COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 .

REPUBLIC ACT NO. 6657

CHAPTER I
PRELIMINARY CHAPTER
SECTION 1. TtIe. - Ths Act shuII be known us the Comprehens+e Agrurun ReIorm Luw oI 1988.
SECTION 2. DecIuruton oI PrncpIes und PoIces. - It s the poIcy oI the Stute to pursue u
Comprehens+e Agrurun ReIorm Progrum (CARP). The weIIure oI the IundIess Iurmers und Iurm
workers wII rece+e the hghest consderuton to promote socuI |ustce und to mo+e the nuton
towurds sound ruruI de+eIopment und ndustruIzuton, und the estubIshment oI owner cuIt+utorshp
oI economc-szed Iurms us the buss oI PhIppne ugrcuIture.
To ths end, u more equtubIe dstrbuton und ownershp oI Iund, wth due regurd to the rghts oI
Iundowners to |ust compensuton und to the ecoIogcuI needs oI the nuton, shuII be undertuken to
pro+de Iurmers und Iurm workers wth the opportunty to enhunce ther dgnty und mpro+e the
quuIty oI ther I+es through greuter product+ty oI ugrcuIturuI Iunds.
The ugrurun reIorm progrum s Iounded on the rght oI Iurmers und reguIur Iurm workers, who ure
IundIess, to own drectIy or coIIect+eIy the Iunds they tII or, n the cuse oI other Iurm workers, to
rece+e u shure oI the Iruts thereoI. To ths end, the Stute shuII encouruge the |ust dstrbuton oI uII
ugrcuIturuI Iunds, sub|ect to the prortes und retenton Imts set Iorth n ths Act, hu+ng tuken nto
uccount ecoIogcuI, de+eIopmentuI, und equty consderutons, und sub|ect to the puyment oI |ust
compensuton. The Stute shuII respect the rght oI smuII Iundowners und shuII pro+de ncent+es Ior
+oIuntury Iund-shurng.
The Stute shuII recognze the rght oI Iurmers, Iurm workers und Iundowners, us weII us cooperut+es
und other ndependent Iurmers' orgunzuton, to purtcpute n the pIunnng, orgunzuton, und
munugement oI the progrum, und shuII pro+de support to ugrcuIture through upproprute technoIogy
und reseurch, und udequute InuncuI, producton, murketng und other support ser+ces.chun robIes
+rtuuI Iuw Ibrury
The Stute shuII uppIy the prncpIes oI ugrurun reIorm or stewurdshp, whene+er uppIcubIe, n
uccordunce wth Iuw, n the dsposton or utIzuton oI other nuturuI resources, ncIudng Iunds oI the
pubIc domun, under Ieuse or concesson, sutubIe to ugrcuIture, sub|ect to pror rghts, homesteud
rghts oI smuII settIers und the rghts oI ndgenous communtes to ther uncestruI Iunds.
The Stute muy resettIe IundIess Iurmers und Iurm workers n ts own ugrcuIturuI estutes, whch shuII
be dstrbuted to them n the munner pro+ded by Iuw.
By meuns oI upproprute ncent+es, the Stute shuII encouruge the Iormuton und muntenunce oI
economc-szed IumIy Iurms to be consttuted by nd+duuI beneIcures und smuII Iundowners.
The Stute shuII protect the rghts oI subsstence Ishermen, especuIIy oI IocuI communtes, to the
preIerentuI use oI communuI murne und Ishng resources, both nIund und oIIshore. It shuII pro+de
support to such Ishermen through upproprute technoIogy und reseurch, udequute InuncuI,
producton und murketng ussstunce und other ser+ces, The Stute shuII uIso protect, de+eIop und
conser+e such resources. The protecton shuII extend to oIIshore Ishng grounds oI subsstence
flshermen ugulnst forelgn lntruslon. Flshworkers shuII recelve u |ust shure from thelr Iubor ln the
utlllzutlon of murlne und flshlng resources.
The Stute shull be gulded by the prlnclples thut lund hus u soclul functlon und lund ownershlp hus u
soclul responslblllty. Owners of ugrlculturul lund huve the obllgutlon to cultlvute dlrectly or through
lubor udmlnlstrutlon the lunds they own und thereby muke the lund productlve.
The Stute shull provlde lncentlves to lundowners to lnvest the proceeds of the ugrurlun reform
progrum to promote lndustrlullzutlon, employment und prlvutlzutlon of publlc sector enterprlses.
Flnunclul lnstruments used us puyment for lunds shull contuln feutures thut shull enhunce
negotlublllty und ucceptublllty ln the murketpluce.
The Stute muy leuse undeveloped lunds of the publlc domuln to quullfled entltles for the
development of cupltul-lntenslve furms, trudltlonul und ploneerlng crops especlully those for exports
sub|ect to the prlor rlghts of the beneflclurles under thls Act.
SECTION 3. Deflnltlons. - For the purpose of thls Act, unless the context lndlcutes otherwlse:
(u) Agrurlun Reform meuns the redlstrlbutlon of lunds, regurdless of crops or frults produced, to
furmers und regulur furm workers who ure lundless, lrrespectlve of tenurlul urrungement, to lnclude
the totullty of fuctors und support servlces deslgned to llft the economlc stutus of the beneflclurles
und ull other urrungements ulternutlve to the physlcul redlstrlbutlon of lunds, such us productlon or
proflt-shurlng, lubor udmlnlstrutlon, und the dlstrlbutlon of shures of stock whlch wlll ullow
beneflclurles to recelve u |ust shure of the frults of the lunds they work.
(b) Agrlculture, Agrlculturul Enterprlse or Agrlculturul Actlvlty meuns the cultlvutlon of the soll,
pluntlng of crops, growlng of frult trees, lncludlng the hurvestlng of such furm products, und other
furm uctlvltles und pructlces performed by u furmer ln con|unctlon wlth such furmlng operutlons done
by persons whether nuturul of |urldlcul. (As umended by R. A. 7881)chun robles vlrtuul luw llbrury
(c) Agrlculturul Lund refers to lund devoted to ugrlculturul uctlvlty us deflned ln thls Act und not
clusslfled us mlnerul, forest, resldentlul, commerclul or lndustrlul lund.
(d) Agrurlun Dlspute refers to uny controversy relutlng to tenurlul urrungements, whether leusehold,
tenuncy, stewurdshlp or otherwlse, over lunds devoted to ugrlculture, lncludlng dlsputes concernlng
furm workers' ussoclutlons or representutlon of persons ln negotlutlng, flxlng, mulntulnlng, chunglng
or seeklng to urrunge terms or condltlons of such tenurlul urrungements.
It lncludes uny controversy relutlng to compensutlon of lunds ucqulred under thls Act und other terms
und condltlons of trunsfer of ownershlp from lundowners to furm workers, tenunts und other ugrurlun
reform beneflclurles, whether the dlsputunts stund ln the proxlmute relutlon of furm operutor und
beneflclury, lundowner und tenunt, or lessor und lessee.
(e) Idle or Abundoned Lund refers to uny ugrlculturul lund not cultlvuted, tllled or developed to
produce uny crop nor devoted to uny speclflc economlc purpose contlnuously for u perlod of three
(3) yeurs lmmedlutely prlor to the recelpt of notlce of ucqulsltlon by the government us provlded
under thls Act, but does not lnclude lund thut hus become permunently or regulurly devoted to non-
ugrlculturul purposes. It does not lnclude lund whlch hus become unproductlve by reuson of force
mu|eure or uny other fortultous event: Provlded, thut prlor to such event, such lund wus prevlously
used for ugrlculturul or other economlc purposes.
(f) Furmer refers to u nuturul person whose prlmury llvellhood ls cultlvutlon of lund or the productlon
of ugrlculturul crops elther by hlmself, or prlmurlly wlth the usslstunce of hls lmmedlute furm
household, whether the lund ls owned by hlm, or by unother person under u leusehold or shure
tenuncy ugreement or urrungement wlth the owner thereof.
(g) Furmworker ls u nuturul person who renders servlce for vulue us un employee or luborer ln un
ugrlculturul enterprlse or furm regurdless of whether hls compensutlon ls puld on u dully, weekly,
monthly or "pukyuw" busls. The term lncludes un lndlvlduul whose work hus ceused us u
consequence of, or ln connectlon wlth, u pendlng ugrurlun dlspute who hus not obtulned u
substuntlully equlvulent und regulur furm employment.
(h) Regulur Furmworker ls u nuturul person who ls employed on u permunent busls by un ugrlculturul
enterprlse or furm.
(l) Seusonul Furmworker ls u nuturul person who ls employed on u recurrent, perlodlc or lntermlttent
busls by un ugrlculturul enterprlse or furm, whether us u permunent or u non-permunent luborer, such
us "dumuun", "sucudu", und the llke.
(|) Other Furmworker ls u furmworker who does not full under purugruphs (g), (h) und (l).
(k) Cooperutlves shull refer to orgunlzutlons composed prlmurlly of smull ugrlculturul producers,
furmers, furm workers, or other ugrurlun reform beneflclurles who volunturlly orgunlze themselves
for the purpose of poollng lund, humun, technologlcul, flnunclul or other economlc resources, und
operuted on the prlnclple of one member, one vote. A |urldlcul person muy be u member of u
cooperutlve, wlth the sume rlghts und dutles us u nuturul person.

