Determination of Just Compensation.
SEC. 17. Determination of Just Compensation.—In determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by government assessors shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the Government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the said land shall be considered as additional factors to determine its valuation.
Valuation and Mode of Compensation.
SEC. 18. Valuation and Mode of Compensation.—The LBP shall compensate the landowner in such amount as may be agreed upon by the landowner and the DAR and the LBP, in accordance with the criteria provided for in Sections 16, and 17, and other pertinent provisions hereof, or as may be finally determined by the court, as the just compensation for the land.
The compensation shall be paid in one of the following modes, at the option of the landowner:
Cash payment, under the following terms and conditions:
(a) For lands above fifty (50) hectares, insofar as the excess hectarage is concerned
—Twenty-five percent (25%) cash, the balance to be paid as the in government financial instruments negotiable at any time.
(b) For lands above twenty-four (24) hectares and up to fifty (50) hectares
—Thirty percent (30%) cash, the balance to be paid in government financial instruments negotiable at any time.
(c) For lands twenty four (24) hectares and below
—Thirty-five percent (35%) cash, the balance to be paid in government financial instruments negotiable at any time.
Shares of stock in government-owned or controlled corporations, LBP preferred shares, physical assets or other qualified investments in accordance witli guidelines set by the PARC;
Tax credits which can be used against any tax. liability;
LBP bonds, which shall have the following features:
Market interest rates aligned with 91-day treasury bill rates. Ten percent (10%) of the face value of the bonds shall mature every year from the date of issuance until the tenth (10th) year: Provided, That should the landowner choose to forego the cash portion, whether in full or in part, he shall be paid correspondingly in LBP bonds;
Transferability and negotiability. Such LBP bonds may be used by the landowner, his successors in interest or his assigns, up to the amount of their face value, for any of the following:
Acquisition of land or other real properties of the government, including assets under the Asset Privatization Program and other assets foreclosed by government financial intitutions in the same province or region where the. lands for which the bonds were paid are situated;
Acquisition of shares of stock of government-owned or controlled corporations or shares of stock owned by the government in private corporations;
Substitution for surety or bail bonds for the provisional release of accused persons, or for performance bonds;
Security for loans with any government financial institution, provided the proceeds of the loans shall be invested in an economic enterprise, preferably in a small-and medium-scale industry, in the same province or region as the land for which the bonds are paid;
Payment for various taxes and fees to government: Provided, That the use of these bonds for these purposes will be limited to a certain percentage of the outstanding balance of the financial instruments: Provided, further, That the PARC shall determine the percentages mentioned above;
Payment for tuition fees of the immediate family of the original bondholder in government universities, colleges, trade schools, and other institutions;
Payment for fees of the immediate family of the original bondholder in government hospitals; and
Such other uses as the PARC may from time to time allow.
In case of extraordinary inflation, the PARC shall take appropriate measures to protect the economy.
Incentives for Voluntary Offers for Sale.
SEC. 19. Incentives for Voluntary Offers for Sale.—Landowners, other than banks and other financial institutions, who voluntarily offer their lands for sale shall be entitled to an additional five percent (5%) cash payment.
Voluntary Land Transfer.
SEC. 20. Voluntary Land Transfer.—Landowners of agricultural lands subject to acquisition under this Act may enter into a voluntary arrangement for direct transfer of their lands to qualified beneficiaries subject to the following guidelines:
All notices for voluntary land transfer must be submitted to the DAR within the first year of the implementation of the CARP. Negotiations between the landowners and qualified beneficiaries covering any voluntary land transfer which remain unresolved after one (1) year shall not be recognized and such land shall instead be acquired by the government and transferred pursuant to this Act.
The terms and conditions of such transfer shall not be less favorable to the transferee than those of the government's standing offer to purchase from the landowner and to resell to the beneficiaries, if such offers have been made and are fully known to both parties.
The voluntary agreement shall include sanctions for non-compliance by either party and shall be duly recorded and its implementation monitored by the DAR.
Payment of Compensation by Beneficiaries under Voluntary Land Transfer.
SEC. 21. Payment of Compensation by Beneficiaries under Voluntary Land Transfer.—Direct payment in cash or in kind may be made by the farmer-beneficiary to the landowner tinder terms to be mutually agreed upon by both parties, which shall be binding upon them, upon registration with and approval by the DAR. Said approval shall be considered given, unless notice of disapproval is received by the farmer-beneficiary within thirty (30) days from the date of registration.
In the event they cannot agree on the price of land, the procedure for compulsory acquisition as provided in Section 16 shall apply. The LBP shall extend financing to the beneficiaries for purposes of acquiring the land.
