Conveying The Land Reclaimed In The Foreshore And Offshore Of Cebu City, Beginning From Pier 3 And Extending To Subangdaku, As Property Of The Public Estates Authority

Case Overview and Summary

Summary of Presidential Decree No. 1346

Conveyance of Reclaimed Lands
- The ownership and administration of lands reclaimed in the foreshore and offshore areas of Cebu City under the Cebu Port Development and Reclamation Project are transferred to the Public Estates Authority (PEA). (Section 1)
- The Land Registration Commission and the Register of Deeds of Cebu City shall cancel the existing titles and issue new titles in favor of the PEA. (Section 2)

Recognition and Settlement of Claims
- The PEA shall recognize the claims of:
    - Creditors who extended loans or provided supplies, materials, and services for the reclamation and development. Their claims shall be settled fully without interest, with amounts computed based on the original transaction and exchange rates. (Section 3a)
    - Shareholders of the Cebu Development Corporation. Their investments shall be returned without dividends, with amounts computed based on the original investment and exchange rates. (Section 3b)
    - Lot buyers who fully paid the purchase price as of December 31, 1976, shall pay an additional 33-1/3% of the purchase price as premium. Those who have not fully paid shall pay an additional 50% of the purchase price as premium. Titles shall be issued after payment of the premium and outstanding amounts. (Section 3c)
- Claims shall be settled only from funds generated by the PEA from the sale, disposition, or utilization of the reclaimed area, unless otherwise authorized by the President. (Section 4)
- Claimants shall waive all rights and causes of action related to the project. Party litigants must withdraw appeals before presenting claims. Lot buyers who fail to pay the premium shall forfeit the lot and payments. (Section 5)

Disposition and Utilization of Reclaimed Land
- The PEA shall utilize the reclaimed area to accomplish its purposes and may sell, lease, or encumber any portion through itself or private developers, under its rules and regulations. (Section 6)
- Income derived from the reclaimed area shall be used for paying obligations, administrative costs, and expenses related to the PEA's corporate purposes. The remaining balance shall accrue to the PEA. (Section 7)
- The PEA may enter into development and/or management contracts with reputable real estate developers. (Section 8)
- Any development undertaken by the PEA or through a developer shall be exempt from existing or future regulations governing real estate subdivisions. (Section 8)

Other Provisions
- The PEA is authorized to seek assistance from national and local government agencies for effective implementation. (Section 9)
- Separability clause and repealing clause are included. (Sections 10 and 11)
- The Decree takes effect immediately. (Section 12)