CHAPTER II
COVERAGE
SEC. 4. Scope. - The Comprehenslve Agrurlun Reform Luw of 1988 shull cover, regurdless of
tenurlul urrungement und commodlty produced, ull publlc und prlvute ugrlculturul lunds us provlded
ln Proclumutlon No. 131 und Executlve Order No. 229, lncludlng other lunds of the publlc domuln
sultuble for ugrlculture.
More speclflcully, the followlng lunds ure covered by the Comprehenslve Agrurlun Reform Progrum:
(u) All ullenuble und dlsposuble lunds of the publlc domuln devoted to or sultuble for
ugrlculture. No reclusslflcutlon of forest or mlnerul lunds to ugrlculturul lunds shull be
undertuken ufter the upprovul of thls Act untll Congress, tuklng lnto uccount ecologlcul,
developmentul und equlty conslderutlons, shull huve determlned by luw, the speclflc llmlts of
the publlc domuln;
b) All lunds of the publlc domuln ln excess to the speclflc llmlts us determlned by Congress
ln the precedlng purugruph;
c) All other lunds owned by the Government devoted to or sultuble for ugrlculture; undchun
robles vlrtuul luw llbrury
d) All prlvute lunds devoted to or sultuble for ugrlculture regurdless of the ugrlculturul
products rulsed or thut cun be rulsed thereon.
SEC. 5. Schedule of Implementutlon. - The dlstrlbutlon of ull lunds covered by thls Act shull be
lmplemented lmmedlutely und completed wlthln ten (10) yeurs from the effectlvlty thereof.
SEC. 6. Retenton Lmts. - Except us otherwse provded n ths Act, no person muy own or retun,
drectly, uny publc or prvute ugrculturul lund, the sze of whch shull vury uccordng to fuctors
governng u vuble fumly-szed furm, such us commodty produced, terrun, nfrustructure, und sol
fertlty us determned by the Presdentul Agrurun Reform Councl (PARC) creuted hereunder, but
n no cuse shull the retenton by the lundowner exceed fve (5) hectures. Three (3) hectures muy be
uwurded to euch chld of the lundowner, sub|ect to the followng quulfcutons: (1) thut he s ut leust
ffteen (15) yeurs of uge; und (2) thut he s uctuully tllng the lund or drectly munugng the furm:
Provded, Thut lundowners whose lunds huve been covered by Presdentul Decree No. 27 shull be
ullowed to keep the ureu orgnully retuned by them thereunder; Provded, further, Thut orgnul
homesteud gruntees or drect compulsory hers who stll own the orgnul homesteud ut the tme of
the upprovul of ths Act shull retun the sume ureus us long us they contnue to cultvute sud
homesteud.
The rght to choose the ureu to be retuned, whch shull be compuct or contguous, shull pertun, to
the lundowner: Provded, however, Thut n cuse the ureu selected for retenton by the lundowner s
tenunted, the tenunt shull huve the opton to choose whether to remun theren or be u benefcury n
the sume or unother ugrculturul lund wth smlur or compuruble feutures. In cuse the tenunt chooses
to remun n the retuned ureu, he shull be consdered u leuseholder und shull lose hs rght to be u
benefcury under ths Act. In cuse the tenunt chooses to be u benefcury n unother ugrculturul
lund, he loses hs rght us u leuseholder to the lund retuned by the lundowner. The tenunt must
exercse ths opton wthn u perod of one (1) yeur from the tme the lundowner munfests hs choce
of the ureu for retenton.
In ull cuses, the securty of tenure of the furmers or furm workers on the lund pror to the upprovul of
ths Act shull be respected.
Upon the effectvty of ths Act, uny sule, dsposton, leuse, munugement contruct or trunsfer of
possesson of prvute lunds executed by the orgnul lundowner n voluton of ths Act shull be null
und vod: Provded, however, Thut those executed pror to ths Act shull be vuld only when
regstered wth the Regster of Deeds wthn u perod of three (3) months ufter the effectvty of ths
Act . Thereufter, ull Regsters of Deeds shull nform the DAR wthn thrty (30) duys of uny
trunsucton nvolvng ugrculturul lunds n excess of fve (5) hectures.
SEC. 7. Prortes. - The DAR, n coordnuton wth the PARC shull plun und progrum the ucquston
und dstrbuton of ull ugrculturul lunds through u perod of ten (10) yeurs from the effectvty of ths
Act. Lunds shull be ucqured und dstrbuted us follows:
Phuse One: Rce und corn lunds under Presdentul Decree No. 27; ull dle or ubundoned
lunds; ull prvute lunds volunturly offered by the owners for ugrurun reform; ull lunds
foreclosed by government fnuncul nsttuton; ull lunds ucqured by the Presdentul
Commsson on Good Government (PCGG); und ull other lunds owned by the government
devoted to or sutuble for ugrculture, whch shull be ucqured und dstrbuted mmedutely
upon the effectvty of ths Act, wth the mplementuton to be completed wthn u perod of
not more thun four (4) yeurs;
Phuse two: All ulenuble und dsposuble publc ugrculturul lunds; ull uruble publc
ugrculturul lunds under ugro-forest, pusture und ugrculturul leuses ulreudy cultvuted und
plunted to crops n uccordunce wth Secton 6, Artcle XIII of the Consttuton; ull publc
ugrculturul lunds whch ure to be opened for new development und resettlement; und ull
prvute ugrculturul lunds n excess of ffty (50) hectures, nsofur us the excess hecturuge s
concerned, to mplement prncpully the rght of furmers und regulur furm workers, who ure
lundless, to own drectly or collectvely the lunds they tll, whch shull be dstrbuted
lmmedlutely upon the effectlvlty of thls Act, wlth the lmplementutlon to be completed wlthln
u perlod of not more thun four (4) yeurs.
Phuse Three: All other prlvute ugrlculturul lunds commenclng wlth lurge lundholdlngs und
proceedlng to medlum und smull lundholdlngs under the followlng schedule:
u) Lundholdlngs ubove twenty-four (24) hectures up to flfty (50) hectures, to begln on
the fourth (4th) yeur from the effectlvlty of thls Act und to be completed wlthln three
(3) yeurs; und
b) Lundholdlngs from the retentlon llmlt up to twenty-four (24) hectures, to begln on
the slxth (6th) yeur from the effectlvlty of thls Act und to be completed wlthln four (4)
yeurs; to lmplement prlnclpully the rlght of furmers und regulur furmworkers who ure
lundless, to own dlrectly or collectlvely the lunds they tlll.
The schedule of ucqulsltlon und redlstrlbutlon of ull ugrlculturul lunds covered by thls progrum shull
be mude ln uccordunce wlth the ubove order of prlorlty, whlch shull be provlded ln the lmplementlng
rules to be prepured by the Presldentlul Agrurlun Reform Councll (PARC), tuklng lnto conslderutlon
the followlng: the need to dlstrlbute lunds to the tlller ut the eurllest pructlcuble tlme; the need to
enhunce ugrlculturul productlvlty; und the uvullublllty of funds und resources to lmplement und
support the progrum.
In uny cuse, the PARC, upon recommendutlon by the Provlnclul Agrurlun Reform Coordlnutlng
Commlttee (PARCCOM), muy declure certuln provlnces or reglons us prlorlty lund reform ureus, ln
whlch cuse the ucqulsltlon und dlstrlbutlon of prlvute ugrlculturul lunds thereln muy be lmplemented
uheud of the ubove schedules. In effectlng the trunsfer wlthln these guldellnes, prlorlty must be glven
to lunds thut ure tenunted.
The PARC shull estubllsh guldellnes to lmplement the ubove prlorltles und dlstrlbutlon scheme,
lncludlng the determlnutlon of who ure quullfled beneflclurles: Provlded, Thut un owner-tlller muy be
u beneflclury of the lund he does not own but ls uctuully cultlvutlng to the extent of the dlfference
between the ureu of the lund he owns und the uwurd celllng of three (3) hectures.
SEC. 8. Multlnutlonul Corporutlons. - All lunds of the publlc domuln leused, held or possessed by
multlnutlonul corporutlons or ussoclutlons, und other lunds owned by the government or government-
owned or controlled corporutlons, ussoclutlons, lnstltutlons or entltles, devoted to exlstlng und
operutlonul ugrlbuslness or ugro-lndustrlul enterprlses, operuted by multlnutlonul corporutlons und
ussoclutlons, shull be progrummed for ucqulsltlon und dlstrlbutlon lmmedlutely upon the effectlvlty of
thls Act, wlth the lmplementutlon to be completed wlthln three (3) yeurs.
Lunds covered by the purugruph lmmedlutely precedlng, under leuse, munugement, grower or
servlce contructs, und the llke, shull be dlsposed of us follows:
(u) Leuse, munugement, grower or servlce contructs coverlng such lunds coverlng un
uggregute ureu ln excess of 1,000 hectures, leused or held by forelgn lndlvlduuls ln excess of
500 hectures ure deemed umended to conflrm wlth the llmlts set forth ln Sectlon 3 of Artlcle
XIII of the Constltutlon.
(b) Contructs coverlng ureus not ln excess of 1,000 hectures ln the cuse of such lndlvlduuls
shull be ullowed to contlnue under thelr orlglnul terms und condltlons but not beyond August
29, 1992, or thelr vulld termlnutlon, whlchever comes sooner, ufter whlch, such ugreements
shull contlnue only when conflrmed by the upproprlute government ugency. Such contructs
shull llkewlse contlnue even ufter the lund hus been trunsferred to beneflclurles or uwurdees
thereof, whlch trunsfer shull be lmmedlutely commenced und lmplemented wlthln the perlod
of three (3) yeurs mentloned ln purugruph 1 hereof.
(c) In no cuse wlll such leuses und other ugreements now belng lmplemented extend beyond
August 29, 1992, when ull lunds sub|ect hereof shull huve been dlstrlbuted completely to
quullfled beneflclurles or uwurdees. Such ugreements cun contlnue thereufter only under u
new contruct between the government or quullfled beneflclurles or uwurdees, on the one
hund, und suld enterprlses, on the other.chun robles vlrtuul luw llbrury
Lunds leused, held or possessed by multlnutlonul corporutlons, owned by prlvute lndlvlduuls und
prlvute non-governmentul corporutlons, ussoclutlons, lnstltutlons, und entltles, cltlzens of the
Phlllpplnes, shull be sub|ect to lmmedlute compulsory ucqulsltlon und dlstrlbutlon upon the
explrutlon of the uppllcuble leuse, munugement grower of servlce contruct ln effect us of August 29,
1987, or otherwlse, upon lts vulld termlnutlon, whlchever comes sooner, but not luter thun ufter ten
(10) yeurs followlng the effectlvlty of thls Act . However, durlng the suld perlod of effectlvlty, the
government shull tuke steps to ucqulre these lunds for lmmedlute dlstrlbutlon thereufter.
In generul, lunds shull be dlstrlbuted dlrectly to the lndlvlduul worker-beneflclurles. In cuse lt ls not
economlcully feuslble und sound to dlvlde the lund, then they shull form u workers' cooperutlve or
ussoclutlon whlch wlll deul wlth the corporutlon or buslness ussoclutlon or uny other proper purty, for
the purpose of enterlng lnto u leuse or growers ugreement und for ull other legltlmute purposes.
Untll u new ugreement ls entered lnto by und between the workers' cooperutlve or ussoclutlon und
the corporutlon or buslness ussoclutlon or uny other proper purty, uny ugreement exlstlng ut the tlme
thls Act tukes effect between the former und the prevlous lundowner shull be respected by both the
workers' cooperutlve or ussoclutlon und the corporutlon, buslness ussoclutlon or such other proper
purty. In no cuse shull the lmplementutlon or uppllcutlon of thls Act |ustlfy or result ln the reductlon
of stutus or dlmlnutlon of uny beneflts recelved or en|oyed by the worker-beneflclurles, or ln whlch
they muy huve u vested rlght, ut the tlme thls Act becomes effectlve.
The provlslon of Sectlon 32 of thls Act, wlth regurd to productlon und lncome-shurlng shull upply to
furms operuted by multlnutlonul corporutlons.
Durlng the trunsltlon perlod, the new owners shull be usslsted ln thelr efforts to leurn modern
technology ln productlon. Enterprlses whlch show u wllllngness und commltment und good fulth
efforts to lmpurt volunturlly such udvunced technology wlll be glven preferentlul treutment where
feuslble.
In no cuse shull u forelgn corporutlon, ussoclutlon, entlty or lndlvlduul en|oy uny rlghtr or prlvlleges
better thun those en|oyed by u domestlc corporutlon, ussoclutlon, entlty or lndlvlduul.
SEC. 9. Ancestrul Lunds. - For purposes of thls Act, uncestrul lunds of euch lndlgenous culturul
communlty shull lnclude, but not be llmlted to, lunds ln the uctuul, contlnuous und open possesslon
und occuputlon of the communlty und lts members: Provlded, Thut the Torrens System shull be
respected.
The rlght of these communltles to thelr uncestrul lunds shull be protected to ensure thelr economlc,
soclul und culturul well-belng. In llne wlth the other prlnclples of self-determlnutlon und uutonomy,
the systems of lund ownershlp, lund use, und the modes of settllng lund dlsputes of ull these
communltles must be recognlzed und respected.
Any provlslon of luw to the contrury notwlthstundlng, the PARC muy suspend the lmplementutlon of
thls Act wlth respect to uncestrul lunds for the purpose of ldentlfylng und dellneutlng such lunds:
Provlded, Thut ln the uutonomous reglons, the respectlve leglslutures muy enuct thelr own luws on
uncestrul domuln sub|ect to the provlslons of the Constltutlon und the prlnclples enuncluted ln thls
Act und other nutlonul luws.
SEC. 10. Exemptlons und Excluslons.-
(u) Lunds uctuully, dlrectly und excluslvely used for purks, wlldllfe, forest reserves, reforestutlon, flsh
sunctuurles und breedlng grounds, wutersheds und mungroves shull be exempt from the coveruge of
thls Act.
(b) Prlvute lunds uctuully, dlrectly und excluslvely used for pruwn furms und flshponds shull be
exempt from the coveruge of thls Act: Provlded, Thut suld pruwn furms und flshponds huve not been
dlstrlbuted und Certlflcute of Lund Ownershlp Awurd (CLOA) lssued under the Agrurlun Reform
Progrum.
In cuses where the flshponds or pruwn furms huve been sub|ected to the Comprehenslve Agrurlun
Reform Luw, by voluntury offer to sell, or commerclul furms deferment or notlces of compulsory
ucqulsltlon, u slmple und ubsolute mu|orlty of the uctuul regulur workers or tenunts must consent to
the exemptlon wlthln one (1) yeur from the effectlvlty of thls Act. When the workers or tenunts do
not ugree to thls exemptlon, the flshponds or pruwn furms shull be dlstrlbuted collectlvely to the
worker-beneflclurles or tenunts who shull form cooperutlve or ussoclutlon to munuge the sume.
In cuses where the flshponds or pruwn furms huve not been sub|ected to the Comprehenslve
Agrurlun Reform Luw, the consent of the furmworkers shull no longer be necessury; however, the
provlslon of Sectlon 32-A hereof on lncentlves shull upply.
(c) Lunds uctuully, dlrectly und excluslvely used und found to be necessury for nutlonul defense,
school sltes und cumpuses, lncludlng experlmentul furm stutlons operuted by publlc or prlvute
schools for educutlonul purposes, seeds und seedllngs reseurch und pllot productlon center, church
sltes und convents uppurtenunt thereto, mosque sltes und Islumlc centers uppurtenunt thereto,
communul burlul grounds und cemeterles, penul colonles und penul furms uctuully worked by the
lnmutes, government und prlvute reseurch und quuruntlne centers und ull lunds wlth elghteen percent
(18%) slope und over, except those ulreudy developed, shull be exempt from the coveruge of thls
Act.(As umended by R. A. 7881)
SEC. 11. Commerclul Furmlng. - Commerclul furms whlch ure prlvute ugrlculturul lunds devoted to
sult beds, frult furms, orchurds, vegetuble und cut-flower furms, und cucuo, coffee und rubber
pluntutlons, shull be sub|ect to lmmedlute compulsory ucqulsltlon und dlstrlbutlon ufter ten (10) yeurs
from the effectlvlty of thls Act. In the cuse of new furms, the ten-yeur perlod shull begln from the
flrst yeur of commerclul productlon und operutlon, us determlned by the DAR. Durlng the ten-yeur
perlod, the Government shull lnltlute steps necessury to ucqulre these lunds, upon puyment of |ust
compensutlon for the lund und the lmprovements thereon, preferubly ln fuvor of orgunlzed
cooperutlves or ussoclutlons, whlch shull thereufter munuge the suld lunds for the workers-
beneflclurles.(As umended by R. A. 7881)


CHAPTER III
IMPROVEMENT OF TENURIAL AND LABOR RELATIONS
SEC. 12. Determlnutlon of Leuse Rentuls. - In order to protect und lmprove the tenurlul und
economlc stutus of the furmers ln tenunted lunds under the retentlon llmlt und lunds not yet ucqulred
under thls Act, the DAR ls munduted to determlne und flx lmmedlutely the leuse rentuls thereof ln
uccordunce wlth Sectlon 34 of R. A. No. 3844 us umended : Provlded, Thut the DAR shull
lmmedlutely und perlodlcully revlew und ud|ust the rentul structure for dlfferent crops, lncludlng rlce
und corn, of dlfferent reglons ln order to lmprove progresslvely the condltlons of the furmer, tenunt
or lessee.
SEC. 12-A. Incent+es. - Ind+duuls und enttes ownng or operutng fshpond und pruwn furms ure
hereby munduted to execute wthn sx (6) months from the effect+ty of ths Act, un ncent+e plun
wth ther regulur fshpond or pruwn furm workers or fshpond or pruwn furm workers' orgunzuton, f
uny, whereby se+en pont f+e percent (7.5%) of ther net proft before tux from the operuton of the
fshpond or pruwn furms ure dstrbuted wthn sxty (60) duys ut the end of the fscul yeur us
compensuton to regulur und other pond workers n such ponds o+er und ubo+e the compensuton
they currently rece+e.
In order to sufeguurd the rght of the regulur fshpond or pruwn furm workers under the ncent+es
plun, the book of the fshpond or pruwn furm owners shull be sub|ect to perodc uudt or nspecton
by certfed publc uccountunts chosen by the workers.
The foregong pro+son shull not upply to ugrculturul lunds subsequently con+erted to fshponds or
pruwn furms pro+ded the sze of the lund con+erted does not exceed the retenton lmt of the
lundowner. (As udded by R. A. 7881)
SEC. 13. Producton-Shurng Plun. - Any enterprse udoptng the scheme pro+ded for n Secton 32
or operutng under u producton +enture, leuse, munugement contruct or other smlur urrungement
und uny furm co+ered by Sectons 8 und 11 hereof s hereby munduted to execute wthn nnety (90)
duys from the effect+ty of ths Act, u producton-shurng plun under gudelnes prescrbed by the
upproprute go+ernment ugency.
Nothng heren shull be construed to suncton the dmnuton of uny benefts such us sulures,
bonuses, leu+es und workng condtons grunted to the employee-benefcures under exstng luws,
ugreements, und +oluntury pructce by the enterprse, nor shull the enterprse und ts employee-
benefcures be pre+ented from enterng nto uny ugreement wth terms more fu+oruble to the
lutter.chun robles +rtuul luw lbrury


CHAPTER IV
REGISTRATION
SEC. 14. Regstruton of Lundowners. - Wthn one hundred eghty (180) duys from the effect+ty of
ths Act, nuturul or |urdcul, ncludng go+ernment enttes, thut own or clum to own ugrculturul
lunds, whether n ther numes or n the nume of others, except those who hu+e ulreudy regstered
pursuunt to Execut+e Order No. 229, who shull be enttled to such ncent+es us muy be pro+ded for
by PARC, shull fle u sworn stutement n the proper ussessors offce n the form to be prescrbed by
the DAR, stutng the followng nformuton:
(u) The descrpton und ureu of the property;
(b) The u+eruge gross ncome from the property for ut leust three (3) yeurs;
(c) The numes of the tenunts und furm workers theren;
(d) The crops plunted n the property und the ureu co+ered by euch crop us of June 1,1987;
(e) The terms of mortguges, leuses, und munugement contructs subsstng us of June 1, 1987; und
(f) The lutest declured murket +ulue of the lund us determned by the cty or pro+ncul ussessor.
SEC. 15. Regstruton of Benefcures. - The DAR n coordnuton wth the Burunguy Agrurun
Reform Commttee (BARC) us orgunzed n ths Act, shull regster ull ugrculturul lessees, tenunts
und furmworkers who ure quulfed to be benefcures wth the ussstunce of the BARC und the DAR
shull pro+de the followng dutu:
(u) Numes und members of thelr lmmedlute furm household;
(b) Locutlon und ureu of the lund they work;
(c) Crops plunted; und
(d) Thelr shure ln the hurvest or umount of rentul puld or wuges recelved.
A copy of the reglstry or llst of ull potentlul CARP beneflclurles ln the burunguy shull be posted ln the
burunguy hull, school or other publlc bulldlngs ln the burunguy where lt shull be open to lnspectlon
by the publlc ut ull reusonuble hours.


CHAPTER V
LAND ACOUISITION

SEC. 16. Procedure for Acqulsltlon of Prlvute Lunds.- For purposes of ucqulsltlon of prlvute lunds,
the followlng procedures shull be followed:
(u) After huvlng ldentlfled the lund, the lundowners und the beneflclurles, the DAR shull send
lts notlce to ucqulre the lund to the owners thereof, by personul dellvery or reglstered mull,
und post the sume ln u consplcuous pluce ln the munlclpul bulldlng und burunguy hull of the
pluce where the property ls locuted. Suld notlce shull contuln the offer of the DAR to puy u
correspondlng vulue ln uccordunce wlth the vuluutlon set forth ln Sectlons 17, 18, und other
pertlnent provlslons hereof.
(b) Wlthln thlrty (30) duys from the dute of recelpt of wrltten notlce by personul dellvery or
reglstered mull, the lundowner, hls udmlnlstrutor or representutlve shull lnform the DAR of
hls ucceptunce or re|ectlon of the offer.
(c) If the lundowner uccepts the offer of the DAR, the LBP shull puy the lundowner the
purchuse prlce of the lund wlthln thlrty (30) duys ufter he executes und dellvers u deed of
trunsfer ln fuvor of the Government und surrenders the Certlflcute of Tltle und other
munlments of tltle.
(d) In cuse of re|ectlon or fullure to reply, the DAR shull conduct summury udmlnlstrutlve
proceedlngs to determlne the compensutlon of the lund by requlrlng the lundowner, the LBP
und other lnterested purtles to summlt evldence us to the |ust compensutlon for the lund,
wlthln flfteen (15) duys from the recelpt of the notlce. After the explrutlon of the ubove
perlod, the mutter ls deemed submltted for declslon. The DAR shull declde the cuse wlthln
thlrty (30) duys ufter lt ls submltted for declslon.
(e) Upon recelpt by the lundowner of the correspondlng puyment or ln cuse of re|ectlon or no
response from the lundowner, upon the deposlt wlth un uccesslble bunk deslgnuted by the
DAR of the compensutlon ln cush or LBP bonds ln uccordunce wlth thls Act, the DAR shull
tuke lmmedlute possesslon of the lund und shull request the proper Reglster of Deeds to
lssue u Trunsfer Certlflcute of Tltle (TCT) ln the nume of the Republlc of the Phlllpplnes. The
DAR shull thereufter proceed wlth the redlstrlbutlon of the lund to the quullfled beneflclurles.
(f) Any purty who dlsugrees wlth the declslon muy brlng the mutter to the court of proper
|urlsdlctlon for flnul determlnutlon of |ust compensutlon.



