Republic Act No. 3844 - Official Gazette of The Republic of The Philippines
Republic Act No. 3844 - Official Gazette of The Republic of The Philippines
Republic Act No. 3844 - Official Gazette of The Republic of The Philippines
3844
August 8, 1963 (https://www.o5cialgazette.gov.ph/1963/08/08/republic-act-no-3844/)
S. No. 542
H. No. 5222
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND
REFORMS IN THE PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND THE
CHANNELING OF CAPITAL INTO INDUSTRY, PROVIDE FOR THE NECESSARY
IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR OTHER
PURPOSES.
SECTION 1. Title—This Act shall be known as the Agricultural Land Reform Code.
(1) To establish owner-cultivatorship and the economic family-size farm as the basis of
Philippine agriculture and, as a consequence, divert landlord capital in agriculture to
industrial development;
(3) To create a truly viable social and economic structure in agriculture conducive to
greater productivity and higher farm incomes;
(4) To apply all labor laws equally and without discrimination to both industrial and
agricultural wage earners;
(5) To provide a more vigorous and systematic land resettlement program and public land
distribution; and
(6) To make the small farmers more independent, self-reliant and responsible citizens, and
a source of genuine strength in our democratic society.
SEC. 3. Composition of Code.—In pursuance of the policy enunciated in Section two, the
following are established under this Code:
(1) An agricultural leasehold system to replace all existing share tenancy systems in
agriculture;
(3) An authority for the acquisition and equitable distribution of agricultural land;
(8) An expanded program of land capability survey, classibcation, and registration; and
(9) A judicial system to decide issues arising under this Code and other related laws and
regulations.
(1) Abandonment of the landholding without the knowledge of the agricultural lessor;
(2) Voluntary surrender of the landholding by the agricultural lessee, written notice of which
shall be served three months in advance; or
(3) Absence of the persons under Section nine to succeed to the lessee, in the event of
death or permanent incapacity of the lessee.
In case of death or permanent incapacity of the agricultural lessor, the leasehold shall bind
his legal heirs.
SEC. 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period, etc.—The
agricultural leasehold relation under this Code shall not be extinguished by mere expiration
of the term or period in a leasehold contract nor by the sale, alienation or transfer of the
legal possession of the landholding. In case the agricultural lessor sells, alienates or
transfers the legal possession of the landholding, the purchaser or transferee thereof shall
be subrogated to the rights and substituted to the obligations of the agricultural lessor.
SEC. 11. Lessee’s Right of Pre-emption.—In case the agricultural lessor decides to sell the
landholding, the agricultural lessee shall have the preferential right to buy the same under
reasonable terms and conditions: Provided, That the entire landholding offered for sale
must be preempted by the Land Authority if the landowner so desires, unless the majority
of the lessees object to such acquisition: Provided, further, That where there are two or
more agricultural lessees, each shall be entitled to said preferential right only to the extent
SEC. 12. Lessee’s Right of Redemption.—In case the landholding is sold to a third person
without the knowledge of the agricultural lessee, the latter shall have the right to redeem
the same at a reasonable price and consideration: Provided, That the entire landholding
sold must be redeemed: Provided, further, That where there are two or more agricultural
lessees, each shall be entitled to said right of redemption only to the extent of the area
actually cultivated by him. The right of redemption under this Section may be exercised
within two years from the registration of the sale, and shall have priority over any other
right of legal redemption.
SEC. 13. AKdavit Required in Sale of Land Subject to Right of Pre-emption.—No deed of sale
of agricultural land under cultivation by an agricultural lessee or lessees shall be recorded
in the Registry of Property unless accompanied by an a5davit of the vendor that he has
given the written notice required in Section eleven of this Chapter or that the land is not
worked by an agricultural lessee.
SEC. 14. Right of Pre-emption and Redemption Not Applicable to Land to be Converted into
Residential, Industrial and Similar Purposes.—The right of pre-emption and redemption
granted under Sections eleven and twelve of this Chapter cannot be exercised over
landholdings suitably located which the owner bought or holds for conversion into
residential, commercial, industrial or other similar non-agricultural purposes: Provided,
however, That the conversion be in good faith and is substantially carried out within one
year from the date of sale. Should the owner fail to comply with the above condition, the
agricultural lessee shall have the right to repurchase under reasonable terms and
conditions said landholding from said owner within one year after the aforementioned
SEC. 15. Agricultural Leasehold Contract in General.—The agricultural lessor and the
agricultural lessee shall be free to enter into any kind of terms, conditions or stipulations in
a leasehold contract, as long as they are not contrary to law, morals or public policy. A
term, condition or stipulation in an agricultural leasehold contract is considered contrary to
law, morals or public policy:
(1) If the agricultural lessee is required to pay a rental in excess of that which is hereinafter
provided for in this Chapter;
(2) If the agricultural lessee is required to pay a consideration in excess of the fair rental
value as debned here in, for the use of work animals and/or farm implements belonging to
the agricultural lessor or to any other person; or
(3) If it is imposed as a condition in the agricultural leasehold contract: (a) that the
agricultural lessee is required to rent work, animals or to hire farm implements from the
agricultural lessor or a third person, or to make use of any store or services operated by the
agricultural lessor or a third person; or (b) that the agricultural lessee is required to perform
any work or render any service other than his duties and obligations provided in this
Chapter with or without compensation; or (c) that the agricultural lessee is required to
answer for any bne, deductions and/or assessments.
Any contract by which the agricultural lessee is required to accept a loan or to make
payment therefor in kind shall also be contrary to law, morals or public policy.
SEC. 16. Nature and Continuity of Conditions of Leasehold Contract.—In the absence of any
agreement as to the period, the terms and conditions of a leasehold contract shall continue
until modibed by the parties: Provided, That in no case shall any modibcation of its terms
SEC. 17. Form and Registration of Contract.—Should the parties decide to reduce their
agreement into writing, the agricultural leasehold contract shall be drawn in quadruplicate
in a language or dialect known to the agricultural lessee and signed or thumb-marked both
by the agricultural lessee personally and by the agricultural lessor or his authorized
representative, before two witnesses, to be chosen by each party. If the agricultural lessee
does not know how to read, the contents of the document shall be read and explained to
him by his witness. The contracting parties shall acknowledge the execution of the
contract before the justice of the peace of the municipality where the land is situated. No
fees or stamps of any kind shall be required in the preparation and acknowledgment of the
instrument. Each of the contracting parties shall retain a copy of the contract. The justice
of the peace shall cause the third copy to be delivered to the municipal treasurer of the
municipality where the land is located and the fourth copy to the O5ce of the Agrarian
Counsel.
SEC. 18. Registration of Leasehold Contract.—The municipal treasurer shall, upon receipt of
his copy of the contract, require the agricultural lessee and agricultural lessor to present
their respective copies of the contract, and shall cause to be annotated thereon the date,
time and place of registration as well as its entry or registration number.
SEC. 21. Exemption from Lien and/or Execution.—The following shall be exempt from lien
and/or execution against the agricultural lessee:
(1) Twenty-bve per centum of the entire produce of the land under cultivation; and
(2) Work animals and farm implements belonging to the agricultural lessee: Provided, That
their value does not exceed one thousand pesos. But no article or species of property
mentioned in this Section shall be exempt from execution issued upon a judgment
recovered for its price or upon a judgment of foreclosure of a mortgage thereon.
SEC. 22. Use of Accepted Standards of Weights and Measures.—In all transactions entered
into between the agricultural lessee and the agricultural lessor concerning agricultural
products the o5cial or, upon agreement of the parties, the accepted standards of weights
and measures shall be used.
(2) To manage and work on the land in a manner and method of cultivation and harvest
which conform to proven farm practices;
(4) To deal with millers and processors and attend to the issuance of quedans and
warehouse receipts for the produce due him.
SEC. 24. Right to a Home Lot.—The agricultural lessee shall have the right to continue in the
exclusive possession and enjoyment of any home lot he may have occupied upon the
effectivity of this Code, which shall be considered as included in the leasehold.
SEC. 25. Right to be IndemniBed for Labor.—The agricultural lessee shall have the right to
be indemnibed for the cost and expenses incurred in the cultivation, planting or harvesting
and other expenses incidental to the improvement of his crop in case he surrenders or
abandons his landholding for just cause or is ejected therefrom. In addition, he has the
right to be indemnibed for one-half of the necessary and useful improvements made by
him on the landholding: Provided, That these improvements are tangible and have not yet
lost their utility at the time of surrender and/or abandonment of the land-holding, at which
time their value shall be determined for the purpose of the indemnity for improvements.
