RA 3844 CHAPTER III.&mdashLAND AUTHORITY

Section 49

SEC. 49. Creation of the Land Authority.&mdashFor 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

SEC. 50. Qualifications and Compensation of Governors.&mdashNo 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

SEC. 51. Powers and Functions.&mdashIt 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 there to 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 and 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

SEC. 52. Appointment of Subordinate Officials and Employees.&mdashThe 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.

Section 53

SEC. 53. Compulsory Purchase of Agricultural Lands.&mdashThe 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 landowner 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

SEC. 54. Possession of the Land; Procedure.&mdashThe 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

SEC. 55. Expeditious Survey and Subdivision.&mdashImmediately 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

SEC. 56. Just Compensation.&mdashIn 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

SEC. 57. Duty of Court in Expropriation Proceedings.&mdashIn 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

SEC. 58. Issuance of Certificates of Title for Parcel or Lot.&mdashAfter 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

SEC. 59. Prohibition Against Alienation and Ejectment.&mdashUpon 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

SEC. 60. Disposition of Expropriated Land.&mdashAfter 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 plus 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 willing 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

SEC. 61. Organization of Cooperative Associations.&mdashFor 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

SEC. 62. Limitation on Land Rights.&mdashExcept 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

SEC. 63. Inscription of Specific Prohibition Against Resale and Subdivision of Landholding.&mdashCertificates 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

SEC. 64. Exemption from Attachment.&mdashLands 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

SEC. 65. Precedence of Expropriation Cases.&mdashExpropriation cases filed by the Authority under the 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.

Section 66

SEC. 66. Title to Public Agricultural Land.&mdashUpon 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

SEC. 67. Census of Settlements.&mdashThe 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

SEC. 68. Assistance to Settlers in Transporting Them selves and Their Belongings.&mdashThe 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 full at any time prior to the maturity of the loan.

Assistance to Settlers in Securing Equipment.

Section 69

SEC. 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

SEC. 70. Providing Housing and Accommodations to Settlers.&mdashThe Authority may help provide housing and other accommodations for the new settlers upon their arrival in the settlement areas by 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

SEC. 71. Power of the Land Authority to Sell to Holders of Bonds Issued to Former Landowners Whose Lands Have Been Purchased for Redistribution.&mdashThe 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

SEC. 72. Duplicate Records to be Furnished the Bureau of Lands.&mdashThe 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

SEC. 73. Transfer of Appropriations, Powers, Functions, etc.&mdashThe 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 shall 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.