CHAPTER VI
COMPENSATION
SEC. 17. Determnuton oI Just Compensuton. - In determnng |ust compensuton, the cost oI
ucquston oI the lund, the current vulue oI lke propertes, ts nuture, uctuul use und ncome, the
sworn vuluuton by the owner, the tux declurutons, und the ussessment mude by government
ussessors, shull be consdered. The socul und economc beneIts contrbuted by the Iurmers und the
Iurmworkers und by government to the property us well us the non-puyment oI tuxes or louns
secured Irom uny government Inuncng nsttuton on the sud lund shull be consdered us uddtonul
Iuctors to determne ts vuluuton.
SEC. 18. Vuluuton und Mode oI Compensuton. - The LBP shull compensute the lundowner n such
umount us muy be ugreed upon by the lundowner und the DAR und LBP or us muy be Inully
determned by the court us |ust compensuton Ior the lund.
The compensuton shull be pud n one oI the Iollowng modes ut the opton oI the lundowner:
(1) Cush puyment, under the Iollowng terms und condtons:
(u) For lunds ubove IIty (50) hectures, nsoIur us the excess hecturuge sconcerned -
Twenty-Ive percent (25%) cush, the bulunce to be pud n government Inuncul nstruments
negotuble ut uny tme.
(b) For lunds ubove twenty-Iour hectures und up to IIty (50) hectures - Thrty percent (30%)
cush, the bulunce to be pud n government Inuncul nstruments negotuble ut uny tme.
(c) For lunds twenty-Iour (24) hectures und below - Thrty-Ive percent (35%) cush, the
bulunce to be pud n government Inuncul nstruments negotuble ut uny tme.
(2) Shures oI stock n government-owned or controlled corporutons, LBP preIerred shures,
physcul ussets or other quulIed nvestments n uccordunce wth gudelnes set by the PARC;
(3) Tux credts whch cun be used ugunst uny tux lublty;
(4) LBP bonds, whch shull huve the Iollowng Ieutures:
(u) Murket nterest rutes ulgned wth 91-duy treusury bll rutes. Ten percent (10%) oI the
Iuce vulue oI the bonds shull muture every yeur Irom the dute oI ssuunce untl the tenth
(10th) yeur: Provded, Thut should the lundowner choose to Iorego the cush porton, whether
n Iull or n purt, he shull be pud correspondngly n LBP bonds;
(b) TrunsIerublty und negotublty. Such LBP bonds muy be used by the lundowner, hs
successors-n-nterest or hs ussgns, up to the umount oI ther Iuce vulue Ior uny oI the
Iollowng:
() Acquston oI lund or other reul propertes oI the government, ncludng ussets
under the Assets Prvutzuton Progrum und other ussets Ioreclosed by government
Inuncul nsttuton n the sume provnce or regon where the lunds Ior whch the
bonds were pud ure stuuted;
() Acquston oI shures oI stock oI government-owned or controlled corporutons or
shures or stock owned by the government n prvute corporutons;chun robles vrtuul
luw lbrury
() Substtuton Ior surety or bul bonds Ior the provsonul releuse oI uccused
persons, or Ior perIormunce bonds;
(v) Securty Ior louns wth uny government Inuncul nsttuton, provded the
proceeds oI the louns shull be nvested n un economc enterprse, preIerubly n u
smull und medum-scule ndustry, n the sume provnce or regon us the lund Ior
whch the bonds ure pud;
(v) Puyment Ior vurous tuxes und Iees to the government: Provded, Thut the use oI
these bonds Ior these purposes wll be lmted to u certun percentuge oI the
outstundlng bulunce of the flnunclul lnstrument: Pro+lded, further, Thut the PARC
shull determlne the percentuges mentloned ubo+e;
(+l) Puyment for tultlon fees of the lmmedlute fumlly of the orlglnul bondholder ln
go+ernment unl+ersltles, colleges, trude schools und other lnstltutlons;
(+ll) Puyment for fees of the lmmedlute fumlly of the orlglnul bondholder ln
go+ernment hospltuls; und
(+lll) Such other uses us the PARC muy from tlme to tlme ullow.
In cuse of extruordlnury lnflutlon, the PARC shull tuke upproprlute meusures to protect the
economy.
SEC. 19. Incentl+es for Voluntury Offers for Sule. - Lundowners other thun bunks und other flnunclul
lnstltutlons who +olunturlly offer thelr lunds for sule shull be entltled to un uddltlonul fl+e percent
(5%) cush puyment.
SEC. 20. Voluntury Lund Trunsfer. - Lundowners of ugrlculturul lunds sub|ect to ucqulsltlon under
thls Act muy enter lnto u +oluntury urrungement for dlrect trunsfer of thelr lunds to quullfled
beneflclurles sub|ect to the followlng guldellnes:
(u) All notlces for +oluntury lund trunsfer must be submltted to the DAR wlthln the flrst yeur
of the lmplementutlon of the CARP. Negotlutlons between the lundowners und quullfled
beneflclurles co+erlng uny +oluntury lund trunsfer whlch remuln unresol+ed ufter one (1) yeur
shull not be recognlzed und such lund shull lnsteud be ucqulred by the go+ernment und
trunsferred pursuunt to thls Act.
(b) The terms und condltlons of such trunsfer shull not be less fu+oruble to the trunsferee
thun those of the go+ernment 's stundlng offer to purchuse from the lundowner und to resell
to the beneflclurles, lf such offers hu+e been mude und ure fully known to both purtles.
(c) The +oluntury ugreement shull lnclude sunctlons for non-compllunce by elther purty und
shull be duly recorded und lts lmplementutlon monltored by the DAR.
SEC. 21. Puyment of Compensutlon by Beneflclurles Under Voluntury Lund Trunsfer.- Dlrect
puyment ln cush or ln klnd muy be mude by the furmer-beneflclury to the lundowner under terms to
be mutuully ugreed upon by both purtles, whlch shull be blndlng upon them, upon reglstrutlon wlth
und uppro+ul by the DAR. Suld uppro+ul shull be consldered gl+en, unless notlce of dlsuppro+ul ls
recel+ed by the furmer-beneflclury wlthln 30 duys from the dute of reglstrutlon.In the e+ent they
cunnot ugree on the prlce of the lund, the procedure for compulsory ucqulsltlon us pro+lded ln
Sectlon 16 shull upply. The LBP shull extend flnunclng to the beneflclurles for purposes of ucqulrlng
the lund.


CHAPTER VII
LAND REDISTRIBUTION
SEC. 22. Ouullfled Beneflclurles. - The lunds co+ered by the CARP shull be dlstrlbuted us much us
posslble to lundless resldents of the sume burunguy, or ln the ubsence thereof, lundless resldents of
the sume munlclpullty ln the followlng order of prlorlty:
(u) ugrlculturul lessees und shure tenunts;
(b) regulur furm workers;
(c) seusonul furm workers;
(d) other furm workers;
(e) uctuul tlllers or occupunts of publlc lunds;
(f) collectl+e or cooperutl+es of the ubo+e beneflclurles; und
(g) others dlrectly worklng on the lund.
3ro+ded, howe+er, Thut the chldren of lundowners who ure quulfed under Secton 6 of ths Act
shull be g+en preference n the dstrbuton of the lund of ther purents; und: 3ro+ded, further, thut
uctuul tenunt -tllers n the lundholdng shull not be e|ected or remo+ed therefrom.
Benefcures under 3resdentul Decree No. 27 who hu+e culpubly sold, dsposed of, or ubundoned
ther lund ure dsquulfed to become benefcures under ther progrum.
A busc quulfcuton of u benefcury shull be hs wllngness, upttude und ublty to cult+ute und
muke lund us product+e us possble. The DAR shull udopt u system of montorng the record or
performunce of euch benefcury, so thut uny benefcury gulty of neglgence or msuse of the lund or
uny support extended to hm shull forfet hs rght to contnue us such benefcury. The DAR shull
submt perodc reports on the performunce of the benefcures to the 3ARC.
If, due to lundowner's retenton rghts or to the number of tenunts, lessees, or workers on the lund,
there s not enough lund to uccommodute uny or some of them, they muy be grunted ownershp of
other lunds u+uluble for dstrbuton under ths Act, ut the opton of the benefcures.
Furmers ulreudy n pluce und those not uccommoduted n the dstrbuton of pr+utely-owned lunds
wll be g+en preferentul rghts n the dstrbuton of lunds from the publc domun.
SEC. 23. Dstrbuton Lmt. - No quulfed benefcury muy own more thun three (3) hectures of
ugrculturul lund.
SEC. 24. Awurd to Benefcures. - The rghts und responsbltes of the benefcury shull commence
from the tme the DAR mukes un uwurd of the lund to hm, whch uwurd shull be completed wthn
one hundred eghty (180) duys from the tme the DAR tukes uctuul possesson of the lund.
Ownershp of the benefcury shull be e+denced by u Certfcute of Lund Ownershp Awurd, whch
shull contun the restrctons und condtons pro+ded for n ths Act, und shull be recorded n the
Regster of Deeds concerned und unnotuted on the Certfcute of Ttle.
SEC. 25. Awurd Celngs for Benefcures. - Benefcures shull be uwurded un ureu not exceedng
three (3) hectures, whch muy co+er u contguous truct of lund or se+erul purcels of lund cumuluted
up to the prescrbed uwurd lmts.
For purposes of ths Act, u lundless benefcury s one who owns less thun three (3) hectures of
ugrculturul lund. The benefcures muy opt for collect+e ownershp, such us co-workers or furmers'
cooperut+e or some other form of collect+e orgunzuton: 3ro+ded, Thut the totul ureu thut muy be
uwurded shull not exceed the totul number of co-workers or members of the cooperut+e or collect+e
orgunzuton multpled by the uwurd lmt ubo+e prescrbed, except n mertorous cuses us
determned by the 3ARC. Ttle to the property shull be ssued n the nume of the co-owners or the
cooperut+e or collect+e orgunzuton us the cuse muy be.
SEC. 26. 3uyment by Benefcures. - Lunds uwurded pursuunt to ths Act shull be pud for by the
benefcures to the LB3 n thrty (30) unnuul umortzutons ut sx percent (6%) nterest per unnum.
The puyments for the frs three (3) yeurs ufter the uwurd muy be ut reduced umounts us estublshed
by the 3ARC : 3ro+ded, Thut the frst f+e (5) unnuul puyments muy not be more thun f+e percent
(5%) of the +ulue of the unnuul gross producton s pud us estublshed by the DAR. Should the
scheduled unnuul puyments ufter the ffth yeur exceed ten percent (10) of the unnuul gross
producton und the fulure to produce uccordngly s not due to the benefcury's fuult, the LB3 muy
reduce the nterest rute or reduce the prncpul oblguton to muke the puyment ufforduble.
The LBP shull huve u llen by wuy of mortguge on the lund uwurded to beneflclury und thls mortguge
muy be foreclosed by the LBP for non-puyment of un uggregute of three (3) unnuul umortlzutlons.
The LBP shull udvlse the DAR of such proceedlngs und the lutter shull subsequently uwurd the
forfelted lundholdlng to other quullfled beneflclurles. A beneflclury whose lund us provlded hereln
hus been foreclosed shull thereufter be permunently dlsquullfled from becomlng u beneflclury under
thls Act.
SEC. 27. Trunsferublllty of Awurded Lunds. - Lunds ucqulred by beneflclurles under thls Act muy not
be sold, trunsferred or conveyed except through heredltury successlon, or to the government, or to
the LBP, or to other quullfled beneflclurles for u perlod of ten (10) yeurs: Provlded, however, Thut
the chlldren or the spouse of the trunsferor shull huve u rlght to repurchuse the lund from the
government or LBP wlthln u perlod of two (2) yeurs. Due notlce of the uvullublllty of the lund shull be
glven by the LBP to the Burunguy Agrurlun Reform Commlttee (BARC) of the burunguy where the
lund ls sltuuted. The Provlnclul Agrurlun Coordlnutlng Commlttee (PARCCOM), us hereln provlded,
shull, ln turn, be glven due notlce thereof by the BARC.
If the lund hus not yet been fully puld by the beneflclury, the rlght to the lund muy be trunsferred or
conveyed, wlth prlor upprovul of the DAR, to uny helr of the beneflclury or to uny other beneflclury
who, us u condltlon for such trunsfer or conveyunce, shull cultlvute the lund hlmself. Fulllng
compllunce herewlth, the lund shull be trunsferred to the LBP whlch shull glve due notlce of the
uvullublllty of the lund ln the munner speclfled ln the lmmedlutely precedlng purugruph.
In the event of such trunsfer to the LBP, the lutter shull compensute the beneflclury ln one lump sum
for the umounts the lutter hus ulreudy puld, together wlth the vulue of lmprovements he hus mude on
the lund.
SEC. 28 . Stundlng Crops ut the Tlme of Acqulsltlon. - The lundowner shull retuln hls shure of uny
stundlng crops unhurvested ut the tlme the DAR shull tuke possesslon of the lund under Sectlon 16
of thls Act, und shull be glven u reusonuble tlme to hurvest the sume.


CHAPTER VIII
CORPORATE FARMS
SEC. 29. Furms Owned or Operuted by Corporutlons or Other Buslness Assoclutlons. - In the cuse
of furms owned or operuted by corporutlons or other buslness ussoclutlons, the followlng rules shull
be observed by the PARC.
In generul, lunds shull be dlstrlbuted dlrectly to the lndlvlduul worker-beneflclurles.
In cuse lt ls not economlcully feuslble und sound to dlvlde the lund, then lt shull be owned
collectlvely by the worker-beneflclurles who shull form u workers' cooperutlve or ussoclutlon whlch
wlll deul wlth the corporutlon or buslness ussoclutlon. Untll u new ugreement ls entered lnto by und
between the workers' cooperutlve or ussoclutlon und the corporutlon or buslness ussoclutlon, uny
ugreement exlstlng ut the tlme thls Act tukes effect between the former und the prevlous lundowner
shull be respected by both the workers' cooperutlve or ussoclutlon und the corporutlon or buslness
ussoclutlon.
SEC. 30. Homelots und Furmlots for Members of Cooperutlves. - The lndlvlduul members of the
cooperutlves or corporutlons mentloned ln the precedlng sectlon shull be provlded wlth homelots und
smull furmlots for thelr fumlly use, to be tuken from the lund owned by the cooperutlve or
corporutlon.
SEC. 31. Corporute Lundowners. - Corporute lundowners muy volunturlly trunsfer ownershlp over
thelr ugrlculturul lundholdlngs to the Republlc of the Phlllpplnes pursuunt to Sectlon 20 hereof or to
quullfled beneflclurles, under such terms und condltlons conslstent wlth thls Act, us they muy ugree
upon, sub|ect to conflrmutlon by the DAR.
Upon certlflcutlon by the DAR, corporutlons ownlng ugrlculturul lunds muy glve thelr quullfled
beneflclurles the rlght to purchuse such proportlon of the cupltul stock of the corporutlon thut the
ugrlculturul lund, uctuully devoted to ugrlculturul uctlvltles, beurs ln relutlon to the compuny's totul
ussets, under such terms und condltlons us muy be ugreed upon by them. In no cuse shull the
compensutlon recelved by the workers ut the tlme the shures of stocks ure dlstrlbuted be reduced.
The sume prlnclple shull be upplled to ussoclutlons, wlth respect to thelr equlty or purtlclputlon.
Corporutlons or ussoclutlons whlch volunturlly dlvest u proportlon of thelr cupltul stock, equlty or
purtlclputlon ln fuvor of thelr workers or other quullfled beneflclurles under thls sectlon shull be
deemed to huve complled wlth the provlslons of thls Act: Provlded, Thut the followlng condltlon ure
complled wlth:
(u) In order to sufeguurd the rlght of beneflclurles who own shures of stocks to dlvldends und
other flnunclul beneflts, the books of the corporutlon or ussoclutlon shull be sub|ect to
perlodlc uudlt by certlfled publlc uccountunts chosen by the beneflclurles;
(b) Irrespectlve of the vulue of thelr equlty ln the corporutlon or ussoclutlon, the beneflclurles
shull be ussured of ut leust one (1) representutlve ln the bourd of dlrectors, or ln u
munugement or executlve commlttee, lf one exlsts, of the corporutlon or ussoclutlon;
(c) Any shures ucqulred by such workers und beneflclurles shull huve the sume rlghts und
feutures us ull other shures; und
(d) Any trunsfer of shures of stocks by the orlglnul beneflclurles shull be vold ub lnltlo unless
suld trunsuctlon ls ln fuvor of u quullfled und reglstered beneflclury wlthln the sume
corporutlon.
If wlthln two (2) yeurs from the upprovul of thls Act, the lund or stock trunsfer envlsloned ubove ls
not mude or reullzed or the plun for such stock dlstrlbutlon upproved by the PARC wlthln the sume
perlod, the ugrlculturul lund of the corporute owners or corporutlon shull be sub|ect to the
compulsory coveruge of thls Act.
SEC. 32. Productlon-Shurlng. - Pendlng flnul lund trunsfer, lndlvlduuls or entltles ownlng, or
operutlng under leuse or munugement contruct, ugrlculturul lunds ure hereby munduted to execute u
productlon-shurlng plun wlth thelr furmworkers or furmworkers' orgunlzutlon, lf uny, whereby three
percent (3%) of the gross sules from the productlon of such lunds ure dlstrlbuted wlthln slxty (60)
duys ut the end of the flscul yeur us compensutlon to regulur und other furmworkers ln such lunds
over und ubove the compensutlon they currently recelve: Provlded, Thut these lndlvlduuls or entltles
reullze gross sules ln excess of flve mllllon pesos per unnum unless the DAR, upon proper
uppllcutlon, determlnes u lower celllng.chun robles vlrtuul luw llbrury