SEC. 26. Obligations of the Lessee.—It shall be the obligation of the agricultural lessee:
(1) To cultivate and take care of the farm, growing crops, and other improvements on the
landholding as a good father of a family and perform all the work therein in accordance
with proven farm practices;
(3) To take reasonable care of the work animals and farm implements delivered to him by
the agricultural lessor and see that they are not used for purposes other than those
intended or used by another without the knowledge and consent of the agricultural lessor:
Provided, however, That if said work animals get lost or die, or said farm implements get
lost or are destroyed, through the negligence of the agricultural lessee, he shall be held
responsible and made answerable therefor to the extent of the value of the work animals
and/or farm implements at the time of the loss, death or destruction;
(4) To keep his farm and growing crops attended to during the work season. In case of
unjustibed abandonment or neglect of his farm, any or all of his expected produce may,
upon order of the Court, be forfeited in favor of the agricultural lessor to the extent of the
damage caused thereby;
(5) To notify the agricultural lessor at least three days before the date of harvesting or,
whenever applicable, of threshing; and
(6) To pay the lease rental to the agricultural lessor when it falls due.
SEC. 27. Prohibitions to Agricultural Lessee.—It shall be unlawful for the agricultural lessee:
(1) To contract to work additional land holdings be longing to a different agricultural lessor
or to acquire and personally cultivate an economic family-size farm, without the knowledge
and consent of the agricultural lessor with whom he had entered brst into leasehold, if the
brst landholding is of su5cient size to make him and the members of his immediate farm
household fully occupied in its cultivation; or
(1) Cruel, inhuman or offensive treatment of the agricultural lessee or any member of his
immediate farm house hold by the agricultural lessor or his representative with the
knowledge and consent of the lessor;
(2) Non-compliance on the part of the agricultural lessor with any of the obligations
imposed upon him by the provisions of this Code or by his contract with the agricultural
lessee;
(3) Compulsion of the agricultural lessee or any member of his immediate farm household
by the agricultural lessor to do any work or render any service not in anyway connected
with farm work or even without compulsion if no compensation is paid;
(4) Commission of a crime by the agricultural lessor or his representative against the
agricultural lessee or any member of his immediate farm household; or
(5) Voluntary surrender due to circumstances more advantageous to him and his family.
SEC. 29. Rights of the Agricultural Lessor.—It shall be the right of the agricultural lessor:
(1) To inspect and observe the extent of compliance with the terms and conditions of their
contract and the provisions of this Chapter;
(2) To propose a change in the use of the landholding to other agricultural purposes, or in
the kind of crops to be planted: Provided, That in case of disagreement as to the proposed
(3) To require the agricultural lessee, taking into consideration his bnancial capacity and
the credit facilities available to him, to adopt in his farm proven farm practices necessary
to the conservation of the land, improvement of its fertility and increase of its productivity:
Provided, That in case of disagreement as to what proven farm practice the lessee shall
adopt, the same shall be settled by the Court according to the best interest of the parties
concerned; and
SEC. 30. Obligations of the Agricultural Lessor.—It shall be the obligation of the agricultural
lessor;
(1) To keep the agricultural lessee in peaceful possession and cultivation of his
landholding; and
(2) To keep intact such permanent useful improvements existing on the landholding at the
start of the leasehold relation as irrigation and drainage systems and marketing
allotments, which in the case of sugar quotas shall refer both to domestic and export
quotas, provisions of existing laws to the contrary notwithstanding.
SEC. 31. Prohibitions to the Agricultural Lessor.—It shall be unlawful for the agricultural
lessor:
(1) To dispossess the agricultural lessee of his landholding except upon authorization by
the Court under Section thirty-six. Should the agricultural lessee be dispossessed of his
landholding without authorization from the Court, the agricultural lessor shall be liable for
(2) To require the agricultural lessee to assume, directly or indirectly, the payment of the
taxes or part thereof levied by the government on the landholding;
(3) To require the agricultural lessee to assume, directly or indirectly, any part of the rent,
“canon” or other consideration which the agricultural lessor is under obligation to pay to
third persons for the use of the land;
(4) To deal with millers or processors without written authorization of the lessee in cases
where the crop has to be sold in processed form before payment of the rental; or
SEC. 33. Manner, Time and Place of Rental Payment.—The consideration for the lease of the
land shall be paid in an amount certain in money or in produce, or both, payable at the
place agreed upon by the parties immediately after threshing or processing if the
consideration is in kind, or within a reasonable time thereafter, if not in kind.
SEC. 34. Consideration for the Lease of Riceland and Lands Devoted to Other Crops.—The
consideration for the lease of riceland and lands devoted to other crops shall not be more
than the equivalent of twenty-bve per centum of the average normal harvest during the
three agricultural years immediately preceding the date the leasehold was established after
deducting the amount used for seeds and the cost of harvesting, threshing, loading,
hauling and processing, whichever are applicable: Provided, That if the land has been
cultivated for a period of less than three years, the initial consideration shall be based on
the average normal harvest during the preceding years when the land was actually
cultivated, or on the harvest of the brst year in the case of newly-cultivated lands, if that
harvest is normal: Provided, further, That after the lapse of the brst three normal harvests,
the bnal consideration shall be based on the average normal harvest during these three
preceding agricultural years: Provided, furthermore, That in the absence of any agreement
between the parties as to the rental, the maximum allowed herein shall apply: Provided,
Bnally, That if capital improvements are introduced on the farm not by the lessee to
increase its productivity, the rental shall be increased proportionately to the consequent
increase in production due to said improvements. In case of disagreement, the Court shall
determine the reasonable increase in rental.
(1) The agricultural lessor-owner or a member of his immediate family will personally
cultivate the landholding or will convert the landholding, if suitably located, into residential,
factory, hospital or school site or other useful non-agricultural purposes: Provided, That the
agricultural lessee shall be entitled to disturbance compensation equivalent to bve years
rental on his landholding in addition to his rights under Sections twenty-bve and thirty-four,
except when the land owned and leased by the agricultural lessor is not more than bve
hectares in which case instead of disturbance compensation the lessee may be entitled to
an advanced notice of at least one agricultural year before ejectment proceedings are bled
against him: Provided, further, That should the landholder not cultivate the land himself for
three years or fail to substantially carry out such conversion within 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 recover damages for any loss
incurred by him because of said dispossession;
(2) The agricultural lessee failed to substantially comply with any of the terms and
conditions of the contract or any of the provisions of this Code unless his failure is caused
by fortuitous event or force majeure;
(3) The agricultural lessee planted crops or used the landholding for a purpose other than
what had been previously agreed upon;
(4) The agricultural lessee failed to adopt proven farm practices as determined under
paragraph 3 of Section twenty-nine;
(6) The agricultural lessee does not pay the lease rental when it falls due: Provided, That if
the non-payment of the rental shall be due to crop failure to the extent of seventy-bve per
centum as a result of a fortuitous event, the non-payment shall not be a ground for
dispossession, although the obligation to pay the rental due that particular crop is not
thereby extinguished; or
(7) The lessee employed a sub-lessee on his landholding in violation of the terms of
paragraph 2 of Section twenty-seven.
SEC. 37. Burden of Proof.—The burden of proof to show the existence of a lawful cause for
the ejectment of an agricultural lessee shall rest upon the agricultural lessor.
SEC. 38. Statute of Limitations.—An action to enforce any cause of action under this Code
shall be barred if not commenced within three years after such cause of action accrued.
SEC. 39. Rights for Agricultural Labor—To enable the farm workers to enjoy the same rights
and opportunities in life as industrial workers, they shall enjoy the following:
SEC. 40. Right to Self-Organization.—The farm workers shall have the right to self-
organization and to form, join or assist farm workers’ organizations of their own choosing
for the purpose of collective bargaining through representatives of their own choosing:
Provided, That this right shall be exercised in a manner as will not unduly interfere with the
normal farm operations. Individuals employed as supervisors shall not be eligible for
membership in farm workers’ organizations under their supervision but may form separate
organizations of their own.
SEC. 41. Right to Engage in Concerted Activities.—The farm workers shall also have the
right to engage in concerted activities for the purpose of collective bargaining and other
mutual aid or protection.
For the purpose of this and the preceding Section, it shall be the duty of the farm employer
or manager to allow the farm workers, labor leaders, organizers, advisers and helpers
complete freedom to enter and leave the farm, plantation or compound at the portion of
the same where said farm workers live or stay permanently or temporarily.
