RA 1199 Chapter III

Basis of Shares in Crops other than Rice.

Section 41

SEC. 41. Basis of Shares in Crops other than Rice.- The landholder and the tenant on lands which produce crops other than rice shall be free to enter into any contract stipulating the ratio of crop division. In the absence of a stipulation, the customs of the place shall govern: Provided, That whether the basis of division of the crop is the contract between the parties or the customs of the place, the share of the tenant for his labor in the production shall not be less than thirty per cent of the harvest or produce, after deducting the expenses for harvesting and/or initial processing: Provided, further, That in cases where the share of the tenant is, according to local practices or customs prevailing at the time of the approval of this Act, more than the minimum herein set, the tenant's share thus established by local practices or customs shall prevail and be considered the minimum. PART III THE LEASEHOLD TENANCY

Section 42

SEC. 42. Landholder-Lessor and Tenant-Lessee, Defined. Any person, natural or juridical, either as owner, lessee, usufructuary or legal possessor of agricultural land, who lets, leases or rents to another said property for purposes of agricultural production and for a price certain or ascertainable either in an amount of money or produce, shall be known as the landholder-lessor; and any person who, with the consent of the former, tills, cultivates or operates said land, susceptible of cultivation by one individual, personally or with the aid of labor available from among his own immediate farm household, is a tenant-lessee.

Rights and Obligations of Tenant-Lessee.

Section 43

SEC. 43. Rights and Obligations of Tenant-Lessee.—With the creation of the tenancy relationship arising out of the contract between the landholder-lessor and tenant-lessee, the latter shall have the right to enter the premises of the land, and to the adequate and peaceful enjoyment thereof. He shall have the right to work the land according to his best judgment, provided the manner and method of cultivation and harvest are in accordance with P pven farm practices. Upon termination of the relationship, he shall be entitled to one half of the value of the improvements made by him, provided they are reasonable and adequate to the purposes of the lease. The tenant-lessee shall pay the consideration stipulated in the lease contract provided it shall not exceed the limit fixed in Section forty-six. In the absence of stipulation, the consideration shall be that established in said Section forty-six. He shall make proper use of the land and the improvements thereon and shall be under obligation to cultivate it as a good father of a family, by doing all the work considered reasonable and necessary in accordance with proven farm practices. He is likewise obliged to take reasonable care of the work animals and farm implements that may be delivered to him by the landholder, in case it is agreed between the parties that the landholder-lessor shall furnish any or all of them.

Rights of Landholder-lessor.

Section 44

SEC. 44. Rights of Landholder-lessor.—The landholder-lessor or his duly authorized representatives shall have the right to inspect the premises of the land which is the subject of the lease for the purpose of ascertaining the tenant's compliance with the provisions of the contract and of this Act, but in no case shall he exercise any coercion, intimidation or violence in word or deed.

Manner of Rental Payment.

Section 45

SEC. 45. Manner of Rental Payment.—Payment of the consideration for the use of land may be made either in an amount certain or ascertainable in money or in produce, or both.

Section 46

SEC. 46. Consideration for the Use of Land. The consideration for the use of ricelands, shall not be more than thirty per centum of the gross produce for first class lands and not more than twenty-five per centum for second class lands. Classification of ricelands shall be determined by productivity: first class lands being those which yield more than forty cavanes per hectare and second class lands being those which yield forty cavanes or less, the same to be computed upon the normal average harvest of the three preceding years. The consideration for agricultural land where exist fruit trees and other useful trees and plants, from which the whole or any portion of the produce of the said land is taken, shall not be more than what have been specified in the preceding section: Provided, however, That additional considerations for the enjoyment of said trees and useful plants, if the principal product is rice or other crops, shall be decided and specified by negotiation between landholder-lessor and the tenant-lessee: Provided, further, That where the tenant-lessee, during the period of the lease and/or in consideration thereof, plants and/or takes care of said trees and plants, with the consent of the landholder-lessor, the tenant-lessee shall be compensated by the latter in the manner agreed between them. The consideration for the use of sugar lands, fishponds, saltbods and of lands devoted to the raising of livestock shall be governed by stipulation between the parties.