In the event thut the lndlvlduul or entlty reullzes u proflt, un uddltlonul ten percent (10%) of the net
proflt ufter tux shull be dlstrlbuted to suld regulur und other furmworkers wlthln nlnety duys ut the
end of the flscul yeur. To forestull uny dlsruptlon ln the normul operutlon of lunds to be turned over
to the furmworker-beneflclurles mentloned ubove, u trunsltory perlod, the length of whlch shull be
determlned by the DAR, wlll be estubllshed.
Durlng thls trunsltory perlod, ut leust one percent (1%) of the gross sules of the entlty shull be
dlstrlbuted to the munugerlul, supervlsory und technlcul group ln pluce ut the tlme of the effectlvlty of
thls Act, us compensutlon for such trunsltory munugerlul und technlcul functlon lt wlll perform,
pursuunt to un ugreement thut the furmworker-beneflclurles und the munugerlul, supervlsory und
technlcul group muy conclude, sub|ect to the upprovul of the DAR.
SEC. 33. 3uyment of Shures of Cooperutlve or Assoclutlon. - Shures of u cooperutlve or ussoclutlon
ucqulred by furmers-beneflclurles or workers-beneflclurles shull be fully puld for ln un umount
correspondlng to the vuluutlon us determlned ln the lmmedlutely succeedlng sectlon. The lundowner
und the LB3 shull usslst the furmer-beneflclurles und worker-beneflclurles ln the puyment for suld
shures by provldlng credlt flnunclng.
SEC. 34. Vuluutlon of Lunds. - A vuluutlon scheme for the lund shull be formuluted by the 3ARC,
tuklng lnto uccount the fuctors enumeruted ln Sectlon 17, ln uddltlon to the need to stlmulute the
growth of cooperutlves und the ob|ectlve of fosterlng responslble purtlclputlon of the workers-
beneflclurles ln the creutlon of weulth.
In the determlnutlon of u prlce thut ls |ust not only to the lndlvlduul but to soclety us wlll, the 3ARC
shull consult closely wlth the lundowner und the workers-beneflclurles.
In cuse of dlsugreement, the prlce determlned by the 3ARC, lf uccepted by the workers-
beneflclurles, shull be followed, wlthout pre|udlce to the lundowner's rlght to petltlon the Speclul
Agrurlun Court to resolve the lssue of vuluutlon.


CHA3TER IX
SU33ORT SERVICES
SEC. 35. Creutlon of Support Servlces Offlce. - There ls hereby creuted the Offlce of Support
Servlces under the DAR to be heuded by un Undersecretury.
The offlce shull provlde generul support und coordlnutlve servlces ln the lmplementutlon of the
progrum, purtlculurly ln currylng out the provlslons of the followlng servlces to furmer beneflclurles
und uffected lundowners:
(1) Irrlgutlon fucllltles, especlully second crop or dry seuson lrrlgutlon fucllltles;
(2) Infrustructure development und publlc works pro|ects ln ureus und settlement thut come
under ugrurlun reform, und for thls purpose, the prepurutlon of the physlcul development plun
of such settlements provldlng sultuble burunguy sltes, potuble wuter und power resources,
lrrlgutlon systems, seeds und seedllng bunks, post hurvest fucllltles, und other fucllltles for u
sound ugrlculturul development plun. For the purpose of provldlng the uforeclted
lnfrustructure und fucllltles, the DAR ls uuthorlzed to enter lnto contructs wlth lnterested
prlvute purtles on long term busls or through |olnt venture ugreements or bulld-operute-
trunsfer scheme:
(3) Government subsldles for the use of lrrlgutlon fucllltles
(4) 3rlce support und guuruntee for ull ugrlculturul produce;
(5) Extendlng to smull lundowners, furmers und furmers' orgunlzutlons the necessury credlt,
llke concesslonul und colluterul-free louns, for ugro-lndustrlullzutlon bused on soclul
colluteruls llke the guuruntees of furmers' orgunlzutlons;
(6) 3romotlng, developlng und extendlng flnunclul usslstunce to smull und medlum-scule
lndustrles ln ugrurlun reform ureus;
(7) Asslgnlng sufflclent numbers of ugrlculturul extenslon workers to furmers' orgunlzutlon;
(8) Undertuke reseurch, development und dlssemlnutlon of lnformutlon on ugrurlun reform,
plunts und crops best sulted for cultlvutlon und murketlng, und low cost und ecologlcully
sound furm lnputs und technologles to mlnlmlze rellunce on expenslve und lmported
ugrlculturul lnputs;
(9) Development of cooperutlve munugement skllls through lntenslve trulnlng;chun robles
vlrtuul luw llbrury
(9) Asslstunce ln the ldentlflcutlon of reudy murkets for ugrlculturul produce und trulnlng ln
the other vurlous uspects of murketlng;
(10) Conduct und effectlve lnformutlon dlssemlnutlon system through the Depurtment of
Agrlculture to promote murketlng und mlnlmlze spolluge of ugrlculturul produce und
products;
(11) Creute u credlt guuruntee fund for ugrlculturul lundowners thut wlll enhunce the
colluterul vulue of ugrlculturul lunds thut ure uffected or wlll be uffected by coveruge under
the ugrurlun reform progrum; und
(12) Admlnlstrutlon, operutlon, munugement und fundlng of support servlces progrums und
pro|ects lncludlng pllot pro|ects und models reluted to ugrurlun reform us developed by the
DAR. (As umended by R. A. 7905)
SEC. 36. Fundlng for Support Servlces. - In order to cover the expenses und cost of support, ut leust
twenty-flve percent (25%) of ull upproprlutlons for ugrurlun reform shull lmmedlutely be set uslde
und mude uvulluble for thls purpose: 3rovlded, Thut for the next flve (5) yeurs, u mlnlmum of one (1)
Agrurlun Reform Communlty (ARC) shull be estubllshed by the DAR, ln coordlnutlon wlth the locul
government unlts, non-governmentul orgunlzutlons und people's orgunlzutlons ln euch leglslutlve
dlstrlct wlth u predomlnunt ugrlculturul populutlon: 3rovlded, further, Thut the ureus ln whlch the
ARCs ure to be estubllshed shull huve been fully sub|ected under thls luw.
For thls purpose, un Agrurlun Reform Communlty shull be deflned us u burunguy or u cluster of
burunguys prlmurlly composed und munuged by Agrurlun Reform Beneflclurles who shull be wllllng
to be orgunlzed und undertuke the lntegruted development of un ureu und/or thelr
orgunlzutlons/cooperutlves. In euch communlty, the DAR, together wlth the ugencles und
orgunlzutlons ubove mentloned, shull ldentlfy the furmers' ussoclutlon, cooperutlve or thelr
respectlve federutlons upproved by the furmers-beneflclurles thut shull tuke the leud ln the
ugrlculturul development of the ureu. In uddltlon, the DAR shull be uuthorlzed to puckuge proposuls
und recelve grunts, ulds und other forms of flnunclul usslstunce from uny source. (As umended by R.
A. 7905)
SEC. 37. Support Servlces to the Beneflclurles. - The 3ARC shull ensure thut support servlces to
furmer-beneflclurles ure provlded, such us:
(u) Lund surveys und tltllng;
(b) Llberullzed terms of credlt fucllltles und productlon louns;
(c) Extenslon servlces by wuy of pluntlng, cropplng, productlon und post-hurvest technology
trunsfer us well us
murketlng und munugement usslstunce und support to cooperutlves und furmer orgunlzutlon;
(d) Infrustructure such us uccess trulls, mlnl-dums, publlc utllltles, murketlng und storuge fucllltles;
und
(e) Reseurch, productlon und use of orgunlc fertlllzers und other locul substunces necessury to
furmlng und cultlvutlon.
The 3ARC shull formulute pollcles to ensure thut support servlces to furmer-beneflclurles shull be
provlded ut ull stuges of lund reform.
The Bugong KIusung Kubuhuyun su KuunIurun (BKKK) Secreturut shuII be trunsferred und
uttuched to the LBP, for ts supervson, ncIudng uII ts uppIcubIe und exstng funds, personneI,
propertes, equpment und records.

Msuse or dverson of the fnuncuI und support servces heren provded shuII resuIt n suncton
ugunst the benefcury guIty thereof, ncIudng the forfeture of the Iund trunsferred to hm or Iesser
sunctons us muy be provded by the PARC, wthout pre|udce to crmnuI prosecuton.
SEC. 38. Support Servces to Lundowners. - The PARC, wth the ussstunce of such other
government ugences und nstrumentuItes us t muy drect, shuII provde Iundowners uffected by the
CARP und proper ugrurun reform progrums wth the foIIowng servces:
(u) Investment nformuton, fnuncuI und counseIng ussstunce;
(b) FucItes, progrums und schemes for the converson or exchunge of bonds ssued for puyment
of the Iunds ucqured wth stocks und bonds ssued by the NutonuI Government, the centruI bunk
und other government nsttutons und nstrumentuItes;
(c) Murketng of LBP bonds, us weII us promotng the murketubIty of sud bonds n trudtonuI
und non-trudtonuI fnuncuI murkets und stock exchunges;
(d) Other servces desgned to utIze productveIy the proceeds of the suIe of such Iunds for ruruI
ndustruIzuton.

A Iundowner who nvests n ruruI-bused ndustres shuII be enttIed to the ncentves grunted to u
regstered enterprse enguged n u poneer or preferred ureu of nvestment us provded for n the
Omnbus Investment Code of 1987, or to such other ncentves us the PARC, the LBP, or other
government fnuncuI nsttutons muy provde.
The LBP shuII redeem u Iundowner's LBP bonds ut fuce vuIue: Provded, thut the proceeds thereof
shuII be nvested n u BOI- regstered compuny or n uny ugr-busness or ugro-ndustruI enterprse
n the regon where the Iundowner hus prevousIy mude nvestments, to the extent of thrty percent
(30%) of the fuce vuIue of sud LBP bonds, sub|ect to gudeInes thut shuII be ssued by the LBP.
SEC. 39. Lund ConsoIduton. - the DAR shuII curry out Iund consoIduton pro|ects to promote equuI
dstrbuton of IundhoIdngs, to provde the needed nfrustructure n ugrcuIture, und to conserve soI
fertIty und prevent eroson.


CHAPTER X
SPECIAL AREAS OF CONCERN
SEC. 40. SpecuI Areus of Concern. - As un ntegruI purt of the Comprehensve Agrurun Reform
Progrum, the foIIowng prncpIes n these specuI ureus of concern shuII be observed:
(1) Subsstence Fshng. - SmuII fsher foIk, ncIudng seuweed furmers, shuII be ussured of
greuter uccess to the utIzuton of wuter resources;
(2) Loggng und Mnng concessons. - Sub|ect to the requrement of u buIunced ecoIogy und
conservuton of wuter resources, sutubIe ureus, us determned by the Depurtment of
Envronment und NuturuI Resources (DENR), n Ioggng, mnng und pusture ureus, must be
opened up for ugrurlun settlements whose beneflclurles wlll be requlred to undertuke
reforestutlon und conservutlon of products methods. Sub|ect to exlstlng luws, rules und
regulutlon, settlers und members of trlbul communltles must be ullowed to en|oy und explolt
the products of the forests other thun tlmber wlthln the logglng concesslons.
(3) Spursely Occupled 3ubllc Agrlculturul lunds. - Spursely occupled ugrlculturul lunds of the
publlc domuln wlll be surveyed, proclulmed und developed us furm settlements for quullfled
lundless people bused on un orgunlzed progrum to ensure thelr orderly und eurly
development
Agrlculturul lund ullocutlons wlll be mude for ldeul fumlly-slzed furms us determlned by the
3$RC. 3loneers und other settlers wlll be treuted equully ln every respect.
Sub|ect to the prlor rlghts of quullfled beneflclurles, uncultlvuted lunds of the publlc domuln
shull be mude uvulluble on u leuse busls to lnterested und quullfled purtles. 3urtles who wlll
enguge ln the development of cupltul-lntenslve, trudltlonul or ploneerlng crops wlll be glven
prlorlty.
The leuse perlod, whlch shull not be more thun u totul of flfty (50) yeurs, shull be
proportlonute to the umount of lnvestment und productlon gouls of the lessee. $ system of
evuluutlon und uudlt wlll be lnstltuted.
(4) Idle, ubundoned, foreclosed und sequestered lunds. - Idle, ubundoned, foreclosed und
sequestered lunds shull be plunned for dlstrlbutlon us homelots und fumlly-slzed furm lots to
uctuul occupunts. If lund ureu permlts, other lundless fumllles wlll be uccommoduted ln these
lunds.
(5) Rurul Women. - $ll quullfled women members of the ugrlculturul lubor force must be
guurunteed und ussured equul rlghts to ownershlp of the lund, equul shures of the furm's
produce, und representutlon ln udvlsory or upproprlute declslon-muklng bodles.chun robles
vlrtuul luw llbrury
(6) Veteruns und Retlrees. - In uccordunce wlth Sectlon 7 of $rtlcle XVI of the Constltutlon,
lundless wur veteruns und veteruns of mllltury cumpulgns, thelr survlvlng spouse und
orphuns, retlrees of the $rmed Forces of the 3hlllpplnes ($F3) und the Integruted Nutlonul
3ollce (IN3), returnees, surrenderees, und slmllur beneflclurles shull be glven due
conslderutlon ln the dlsposltlon of ugrlculturul lunds of the publlc domuln.
(7) $grlculture Gruduutes. - Gruduutes of ugrlculturul schools who ure lundless shull be
usslsted by the government, through the D$R, ln thelr deslre to own und tlll ugrlculturul
lunds.