SEC. 42. Right to Minimum Wage.—Notwithstanding any provision of law or contract to the
contrary, farm workers in farm enterprises shall be entitled to at least P3.50 a day for eight
hours’ work: Provided, That this wage may, however, be increased by the Minimum Wage
Board as provided for in Republic Act Numbered Six hundred and two.
SEC. 43. Right to Eight Hours’ Work.—notwithstanding the provision of existing laws to the
contrary, farm workers shall not be required to work for more than eight hours daily. When
the work is not continuous, the time during which the farm worker is not working and can
Work may be performed beyond eight hours a day in case of actual or impending
emergencies caused by serious accidents, bre, good, typhoon, epidemic, or other disaster
or calamity, or in case of urgent work to be performed on farm machines, equipment or
installations in order to avoid a serious loss which the farm employer or manager would
otherwise suffer, or some other just cause of a similar nature, but in all such cases the
farm workers shall be entitled to receive compensation for the overtime work performed at
the same rate as their regular wages, plus at least twenty-bve per centum additional, based
on their daily wages.
No farm employer or manager shall compel a farm worker to work during Sundays and
legal holidays: Provided, however, That should the farm worker agree to work on said days,
he shall be paid an additional sum of at least twenty-bve per centum of his regular
compensation: Provided, further, That the farm employer or manager shall not be held
liable for any claim for overtime work which he had not previously authorized, except if the
work rendered was to avoid damages to crops, produce, work animals or implements,
buildings or the like.
Any agreement or contract between the farm employer or manager and the farm worker
contrary to the provisions of this Section shall be null and void.
SEC. 44. Right of Action for Damages.—Notwithstanding the provisions of existing laws to
the contrary, Act Numbered Eighteen hundred and seventy-four, as amended, entitled “An
Act to extend and regulate the responsibility of employers for personal injuries and death
suffered by their employees while at work”, shall apply to farm workers insofar as it may be
applicable.
SEC. 46. Right Against Suspension or Lay-Off.—The landowner, farm employer or farm
manager shall not suspend, lay-off, or dismiss any farm worker without just cause from the
time a farm workers’ organization or group of farm workers has presented to the
landowner a petition or complaint regarding any matter likely to cause a strike or lockout
and a copy thereof furnished with the Department of Labor, or while an agricultural dispute
is pending before the Court of Agrarian Relations. If it is proved during the said period that
a worker has been suspended or dismissed without just cause, the Court may direct the
reinstatement and the payment of his wage during the time of his suspension or dismissal,
or of any sum he should have received had he not been suspended or dismissed, without
prejudice to any criminal liability of the landowner, farm employer or farm manager as
prescribe by Section twenty-four of Commonwealth Act Numbered One hundred and three,
as amended.
SEC. 47. Other Applicable Provisions.—All other existing laws applicable to non-agricultural
workers in private enterprises which are not inconsistent with this Code shall likewise
apply to farm workers, farm labor organizations and agrarian disputes as debned in this
Code, as well as to relations between farm management and farm labor and the functions
of the Department of Labor and other agencies.
SEC. 48. Exceptions to Preceding Sections.—The preceding Sections of this Chapter, except
Sections forty, forty-one, forty-two and forty-three shall not apply to farm enterprises
comprising not more than twelve hectares.
SEC. 49. Creation of the Land Authority.—For 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 o5ce for bve years.
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.
SEC. 51. Powers and Functions.—It shall be the responsibility of the Authority:
(1) To initiate and prosecute expropriation proceedings for the acquisition of private
agricultural lands as debned 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
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-bve 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:
(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 qualibed 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 qualibed 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 qualibed 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;
(10) To inform the Agricultural Productivity Commission and the O5ce 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 classibcation 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 o5cers, to the Secretary of Finance and to the Auditor General within sixty
days of the close of the bscal year, an annual report showing its accomplishments during
the year; the expropriation proceedings it has undertaken; the expenditures it has incurred
and other bnancial transactions undertaken with respect thereto.
SEC. 53. Compulsory Purchase of Agricultural Lands.—The 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 bfty-one. In the event a
landowner agrees to sell his property under the terms specibed in this Chapter and the
National Land Reform Council bnds 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 qualibed to be a benebciary 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 bfty-six of this Code.
SEC. 54. Possession of the Land; Procedure.—The 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 bfty-six hereof.
SEC. 55. Expeditious Survey and Subdivision.—Immediately 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
SEC. 56. Just Compensation.—In 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.
SEC. 58. Issuance of CertiBcates of Title for Parcel or Lot.—After the payment of just
compensation on the land expropriated the Land Bank shall cause the issuance of
separate certibcates of titles for each parcel or lot in accordance with the subdivision
survey made under Section bfty-bve.
SEC. 59. Prohibition Against Alienation and Ejectment.—Upon the bling of the petition
referred to in Section bfty-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.
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 O5ce 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.
SEC. 62. Limitation on Land Rights.—Except 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 qualibed 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.
SEC. 63. Inscription of SpeciBc Prohibition Against Resale and Subdivision of Landholding.—
Certibcates of titles of landholdings acquired by the Land Authority and resold to
purchasers shall contain therein a specibc inscription prohibiting further subdivision and
the resale, transfer or encumbrance of said landholdings except as provided in the
preceding Section.
SEC. 64. Exemption from Attachment.—Lands 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.
SEC. 66. Title to Public Agricultural Land.—Upon 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 specibc parcels or lots in accordance with the subdivision survey
conducted by the Land Authority under paragraph 9 of Section bfty-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
benebciary selected pursuant to Section seventy-one or in accordance with paragraph 3 of
Section bfty-one, to a benebciary selected pursuant to paragraph 3 of Section one hundred
twenty-eight.
SEC. 67. Census of Settlements.—The 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 Bde 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.
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.
SEC. 70. Providing Housing and Accommodations to Settlers.—The 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.
SEC. 71. Power of the Land Authority to Sell to Holders of Bonds Issued to Former
Landowners Whose Lands Have Been Purchased for Redistribution.—The 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 qualibed to acquire
agricultural lands through purchase, of bonds issued to former landowners whose lands
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.
SEC. 72. Duplicate Records to be Furnished the Bureau of Lands.—The 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.
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 bve 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 classibcation mentioned in paragraph 12 of
Section bfty-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.
SEC. 74. Creation.—To bnance the acquisition by the Government of landed estates for
division and resale to small landholders, as well as the purchase of the land-holding by the
agricultural lessee from the landowner, there is hereby established a body corporate to be
known as the “Land Bank of the Philippines”, hereinafter called the “Bank”, which shall have
its principal place of business in Manila. The legal existence of the Bank shall be for a
period of bfty years counting from the date of the approval hereof. The Bank shall be
subject to such rules and regulations as the Central Bank may from time to time
promulgate.
SEC. 75. Powers in General.—To carry out this main purpose, the Bank shall have the
power:
(1) To prescribe, repeal, and alter its own by-laws, To determine its operating policies, and
to issue such rules and regulations as may be necessary to achieve the main purpose for
the creation of the Bank;
(3) To acquire and own real and personal property, and to sell, mortgage or otherwise
dispose of the same;
(4) To sue and be sued, make contracts, and borrow money from both local and foreign
sources. Such loans shall be subject to approval by the President of the Philippines and
shall be fully guaranteed by the Government of the Philippines;
(6) To provide, free of charge, investment counseling and technical services to landowners
whose lands have been acquired by the Land Bank. For this purpose, the Land Bank may
contract the services of private consultants.
SEC. 76. Issuance of Bonds.—The Land Bank shall, upon recommendation by the Board of
Trustees and approval of the Monetary Board of the Central Bank, issue bonds, debentures
and other evidences of indebtedness at such terms, rates and conditions as the Bank may
determine up to an aggregate amount not exceeding, at any one time, bve times its
unimpaired capital and surplus. Such bonds and other obligations shall be secured by the
assets of the Bank and shall be fully tax exempt both as to principal and income. Said
The Board of Trustees shall have the power to prescribe rules and regulations for the
registration of the bonds issued by the Bank at the request of the holders thereof.
