USUFRUCT AGREEMENT

This USUFRUCT AGREEMENT, hereinafter referred to as the “Agreement”, is made and

executed by and between:

The LOCAL GOVERNMENT UNIT OF BARANGAY SAN ISIDRO, with

Official Address at Brgy. San Isidro, Tagbilaran City, by virtue of Barangay Resolution No.
____________, hereby represented by Punong Barangay HON. FAUSTO S. BUDLONG,
Filipino, of legal age and a resident of Brgy. San Isidro, Tagbilaran City, Bohol, Philippines,
hereinafter referred to as the LANDOWNER;

-and-

The LOCAL GOVERNMENT UNIT OF TAGBILARAN CITY, with Official

Address at Tagbilaran City Hall, J.A. Clarin St., Tagbilaran City, Bohol, Philippines, by virtue
of SP Resolution No. ________________, Series of 2021, represented by the City Mayor,
HON. JOHN GEESNELL L. YAP II, Filipino, of legal age, and a resident of Brgy. Dao,
Tagbilaran City, Bohol, Philippines, hereinafter referred to as the USUFRUCTUARY.

WITNESSETH that:

WHEREAS, Section 17 of the Local Government Code of 1991 mandates that Local
Government units shall endeavor to be self-reliant and shall continue exercising the powers, duties
and functions of national agencies and offices devolved to them;

WHEREAS, the same Code likewise mandates that Local government units shall exercise
such other powers and discharge such other functions and responsibilities as are necessary,
appropriate, or incidental to efficient and effective provisions of the basic services and facilities
including the construction of infrastructure projects intended primarily to cater and serve the need s
of the inhabitants;

WHEREAS, the Local Government Unit of Tagbilaran City, the herein

USUFRUCTUARY aims to implement the Construction of the POLICE OUTPOST building
(Project) to address the inadequate space of its existing police outpost office and in order to promote
access to police visibility and provide better services to its inhabitants;

WHEREAS, the Local Government Unit of Barangay San Isidro, Tagbilaran City, Bohol,
herein LANDOWNER, owns a parcel of land Lot 4249 of the Cadastral Survey of Tagbilaran City,
with improvements existing thereon, situated in the Barrio of Gaboc (now Brgy. San Isidro,
Tagbilaran city; Bounded on the N., by the Provincial Road; on the E., by Lot 221; and on the W., by
Lots No. 4233 and 4224. Containing an area of TWO THOUSAND FOUR HUNDRED FIVE (2,
405 sq. m.) square meters more or less covered under Original Certificate of Title No. 3970
registered with the Registry of Deeds for the City of Tagbilaran; A copy of the Original Certificate of
Title No. 3970 is herein attached;

WHEREAS, the USUFRUCTUARY requested the LANDOWNER to allow the FORMER to

use a portion of the LATTER’s property, measuring at least ________________ square meters for the
construction of its proposed POLICE OUTPOST proposed office building;

WHEREAS, the LANDOWNER is willing to enter into a usufruct agreement with the
USUFRUCTUARY over the POLICE OUTPOST building project subject to the terms and
conditions herein;

NOW THEREFORE, for and in consideration of the foregoing premises and of the mutual
covenants hereinafter contained, the parties hereby agree as follows:

1. TERM. The term of the usufruct shall be for a period of twenty five (25) years from the
signing of this Agreement unless the PARTIES pre - terminate the same on the following
 grounds:

1.1. The USUFRUCTUARY buys the land from the LANDOWNER;

1.2. The USUFRUCTUARY violates any of the conditions stated herein, and

1.3. The USUFRUCTUARY violates the provisions of the site development and
building construction loan agreements which shall be subsequently entered into
between the parties;

1.4. The USUFRUCTUARY fails to apply for site development and house
construction loan from the LANDOWNER.
Provided, further that, only the LANDOWNER may invoke subsections 1.2 and 1.3 as
grounds for the pre - termination of the Agreement. Provided, finally that, any action on
the part of the LANDOWNER for any prolonged period of time cannot be taken to mean
as a renunciation of its right to pre - terminate the Agreement under the said grounds.