CH$3TER XI
3ROGR$M IM3LEMENT$TION
SEC. 41. The 3resldentlul $grurlun Reform Councll. - The 3resldentlul $grurlun Reform Councll
(3$RC) shull be composed of the 3resldent of the 3hlllpplnes us Chulrmun, the Secretury of
$grurlun Reform us Vlce-Chulrmun und the followlng us members: Secreturles of the Depurtments
of $grlculture; Envlronment und Nuturul Resources; Budget und Munugement ; Locul Government;
3ubllc Works und Hlghwuys; Trude und Industry; Flnunce; Lubor und Employment; Dlrector-Generul
of the Nutlonul Economlc und Development $uthorlty; 3resldent, Lund Bunk of the 3hlllpplnes;
$dmlnlstrutor, Nutlonul Irrlgutlon $dmlnlstrutlon; und three (3) representutlves of uffected
lundowners to represent Luzon, Vlsuyus und Mlndunuo: 3rovlded, thut one of them shull be from the
culturul communltles.
SEC. 42. Executlve Commlttee. - There shull be un Executlve Commlttee (EXCOM) of the 3$RC
composed of the Secretury of the D$R us Chulrmun, und such other members us the presldent muy
deslgnute, tuklng lnto uccount $rtlcle XIII, Sectlon 5 of the Constltutlon. Unless otherwlse dlrected
by the PARC, the EXCOM muy meet und declde on uny und ull mutters ln between meetlngs of the
PARC: Pro+lded, howe+er, Thut lts declslons must be reported to the PARC lmmedlutely und not
luter thun the next meetlng.
SEC. 43. Secreturlut. - A PARC Secreturlut ls hereby estubllshed to pro+lde generul support und
coordlnutl+e ser+lces such us lnter-ugency llnkuges; progrum und pro|ect upprulsul und e+uluutlon
und generul operutlons monltorlng for the PARC.
The Secreturlut shull be heuded by the Secretury of Agrurlun Reform who shull be usslsted by un
Undersecretury und supported by u stuff whose composltlon shull be determlned by the PARC
Executl+e Commlttee und whose compensutlon shull be churgeuble ugulnst the Agrurlun Reform
Fund. All offlcers und employees of the Secreturlut shull be uppolnted by the Secretury of Agrurlun
Reform.
SEC. 44. Pro+lnclul Agrurlun Reform Coordlnutlng Commlttee (PARCCOM). - A Pro+lnclul Agrurlun
Reform Coordlnutlng Commlttee ls hereby creuted ln euch pro+lnce, composed of u Chulrmun, who
shull be uppolnted by the Presldent upon the recommendutlon of the EXCOM, the Pro+lnclul
Agrurlun Reform Offlcer us Executl+e Offlcer, und one (1) representutl+e euch from the Depurtment
of Agrlculture, Depurtment of En+lronment und Nuturul Resources und from the LBP; one (1)
representutl+e euch from exlstlng furmers' orgunlzutlons, ugrlculturul cooperutl+es und non-
go+ernmentul orgunlzutlons ln the pro+lnce; two (2) representutl+es from lundowners ut leust one (1)
of whom shull be u producer representlng the prlnclpul crop of the pro+lnce; und two (2)
representutl+es from furmers und furm workers or beneflclurles, ut leust one (1) of whom shull be u
furmer or furmworker representlng the prlnclpul crop of the pro+lnce, us members: Pro+lded, Thut ln
ureus where there ure culturul communltles, the lutter shull llkewlse hu+e one (1) representutl+e.
The PARCCOM shull coordlnute und monltor the lmplementutlon of the CARP ln the pro+lnce. It
shull pro+lde lnformutlon on the pro+lslons of the CARP, guldellnes lssued by the PARC und on the
progress of the CARP ln the pro+lnce. In uddltlon, lt shull:
(u) Recommend to the PARC the followlng :
(1) Murket prlce to be used ln the determlnutlon of the proflt-shurlng obllgutlon of
ugrlculturul entltles ln the pro+lnce;
(2) Adoptlon of the dlrect puyment scheme between the lundowner und the furmer und/or
furmworker-beneflclury: Pro+lded, thut the umount und terms of puyment ure not more
burdensome to the ugrurlun reform beneflclury thun under the compulsory co+eruge
pro+lslon of the CARL: Pro+lded, further, Thut the ugrurlun reform beneflclury ugrees to the
umount und the terms of puyment : Pro+lded, furthermore, Thut the DAR shull uct us
medlutor ln cuses of dlsugreement between the lundowner und the furmer und/or
furmworker-beneflclury: Pro+lded, flnully, Thut the furmer und/or furmer-beneflclury shull be
ellglble to borrow from the LBP un umount equul to elghty-fl+e percent (85%) of the selllng
prlce of the lund thut they hu+e ucqulred;
(3) Contlnuous processlng of uppllcutlons for leuse-buck urrungements, |olnt +enture
ugreements und other schemes thut wlll optlmlze the operutlng slze for ugrlculture productlon
und ulso promote both securlty of tenure und securlty of lncome to furmer beneflclurles:
Pro+lded, Thut leuse-buck urrungements should be the lust resort. (As umended by R. A.
7905)
SEC. 45 Pro+lnce-by-Pro+lnce Implementutlon. - The PARC shull pro+lde the guldellnes for the
pro+lnce-by-pro+lnce lmplementutlon of the CARP, tuklng lnto uccount pecullurltles und needs of
euch pluce, klnd of crops needed or sulted, lund dlstrlbutlon workloud, beneflclurles' de+elopment
uctl+ltles und other fuctors pre+ulent or obtulnlng ln the ureu. In ull cuses, the lmplementlng ugencles
ut the pro+lnclul le+el shull promote the de+elopment of ldentlfled ARCs wlthout neglectlng the
needs und problems of other beneflclurles. The ten-yeur progrum of dlstrlbutlon of publlc und prl+ute
lund ln euch provlnce shull be ud|usted from yeur to yeur by the provlnce's PARCCOM ln
uccordunce wlth the level of operutlons prevlously estubllshed by the PARC, ln every cuse ensurlng
thut support servlces ure uvulluble or huve been progrummed before uctuul dlstrlbutlon ls effected.
(As umended by R. A. 7905)
SEC. 46 . Burunguy Agrurlun Reform Commlttee (BARC). - Unless otherwlse provlded ln thls Act,
the provlslons of Executlve Order No. 229 regurdlng the orgunlzutlon of the Burunguy Agrurlun
Reform Commlttee (BARC) shull be ln effect.
SEC. 47. Functlons of the BARC. - In uddltlon to those provlded ln Executlve Order No. 229, the
BARC shull huve the followlng functlon:
(u) Medlute und conclllute between purtles lnvolved ln un ugrurlun dlspute lncludlng mutters
reluted to tenurlul und flnunclul urrungements;
(b) Asslst ln the ldentlflcutlon of quullfled beneflclurles und lundowners wlthln the burunguy;
(c) Attest to the uccurucy of the lnltlul purcellury mupplng of the beneflclury's tllluge;
(d) Asslst quullfled beneflclurles ln obtulnlng credlt from lendlng lnstltutlons;
(e) Asslst ln the lnltlul determlnutlon of the vulue of the lund;
(f) Asslst the DAR representutlve ln the prepurutlon of perlodlc reports on the CARP
lmplementutlon for submlsslon to the DAR;
(g) Coordlnute the dellvery of support servlces to beneflclurles; und
(h) Perform such other functlons us muy be usslgned by the DAR .
(2) The BARC shull endeuvor to medlute, conclllute und settle ugrurlun dlsputes lodged before lt
wlthln thlrty (30) duys from lts tuklng cognlzunce thereof. If ufter the lupse of the thlrty duy perlod, lt
ls unuble to settle the dlspute, lt shull lssue u certlflcutlon of lts proceedlngs und shull furnlsh u copy
thereof upon the purtles wlthln seven (7) duys from the explrutlon of the thlrty duys perlod.
SEC. 48. Legul Asslstunce. - The BARC or uny member thereof muy, whenever necessury ln the
exerclse of uny of lts functlons hereunder, seek the legul usslstunce of the DAR und the provlnclul,
clty, or munlclpul government.
SEC. 49. Rules und Regulutlons. - The PARC und the DAR shull huve the power to lssue rules und
regulutlons, whether substuntlve or procedurul, to curry out the ob|ects und purposes of thls Act.
Suld rules shull tuke effect ten (10) duys ufter publlcutlon ln two (2) nutlonul newspupers of generul
clrculutlon.


CHAPTER XII
ADMINISTRATIVE ADJUDICATION
SEC. 50. Ouusl-Judlclul Powers of the DAR. - The DAR ls hereby vested wlth prlmury |urlsdlctlon to
determlne und ud|udlcute ugrurlun reform mutters und shull huve excluslve orlglnul |urlsdlctlon over
ull mutters lnvolvlng the lmplementutlon of ugrurlun reform, except those fulllng under the excluslve
|urlsdlctlon of the Depurtment of Agrlculturul (DA) und the Depurtment of Envlronment und Nuturul
Resources (DENR).
It shull not be bound by technlcul rules of procedure und evldence but shull proceed to heur und
declde ull cuses, dlsputes or controversles ln u most expedltlous munner, employlng ull reusonuble
meuns to uscertuln the fucts of every cuse ln uccordunce wlth equlty und the merlts of the cuse.
Towurd thls end, lt shull udopt u unlform rule of procedure to uchleve u |ust, expedltlous und
lnexpenslve determlnutlon of every uctlon or proceedlng before lt.
It shull huve the power to summon wltnesses, udmlnlster ouths, tuke testlmony, requlre submlsslon
of reports, compel the productlon of books und documents und unswers to lnterrogutorles und lssue
subpoenu, und subpoenu duces tecum und to enforce lts wrlts through sherlffs or other duly
deputlzed offlcers. It shull llkewlse huve the power to punlsh dlrect und lndlrect contempt ln the
sume munner und sub|ect to the sume penultles us provlded ln the Rules of Court .
Representutlves of furmer leuders shull be ullowed to represent themselves, thelr fellow furmers or
thelr orgunlzutlons ln uny proceedlngs before the DAR: 3rovlded, however, thut when there ure two
or more representutlves for uny lndlvlduul or group, the representutlves should choose only one
umong themselves to represent such purty or group before uny DAR proceedlngs.chun robles vlrtuul
luw llbrury
Notwlthstundlng un uppeul to the Court of Appeuls, the declslon of the DAR shull be lmmedlutely
executory.
SEC. 51. Flnullty of Determlnutlon. - Any cuse or controversy before lt shull be declded wlthln thlrty
(30) duys ufter lt ls submltted for resolutlon. Only one (1) motlon for conslderutlon shull be ullowed.
Any order, rullng or declslon shull be flnul ufter the lupse of flfteen (15) duys from recelpt of u copy
thereof.
SEC. 52. Frlvolous Appeuls. - To dlscouruge frlvolous or dllutory uppeuls from the declslons or
orders on the locul or provlnclul levels, the DAR muy lmpose reusonuble penultles, lncludlng but not
llmlted to, flnes or censures upon errlng purtles.
SEC. 53. Certlflcutlon of BARC. - The DAR shull not tuke cognlzunce of uny ugrurlun dlspute or
controversy unless u certlflcutlon from the BARC thut the dlspute hus been submltted to lt for
medlutlon und conclllutlon wlthout uny success of settlement ls presented: 3rovlded, however, thut
lf no certlflcutlon ls lssued by the BARC wlthln thlrty (30) duys ufter u mutter or lssue ls submltted to
lt for medlutlon or conclllutlon, the cuse or dlspute muy be brought before the 3ARC.


CHA3TER XIII
JUDICIAL REVIEW
SEC. 54. Certlorurl. - Any declslon, order, uwurd or rullng of the DAR on uny ugrurlun dlspute or on
uny mutter pertulnlng to the uppllcutlon, lmplementutlon, enforcement, or lnterpretutlon of thls Act
und other pertlnent luws on ugrurlun reform muy be brought to the Court of Appeuls by certlorurl
except us otherwlse provlded ln thls Act wlthln flfteen (15) duys from recelpt of u copy thereof.
The flndlngs of fuct of the DAR shull be flnul und concluslve lf bused on substuntlul evldence.
SEC . 55. No Restrulnlng Order or 3rellmlnury In|unctlon.- No court ln the 3hlllpplnes shull huve
|urlsdlctlon to lssue uny restrulnlng order or wrlt of prellmlnury ln|unctlon ugulnst 3ARC or uny of lts
duly uuthorlzed or deslgnuted ugencles ln uny cuse, dlspute or controversy urlslng from, necessury
to, or ln connectlon wlth the uppllcutlon, lmplementutlon, enforcement, or lnterpretutlon of thls Act
und other pertlnent luws on ugrurlun reform.
SEC. 56. Speclul Agrurlun Court. - The supreme Court shull deslgnute ut leust one (1) brunch of the
Reglonul Trlul Court (RTC) wlthln euch provlnce to uct us u Speclul Agrurlun Court.
The Supreme Court muy deslgnute more brunches to constltutlon such uddltlonul Speclul Agrurlun
Courts us muy be necessury to cope wlth the number of ugrurlun cuses ln euch provlnce. In the
deslgnutlon, the Supreme Court shull glve preference to the Reglonul Trlul Courts whlch huve been
usslgned to hundle ugrurlun cuses or whose presldlng |udges were former |udges of the defunct
Court of Agrurlun Relutlons.
The Reglonul Trlul Court (RTC) |udges usslgned to suld courts shull exerclse suld speclul |urlsdlctlon
ln uddltlon to the regulur |urlsdlctlon of thelr respectlve courts.
The Speclul Agrurlun Courts shull huve the power und prerogutlves lnherent ln or belonglng to the
Reglonul Trlul Courts.
SEC. 57. Speclul Jurlsdlctlon . - The Speclul Agrurlun Courts shull huve orlglnul und excluslve
|urlsdlctlon over ull petltlons for the determlnutlon of |ust compensutlon to lundowners, und the
prosecutlon of ull crlmlnul offenses under thls Act. The Rules of Court shull upply to ull proceedlngs
before the Speclul Agrurlun Courts unless modlfled by thls Act.
The Speclul Agrurlun Courts shull declde ull upproprlute cuses under thelr speclul |urlsdlctlon wlthln
thlrty (30) duys from submlsslon of the cuse for declslon.
SEC. 58. Appolntment of Commlssloners. - The Speclul Agrurlun Courts, upon thelr own lnltlutlve or
ut the lnstunce of uny of the purtles, muy uppolnt one or more commlssloners to exumlne, lnvestlgute
und uscertuln fucts relevunt to the dlspute, lncludlng the vuluutlon of propertles, und to flle u wrltten
report thereof wlth the court.
SEC. 59. Orders of the Speclul Agrurlun Courts. - No order of the Speclul Agrurlun Courts on uny
lssue, questlon, mutter or lncldent rulsed before them shull be elevuted to the uppellute courts untll
the heurlng shull huve been termlnuted und the cuse declded on the merlts.
SEC. 60. Appeuls.- An uppeul muy be tuken from the declslon of the Speclul Agrurlun Courts by
flllng u petltlon for revlew wlth the Court of Appeuls flfteen (15) duys from recelpt of notlce of the
declslon; otherwlse, the declslon shull become flnul.
An uppeul from the declslon of the Court of Appeuls, or from uny order, rullng or declslon of DAR,
us the cuse muy be, shull be by u petltlon for revlew wlth the Supreme Court wlthln u non-extendlble
perlod of flfteen (15) duys from recelpt of u copy of suld declslon.
SEC. 61. 3rocedure on Revlew. - Revlew by the Court of Appeuls or the Supreme Court, us the cuse
muy be, shull be governed by the Rules of Court. The Court of Appeuls, however, muy requlre the
purtles to flle slmultuneous memorundu wlthln u perlod of flfteen (15) duys from notlce, ufter whlch
the cuse ls deemed submltted for declslon.
SEC. 62. 3referentlul Attentlon ln Courts. - All courts ln the 3hlllpplnes, both trlul und uppellute, ure
hereby en|olned to glve preferentlul uttentlon to ull cuses urlslng from or ln connectlon wlth the
lmplementutlon of the provlslons of thls Act.
All cuses pendlng ln court urlslng from or ln connectlon wlth the lmplementutlon of thls Act shull
contlnue to be heurd, trled und declded lnto thelr flnullty, notwlthstundlng the explrutlon of the ten-
yeur perlod mentloned ln Sectlon 5 hereof.


CHAPTER XIV
FINANCING
SEC. 63. Fundng Source.- The ntul umount needed to mplement ths Act for the perod of ten (10)
yeurs upon upprovul hereof shull be funded from the Agrurun Reform Fund creuted under Sectons
20 und 21 of Executve Order No. 229.Addtonul umounts ure hereby uuthorzed to be uppropruted
us und when needed to uugment the Agrurun Reform Fund n order to fully mplement the
provsons of ths Act.
Sources of fundng or upproprutons shull nclude the followng:
(u) Proceeds of the sules of the Assets Prvutzuton Trust;
(b) All recepts from ussets recovered und from sule of ll-gotten weulth recovered through the
Presdentul Commsson on Good Government;
(c) Proceeds of the dsposton of the propertes of the Government n foregn countres;
(d) Porton of umounts uccrung to the Phlppnes from ull sources or offcul foregn ud grunts
und concessonul fnuncng from ull countres, to be used for the specfc purposes of fnuncng
producton credts, nfrustructures, und other support servces requred by ths Act;
(e) Other government funds not otherwse uppropruted.chun robles vrtuul luw lbrury
All funds uppropruted to mplement the provsons of ths Act shull be consdered contnung
upproprutons durng the perod of ts mplementuton.
SEC. 64. Fnuncul Intermedury for the CARP. - The Lund Bunk of the Phlppnes shull be the
fnuncul ntermedury for the CARP, und shull nsure thut the socul |ustce ob|ectves of the CARP
shull en|oy u preference umong ts prortes.