SEC. 77. Issuance of Preferred Shares of Stock to Finance Acquisition of Landed Estates.—
The Land Bank shall issue, from time to time, preferred shares of stock in such quantities
not exceeding six hundred million pesos worth of preferred shares as may be necessary to
pay the owners of landed estates in accordance with Sections eighty and eighty-one of this
Code. The amount of shares that the Bank may issue shall not exceed the aggregate
amount needed to pay for acquired estates in the proportions prescribed in said Section
eighty of this Code. The Board of Trustees shall include as a necessary part of the by-laws
that it shall issue under Section seventy-bve of this Code, such formula as it deems
adequate for determining the net asset value of its holdings as a guide and basis for the
issuance of preferred shares. The shares of stock issued under the authority of this
provision shall be guaranteed a rate of return of six per centum per annum. In the event that
the earnings of the Bank for any single bscal year are not su5cient to enable the Bank,
after making reasonable allowance for administration, contingencies and growth, to
declare dividends at the guaranteed rate, the amount equivalent to the difference between
the Bank’s earnings available for dividends and that necessary to pay the guaranteed rate
shall be paid by the Bank out of its own assets but the Government shall, on the same day
that the Bank makes such payment, reimburse the latter in full, for which purpose such
SEC. 78. Special Guaranty Fund.—In the event that the Bank shall be unable to pay the
bonds, debentures, and other obligations issued by it, a bxed amount thereof shall be paid
from a special guaranty fund to be set up by the Government, to guarantee the obligation of
the Land Bank, and established in accordance with this Section, and thereupon, to the
extent of the amounts so paid, the Government of the Republic of the Philippines shall
succeed to all the rights of the holders of such bonds, debentures or other obligations:
Provided, however, That for the next four years after the establishment of the Bank, the
payment to the special guaranty fund should not exceed one million pesos per year, after
which period, the Government shall pay into the guaranty fund the sum of bve hundred
thousand pesos each year until the cumulative total of such guaranty fund is no less than
twenty percent of the outstanding net obligation of the Land Bank at the end of any single
calendar year.
The guaranty fund shall be administered by the Central Bank of the Philippines in the
manner most consistent with its charter. For the purpose of such fund, there shall be
SEC. 79. Receiving Payments and Time Deposits.—The Bank, under the supervision of the
Monetary Board and subject to the provisions of the General Banking Act, shall receive
savings and time deposits from the small landholders in whose favor public lands or
landed estates acquired by the Land Authority have been sold and, for this purpose,
establish, and maintain branches and o5ces in such areas as may be necessary to service
such deposits. The Monetary Board shall supervise and authorize the Bank to receive
savings and time deposits from the public in areas where facilities for such a service do
not exist or cannot be adequately provided by other depositor institutions.
SEC. 80. Making Payment to Owners of Landed Estates.—The Land Bank shall make
payments in the form herein prescribed to the owners of land acquired by the Land
Authority for division and resale under this Code. Such payment shall be made in the
following manner: ten per centum in cash and the remaining balance in six percent, tax-
free, redeemable bonds issued by the Bank in accordance with Section seventy-six, unless
the landowner desires to be paid in shares of stock issued by the Land Bank in accordance
with Section seventy-seven in an amount not exceeding thirty per centum of the purchase
price.
In the event there is an existing lien or encumbrance on the land in favor of any
Government institution at the time of acquisition by the Land Bank, the bonds and/or
shares, in that order, shall be accepted as substitute collaterals to secure the
indebtedness.
The probts accruing from payment shall be exempt from the tax on capital gains.
SEC. 82. Government Shares.—All shares of stock in the Bank subscribed or owned by the
Government shall not be entitled to participate in the income earned by the Bank from its
investments and other operations, whether in the form of cash or stock dividends or
otherwise. Amounts expended for the administration of the Bank shall not be deemed as a
participation of the Government in income.
SEC. 84. Voting of Shares.—The voting power of all the shares of stock of the Land Bank
owned or controlled by the Government shall be vested in the President of the Philippines
or in such person or persons as he may from time to time designate.
SEC. 85. Use of Bonds.—The bonds issued by the Land Bank may be used by the holder
thereof and shall be accepted in the amount of their face value as any of the following:
(1) Payment for agricultural lands or other real properties purchased from the Government;
(2) Payment for the purchase of shares of stock of all or substantially all of the assets of
the following Government owned or controlled corporations: The National Development
Company; Cebu Portland Cement Company; National Shipyards and Steel Corporation;
Manila Gas Corporation; and the Manila Hotel Company.
Upon offer by the bondholder, the corporation owned or controlled by the Government shall,
through its Board of Directors, negotiate with such bondholder with respect to the price
and other terms and conditions of the sale. In case there are various bondholders making
the offer, the one willing to purchase under terms and conditions most favorable to the
corporation shall be preferred. If no price is acceptable to the corporation, the same shall
be determined by a Committee of Appraisers composed of three members, one to be
Should the Government offer for sale to the public any or all of the shares of stock or the
assets of any of the Government owned or controlled corporations enumerated herein, the
bidder who offers to pay in bonds of the Land Bank shall be preferred provided that the
various bids be equal in every respect except in the medium of payment.
(3) Surety or performance bonds in all cases where the Government may require or accept
real property as bonds; and
SEC. 86. Board of Trustees.—The affairs and business of the Bank shall be directed, its
powers exercised and its property managed and preserved by a Board of Trustees. Such
Board shall be composed of one Chairman and four members, one of whom shall be the
head of the Land Authority who shall be an ex-oKcio member of such Board and another to
be elected by the holders of preferred shares. The Chairman and two members of the
Board of Trustees shall serve on full-time basis with the Bank. With the exception of the
head of the Land Authority and the member elected by the holders of preferred shares, the
Chairman and all members of the Board shall be appointed by the President with the
consent of the Commission on Appointments for a term of seven years, except that the
brst Chairman and members to be appointed under this Code shall serve for a period of
three, bve and seven years, such terms to be specibed in their respective appointments.
Thereafter the Chairman and members, with the exception of the ex-o5cio member,
appointed after such initial appointment shall serve for a term of seven years including any
Chairman or member who is appointed in place of one who resigns or is removed or
otherwise vacates his position before the expiration of his seven-year term. The Chairman
and the two full-time members of the Board shall act as the heads of such operating
SEC. 87. The Chairman and Vice-Chairmen.—The Chairman of the Board shall be the chief
executive o5cer of the Bank. He shall have direct control and supervision of the business
of the Bank in all matters which are not by this Code or by the by-laws of the Bank
specibcally reserved to be done by the Board of Trustees. He shall be assisted by an
Executive Vice-Chairman and one or more vice-chairmen who shall be chosen and may be
removed by the Board of Trustees. The salaries of the Vice-Chairmen shall be bxed by the
Board of Trustees with the approval of the President of the Philippines.
SEC. 91. Legal Counsel.—The Secretary of Justice shall be ex-oKcio legal adviser of the
Bank. Any provision of law to the contrary notwithstanding, the Land Bank shall have its
own Legal Department, the chief and members of which shall be appointed by the Board of
SEC. 92. Auditor.—The Auditor General shall be the ex-oKcio auditor of the Bank and shall
appoint a representative, who shall be the auditor in charge of the auditing o5ce of the
Bank. The Auditor General shall, upon the recommendation of the auditor of the Bank,
appoint or remove the personnel of the auditing o5ce. The compensation, budget and
operating expenses of the auditing o5ce and the salaries and traveling expenses of the
o5cers and employees thereof shall be bxed by the Board of Trustees and paid by the
Bank notwithstanding any provision of law to the contrary.
SEC. 93. Report on Condition of Bank.—The representative of the Auditor General shall
make a quarterly report on the condition of the Bank to the President of the Philippines, to
the Senate through its President, to the House of Representatives through its Speaker, to
the Secretary of Finance, to the Auditor General and to the Board of Trustees of the Bank.
The report shall contain, among other things, a statement of the resources and liabilities
including earnings and expenses, the amount of capital stock, surplus, reserve and probts,
as well as losses, bad debts, and suspended and overdue paper carried in the books as
assets of the Bank, and a plantilla of the Bank.
SEC. 94. Auditing Rules and Regulations.—The Auditor General shall, with respect to the
Bank, formulate improved and progressive auditing rules and regulations designed to
expedite the operations of the Bank and prevent the occurrence of delays and bottlenecks
in its work.
SEC. 95. Removal of Members.—The President of the Philippines may, at any time, remove
the Chairman or any member of the Board appointed by him if the interest of the Bank so
requires, for any of the following causes:
(3) Any act or performance tending to prejudice or impair the substantial rights of the
stockholders.
Conviction of the Chairman or a member for a crime carrying with it a penalty greater than
arresto mayor shall cause the removal of such Chairman or member without the necessity
of Presidential action.
The Chairman or member may, in any of the above cases, be civilly liable for any damage
that may have been suffered by the stockholders.