Rental of Work Animals, etc. and Applicability of Schedules.

Section 47

SEC. 47. Rental of Work Animals, etc. and Applicability of Schedules.—Upon agreement of the parties, the tenant-lessee may make use of such work animals, farm implements or services belonging to the landholder-lessor as are available for hire, the consideration of which shall be based on their fair rental value. The rates on the fair rental value for the use of work animals, farm implements and services, belonging to the landholder-lessor shall be those provided in Schedules "A", "B", and "C", which shall apply upon approval of this Act and shall remain in force, unless the Secretary of Agriculture and Natural Resources revises the same in accordance with Section fifty-two.

Loans and Interests.

Section 48

SEC. 48. Loans and Interests.—Loans, either in money or in kind, obtained by a tenant-lessee from the landholder-lessor shall be payable at the time stipulated: Provided, however, That this shall not be construed as prejudicing the right of the borrower to repay his obligation before date of maturity. The loan, unless it is otherwise stipulated, shall be payable in money at not more than eight per cent interest per annum, computed from the e indebtedness was contracted up to and including the of payment. A note or memorandum to evidence indebtedness shall be executed in accordance with the provision of Section sixteen. PART IV SECURITY OP TENURE

Ejectment of Tenant.

Section 49

SEC. 49. Ejectment of Tenant.—Notwithstanding agreement or provision of law as to the period, in all cases where land devoted to any agricultural purpose is held under any system of tenancy, the tenant shall not be dispossessed of his holdings except for any of the causes hereinafter enumerated and only after the same has been proved before, and the dispossession is authorized by the court.

Causes for the Dispossession of a Tenant.

Section 50

SEC. 50. Causes for the Dispossession of a Tenant.- Any of the following shall be a sufficient cause for the dispossession of a tenant from his holdings: The bona fide intention of the landholder to cultivate the land himself personally or through the employment of farm machinery and implements: Provided, however, That should the landholder not cultivate the land himself or should fail to employ mechanical farm implements for a period of 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 damages for any loss incurred by him because of said dispossession: Provided, further, That the landholder shall, at least one year but not more than two years prior to the date of his petition to dispossess the tenant under this sub-section, file notice with the court and shall inform the tenant in writing in a language or dialect known to the latter of his intention to cultivate the land himself, either personally or through the employment of mechanical implements, together with a certification of the Secretary of Agriculture and Natural Resources that the land is suited for mechanization: Provided, further, That the dispossessed tenant and the members of his immediate household shall be preferred in the employment of necessary laborers under the new set-up. When the tenant violates or fails to comply wij any of the terms and conditions of the contract or art of the provisions of this Act: Provided, however, That this subsection shall not apply when the tenant has substantially complied with the contract or with the provisions of this Act. The tenant's failure to pay the agreed rental or to deliver the landholder's share: Provided, however, That shall not apply when the tenant's failure is caused by a fortuitous event or force majeure. When the tenant uses the land for a purpose other than that specified by agreement of the parties. When a share-tenant fails to follow those proven farm practices which will contribute towards the proper care of the land and increased agricultural production. When the tenant through negligence permits serious injury to the land which will impair its productive capacity. Conviction by a competent court of a tenant or any member of his immediate family or farm household of a crime against the landholder or a member of his immediate family.

Burden of Proof.

Section 51

SEC. 51. Burden of Proof.—She burden of proof to show the existence of a lawful Jp.se for the ejectment of a tenant shall rest upon the landholder. PART V SPECIAL PROVISIONS

Duties of the Secretary of Agriculture and Natural Resources.

Section 52

SEC. 52. Duties of the Secretary of Agriculture and Natural Resources.—It shall be the duty of the Secretary of Agriculture and Natural Resources to: Conduct such educational programs as circumstances may require adequately to acquaint tenants and landholders with their rights and responsibilities under this Act. Revise the rental rates provided for in Schedules “A” and "B", whenever such revision is made necessary by changes in values and prices, so that the rental rates shall conform to the standard of fair rental value as defined in Section 5 (m). Facilitate the preparation and registration of landholder-tenant contracts through the distribution of approprite printed froms and instructions to guide the interested parties in drafting and executing rental agreements. The forms of contracts must bear the approvalof the court. Conduct surveys and researches to determine extent of compliance, adaptability to different crops areas and the fairness of this Act to all parties affected by its implementation. Submit an annual report to the President containing an analysis showing the progress made towards attaining the objectives enumerated in Section two of this Act and recommendations concerning methods of improving the implementation and general effectiveness of this Act Copies of this report shall be provided to members of the Congress.