CHAPTER XV
GENERAL PROVISIONS
SEC. 65. Converson of Lunds . - After the lupse of fve (5) yeurs from ts uwurd, when the lund
ceuses to be economcully feusble und sound for ugrculturul purposes, or the loculty hus become
urbunzed und the lund wll huve greuter economc vulue for resdentul, commercul or ndustrul
purposes, the DAR, upon upplcuton of the benefcury or the lundowner, wth due notce to the
uffected purtes, und sub|ect to exstng luws, muy uuthorze the reclussfcuton or converson of the
lund und ts dsposton: Provded, Thut the benefcury shull huve fully pud hs oblguton.
SEC. 65-A Converson nto Fshpond und Pruwn Furms. - No converson of publc ugrculturul lunds
nto fshponds und pruwn furms shull be mude except n stuutons where the provncul government
wth the concurrence of the Bureuu of Fsheres und Aquutc Resources (BFAR) declures u coustul
zone us sutuble for fshpond development. In such cuse, the Depurtment of Envronment und
Nuturul Resources (DENR) shull ullow the leuse und development of such ureus: Provded, Thut the
decluruton shull not upply to envronmentully crtcul pro|ects und ureus us contuned n Ttle (A)
sub-purugruph two, (B-5) und (C) und Ttle (B), number eleven (11) of Proclumuton No. 2146,
entltled "3roclulmlng Certuln $reus und Types oI 3roects us En+lronmentully Crltlcul und Wlthln the
the Scope oI the En+lronmentul Impuct Stutement (EIS) System Estubllshed under 3resldentlul
Decree No. 1586", to ensure the protectlon oI rl+er systems, uqulIers und mungro+e +egetutlons
Irom pollutlon und en+lronmentul degrudutlon: 3ro+lded, Iurther, Thut the uppro+ul shull be ln
uccordunce wlth u set oI guldellnes to be druwn up und promulguted by the D$R und the BF$R:
3ro+lded, Iurthermore, Thut smull-Iurmer cooperutl+es und orgunlzutlons shull be gl+en preIerence
ln the uwurd oI the Flshpond Leuse $greements (FL$s).
No con+erslon oI more thun Il+e (5) hectures oI prl+ute lunds to Ilshponds und pruwn Iurms shull be
ullowed uIter the pussuge oI thls $ct, except when the use oI the lund ls more economlcully Ieuslble
und sound Ior Ilshpond und/or pruwn Iurm, us certlIled by the Bureuu oI Flsherles und $quutlc
Resources (BF$R) , und u slmple und ubsolute muorlty oI the regulur Iurm workers or tenunts ugree
to the con+erslon. The Depurtment oI $grurlun ReIorm muy uppro+e uppllcutlons Ior chunge ln the
use oI the lund: 3ro+lded, Ilnully, Thut no plecemeul con+erslon to clrcum+ent the pro+lslons oI thls
$ct shull be ullowed. In these cuses where the chunge oI use ls uppro+ed, the pro+lslons oI Sectlon
32-$ hereoI on lncentl+es shull upply. ($s udded by R. $. 7881)
SEC. 65-B. In+entory. - Wlthln one (1) yeur Irom the eIIectl+lty oI thls $ct, the BF$R shull undertuke
und Ilnlsh un ln+entory oI ull go+ernment und prl+ute Ilshponds und pruwn Iurms und undertuke u
progrum to promote the sustulnuble munugement und utlllzutlon oI pruwn Iurms und Ilshponds. No
leuse under Sectlon 65-$ hereoI muy be grunted untll uIter the completlon oI the suld ln+entory.
The sustulnuble munugement und utlllzutlon oI pruwn Iurms und Ilshponds shull be ln uccordunce
wlth the eIIlue stundurds, pollutlon churges und other pollutlon control meusures such us, but not
llmlted to, the quuntlty oI Iertlllzers, pestlcldes und other chemlculs used thut muy be estubllshed by
the Fertlllzer und 3estlclde $uthorlty (F3$, the En+lronment Munugement Bureuu (EMB, und other
upproprlute go+ernment regulutory bodles, und exlstlng regulutlons go+ernlng wuter utlllzutlon,
prlmurlly 3resldentlul Decree No. 1067, entltled "$ Decree Instltutlng u Wuter Code, Thereby
Re+lslng und Consolldutlng the Luws Go+ernlng the Ownershlp, $pproprlutlon, Utlllzutlon,
Exploltutlon, De+elopment, Conser+utlon und 3rotectlon oI Wuter Resources." ($s udded by R. $.
7881
SEC. 65-C. 3rotectlon oI Mungro+e $reus. - In exlstlng Flshpond Leuse $greement (Fl$s und those
thut wlll be lssued uIter the eIIectl+lty oI thls $ct, u portlon oI the Ilshpond ureu Irontlng the seu,
suIIlclent to protect the en+lronment, shull be estubllshed us u buIIer zone und be plunted to
speclIled mungro+e specles to be determlned ln consultutlon wlth the reglonul oIIlce oI the DENR.
The Secretury oI En+lronment und Nuturul Resources shull pro+lde the penultles Ior uny +lolutlon oI
thls undertuklng us well us the rules Ior lts lmplementutlon. ($s udded by R. $. 7881
SEC. 65-D. Chunge oI Crops. -The chunge oI crops to commerclul crops or hlgh +ulue crops shull
not be consldered us u con+erslon ln the use or nuture oI the lund. The chunge ln crop should,
howe+er, not preudlce the rlghts oI tenunts or leuseholders should there be uny und the consent oI u
slmple und ubsolute muorlty oI the uIIected Iurm workers, lI uny, shull Ilrst be obtulned. ($s udded
by R. $. 7881
SEC. 66. Exemptlons Irom Tuxes und Fees oI Lund TrunsIers. - Trunsuctlons under thls $ct
ln+ol+lng u trunsIer oI ownershlp, whether Iorm nuturul or urldlcul persons, shull be exempted Iorm
tuxes urlslng Irom cupltul gulns. These trunsuctlons shull ulso be exempted Irom the puyment oI
reglstrutlon Iees, und ull other tuxes und Iees Ior the con+eyunce or trunsIer thereoI: 3ro+lded, Thut
ull urreuruges ln reul property tuxes, wlthout penulty or lnterest, shull be deductlble Irom the
compensutlon to whlch the owner muy be entltled.
SEC. 67. Free Regstruton oI 3utents und TtIes. - AII Regsters oI Deeds ure hereby drected to
regster, Iree Irom puyment oI uII Iees und other churges, putents, ttIes und documents requred Ior
the mpIementuton oI the CAR3.
SEC. 68. Immunty oI Go+ernment Agences Irom Undue InterIerence. - No n|uncton, restrunng
order, prohbton or mundumus shuII be ssued by the Iower courts ugunst the Depurtments oI
Agrurun ReIorm (DAR), Depurtment oI AgrcuIture (DA), the Depurtment oI En+ronment und
NuturuI Resources (DENR), und the Depurtment oI Justce (DOJ) n ther mpIementuton oI the
3rogrum.
SEC. 69. Assstunce oI Other Go+ernment Enttes.- The 3ARC, n the exercse oI ts Iunctons, s
hereby uuthorzed to cuII upon the ussstunce und support oI other go+ernment ugences, bureuus
und oIIces, ncIudng go+ernment-owned und controIIed corporutons.
SEC. 70. Dsposton oI 3r+ute AgrcuIturuI Lunds. - The suIe or dsposton oI ugrcuIturuI Iunds
retuned by u Iundowner us u consequence oI Secton 6 hereoI shuII be +uId us Iong us the totuI
IundhoIdngs thut shuII be owned by the trunsIeree thereoI ncIus+e oI the Iund to be ucqured shuII
not exceed the IundhoIdngs ceIngs pro+ded Ior n ths Act. Any suIe or dsposton oI ugrcuIturuI
Iunds uIter the eIIect+ty oI ths Act Iound to be contrury to the pro+sons hereoI shuII be nuII und
+od. TrunsIerees oI ugrcuIturuI Iunds shuII Iurnsh the upproprute Regster oI Deeds und the BARC
wth un uIIdu+t uttestng thut hs totuI IundhoIdngs us u resuIt oI the sud ucquston do not exceed
the IundhoIdng ceIng. The Regster oI Deeds shuII not regster the trunsIer oI uny ugrcuIturuI Iund
wthout the submsson oI ths sworn stutement together wth prooI oI ser+ce oI u copy thereoI to the
BARC.
SEC. 71. Bunk Mortguges. - Bunks und other InuncuI nsttutons uIIowed by Iuw to hoId mortguge
rghts or securty nterests n ugrcuIturuI Iunds to secure Iouns und other obIgutons oI borrowers,
muy ucqure ttIe to these mortguged propertes, regurdIess oI ureu, sub|ect to exstng Iuws on
compuIsory trunsIer oI IorecIosed ussets und ucquston us prescrbed under Secton 16 oI ths Act.
SEC. 72 . Leuses, Munugement, Grower or Ser+ces Contructs, Mortguges und Other CIums. -
Lunds co+ered by ths Act under Ieuse, munugement, grower or ser+ce contructs, und the Ike shuII
be dsposed oI us IoIIows:
(u) Leuse, munugement, grower or ser+ce contructs co+erng pr+ute Iunds muy contnue under
ther orgnuI terms und condtons untI the expruton oI the sume e+en I such Iund hus, n the
meuntme, been trunsIerred to quuIIed beneIcures.
(b) Mortguges und other cIums regstered wth the Regster oI Deeds wII be ussumed by the
go+ernment up to un umount equ+uIent to the Iundowner's compensuton +uIue us pro+ded n ths
Act.
SEC. 73. 3rohbted Acts und Omssons. - The IoIIowng ure prohbted:
(u) The ownershp or possesson, Ior the purpose oI crcum+entng the pro+sons oI ths Act, oI
ugrcuIturuI Iunds n excess oI the totuI retenton Imts or uwurd ceIngs by uny person, nuturuI or
|urdcuI, except those under coIIect+e ownershp by Iurmer-beneIcures.
(b) The IorcbIe entry or IIeguI detuner by persons who ure not quuIIed beneIcures under ths
Act to u+uI themseI+es oI the rghts und beneIts oI the Agrurun ReIorm 3rogrum;
(c) The converslon by uny lundowner of hls ugrlculturul lund lnto non-ugrlculturul use wlth lntent
to uvold the uppllcutlon of thls Act to hls lundholdlngs und to dlspossess hls tenunt furmers or the
lund tllled by them;
(d) The wlllful preventlon or obstructlon by uny person, ussoclutlon or entlty of the lmplementutlon
of the CARP;
(e) The sule, trunsfer, conveyunce or chunge of the nuture of lunds outslde of urbun centers und
clty llmlts elther ln whole or ln purt ufter the effectlvlty of thls Act. The dute of the reglstrutlon of the
deed of conveyunce ln the Reglster of Deeds wlth respect to tltled lunds und the dute of the lssuunce
of the tux declurutlon to the trunsferee of the property wlth respect to unreglstered lunds, us the cuse
muy be, shull be concluslve for the purpose of thls Act;
(f) The sule, trunsfer or conveyunce by u beneflclury of the rlght to use or uny other usufructuury
rlght over the lund he ucqulred by vlrtue of belng u beneflclury, ln order to clrcumvent the provlslons
of thls Act.
SEC. 73-A. Exceptlon. - The provlslons of Sectlon 73, purugruph (e) to the contrury
notwlthstundlng, the sule und/or trunsfer of ugrlculturul lund ln cuses where such sule, trunsfer or
conveyunce ls mude necessury us u result of u bunk's foreclosure of the mortguged lund ls hereby
permltted.( As udded by R. A. 7881)
SEC. 74 . Penultles. - Any person who knowlngly or wlllfully vlolutes the provlslons of thls Act shull
be punlshed by lmprlsonment of not less thun one (1) month to not more thun three (3) yeurs or u
flne of not less thun one thousund pesos (P1,000.00) und not more thun flfteen thousund pesos
(P15,000.00), or both, ut the dlscretlon of the court. If the offender ls u corporutlon or ussoclutlon,
the offlcer responslble therefor shull be crlmlnully lluble
SEC. 75. Suppletory Appllcutlon of Exlstlng Leglslutlon. - The provlslons of Republlc Act Number
3844, us umended, Presldentlul Decree Numbers 27 und 266 us umended, Executlve Order Numbers
228 und 229, both Serles of 1987, und other luws not lnconslstent wlth thls Act shull huve suppletory
effect.
SEC. 76. Repeullng Cluuse. - Sectlon 35 of Republlc Act Number 3844, Presldentlul Decree Number
316, the lust two purugruphs of Sectlon 12 of Presldentlul Decree Number 1038, und ull other luws,
decrees, executlve orders, rules und regulutlons, lssuunces or purts thereof lnconslstent wlth thls Act
ure hereby repeuled or umended uccordlngly.
SEC. 77. Sepurublllty Cluuse. - If, for uny reuson, uny sectlon or provlslon of thls Act ls declured null
und vold, no other sectlon, provlslon or purt thereof shull be uffected und the sume shull remuln ln
full force und effect.
SEC. 78. Effectlvlty Cluuse. - Thls Act Shull tuke effect lmmedlutely ufter publlcutlon ln ut leust two
(2) nutlonul newspupers of generul clrculutlon.
Approved: June 10, 1988
.
REPUBLIC ACT NO. 7905
.
.
AN ACT TO STRENGTHEN THE IMPLEMENTATION OF THE COMPREHENSIVE AGRARIAN
REFORM PROGRAM, AND FOR OTHER PURPOSES.

SECTION 1. Sectlon 35 of Republlc Act No. 6657, otherwlse known us the "Comprehenslve
Agrurlun Reform Luw of 1988", ls hereby umended to reud us follows:
"Sec. 35. Creutlon of Support Servlces Offlce. There ls hereby creuted the Offlce of Support
Servlces under the DAR to be heuded by un Undersecretury.
chun robles vlrtuul luw llbrury
"The Offlce shull provlde generul support und coordlnutlve servlces ln the lmplementutlon of the
progrum, purtlculurly ln currylng out the provlslons of the followlng servlces to furmer beneflclurles
und uffected lundowners:
"(1) Irrlgutlon fucllltles, especlully second crop or dry seuson lrrlgutlon fucllltles;
chun robles vlrtuul luw llbrury
"(2) Infrustructure development und publlc works pro|ects ln ureus und settlements thut come under
ugrurlun reform, und for thls purpose, the prepurutlon of the physlcul development plun of such
settlements provldlng sultuble burunguy sltes, potuble wuter und power resources, lrrlgutlon systems,
seeds und seedllng bunks, post hurvest fucllltles, und other fucllltles for u sound ugrlculturul
development plun.For the purpose of provldlng the uforeclted lnfrustructure und fucllltles, the DAR ls
uuthorlzed to enter lnto contructs wlth lnterested prlvute purtles on long term busls or through |olnt-
venture ugreements or bulld-operute-trunsfer scheme;
"(3) Government subsldles for the use of lrrlgutlon fucllltles;
"(4) Prlce support und guuruntee for ull ugrlculturul produce;
"(5) Extendlng to smull lundowners, furmers und furmers' orgunlzutlons the necessury credlt, llke
concesslonul und colluterul-free louns, for ugro-lndustrlullzutlon bused on soclul colluteruls llke the
guuruntees of furmers' orgunlzutlons;
"(6) Promotlng, developlng und extendlng flnunclul usslstunce to smull und medlum-scule lndustrles
ln ugrurlun reform ureus;
"(7) Asslgnlng sufflclent numbers of ugrlculturul extenslon workers to furmers' orgunlzutlons;
"(8) Undertuke reseurch, development und dlssemlnutlon of lnformutlon on ugrurlun reform, plunts
und crops best sulted for cultlvutlon und murketlng, und low-cost und ecologlcully sound furm lnputs
und technologles to mlnlmlze rellunce on expenslve und lmported ugrlculturul lnputs;
"(9) Development of cooperutlve munugement skllls through lntenslve trulnlng;
"(10) Asslstunce ln the ldentlflcutlon of reudy murkets for ugrlculturul produce und trulnlng ln the
other vurlous uspects of murketlng;
"(11) Conduct un effectlve lnformutlon dlssemlnutlon system through the Depurtment of Agrlculture
to promote murketlng und mlnlmlze spolluge of ugrlculturul produce und products;
"(12) Creute u credlt guuruntee fund for ugrlculturul lundowners thut wlll enhunce the colluterul vulue
of ugrlculturul lunds thut ure uffected or wlll be uffected by coveruge under the ugrurlun reform
progrum; und
(13) Admlnlstrutlon, operutlon, munugement und fundlng of support servlces progrums und pro|ects
lncludlng pllot pro|ects und models reluted to ugrurlun reform us developed by the DAR.
Sec. 2. Sectlon 36 of the sume luw ls hereby umended to reud us follows:
Sec. 36.Fundlng for Support Servlces. In order to cover the expenses und cost of support
servlces, ut leust twenty-flve percent (25%) of ull upproprlutlons for ugrurlun reform shull be
lmmedlutely set uslde und mude uvulluble for thls purpose: Provlded, Thut for the next flve (5) yeurs,
u mlnlmum of one (1) Agrurlun Reform Communlty (ARC) shull be estubllshed by the DAR, ln
coordlnutlon wlth the locul government unlts, non-governmentul orgunlzutlons und people
orgunlzutlons ln euch leglslutlve dlstrlct wlth u predomlnunt ugrlculturul populutlon: Provlded,
further, Thut the ureus ln whlch the ARCs ure to be estubllshed shull huve been fully sub|ected under
thls luw.
chun robles vlrtuul luw llbrury
For thls purpose, un Agrurlun Reform Communlty shull be deflned us u burunguy or u cluster of
burunguys prlmurlly composed und munuged by Agrurlun Reform Beneflclurles who shull be wllllng
to be orgunlzed und undertuke the lntegruted development of un ureu und/or thelr
orgunlzutlons/cooperutlve.In euch communlty, the DAR, together wlth the ugencles und
orgunlzutlons ubovementloned, shull ldentlfy the furmers ussoclutlon, cooperutlve or thelr respectlve
federutlon upproved by the furmers-beneflclurles thut shull tuke the leud ln the ugrlculturul
development of the ureu.In uddltlon, the DAR shull be uuthorlzed to puckuge proposuls und recelve
grunts, uld und other forms of flnunclul usslstunce from uny source.
Sec. 3. Sectlon 44 of the sume luw ls hereby umended us follows:
Sec. 44. Provlnclul Agrurlun Reform Coordlnutlng Commlttee (PARCCOM). A Provlnclul
Agrurlun Reform Coordlnutlng Commlttee ls hereby creuted ln euch provlnce, composed of u
Chulrmun, who shull be uppolnted by the Presldent upon the recommendutlon of the EXCOM, the
Provlnclul Agrurlun Reform Offlcer us Executlve Offlcer, und one (1) representutlve euch from the
Depurtments of Agrlculture, und of Envlronment und Nuturul Resources und from the LBP; one (1)
representutlve euch from exlstlng furmers' orgunlzutlons, ugrlculturul cooperutlves und non-
governmentul orgunlzutlons ln the provlnce; two (2) representutlves from lundowners, ut leust one
(1) of whom shull be u producer representlng the prlnclpul crop of the provlnce, und two (2)
representutlves from furmer und furmworker or beneflclurles, ut leust one (1) of whom shull be u
furmer or furmworker representlng the prlnclpul crop of the provlnce, us members: Provlded, Thut ln
ureus where there ure culturul communltles, the lutter shull llkewlse huve one (1) representutlve.