SEC. 96. Transfer of Claims and Liabilities.—The assets of the former Land Tenure
Administration and the National Resettlement and Rehabilitation Administration in the
form of claims and receivables arising from the sale or transfer of private and public lands,
agricultural equipment, machinery, tools and work animals, but excluding advances made
for subsistence, to small landholders shall, after an exhaustive evaluation to determine
their true asset value, be irrevocably transferred to the Bank under such arrangements as
the Land Authority and the Bank shall agree upon. Thereafter, the Bank shall have authority
and jurisdiction to administer the claims, to collect and make adjustments on the same
and, generally, to do all other acts properly pertaining to the administration of claims held
by a bnancial institution. The Land Authority, upon request of the Bank, shall assist the
latter in the collection of such claims. The Land Authority shall be entitled to collect from
the Bank no more than the actual cost of such collection services as it may extend. The
claims transferred under this Section shall not be considered as part of the Government’s
subscription to the capital of the Bank.
SEC. 98. Tax Exemption.—The operations, as well as holdings, equipment, property, income
and earnings of the Bank from whatever sources shall be fully exempt from taxation.
SEC. 99. Organization of Bank.—The Bank shall be organized within one year from the date
that this Code takes effect.
SEC. 100. Penalty for Violation of the Provisions of this Chapter.—Any trustee, o5cer,
employee or agent of the Bank who violates or permits the violation of any of the
provisions of this Chapter, or any person aiding or abetting the violations of any of the
provisions of this Chapter, shall be punished by a bne not to exceed ten thousand pesos or
by imprisonment of not more than bve years, or both such bne and imprisonment at the
discretion of the Court.
SEC. 104. Power to Obtain Additional Funds.—Nothing in this Section shall limit the power
of the Agricultural Credit Administration to obtain from the Central Bank of the Philippines,
the Development Bank of the Philippines, the Philippine National Bank and other bnancing
institutions, such additional funds as may be necessary for the effective implementation of
this Act: Provided, That such additional funds are to be utilized as loans to farmers and/or
farmers’ cooperatives.
Under such rules and regulations in accordance with generally accepted banking practices
and procedures as may be promulgated by the Agricultural Credit Administration, Rural
Banks and Development Banks may, in their respective localities, be designated to act as
agents of the Agricultural Credit Administration in regard to its loaning activities.
SEC. 107. Security for Loans.—The production of the borrower, after deducting the lease
rental and/or liens thereon, shall be accepted as security for loans: Provided, That said
production is pledged to the Agricultural Credit Administration with appropriate safeguards
to insure against its unauthorized disposition: Provided, further, That the amount of loan
shall not exceed sixty per centum of the value of the estimated production.
SEC. 110. Interest on Loans.—The total charges including interest and insurance fees on all
kinds of loans shall not be more than eight per centum per annum: Provided, That if an
impairment of the capitalization of the Agricultural, Credit Administration is imminent by
reason of the limitation of the interest rate herein provided, there is automatically
appropriated out of the unappropriated funds in the National Treasury such amounts as is
necessary to cover the losses of the Agricultural Credit Administration, but not exceeding
six million pesos for any one year.
SEC. 111. Institution of Supervised Credit.—To provide for the effective use of credit by
farmers, the Agricultural Credit Administration may institute a program of supervised credit
in cooperation with the Agricultural Productivity Commission.
SEC. 112. Guidance to Cooperatives.—The Agricultural Credit Administration shall have the
power to register and provide credit guidance or assistance to all agricultural cooperatives
including irrigation cooperatives and other cooperative associations or fund corporations.
SEC. 115. Free Notarial Service.—Any justice of the peace, in his capacity as notary ex-
oKcio, shall render service free of charge to any person applying for a loan under this Code
either in administering the oath or in the acknowledgment of instruments relating to such
loan.
SEC. 116. Free Registration of Deeds.—Any register of deeds shall accept for registration,
free of charge any instrument relative to a loan made under this Code.
SEC. 117. Writing-off Unsecured and Outstanding Loans.—Subject to the approval of the
President upon recommendation of the Auditor General, the Agricultural Credit
Administration may write-off from its books, unsecured and outstanding loans and
accounts receivable which may become uncollectible by reason of the death or
disappearance of the debtor, should there be no visible means of collecting the same in the
foreseeable future, or where the debtor has been veribed to have no income or property
whatsoever with which to effect payment. In all cases, the writing-off shall be after bve
years from the date the debtor defaults.
SEC. 118. Exemption from Duties, Taxes and Levies.—The Agricultural Credit Administration
is hereby exempted from the payment of all duties, taxes, levies, and fees, including docket
and sheriff’s fees, of whatever nature or kind, in the performance of its functions and in the
exercise of its powers hereunder.
SEC. 121. Powers and Duties.—The Agricultural Productivity Commissioner shall exercise
the same powers and duties vested in the Director of the Bureau of Agricultural Extension.
SEC. 122. Division on Cooperatives.—In addition to the existing divisions of the Bureau of
Agricultural Extension, herein renamed as Agricultural Productivity Commission, there shall
be a Division of Cooperatives and such other divisions and sections as the Agricultural
Productivity Commissioner may deem necessary to organize in order to carry out the
promotional and educational activities of the Commission.
SEC. 124. Functions of Extension Workers.—In addition to their functions under Republic
Act Numbered Six hundred eighty, it shall be the duty of extension workers:
(1) To reside in the locality where they are assigned, to disseminate technical information
to farmers, and to demonstrate improved farm management practices and techniques;
(2) To work with individual farmers in farm planning and budgeting, guide them in the
proper conduct of farm business and work out schedules of re-payment of loans obtained
by farmers;
(3) To assist farmers in securing the services or assistance of other agencies, or their
personnel, having to do with relevant activities and problems of farmers;
(5) To conduct educational activities that will acquaint leaseholders and other independent
farm operators with their rights and responsibilities under this Code;
(6) To encourage the formation and growth of private associations, study clubs,
committees and other organized groups of farmers, familiarize them with modern methods
of farming and interest them to actively participate, collaborate or take the initiative in
SEC. 125. Appropriation.—In addition to the funds herein transferred, there is hereby
appropriated from the general funds in the National Treasury not otherwise appropriated
the sum of bve million pesos, or so much thereof as may be necessary to carry out the
purposes of this Chapter.
SEC. 126. Creation of National Land Reform Council.—There is hereby created a National
Land Reform Council, Hereinafter called the Council, which shall be composed of the
Governor of the Land Authority, who shall act as Chairman, the Administrator of the
Agricultural Credit Administration, the Chairman of the Board of Trustees of the Land Bank,
the Commissioner of the Agricultural Productivity Commission and another member
appointed by the President upon recommendation of the minority party receiving the
second largest number of votes in the last Presidential election who shall hold o5ce at the
pleasure of such minority party, unless sooner removed for cause by the President, as
members and the Agrarian Counsel as legal counsel: Provided, That the Council shall not
be considered fully constituted and ready to function until after the member representing
the minority party has been appointed by the President of the Philippines: Provided, further,
That the minority party shall submit its recommendation to the President within sixty days
from the approval of this Code, in the absence of which the Council shall be deemed to be
so constituted even without such member from the minority party: Provided, Bnally, That
the minority representative shall receive a per diem of bfty pesos for each day he attends a
council meeting, chargeable to the appropriations of the Land Authority.
It shall be the duty of the members to attend any meeting of the Council upon the call of
the Chairman. In case of inability, a member may require the o5cer next in rank in his
agency to attend the meeting in his behalf.
A majority vote of the members present if there is a quorum shall be necessary for the
approval of a resolution. Upon such approval the resolution shall be bnal and binding upon
all members of the Council and their respective agencies insofar as their functions, powers
and duties required under this Code are concerned.
The refusal of any member to implement any resolution or part thereof falling within the
scope of the powers granted to his agency shall be su5cient ground for the President of
the Philippines to remove said member from o5ce or to impose upon him disciplinary or
administrative sanctions.
SEC. 128. Functions of National Land Reform Council.—It shall be the responsibility of the
Council:
(1) To construct the general program of land reform contemplated by this Code;
(2) To establish guidelines, plans and policies for its member-agencies relative to any
particular land reform project;
(3) To formulate such rules and regulations as may be necessary to carry out the
provisions of this Code for (a) the selection of agricultural land to be acquired and
distributed under this Code; (b) the determination of sizes of family farms as debned in
Section one hundred sixty-six; and (c) the selection of benebciaries to family farms
available for distribution: Provided, That priority shall be given in the following order: First,
(4) To revise, approve, or reject any land reform proposal or project; and
(5) To proclaim in accordance with the provisions of this Code, which proclamation shall
be considered as having been promulgated immediately after three successive weekly
publications in at least two newspapers of general circulation in the region or locality
affected by the proclamation, preference being given to local newspapers, if any, that all
the government machineries and agencies in any region or locality relating to leasehold
envisioned in this Code are operating: Provided, That the conversion to leasehold in the
proclaimed area shall become effective at the beginning of the next succeeding
agricultural year after such promulgation: Provided, further, That the proclamation shall be
made after having considered factors affecting feasibility and fund requirements and the
other factors embodied in Sections one hundred twenty-nine, one hundred thirty and one
hundred thirty-one.