Duties of Secretary of Justice.

Section 53

SEC. 53. Duties of Secretary of Justice.—The Secretary of Justice, through the Executive Judge of the Court, shall be responsible for formulating a national enforcement program, among other things, through the assignment of judges and personnel, which will insure the full enforcement of the provisions of this Act.

Representation by Counsel.

Section 54

SEC. 54. Representation by Counsel.—In all cases wherein a tenant cannot afford to be represented by counsel, it shall be the duty of the Public Defender of the Department of Labor to represent him, upon proper notification by the party concerned, or the court of competent jurisdiction shall assign or appoint counsel de oficio for the indigent tenant.

Applicability of General Laws.

Section 55

SEC. 55. Applicability of General Laws.—The provisions of existing laws which are not inconsistent herewith shall apply to the contracts governed by this Act as well as to acts or omissions by either party against each other during, and in connection with, their relationship.

Doubts to Be Solved in Favor of the Tenant.

Section 56

SEC. 56. Doubts to Be Solved in Favor of the Tenant.- In the interpretation and enforcement of this Act other laws as well as of the stipulations between landholder and the tenant, the courts and administrative officials shall solve all grave doubts in favor of the tenant.

Penal Provision.

Section 57

SEC. 57. Penal Provision.—Violation of any of the provisions of this Act shall be punished with a fine not exceeding two thousand pesos or imprisonment not exceeding ear, or both, in the discretion of the Court.

Separability of Provisions.

Section 58

SEC. 58. Separability of Provisions.—If for any reason, any section or provision of this Act shall be questioned in any court, and shall be held to be unconstitutional or invalid, no other section or provision of this Act shall affected thereby.

Repealing Provisions.

Section 59

SEC. 59. Repealing Provisions.—Public Act Numbered Four thousand fifty-four, as amended by Republic Act funibered Thirty-four, Commonwealth Act Numbered Fifty-three, Commonwealth Act Numbered Four hundred sixty-one as amended by Republic Act Numbered Forty-four and all laws, rules and regulations inconsistent herewith are hereby repealed.

Effective Date.

Section 60

SEC. 60. Effective Date.—This Act shall take effect upon its approval. Approved, August 30, 1954. SCHEDULE "A" The rental value of work animals and farm implements other than machinery, shall not exceed the allowable depreciation charges plus six per cent (6%) inerest per annum computed on the market value of the said work animals and farm implements as hereinbelow fixed. The market value of work animals and farm implements not fixed in this Schedule shall be those prevailing in the locality where the said animals and implements are rented. Item Market Value Period of depreciatin in years Allowable depriciation Allowable interest at 6 per cent Fair retal value per annum Carabao............................... P300.00 10 P30.00 P18.00 P48.00 Bullock.................................. 600.00 7 85.75 36.00 121.00 Hore, native .......................... 150.00 8 18.75 9.00 27.75 Cattle.................................... 200.00 7 28.57 12.00 40.57 Plow, iron ............................ 40.00 5 8.00 2.40 10.40 Plow, wooden ..................... 25.00 2 12.50 1.50 14.00 Harrow, iron ........................ 18.00 5 3.60 1.00 4.68 Carreton (native cart) .......... 400.00 10 40.00 24.00 64.00 SCHEDULE "B" The rental value for farm machineries inclusive of tractors, tractor equipment, engines, motors, and pumps shall not exceed the allowable depreciation equal to one-tent (1/10) of the curent market value plus interest at six per cent (6%) per annum. SCHEDULE "C" The amounts to charged by the landholder when he performs services in the operation of the farm enterprise shall not exceed the rates in the locality where such services are rendered.