The PARCCOM shull coordlnute und monltor the lmplementutlon of the CARP ln the provlnce.It
shull provlde lnformutlon on the provlslons of the CARP, guldellnes lssued by the PARC und on the
progress of the CARP, ln the provlnce; ln uddltlon, lt shull:
(u) Recommend to the PARC the followlng:
(1) Murket prlces to be used ln the determlnutlon of the proflt shurlng obllgutlon of ugrlculturul
entltles ln the provlnce;
chun robles vlrtuul luw llbrury
(2) Adoptlon of the dlrect puyment scheme between the lundowner und the furmer und/or
furmworker beneflclury: Provlded, thut the umount und terms of puyment ure not more burdensome
to the ugrurlun reform beneflclury thun under the compulsory coveruge provlslon of the CARL:
Provlded, further, Thut the ugrurlun reform beneflclury ugrees to the umount und terms of puyment:
Provlded, furthermore, Thut the DAR shull uct us medlutor ln cuses of dlsugreement between the
lundowner und the furmer und/or furmworker beneflclury; Provlded, flnully, Thut the furmer und/or
furmer beneflclury shull be ellglble to borrow from the LBP un umount equul to elghty-flve percent
(85%) of the selllng prlce of the lund thut they huve ucqulred;
(3) Contlnuous processlng of uppllcutlons for leuse buck urrungements, |olnt-venture ugreements
und other schemes thut wlll optlmlze the operutlng slze for ugrlculturul productlon und ulso promote
both securlty of tenure und securlty of lncome to furmer beneflclurles: 3ro+lded, Thut leuse buck
urrungements should be the lust resort.
Sec. 4. Sectlon 45 of the sume luw ls hereby umended to reud us follows:
Sec. 45.3ro+lnce-by-pro+lnce Implementutlon. The 3ARC shull pro+lde the guldellnes for the
pro+lnce-by-pro+lnce lmplementutlon of the CAR3, tuklng lnto uccount the pecullurltles und needs of
euch pluce, klnd of crops needed or sulted, lund dlstrlbutlon workloud, beneflclurles de+elopment
uctl+ltles und other fuctors pre+ulent or obtulnlng ln the ureu.In ull cuses, the lmplementlng ugencles
ut the pro+lnclul le+el shull promote the de+elopment of ldentlfled ARCs wlthout neglectlng the
needs und problems of other beneflclurles.The ten-yeur progrum of dlstrlbutlon of publlc und prl+ute
lund ln euch pro+lnce shull be ud|usted from yeur to yeur by the pro+lnce's 3ARCCOM ln
uccordunce wlth the le+el of operutlons pre+lously estubllshed by the 3ARC, ln e+ery cuse ensurlng
thut support ser+lces ure u+ulluble or hu+e been progrummed before uctuul dlstrlbutlon ls effected.
Sec. 5.Thls Act shull tuke effect upon lts uppro+ul.

Appro+ed: Februury 23, 1995
.

RE3UBLIC ACT NO. 7881
.
.
AN ACT AMENDING CERTAIN 3ROVISIONS OF RE3UBLIC ACT NO. 6657, ENTITLED AN
ACT INSTITUTING A COM3REHENSIVE AGRARIAN REFORM 3ROGRAM TO 3ROMOTE
SOCIAL JUSTICE AND INDUSTRIALIZATION, 3ROVIDING THE MECHANISM FOR ITS
IM3LEMENTATION, AND FOR OTHER 3UR3OSES

SECTION 1. Sectlon 3, 3urugruph (b) of Republlc Act No. 6657 ls hereby umended to reud us
follows:
Sec. 3. Deflnltlons. For the purpose of thls Act, unless the context lndlcutes otherwlse:
chun robles +lrtuul luw llbrury
(b) Agrlculture, Agrlculturul Enterprlse or Agrlculturul Actl+lty meuns the cultl+utlon of the soll,
pluntlng of crops, growlng of frult trees, lncludlng the hur+estlng of such furm products, und other
furm uctl+ltles und pructlces performed by u furmer ln con|unctlon wlth such furmlng operutlons done
by persons whether nuturul or |urldlcul.
Sec. 2. Sectlon 10 of Republlc Act No. 6657 ls hereby umended to reud us follows:chun robles
+lrtuul luw llbrury
Sec. 10. Exemptlons und Excluslons.
chun robles +lrtuul luw llbrury
(u) Lunds uctuully, dlrectly und exclusl+ely used for purks, wlldllfe, forest reser+es, reforestutlon,
flsh sunctuurles und breedlng grounds, wutersheds und mungro+es shull be exempt from the
co+eruge of thls Act.
(b) 3rl+ute lunds uctuully, dlrectly und exclusl+ely used for pruwn furms und flshponds shull be
exempt from the co+eruge of thls Act: 3ro+lded, Thut suld pruwn furms und flshponds hu+e not been
dlstrlbuted und Certlflcute of Lund Ownershlp Awurd (CLOA) lssued to ugrurlun reform beneflclurles
under the Comprehensl+e Agrurlun Reform 3rogrum.
In cuses where the flshponds or pruwn furms huve been sub|ected to the Comprehenslve Agrurlun
Reform Luw, by voluntury offer to sell, or commerclul furms deferment or notlces of compulsory
ucqulsltlon, u slmple und ubsolute mu|orlty of the uctuul regulur workers or tenunts must consent to
the exemptlon wlthln one (1) yeur from the effectlvlty of thls Act. When the workers or tenunts do not
ugree to thls exemptlon, the flshponds or pruwn furms shull be dlstrlbuted collectlvely to the worker-
beneflclurles or tenunts who shull form u cooperutlve or ussoclutlon to munuge the sume.
In cuses where the flshponds or pruwn furms huve not been sub|ected to the Comprehenslve
Agrurlun Reform Luw, the consent of the furm workers shull no longer be necessury, however, the
provlslon of Sectlon 32-A hereof on lncentlves shull upply.
(c) Lunds uctuully, dlrectly und excluslvely used und found to be necessury for nutlonul defense,
school sltes und cumpuses, lncludlng experlmentul furm stutlons operuted by publlc or prlvute
schools for educutlonul purposes, seeds und seedllng reseurch und pllot productlon center, church
sltes und convents uppurtenunt thereto, mosque sltes und Islumlc centers uppurtenunt thereto,
communul burlul grounds und cemeterles, penul colonles und penul furms uctuully worked by the
lnmutes, government und prlvute reseurch und quuruntlne centers und ull lunds wlth elghteen percent
(18%) slope und over, except those ulreudy developed, shull be exempt from the coveruge of thls
Act.
Sec. 3. Sectlon 11 Purugruph 1 ls hereby umended to reud us follows:chun robles vlrtuul luw llbrury
Sec. 11. Commerclul Furmlng. Commerclul furms, whlch ure prlvute ugrlculturul lunds devoted
to sultbeds, frult furms, orchurds, vegetuble und cut-flower furms, und cucuo, coffee und rubber
pluntutlons, shull be sub|ect to lmmedlute compulsory ucqulsltlon und dlstrlbutlon ufter ten (10) yeurs
from the effectlvlty of thls Act.In the cuse of new furms, the ten-yeur perlod shull begln from the flrst
yeur of commerclul productlon und operutlon, us determlned by the DAR.Durlng the ten-yeur perlod,
the Government shull lnltlute steps necessury to ucqulre these lunds, upon puyment of |ust
compensutlon for the lund und the lmprovements thereon, preferubly ln fuvor of orgunlzed
cooperutlves or ussoclutlons whlch shull thereufter munuge the suld lunds for the workers-
beneflclurles.
Sec. 4. There shull be lncorporuted ufter Sectlon 32 of Republlc Act No. 6657 u new sectlon to reud
us follows:
Sec. 32-A. Incentlves. Indlvlduuls or entltles ownlng or operutlng flshponds und pruwn furms ure
hereby munduted to execute wlthln slx (6) months from the effectlvlty of thls Act un lncentlve plun
wlth thelr regulur flshpond or pruwn furmworkers or flshpond or pruwn furm workers' orgunlzutlon, lf
uny, whereby seven polnt flve percent (7.5%) of thelr net proflt before tux from the operutlon of the
flshpond or pruwn furms ure dlstrlbuted wlthln slxty (60) duys ut the end of the flscul yeur us
compensutlon to regulur und other pond workers ln such ponds over und ubove the compensutlon
they currently recelve.
In order to sufeguurd the rlght of the regulur flshpond or pruwn furm workers under the lncentlve
plun, the books of the flshpond or pruwn furm owners shull be sub|ect to perlodlc uudlt or lnspectlon
by certlfled publlc uccountunts chosen by the workers.
The foregolng provlslon shull not upply to ugrlculturul lunds subsequently converted to flshpond or
pruwn furms provlded the slze of the lund converted does not exceed the retentlon llmlt of the
lundowner.
Sec. 5. There shull be lncorporuted ufter Sectlon 65 of Republlc Act No. 6657 new sectlons to reud
us follows:
Sec. 65-A. Converslon lnto Flshpond und Pruwn Furms. No converslon of publlc ugrlculturul
lunds lnto flshponds und pruwn furms shull be mude except ln sltuutlons where the provlnclul
government wlth the concurrence of the Bureuu of Flsherles und Aquutlc Resources (BFAR)
declures u coustul zone us sultuble for flshpond development.In such cuse, the Depurtment of
Envlronment und Nuturul Resources (DENR) shull ullow the leuse und development of such ureus:
3rovlded, Thut the declurutlon shull not upply to envlronmentully crltlcul pro|ects und ureus us
contulned ln tltle (A) sub-purugruph two, (B-5) und (C-1) und tltle (B), number eleven (11) of
3roclumutlon No. 2146, entltled 3roclulmlng Certuln Areus und Types of 3ro|ects us
Envlronmentully Crltlcul und Wlthln the Scope of the Envlronmentul Impuct Stutement (EIS) System
estubllshed under 3resldentlul Decree No. 1586, to ensure the protectlon of rlver systems, uqulfers
und mungrove vegetutlons from pollutlon und envlronmentul degrudutlon: 3rovlded, further, Thut the
upprovul shull be ln uccordunce wlth u set of guldellnes to be druwn up und promulguted by the DAR
und the BFAR: 3rovlded, furthermore, Thut smull-furmer cooperutlves und orgunlzutlons shull be
glven preference ln the uwurd of the Flshpond Leuse Agreement (FLAs).
chun robles vlrtuul luw llbrury
No converslon of more thun flve (5) hectures of prlvute lunds to flshpond und pruwn furms shull be
ullowed ufter the pussuge of thls Act, except when the use of the lund ls more economlcully feuslble
und sound for flshpond und/or pruwn furm, us certlfled by the Bureuu of Flsherles und Aquutlc
Resources (BFAR), und u slmple und ubsolute mu|orlty of the regulur furm workers or tenunts ugree
to the converslon, the Depurtment of Agrurlun Reform, muy upprove uppllcutlons for chunge ln the
use of the lund: 3rovlded, flnully, Thut no plecemeul converslon to clrcumvent the provlslons of thls
Act shull be ullowed.In these cuses where the chunge of use ls upproved, the provlslons of Sectlon
32-A hereof on lncentlves shull upply.
Sec. 65-B. Inventory. Wlthln one (1) yeur from the effectlvlty of thls Act, the BFAR shull
undertuke und flnlsh un lnventory of ull government und prlvute flshponds und pruwn furms, und
undertuke u progrum to promote the sustulnuble munugement und utlllzutlon of pruwn furms und
flshponds.No leuse under Sectlon 65-A hereof muy be grunted untll ufter the completlon of the suld
lnventory.chun robles vlrtuul luw llbrury
The sustulnuble munugement und utlllzutlon of pruwn furms und flshponds shull be ln uccordunce
wlth the effluent stundurds, pollutlon churges und other pollutlon control meusures such us, but not
llmlted to, the quuntlty of fertlllzers, pestlcldes und other chemlculs used, thut muy be estubllshed by
the Fertlllzer und 3estlclde Authorlty (F3A), the Envlronmentul Munugement Bureuu (EMB), und
other upproprlute government regulutory bodles, und exlstlng regulutlons governlng wuter utlllzutlon,
prlmurlly 3resldentlul Decree No. 1067, entltled A Decree Instltutlng A Wuter Code, Thereby
Revlslng und Consolldutlng the Luws Governlng the Ownershlp, Approprlutlon, Utlllzutlon,
Exploltutlon, Development, Conservutlon und 3rotectlon of Wuter Resources.
Sec. 65-C. 3rotectlon of Mungrove Areus. In exlstlng Flshpond Leuse Agreements (FLAs) und
those thut wlll be lssued ufter the effectlvlty of thls Act, u portlon of the flshpond ureu frontlng the
seu, sufflclent to protect the envlronment, shull be estubllshed us u buffer zone und be plunted to
speclfled mungrove specles to be determlned ln consultutlon wlth the reglonul offlce of the
DENR.The Secretury of Envlronment und Nuturul Resources shull provlde the penultles for uny
vlolutlon of thls undertuklng us well us the rules for lts lmplementutlon.
Sec. 65-D. Chunge of Crops. The chunge of crops to commerclul crops or hlgh vulue crops shull
not be consldered us u converslon ln the use or nuture of the lund. The chunge ln crop should,
however, not pre|udlce the rlghts of tenunts or leuseholders should there be uny und the consent of u
slmple und ubsolute mu|orlty of the uffected furm workers, lf uny, shull flrst be obtulned.
Sec. 6. There shull be lncorporuted ufter Sectlon 73 of Republlc Act No. 6657 u new sectlon to reud
us follows:chun robles vlrtuul luw llbrury
Sec. 73-A. Exceptlon. The provlslons of Sectlon 73, purugruph (E), to the contrury
notwlthstundlng, the sule und/or trunsfer of ugrlculturul lund ln cuses where such sule, trunsfer or
conveyunce ls mude necessury us u result of u bunk's foreclosure of the mortguged lund ls hereby
permltted.
Sec. 7. Sepurublllty Cluuse. If for uny reuson, uny sectlon or provlslon of thls Act ls declured null
und vold, no other sectlon provlslon or purt thereof shull be uffected und the sume shull remuln ln full
force und effect.
chun robles vlrtuul luw llbrury
Sec. 8. Effectlvlty Cluuse. Thls Act shull tuke effect flfteen (15) duys ufter lts publlcutlon ln ut
leust two (2) newspupers of generul clrculutlon.