2. PURPOSE OF THE USUFRUCT- the USUFRUCT shall be used exclusively for the
construction of the POLICE OUTPOST building project intended for the use of the
Philippine National Police.

3. LAND OWNERSHIP- The ownership and title of the POLICE OUTPOST building
project remains with and continues to be in the name of the LANDOWNER. Upon
expiration or pre -termination of the Agreement on the grounds stated under sub -
sections 1.3 and 1.4 of this Agreement, all permanent improvements existing on the
POLICE OUTPOST building project shall inure to the benefit of the LANDOWNER. It
is hereby understood that permanent improvements shall refer to those that cannot be
detached or removed without damaging the POLICE OUTPOST building project.

4. RESPONSIBILITIES OF THE PARTIES

A. The LANDOWNER shall:

4.1. Allocate ____________ square meters of the San Isidro property which shall be
used exclusively for the construction of the POLICE OUTPOST building project
for the use of the Philippine National Police and other law enforcement officers in
Barangay San Isidro;

4.2. Allow the USUFRUCTUARY to use the property under usufruct for a period of
twenty five (25) years commencing year 2021 until 2046, subject to possible
extension upon mutual agreement of the parties;

4.3. Allow the USUFRUCTUARY to use the property and exercise all the rights of
the ownership over the property subject of the usufruct; and;

4.4. The USUFRUCTUARY shall not use the Property for any unlawful or illegal
act.

B. The USUFRUCTUARY shall:

4.5. Use the property under usufruct solely and exclusively as the site in which to
construct the Police Outpost building project;

4.6. Defray all expenses to be incurred in securing the necessary permits, including but
not limited to building development and occupancy permits;
 4.7. Pay the real property which may be imposed upon the land allocated to the said
project and its improvements;

4.8. Undertake not to alienate, transfer or enter into any agreement which would alter its
usufructuary right or do any act which may be prejudicial to the rights of the
landowner;

4.9. Exercise its usufructuary rights in full, including the right to sublease a portion of
the proposed building, provided that the same is not prejudicial to the rights of the
landowner; and

4.10. Maintain cleanliness of the property subject of the usufruct and shall not use it
for any unlawful or illegal act.

5. OTHER TERMS AND CONDITIONS

5.1. This Agreement shall be binding upon the parties hereto and their successors-in-
interest.

5.2. This Agreement may be revised, amended or suspended, in writing, only through
the mutual consent of both parties.

5.3. In case of breach of any terms of the Agreement, dispute and/ or litigation arising
from this agreement, the venue of actions shall be filed in the proper courts of
Tagbilaran City, to the exclusion of all other courts.

6. EFFECTIVITY

This Agreement shall take effect upon signing hereof and shall remain in full force
and effect unless revoked by mutual consent of all parties.

IN WITNESS WHEREOF, the herein parties have set their hands this
day of at , Philippines.

LOCAL GOVERNMENT UNIT OF LOCAL GOVERNMENT UNIT

BARANGAY SAN ISIDRO OF TAGBILARAN CITY
LANDOWNER USUFRUCTUARY
Represented by: Represented by:

HON. FAUSTO BUDLONG HON. JOHN GEESNELL L. YAP II

Punong Barangay City Mayor
Gov’t issued ID No. Gov’t issued ID

Signed in the presence of:

 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )

Tagbilaran City ) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction this day of
personally appeared:

Name Government Valid Place and Date of Expiration Date

ID Issue

Known to me to be the same persons who executed the foregoing instrument, consisting of four
(4) pages, including this page wherein this acknowledgement is written, signed by parties and their
instrumental witnesses and sealed with my notarial seal. This agreement refers to as the
USUFRUCT AGREEMENT and acknowledged to me that the same are their own free voluntary
acts and deeds as well as of the LANDOWNER and the USUFRUCTUARY herein represented.

WITNESS MY HAND AND SEAL on the date, year and place first above written.

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