SEC. 129. Creation of Land Reform Districts.—The Council shall exercise the functions
enumerated in the preceding Section for particular areas which the Council shall select and
designate as land reform districts. A district shall constitute one or more land reform
projects, each project to comprise either a large landed estate or several areas within small
estates. In the selection of a district, the Council shall consider factors affecting the
feasibility of acquiring for redistribution the areas within the district, including:
(4) The minimum bxed capital outlay required to develop the area;
(6) The number of farmers that cultivate uneconomic-size farms, the ability and readiness
of such farmers to be resettled, and the availability of idle or abandoned lands that may be
acquired or expropriated as well as of other resettlement facilities.
SEC. 130. Regional Land Reform Committee.—For the purpose of implementing the
program and policies of the Council on the local level, the Council shall establish in each
region of the Philippines a Regional Land Reform Committee which shall be composed of
the representatives of the agencies composing the National Land Reform Council and shall
be under the chairmanship of the representative of the Land Authority. The Committee
shall recommend to the Council such plans for projects of land reform in its jurisdiction as
it may deem appropriate. The Committee shall conduct public hearings, gather and analyze
data, estimate the essentials of such plans for projects or programs and consolidate its
bndings in a report to be submitted to the Council for its consideration. The decision of the
Council upon such projects or programs shall be returned to the Committee, within thirty
days from the submission thereof, for early implementation or execution by said
Committee and the agencies represented therein.
SEC. 131. Land Reform Project Team.—The Regional Land Reform Committee shall direct
and assign a Land Reform Project Team for any project or projects within the region, to be
composed of an appropriate number of personnel from the member-agencies. The Team
shall be headed by a representative of the Land Authority designated by the Committee, but
SEC. 132. Land Survey to Conform to Legal Requirements.—To provide the necessary basis
for the implementation of the land reform program formulated under this Code, the Land
Authority is hereby authorized to undertake a land capability survey and classibcation in
cooperation with the relevant agencies that will be directly benebted by such survey and
classibcation. The survey shall be made to conform to the requirements of the Department
of Agriculture and Natural Resources for implementation of agricultural programs and
forestry inventory, of the Board of Technical Surveys and Maps, and of the National
Economic Council and other agencies for agricultural planning and other purposes.
SEC. 133. Cadastral Survey.—To resolve the rights of landholders holding unregistered
property, the Bureau of Lands is directed to undertake an expanded cadastral survey and
land registration program commencing within three months from the passage of this Code.
SEC. 134. Costs of Fees and Charges.—Notwithstanding any provisions of law to the
contrary, the following rules shall apply with respect to the costs, fees and charges in the
survey, monumenting, and registration of lands of whatever description and nature had in
SEC. 136. Payment of Costs of Land in Its Entirety in Case of Transfer of Land.—In case of
the sale, transfer, or conveyance, for a pecuniary consideration, of any property, or part
thereof, registered by virtue of a decree issued in a cadastral proceeding, prior to the
payment of the total amount of the costs taxed against such property in accordance with
the preceding Section endorsed as an encumbrance or lien upon each cadastral certibcate
of title, the vendor or his legal representative shall pay such costs in their entirety in case
the order apportioning the costs has already been issued in the cadastral proceeding in
which the property being sold, transferred, or conveyed is included, and the register of
deeds concerned shall demand of the vendor, before registering the deed for such sale,
transfer, or conveyance of said property, that he exhibit a receipt signed by the Director of
Lands or his duly authorized representative showing that such encumbrance or lien has
been paid.
SEC. 138. Laws Covering Survey and Registration of Land in Force.—Unless otherwise
provided in this Chapter, all provisions of law covering the survey and registration of land
shall remain in full force and effect.
SEC. 140. Appropriation.—To bnance and support the expanded cadastral land survey and
registration program set forth herein, the amount of one hundred million pesos is hereby
appropriated out of funds in the National Treasury not otherwise appropriated, which
amount shall be paid into a “Special Cadastral Program Revolving Fund”, to bnance the
cadastral land survey and registration of other unregistered areas.
SEC. 141. Creation.—Courts of Agrarian Relations are hereby organized and established
throughout the Philippines in conformity with the provisions of this Chapter.
SEC. 142. Regional Districts.—Regional districts for the Courts of Agrarian Relations in the
Philippines are constituted as follows:
The brst Regional District shall consist of the provinces of Cagayan, Batanes, Isabela and
Nueva Vizcaya, with seat in Tuguegarao, Cagayan for Branch I and in Ilagan, Isabela for
Branch II;
The second Regional District, of the provinces of Ilocos Norte, Ilocos Sur, Abra, Mountain
Province, La Union and the City of Baguio, with seat in Laoag, Ilocos Norte for Branch I and
in San Fernando, La Union for Branch II;
The third Regional District, of the provinces of Pangasinan and Zambales, and the City of
Dagupan, with seat in Lingayen, Pangasinan for Branch I, in Tayug, Pangasinan for Branch II
and in Iba, Zambales for Branch III;
The bfth Regional District, of the provinces of Pampanga, Bataan and Bulacan, with seat in
Malolos, Bulacan for Branch I, in San Fernando, Pampanga for Branch II, in Angeles,
Pampanga for Branch III and in Balanga, Bataan for Branch IV;
The sixth Regional District, of the City of Manila, Quezon City, Pasay City, the province of
Rizal, the City of Cavite, the province of Cavite, the City of Tagaytay, Trece Martires City, and
the province of Palawan, with seat in Manila for Branch I (Executive Judge) , in Cavite City
for Branch 11 and in Pasig, Rizal for Branch III;
The seventh Regional District, of the province of Laguna, the City of San Pablo, the province
of Batangas, the City of Lipa, and the provinces of Oriental Mindoro and Occidental
Mindoro, with seat in Los Baños, Laguna for Branch I, in Batangas, Batangas for Branch II
and in Mamburao, Mindoro Occidental for Branch III;
The eighth Regional District, of the province of Quezon, the subprovince of Aurora, the City
of Lucena, and the province of Camarines Norte, with seat in the City of Lucena for Branch I
and in Daet, Camarines Norte for Branch II;
The ninth Regional District, of the province of Camarines Sur, Naga City, Legazpi City and
the provinces of Albay, Catanduanes, Sorsogon and Masbate, with seat in Naga City for
Branch I, in Legazpi City for Branch II and in Sorsogon, Sorsogon for Branch III;
The tenth Regional District, of the province of Capiz, Roxas City, the provinces of Aklan,
Romblon, Marinduque and Iloilo, the City of Iloilo, and the province of Antique, with seat in
the City of Iloilo for Branch I and in Roxas City for Branch II;
The twelfth Regional District, of the province of Samar, the City of Calbayog, the province of
Leyte, and the Cities of Ormoc and Tacloban, with seat in Catbalogan, Samar for Branch I
and in Ormoc City for Branch II;
The thirteenth Regional District, of the province of Cebu, the City of Cebu, and the province
of Bohol, with seat in the City of Cebu for Branch I and in Tagbilaran, Bohol for Branch II;
The fourteenth Regional District, of the provinces of Surigao and Agusan, Butuan City, the
province of Oriental Misamis, Cagayan de Oro City, the provinces of Bukidnon, Lanao del
Sur and Lanao del Norte, and the Cities of Iligan and Marawi, with seat in Cagayan de Oro
City for Branch I and in Iligan City for Branch II;
The bfteenth Regional District, of the province of Davao, the City of Davao, the provinces of
Cotabato and Occidental Misamis, Ozamiz City, the provinces of Zamboanga del Norte and
Zamboanga del Sur, Zamboanga City, Basilan City and the province of Sulu, with seat in the
City of Davao for Branch I, Cotabato City for Branch II and Ozamiz City for Branch III.