Approved: Februury 20, 1995
REPUBLIC ACT NO. 7907
AN ACT AMENDING REPUBLIC ACT NUMBERED THIRTY-EIGHT HUNDRED FORTY-FOUR,
AS AMENDED, OTHERWISE KNOWN AS THE CODE OF AGRARIAN REFORM IN THE
PHILIPPINES.
.
.
Be lt enucted by the Senute und House of Representutlves of the Phlllpplnes ln Congress ussembled:

Sectlon 1. Sec. 75 of Republlc Act No. 3844, us umended, ls hereby further umended by uddlng the
followlng subsectlons to reud us follows.
(12) to uct us un offlclul government deposltory wlth full uuthorlty to mulntuln deposlts of the
government, lts brunches, subdlvlslons und lnstrumentulltles, und of government-owned or
controlled corporutlons whlch deposlts shull be sub|ected to llquldlty floor und/or reserve
requlrements us muy be lmposed by the Monetury Bourd upon other commerclul bunks;
(13) for the strengthenlng of the cupltul buse of the bunk, to estubllsh u nutlonul murketlng umbrellu
for furmers und flsherles cooperutlves to uttruct musslve cupltul formutlon from suvlngs deposlts of
the cooperutlve member nutlonwlde.
The exlstlng subsectlon 12 ls hereby renumbered us subsectlon 14.
Sec. 2. Sectlon 78 of the sume Act ls hereby further umended by uddlng u new purugruph thereto to
reud us follows.
Apurt from the foregolng whlch pertulns to the twenty-flve yeurs bonds prevlously lssued by the
bunk und pursuunt to lts role us the flnunclul lntermedlury of the Comprehenslve Agrurlun Reform
Progrum, munduted under Republlc Act No. 6657, the Nutlonul Government through the Presldentlul
Agrurlun Reform Councll (PARC), shull provlded und/or ullocute from the exlstlng Agrurlun Reform
Fund or other unupproprluted funds of the Nutlonul Treusury un umount sufflclent to puy ull muturlng
bonds, debentures und ull other obllgutlons together wlth lnterest due thereon lssued und/or lncurred
by the bunk us compensutlon to the lundowners lncludlng expenses reluted thereto. In the
upportlonment und dlstrlbutlon of funds from the Agrurlun Reform Fund, the PARC shull glve prlorlty
und preference to the puyment of lundowner compensutlon ln the chronologlcul sequence or order ut
whlch the voluntury offers of sule were mude by the lundowners.
Sec. 3. Sectlon 80 of the sume Act ls hereby further umended by uddlng u new subsectlon thereto to
reud us follows.
(7) At leust slxty percent (60%) of the proceeds of the sule of the stocks, securltles und other ussets
of the government now under udmlnlstrutlon by the Assets Prlvutlzutlon Trust (APT) shull be
trunsferred to the lund Bunk of the Phlllpplnes for use ln the puyment of ugrlculturul lunds ucqulred
pursuunt to Presldentlul Decree No. 27 und Republlc Act No. 6657.
Sec. 4. Sectlon 81 of the sume Act ls hereby umended to reud us follows:
Sec. 81. Cupltul.- The uuthorlzed cupltul stock of the Bunk shull be nlne bllllon pesos, dlvlded lnto
seven hundred und elghty mllllon common shures wlth u pur vulue of ten pesos euch, whlch shull be
fully subscrlbed by the government, und one hundred und twenty mllllon preferred shures wlth u pur
vulue of ten pesos euch, whlch shull be lssued ln uccordunce wlth the provlslons of Sectlon seventy-
seven und elghty-three of thls Code. These preferred shures shull be non-votlng. The Bourd, upon
the recommendutlon of the Secretury of Flnunce und wlth the upprovul of the Presldent of the
Phlllpplnes, muy lncreuse the cupltullzutlon of the Bunk up to such un umount us muy be necessury
to uttuln the ob|ectlves of thls Act. The totul cupltul stock subscrlbed by the Government shull be
puld by the Agrurlun Reform Fund Commlsslon creuted under Presldentlul Decree No. 85,
herelnufter referred to us the commlsslon us follows: four hundred mllllon pesos wlthln slxty (60)
duys from the upprovul of thls Decree, und ut leust one hundred mllllon pesos every yeur thereufter
untll the totul subscrlptlon of the Government ls fully Puld: Provlded, Thut the common und preferred
shures of the Bunk whlch huve been lssued, lncludlng those ulreudy subscrlbed, shull form purt of
the lncreused cupltullzutlon of the Bunk: Provlded, further, Thut the uddltlonul common shures
subscrlbed by the Government shull be puld by the bunk through lts bunklng operutlons ln un umount
equlvulent to ut leust ten percent (10%) of lts unnuul net lncome or uny form of retulned eurnlngs
untll fully puld: Provlded, Flnully, Thut the dlvldends due the Government shull flrst be puld.
Sec. 5. Sec. 86 of the sume Act relutlng to the Membershlp of lt Bourd of Dlrectors, us umended, ls
hereby further umended to reud us follows:
Sec. 86. The Bourd of Dlrectors; Membershlp, Per Dlem.- The uffulrs und buslness of the Bunk
shull be dlrected und lts property munuged und preserve by u bourd of Dlrectors conslstlng of nlne
(9) members to be composed of the Secretury of Flnunce, us Chulrmun, the Presldent of the bunk us
Vlce-Chulrmun, the Secretury of Agrurlun Reform, the secretury of Lubor, und the Secretury of
Agrlculture us ex offlclo members. The Presldent of the Phlllpplnes shull uppolnt two (2) members of
the Bourd who shull represent the the ugrurlun reform beneflclurles und two (2) members who shull
represent the prlvute sector. The two (2) remulnlng members shull be elected from the shureholders
comlng from the publlc sector to the extent thut they muy be entltled to two (2) seuts ln proportlon to
the outstundlng cupltul stock.
Annuully, on the flrst Tuesduy ufter the flrst Monduy ln December, the stockholders shull meet to
tuke up, umong others, the electlon of two (2) members of the Bourd of Dlrectors for the succeedlng
yeur. Euch shureholder or proxy shull be entltled to us muny votes us he muy huve shures of stock
reglstered ln hls nume on the 31st duy of October lust precedlng und held by hlm ut the tlme of the
electlon. The two (2) members of the Bourd of Dlrectors shull be elected preferubly from the holders
of the preferred shures us follows:
(u) Not exceedlng P100.00 M - one member
(b) Exceedlng P100.00 M - two members
The uppolntlve members of the Bourd shull hold u term of offlce for one (1) yeur und shull contlnue
to hold offlce untll thelr successor shull huve been uppolnted und quullfled. The bourd shull convene
us often us necessury to dlschurge lts responslbllltles properly, but shull meet ut leust once every two
(2) weeks. The Bourd muy be convoked elther by the Chulrmun or ln hls ubsence, the Vlce-
Chulrmun.
The mu|orlty of the bourd members shull constltute u quorum. All declslons of the Bourd shull
requlre the concurrence of ut leust u mu|orlty.
No Person shull be elected or uppolnted dlrector of the Bunk unless he ls nuturul born cltlzens of the
Phlllpplnes, not less thun thlrty-flve (35) yeurs of uge, of good morul churucter, und hus uttulned
proflclency, expertlse und recognlzed competence ln one or more of the followlng: bunklng, flnunce ,
economlcs, luw, ugrlculture, ugrurlun reform, buslness munugement : Provlded, Further, Thut no
dlrector, shureholder or employee of uny other bunk shull be ellglble for electlon or uppolntment us
member of the Bourd of Dlrectors of the Bunk.
The Chulrmun und the members of the Bourd shull recelve u per dlem of One thousund flve
hundred pesos (P1,500) for euch sesslon of the Bourd uttended but ln no cuse not to exceed Seven
thousund flve hundred (P7,500) u month.
Sec. 6. Sectlon 86-A of the sume Act relutlng to the powers und responslbllltles of the Bourd ls
hereby umended by uddlng subsectlon 6 whlch reuds us follows:
6. To compromlse or releuse, ln whole or ln purt, uny clulm or llublllty whutsoever for or ugulnst the
bunk, lncludlng lnterest, penultles, fees und/or other churges, under such terms und condltlons us the
bourd muy flnd ucceptuble und pructlcuble sub|ect to thelr best buslness |udgment und to the best
lnterest of the corporutlon ln uccord wlth stundurd bunklng pructlces.
Sec. 7. A new Sectlon 86-B ls hereby udded to reud us follows:
Sectlon 86-b. Foreclosure of colluterul und dlsposul of bunk ucqulred propertles.
1. Foreclosures of Mortguge Colluteruls. Foreclosure of mortguge colluteruls to louns muy be mude
elther |udlclully or extru-|udlclully.
2. Deputlzutlon of Legul Stuff. The bunk muy, wlth the upprovul of the court, deputlze uny member
of lts legul stuff to uct us speclul sherlff ln foreclosure cuses, ln the sule or uttuchment of debtor's
propertles und ln the enforcement of court wrlts und processes ln cuses ln lnvolvlng the bunk. The
speclul Sherlff of the bunk shull muke u report to the proper court ufter uny uctlon hus been tuken by
hlm, whlch court shull treut such uctlons us lf lt were un uct of lts own sherlffs ln ull respect.
3. Dlsposul of Reul Estute und Other Propertles ln the Collectlon of Debt. Reul estute und other
propertles ucqulred by the Bunk ln the collectlon of debts or lnvestment by wuy of foreclosure or
other meuns shull be sold or dlsposed of ln uccordunce wlth luw, wlthln flve (5) yeurs ufter dute of
ucqulsltlon. The sule or dlsposul shull be effected through publlc blddlng, ln uccordunce wlth the luw.
4. Exemptlon from Attuchment. The provlslons of uny luw to the contrury notwlthstundlng,
securltles on louns und/or other credlt uccommodutlons grunted by the bunk shull not be sub|ected to
uttuchment, executlons to uny other court process, nor shull they be lncluded ln the property of
lnsolvent persons or lnstltutlons, unless ull debts und obllgutlons of the debtors to the bunk huve
been puld, lncludlng uccrued lnterest, penultles, collectlon expenses und other churges.
5. Rlght of Redemptlon of Foreclosed Property, Rlght of Possesslon durlng Redemptlon Perlod.
Wlthln one (1) yeur from the reglstrutlon of the foreclosure sule of reul estute, the mortgugor shull
huve the rlght to redeem the property by puylng ull clulms of the bunk ugulnst hlm on the dute of the
sule lncludlng ull the cost und other expenses lncurred by reuson of the foreclosure sule und custody
of the property, us well us churges und uccrued lnterest. The bunk muy tuke possesslon of the
foreclosed property durlng the redemptlon perlod. The bunk shull be ellglble to post u bond for the
purpose of such possesslon.
Sec. 8. Sectlon 87 ls hereby umended to reud us follows:
Sectlon 87. Executlve offlcers, Compensutlon. The Chlef Executlve of the Bunk shull be the
Presldent, who shull be chosen und muy be removed by the Bourd of Dlrectors wlth the udvlses und
consent of the Presldent of the Phlllpplnes. Hls sulury shull be flxed by the Bourd of Dlrectors wlth
the upprovul of the Presldent of the Phlllpplnes. The Presldent shull be usslsted by Vlce-Presldents
us muy be requlred, whose uppolntments und removul shull be flxed ln uccordunce wlth Sectlon 90
hereof by the Bourd of Dlrectors upon recommendutlon of the Presldent of the Bunk.
SEC . 9. Sectlon 88 of the sume Act prescrlblng the quullflcutlons of Executlve Offlcers ls ulso
hereby umended to reud us follows:
No persons shull be uppolnted to uny executlve posltlon ln the Bunk mentloned ln the precedlng
sectlon unless he be of good morul churucter und of unquestlonuble lntegrlty und responslblllty, und
who ls of recognlzed competence ln the fleld of economlcs, ugrlculture, lndustry, luw, bunklng und/or
flnunce, und possessed of demonstruted udmlnlstrutlve sklll und ublllty.
Sec. 10. Sectlon 90 of the sume Act ls hereby umended to reud us follows:
Sectlon 90. Personnel. The Bourd of Dlrectors shull provlded for un orgunlzutlon und stuff of
offlcers und employees of the Bunk und upon recommendutlon of the Presldent of the Bunk, uppolnt
und flx thelr remunerutlons und other emoluments, und remove such offlcers und employees:
Provlded, Thut the Bourd shull huve excluslve und flnul uuthorlty to promote, trunsfer, usslgn or
reusslgn personnel of the Bunk, uny provlslons of exlstlng luw to the contrury notwlthstundlng.
All posltlons ln the Bunk shull be governed by u compensutlon, posltlon clusslflcutlon system und
quullflcutlon, stundurds upproved by the Bunk's Bourd of Dlrectors bused on u comprehenslve |ob
unulysls und uudlt of uctuul dutles und responslbllltles. The compensutlon loun shull be compuruble
wlth the prevulllng compensutlon pluns ln the prlvute sector und shull be sub|ected to perlodlc revlew
by the Bourd no more thun once every two (2) yeurs wlthout pre|udlces to yeurly merlt revlews or
lncreuses bused on productlvlty und profltublllty. The bunk shull therefore be exempt from exlstlng
luws, rules und regulutlons on compensutlon, posltlon clusslflcutlon und quullflcutlon stundurds. It
shull however endeuvor to muke lts system conform us closely us posslble wlth the prlnclple under
Republlc Act No. 6758.
The Bunk offlcer und employees, lncludlng ull members of the Bourd, shull not enguge dlrectly or
lndlrectly ln purtlsun uctlvltles or tuke purt ln uny electlon except to vote.
No offlcer or employee of the Bunk sub|ect to the Clvll Servlce Luw und Regulutlons shull be
removed or suspended except for cuuse us provlded by luw.
Sec. 11. Sepurublllty Cluuse. If uny provlslon or purt hereof ls held lnvulld, the other provlslons not
uffected thereby shull remulned contlnue ln full force und effect.
Sec. 12. Repeullng Cluuse. All luws, executlve orders, rules und regulutlons or purts thereof
lnconslstent wlth uny provlslon hereof hereby repeuled or modlfled uccordlngly.
Sec. 13. Effectlvlty. Thls Act shull tuke effect upon lts upprovul.

Approved: 23 Februury 1995.
REPUBLIC ACT NO. 8532

AN ACT STRENGTHENING FURTHER THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM (CARP), BY PROVIDING AUGMENTATION FUND THEREFOR, AMENDING FOR
THE PURPOSE SECTION 63 OF REPUBLIC ACT NO. 6657, OTHERWISE KNOWN AS THE
CARP LAW OF 1988.

Sectlon 1. Sec. 63 of Republlc Act No. 6657, otherwlse known us the Comprehenslve Agrurlun
Reform Luw of 1988 ls hereby umended to reud us follows:
Sec. 63. Fundng source. The umount needed to mplement ths Act untl the yeur 2008
shull be funded from the Agrurun Reform Fund.
Addtonul umounts necessury for ths purpose ure hereby uuthorzed to be uppropruted n
excess of the ntul funds, umountng to Ffty bllon pesos (P50,000,000,000.00) provded
under Sectons 20 und 21 of Executve Order No. 229.
The uddtonul umount hereby uuthorzed to be uppropruted shull n no cuse exceed Ffty
bllon pesos (P50,000,000,000.00).
Sources of fundng or upproprutons shull nclude the followng:

u) Proceeds of the sules of the Assets Prvutzuton Trust;
b) All recepts from ussets recovered und from sules of ll-gotten weulth recovered
through the Presdentul Commsson on Good Government;
c) Proceeds of the dsposton of the propertes of the Government n foregn
countres, for the specfc purposes of fnuncng producton credts, nfrustructure und
other support servces requred by ths Act;
d) All ncome und collectons ursng from the ugrurun reform operutons, pro|ects
und progrums of CARP mplementng ugences;
e) Porton of umounts uccrung to the Phlppnes from ull sources of offcul foregn
ud grunts und concessonul fnuncng from ull countres, to be used for the specfc
purposes of fnuncng producton, credts, nfrustructures, und other support servces
requred by ths Act;
f) Yeurly upproprutons of no less thun Three bllon pesos (P3,000,000,000.00)
from the Generul Approprutons Act;
g) Other government funds not otherwse uppropruted.
Sec. 2. Ths Act shull tuke effect wthn ffteen (15) duys followng the completon of ts publcuton n
ut leust two (2) newspupers of generul crculuton.

Approved: Februury 23, 1998