-farmer or the establishment of facilities

that will enhance production or marketing of agricultural products or

increase farm income therefrom.

Section 2

SEC. 2. All laws, decrees, executive orders, rules and

regulations, or part thereof, inconsistent with this Decree are hereby

repealed, amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of October, in the

year of Our Lord, nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Assistant Executive Secretary

The Central Bank of the Philippines issued Circular No. 385,

dated November 2, 1973, circularizing to all banks the contents of

Sections 1 and 2 of Presidential Decree No. 315.