SEC. 143. Judges of Agrarian Relations.—The judicial function of the Courts of Agrarian
Relations shall be vested in an Executive Judge and the Regional District Judges, who shall
be appointed from time to time, depending on the need for their services, by the President
of the Philippines with the consent of the Commission on Appointments: Provided,
however, That the Executive Judge and the eight Associate Judges, at the time of the
approval of this Code, of the Court of Agrarian Relations established and organized under
Republic Act Numbered Twelve hundred and sixty-seven, shall continue as Agrarian Judges
without need of new appointments by the President of the Philippines and new
Regional District Judges shall be appointed to serve during good behavior, until they reach
the age of seventy years or become incapacitated to discharge the duties of their o5ce,
unless sooner removed in accordance with law.
The judges may be suspended or removed in the same manner and upon the same
grounds as judges of the Court of First Instance.
The Executive Judge shall receive an annual compensation which shall be equal to that
allowed or may hereafter be allowed for judges of the Court of First Instance and the
Regional District Judges shall receive an annual compensation of one thousand pesos less
than that of the Executive Judge.
SEC. 145. Leave Privileges; Traveling Expenses.—Judges of the Courts of Agrarian Relations
shall be entitled to the same retirement and leave privileges now granted or may hereafter
be granted to judges of the Court of First Instance. They shall be entitled to traveling
expenses when performing their duties outside o5cial stations.
SEC. 147. Assignment of Judges to Vacation Duty.—During the month of January of each
year the Executive Judge shall issue an order naming the judges who are to remain on duty
during the court vacation of that year; and, consistently with the requirements of the
judicial service, the assignment shall be so made that no judge shall be assigned to
vacation duty, unless upon his own request, with greater frequency than once in two years.
Such order shall specify, in the case of each judge assigned to vacation duty, the territory
over which in addition to his own district his authority as vacation judge shall extend.
The Executive Judge may from time to time modify his order assigning the judges to
vacation duty as newly arising conditions or emergencies may require.
A judge assigned to vacation duty shall not ordinarily be required to hold court during such
vacation; but the Executive Judge may, when in his judgment the emergency shall require,
direct any judge assigned to vacation duty to hold during the vacation a special term of
court in any district.
SEC. 148. Judges of Regional Districts.—Four judges shall be commissioned for each of the
fourth and bfth Regional Districts; three judges shall be commissioned for each of the third,
sixth, seventh, ninth, eleventh and bfteenth Regional Districts; and two judges for each of
the other Regional Districts.
SEC. 149. Oath of OKce.—Before entering upon the discharge of the duties of their o5ce,
the judges shall take and subscribe to an oath of o5ce in accordance with the provisions
of Section twenty-three of the Revised Administrative Code.
SEC. 152. OKcial Station of Regional District Judges.—Within thirty days after the approval
of this Code, the Executive Judge shall issue an order designating the o5cial station of the
judges of the branches of each of the Regional Districts.
SEC. 153. Time and Place of Molding Court.—Sessions of the Court shall be convened on all
working days when there are cases ready for trial or other court business to be dispatched.
The hours for the daily session of the Court shall be from nine to twelve in the morning, and
from three to bve in the afternoon, except on Saturdays, when a morning session only shall
be required; but the judge may extend the hours of session whenever in his judgment it is
proper to do so. The judge, in his discretion, may order that but one session per day shall
be held instead of two, at such hours as he may deem expedient for the convenience both
of the Court and of the public; but the number of hours that the Court shall be in session
per day shall be not less than bve.
Sessions of the Court shall be held at the places of the o5cial station of the respective
judges: Provided, however, That whenever necessary in the interest of speedy and
inexpensive justice and litigation, a judge shall hold court in the municipality where the
A brief monthly report which shall be submitted within the brst bve days of the succeeding
month showing the number and nature of the cases tried in his sala, the place of hearing in
each case, the progress of the litigation with corresponding dates and the disposition
made thereon shall be rendered by every judge under his signature and copies thereof shall
be furnished the Executive Judge, who shall compile and report in an appropriate form the
decisions promulgated in important cases. A judge who fails or neglects to make his report
shall, upon brst offense, be liable to warning by the Executive Judge, and upon repeated
failure or neglect may be suspended or removed from o5ce.
SEC. 154. Jurisdiction of the Court.—The Court shall have original and exclusive jurisdiction
over:
(1) All cases or actions involving matters, controversies, disputes, or money claims arising
from agrarian relations: Provided, however, That all cases still pending in the Court of
Agrarian Relations, established under Republic Act Numbered Twelve hundred and sixty-
seven, at the time of the effectivity of this Code, shall be transferred to and continued in the
respective Courts of Agrarian Relations within whose district the sites of the cases are
located;
(2) All cases or actions involving violations of Chapters I and II of this Code and Republic
Act Numbered Eight hundred and nine; and
The Courts of Agrarian Relations shall be governed by the Rules of Court: Provided, That in
the hearing, investigation and determination of any question or controversy pending before
them, the Courts without impairing substantial rights, shall not be bound strictly by the
technical rules of evidence, and procedure, except in expropriation cases.
SEC. 156. Appeals.—Appeals from an order or decision of the Courts of Agrarian Relations
may be taken to the Court of Appeals on questions of fact and of fact and law or to the
Supreme Court on pure questions of law, as the case may be, in accordance with rules
governing appeals from the Court of First Instance as provided in the Rules of Court.
SEC. 157. Detail of Judges to Another District.—Whenever any judge in any of the Court
shall certify to the Executive Judge that the condition of the docket in his Court is such as
to require the assistance of an additional judge, or when there is any vacancy in any Court,
the Executive Judge may, in the interest of justice, with the approval of the Supreme Court,
assign any judge of the Court of Agrarian Relations whose docket permits his temporary
absence from said Court, to hold session in the Court needing such assistance or where
such vacancy exists.
Whenever a judge appointed or assigned in any branch of the Court shall leave his district
by transfer or assignment to another Court of equal jurisdiction without having decided a
case totally heard by him and which was duly argued or opportunity given for argument to
the parties or their counsel, it shall be lawful for him to prepare and sign his decision in
said case anywhere within the Philippines and send the same by registered mail to the
clerk of court to be bled in the Court as of the date when the same was received by the
clerk, in the same manner as if the judge had been present in the Court to direct the bling
of the judgment: Provided, however, That if a case has been heard only in part, the Supreme
Court, upon petition of any of the interested parties to the case and the recommendation of
(2) Clerks of Court; QualiBcations, Duties, Compensation and Bond.—There shall be as many
Clerks of Court as there are judges, who shall be appointed by the President of the
Philippines with the consent of the Commission on Appointments. Deputy Clerks of Court
and such other employees as may be required shall be appointed by the Executive Judge,
subject to Civil Service law, rules and regulations.
No person shall be eligible for appointment as Clerk of Court unless he is duly authorized
to practice law in the Philippines.
Before entering upon the discharge of the duties of his o5ce, he shall ble a bond in the
amount of ten thousand pesos in the same manner and form as required of the Clerk of the
Supreme Court, such bond to be approved by, and bled with, the Treasurer of the
The Clerks of Court shall each receive an annual compensation of seven thousand two
hundred pesos. They shall exercise the same powers and perform the same duties on all
matters within the jurisdiction of the Courts as those exercised by the Clerks of Court of
the Courts of First Instance.
Clerks of Courts and other subordinate employees of the Courts of Agrarian Relations
shall, for administrative purposes, belong to the Department of Justice; but in the
performance of their duties, they shall be subject to the supervision of the judges of the
Court to which they respectively pertain.
SEC. 159. Appropriation.—There is hereby appropriated the sum of three million bve
hundred thousand pesos, or so much thereof as may be necessary, out of the
unappropriated funds in the Philippine Treasury for expenses for courtrooms and court
o5ces, including equipment for the Courts and their personnel, for salaries, and for other
necessary expenses that may be incurred in carrying out the provisions of this Chapter.
The amount appropriated shall be carried in succeeding appropriations for the Courts of
Agrarian Relations.
SEC. 161. Special Attorneys.—There is hereby created in the O5ce of the Agrarian Counsel
eighty additional positions of Special Attorneys, who shall be appointed by the President
upon recommendation of the Secretary of Justice and with the consent of the Commission
on Appointments. They shall have the rank, qualibcations and salary provided by law for a
solicitor in the O5ce of the Solicitor General with the lowest rank.
SEC. 162. Appointment of Subordinate OKcials.—The Agrarian Counsel shall appoint the
subordinate o5cials and employees of the O5ce of Agrarian Counsel, subject to civil
service rules and regulations, bx their compensation and prescribe their duties. The
compensation of special attorneys transferred to the O5ce of Agrarian Counsel shall be
bxed on salary scales corresponding to solicitors of the O5ce of the Solicitor General:
Provided, That in the bxing of their salary seniority in rank shall be taken into account.
