AMENDING PRESIDENTIAL DECREE NO. 27, DATED OCTOBER 21, 1972, ENTITLED "DECREEING THE EMANCIPATION OF TENANT FROM THE BONDAGE OF THE SOIL, TRANSFERRING TO THEM THE OWNERSHIP OF THE LAND THEY TILL AND PROVIDING THE INSTRUMENTS AND MECHANISM THEREFOR"

• Number: Presidential Decree No. 57
• Sections: 3

Preamble

I, FERDINAND E. MARCOS, President of the

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

Commander-in-Chief of 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, decree and

make as part of the laws of the land the following measure:

Section 1

SECTION 1. To further accelerate the attainment of

the objectives set forth in Presidential Decree No. 27, the following

provisions are hereby incorporated, to wit:

The landowner shall be exempt from the capital gains tax on the

proceeds of the amortizations paid him by the tenant-purchaser and

likewise from income tax due on the accruing interests paid as an

addition to the total cost of the land.

The active participation of rural banks and all other

financial institutions shall be required in order to provide immediate

source of funds to augment loans/credits to be made available to the

tenants and/or farmers cooperatives consistent with the asserted

implementation of the supervised credit program,

The Agricultural Guarantee Fund constituted under Section

twelve of Republic Act No. 6390 for all its intent and purpose include

the guarantee coverage to the participating financial institutions under

the same terms and conditions allowed and applied to the rural banking

system.

The existing agricultural guarantee loan funds wholly or

partly contributed and/or funded by government agencies shall be

integrated into the Agricultural Guarantee Fund, and shall be governed

by the rules and regulations promulgated by the Agricultural Guarantee

Fund Board established under Section thirteen of the mentioned Act.

Section 2

SEC. 2. All acts, orders, rules and regulations, or parts thereof,

inconsistent herewith are amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of November, in the year of

Our Lord, nineteen hundred and seventy-two.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO B. MELCHOR

Executive Secretary