The Agrarian Counsel shall have the power to organize such divisions and sections as will
insure maximum e5ciency of the O5ce.
SEC. 163. Functions of the OKce of Agrarian Counsel.—It shall be the responsibility of the
O5ce of the Agrarian Counsel, upon proper notibcation by the party concerned or by the
association or organization to which he belongs, to represent agricultural lessees,
SEC. 164. Authority to Administer Oath.—The Agrarian Counsel, the Deputy Agrarian
Counsel and the Special Attorneys of the O5ce of Agrarian Counsel are hereby authorized
to administer oaths free of charge.
(1) “Agricultural land” means land devoted to any growth, including but not limited to crop
lands, salt beds, bsh ponds, idle land and abandoned land as debned in paragraphs 18 and
19 of this Section, respectively.
(2) “Agricultural lessee” means a person who, by himself and with the aid available from
within his immediate farm household, cultivates the land belonging to, or possessed by,
another with the latter’s consent for purposes of production, for a price certain in money or
in produce or both. It is distinguished from civil law lessee as understood in the Civil Code
of the Philippines.
(4) “Agricultural year” means the period of time required for raising a particular agricultural
product, including the preparation of the land, sowing, planting and harvesting of crops
and, whenever applicable, threshing of said crops: Provided, however, That in case of crops
yielding more than one harvest from one planting, “agricultural year” shall be the period
from the preparation of the land to the brst harvest and thereafter from harvest to harvest.
In both cases, the period may be shorter or longer than a calendar year.
(6) “Fair rental value” means the value not in excess of allowable depreciation plus six per
cent interest per annum on the investment computed at its market value: Provided, That the
fair rental value for work animal or animals and farm implements used to produce the crop
shall not exceed bve per cent of the gross harvest for the work animal or animals and bve
per cent for implements.
(7) “Farm implements” means hand tools or machines ordinarily employed in a farm
enterprise.
(8) “Immediate farm household” means the members of the family of the lessee or lessor
and other persons who are dependent upon him for support and who usually help him in
his activities.
(9) “Incapacity” means any cause or circumstance which prevents the lessee from fulblling
his contractual and other obligations under this Code.
(11) “Proven farm practices” means sound farming practices generally accepted through
usage or o5cially recommended by the Agricultural Productivity Commission for a
particular type of farm.
(12) “Work animals” means animals ordinarily employed in a farm enterprise, such as
carabaos, horses, bullocks, etc. (13) “Personal cultivation” means cultivation by the lessee
or lessor in person and/or with the aid of labor from within his immediate household. As
used in Chapter II:
(14) “Farm employer” includes any person acting directly or indirectly in the interest of a
farm employer whether for probt or not, as well as a labor contractor but shall not include
any labor organization (otherwise than when acting as a farm employer) or anyone acting
in the capacity of an o5cer or agent of such labor organization.
(15) “Farm worker” includes any agricultural wage, salary or piece worker but is not limited
to a farm worker of a particular farm employer unless the Code explicitly states otherwise
and any individual whose work has ceased as a consequence of, or in connection with, a
current agrarian dispute or an unfair labor practice and who has not obtained a
substantially equivalent and regular employment. Whenever the term “farm worker” is used
in this Code, it shall be understood to include farm laborer and/or farm employee.
(16) “Farm workers’ organization” includes any union or association of farm workers which
exists, in whole or in part, for the purpose of collective bargaining or dealing with farm
employers concerning terms and conditions of employment.
(18) “Idle lands” means land not devoted directly to any crop or to any debnite economic
purpose for at least one year prior to the notice of expropriation except for reasons other
than force majeure or any other fortuitous event but used to be devoted or is suitable to
such crop or is contiguous to land devoted directly to any crop and does not include land
devoted permanently or regularly to other essential and more productive purpose.
(19) “Abandoned lands” means lands devoted to any crop at least one year prior to the
notice of expropriation, but which was not utilized by the owner for his benebt for the past
bve years prior to such notice of expropriation.
(20) “Economic family-size farm units” means an area of farm land that permits e5cient
use of labor and capital resources of the farm family and will produce an income su5cient
to provide a modest standard of living to meet a farm family’s needs for food, clothing,
shelter, and education with possible allowance for payment of yearly installments on the
land, and reasonable reserves to absorb yearly guctuations in income.
(21) “Suitability for economic family-size farms” refers to situations where a parcel of land
whose characteristics, such as climate, soil, topography, availability of water and location,
will support a farm family if operated in economic family-size farm units and does not
include those where large-scale operations will result in greater production and more
e5cient use of the land.
(24) “Labor administration” means cases where farm workers are employed wholly in the
agricultural production.
(25) “Share tenancy” as used in this Code means the relationship which exists whenever
two persons agree on a joint undertaking for agricultural production wherein one party
furnishes the land and the other his labor, with either or both contributing any one or
several of the items of production, the tenant cultivating the land personally with the aid of
labor available from members of his immediate farm household, and the produce thereof
to be divided between the landholder and the tenant.
(26) “Tax free” in reference to bonds and shares of stock issued by the Land Bank as
payment for acquired private agricultural land shall mean all government taxes except gift
tax and inheritance tax.
SEC. 167. Penal Provisions.—(1) Violation of the provisions of Sections thirteen and twenty-
seven and paragraph 1 of Section thirty-one of this Code shall be punished by a bne not
exceeding one thousand pesos or imprisonment not exceeding one year or both in the
discretion of the court. In case of juridical persons, the manager or the person who has
charge of the management or administration of the property or, in his default, the person
acting in his stead, shall be liable under this Section.
(2) Any person, natural or juridical, who induces another, as tenant, to execute or enter into
a share tenancy contract with himself or with another in violation of this Code shall be
punished by a bne not exceeding bve thousand pesos with subsidiary imprisonment in
(3) Any person who executes an a5davit as required by Section thirteen of Chapter I,
knowing the contents thereof to be false, shall be punished by a bne not exceeding one
thousand pesos or imprisonment of not more than one year, or both, in the discretion of the
court.
(4) Any person who wilfully violates the provisions of Sections forty and forty-one of this
Code shall be punished by a bne of not less than one hundred pesos nor more than one
thousand pesos or by imprisonment of not less than one month nor more than one year, or
both such bne and imprisonment, in the discretion of the court. If any violation of Sections
forty and forty-one of this Code is committed by a corporation, partnership or association,
the manager or, in his default, the person acting as such when the violation took place shall
be criminally responsible.
(5) Any person who wilfully violates the provisions of Section forty-two of this Code shall,
upon conviction thereof, be subject to a bne of not more than two thousand pesos or, upon
second conviction, to imprisonment of not more than one year or both such bne and
imprisonment, in the discretion of the court. If any violation of the provisions of Section
forty-two of this Code is committed by a corporation, partnership or association, the
manager or, in his default, the person acting as such when the violation took place shall be
criminally responsible.
SEC. 168. Pending Application for Mechanization.—Any provision of this Code to the
contrary notwithstanding, any application for mechanization where corresponding
certibcations for suitability for mechanization and for availability of resettlement by the
To carry out the provisions of this Section, there is hereby appropriated the sum of bve
hundred thousand pesos out of the unappropriated funds in the National Treasury.
SEC. 170. Budgeting and Disbursing of Appropriated Funds.—Any provision of this Code or
of any existing law to the contrary notwithstanding, not more than sixty per centum of the
specibc appropriations provided in this Code for operating expenditures shall be used for
personnel services: Provided, That in the case of the appropriations for the Agricultural
Productivity Commission not more than twenty per centum shall be spent for o5ce
personnel and other administrative expenses thereof: Provided, further, That the total
operating expenditures of the Agricultural Credit Administration shall not exceed three per
centum of its total capitalization in addition to the allowance for losses granted under
Section one hundred ten: Provided, furthermore, That all unexpended balances of all
appropriations provided in this Code for operating expenditures shall revert to the National
Treasury at the end of the bscal year in conformity with the provisions of Section twenty-
three of Republic Act Numbered Nine hundred ninety-two: And provided, bnally, That all the
SEC. 171. Separability of Provisions.—If, for any reason, any section or provision of this
Code shall be questioned in any court, and shall be held to be unconstitutional or invalid, no
other section or provision of this Code shall be affected thereby.
SEC. 172. Prior Inconsistent Laws.—All laws or parts of any law inconsistent with the
provisions of this Code are hereby repealed.
SEC. 173. Effective Date.—This Code shall take effect upon its approval.
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