EXECUTIVE ORDER NO. 228 July 17, 1987
DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER BENEFICIARIES COVERED BY PRESIDENTIAL DECREE NO. 27: DETERMINING THE VALUE OF REMAINING UNVALUED RICE AND CORN LANDS SUBJECT TO P.D. NO. 27; AND PROVIDING FOR THE MANNER OF PAYMENT BY THE FARMER BENEFICIARY AND MODE OF COMPENSATION TO THE LANDOWNER
WHEREAS, Presidential Decree No. 27; for purposes of determining the cost of the land to be transferred to the tenant-farmer; provided that valuation shall be determined by crop productivity;
WHEREAS, there is a need to complete Operation Land Transfer and accelerate the payment to the landowners of lands transferred to tenant-farmers; and
WHEREAS, there is also a need to maintain the financial validity of the Land Bank of the Philippines, the financing arm of the agrarian reform program of the government;
NOW THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the Constitution, here order that:
Sec. 1. All qualified farmer beneficiaries are now deemed...
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Executive Orders
Declaring Full Land Ownership To Qualified Farmer Beneficiaries Covered By Presidential Decree No. 27: Determining the Value of Remaining Unvalued Rice and Corn Lands Subject To P.D. No. 27; and Providing For the Manner of Payment By the Farmer Beneficiary and Mode of Compensation To the Landowner
Executive Order No. 228
Summary of Executive Order No. 228
Declaring Full Land Ownership to Qualified Farmer Beneficiaries
- All qualified farmer beneficiaries are deemed full owners as of October 21, 1972 of the land they acquired under Presidential Decree No. 27 (P.D. No. 27). (Sec. 1)
Determining the Value of Remaining Unvalued Rice and Corn Lands
- The valuation of rice and corn lands covered by P.D. No. 27 shall be based on the average gross production determined by the Barangay Committee on Land Production. (Sec. 2)
- The average gross production per hectare shall be multiplied by 2.5, then multiplied by P35.00 (for rice) or P31.00 (for corn), which were the government support prices on October 21, 1972. (Sec. 2)
Providing for the Manner of Payment by the Farmer Beneficiary
- Lease rentals paid by the farmer beneficiary after October 21, 1972 shall be considered as advance payment for the land. (Sec. 2)
- The farmer beneficiary shall pay the total cost of the land, including 6% interest per annum with a 2% rebate for on-time payments, to the Land Bank over a period of up to 20 years in equal annual amortizations. (Sec. 6)
- Ownership of the land may be transferred after full payment of amortizations. (Sec. 6)
- A lien by way of mortgage shall exist in favor of the Land Bank on all lands it has financed until amortizations are paid in full. (Sec. 7)
- Failure to pay 3 annual amortizations shall be sufficient cause for the Land Bank to foreclose on the mortgage. (Sec. 8)
Mode of Compensation to the Landowner
- Landowners have the option to receive compensation through: (Sec. 3)
- Bond payment over 10 years, with 10% payable immediately in cash and the balance in LBP bonds bearing market interest rates.
- Direct payment in cash or in kind by the farmer beneficiaries, subject to mutual agreement and DAR approval.
- Other modes prescribed or approved by the Presidential Agrarian Reform Council.
- Outstanding LBP bonds retained by original landowners are deemed matured up to 1/25 of their yearly face value and may be claimed by surrendering the bonds. (Sec. 4)
- If the landowner does not accept payment, compensation shall be held in trust by the LBP Trust Department and invested in government securities. (Sec. 5)
- Landowners are exempt from capital gains tax on the compensation paid. (Sec. 4)
Foreclosure and Sale of Foreclosed Land
- The Land Bank may foreclose on the mortgage by registering its intent with the Registry of Deeds after 30 days of final notice for payment to the defaulting tenant-farmer. (Sec. 9)
- The tenant-farmer or compulsory heirs may lift the foreclosure within 2 years by paying all unpaid amortizations with 6% interest. (Sec. 10)
- The Land Bank shall sell the foreclosed land to any interested landless farmer certified by DAR within 3 months of acquisition, at the cost of unpaid amortizations with 6% interest. (Sec. 11)
- The Land Bank shall furnish DAR with a notice of sale and post notices in public places at least 1 month prior to the sale. (Sec. 12)
Agrarian Reform Operating Fund
- An Agrarian Reform Operating Fund shall be set up by the National Government in the Land Bank to fund the implementation of the agrarian reform program. (Sec. 15)
- The amount of the fund will be determined by the Government Corporation Monitoring and Coordinating Committee (GCMCC) based on the Land Bank's funding requirements. (Sec. 15)
Declaring Full Land Ownership to Qualified Farmer Beneficiaries
- All qualified farmer beneficiaries are deemed full owners as of October 21, 1972 of the land they acquired under Presidential Decree No. 27 (P.D. No. 27). (Sec. 1)
Determining the Value of Remaining Unvalued Rice and Corn Lands
- The valuation of rice and corn lands covered by P.D. No. 27 shall be based on the average gross production determined by the Barangay Committee on Land Production. (Sec. 2)
- The average gross production per hectare shall be multiplied by 2.5, then multiplied by P35.00 (for rice) or P31.00 (for corn), which were the government support prices on October 21, 1972. (Sec. 2)
Providing for the Manner of Payment by the Farmer Beneficiary
- Lease rentals paid by the farmer beneficiary after October 21, 1972 shall be considered as advance payment for the land. (Sec. 2)
- The farmer beneficiary shall pay the total cost of the land, including 6% interest per annum with a 2% rebate for on-time payments, to the Land Bank over a period of up to 20 years in equal annual amortizations. (Sec. 6)
- Ownership of the land may be transferred after full payment of amortizations. (Sec. 6)
- A lien by way of mortgage shall exist in favor of the Land Bank on all lands it has financed until amortizations are paid in full. (Sec. 7)
- Failure to pay 3 annual amortizations shall be sufficient cause for the Land Bank to foreclose on the mortgage. (Sec. 8)
Mode of Compensation to the Landowner
- Landowners have the option to receive compensation through: (Sec. 3)
- Bond payment over 10 years, with 10% payable immediately in cash and the balance in LBP bonds bearing market interest rates.
- Direct payment in cash or in kind by the farmer beneficiaries, subject to mutual agreement and DAR approval.
- Other modes prescribed or approved by the Presidential Agrarian Reform Council.
- Outstanding LBP bonds retained by original landowners are deemed matured up to 1/25 of their yearly face value and may be claimed by surrendering the bonds. (Sec. 4)
- If the landowner does not accept payment, compensation shall be held in trust by the LBP Trust Department and invested in government securities. (Sec. 5)
- Landowners are exempt from capital gains tax on the compensation paid. (Sec. 4)
Foreclosure and Sale of Foreclosed Land
- The Land Bank may foreclose on the mortgage by registering its intent with the Registry of Deeds after 30 days of final notice for payment to the defaulting tenant-farmer. (Sec. 9)
- The tenant-farmer or compulsory heirs may lift the foreclosure within 2 years by paying all unpaid amortizations with 6% interest. (Sec. 10)
- The Land Bank shall sell the foreclosed land to any interested landless farmer certified by DAR within 3 months of acquisition, at the cost of unpaid amortizations with 6% interest. (Sec. 11)
- The Land Bank shall furnish DAR with a notice of sale and post notices in public places at least 1 month prior to the sale. (Sec. 12)
Agrarian Reform Operating Fund
- An Agrarian Reform Operating Fund shall be set up by the National Government in the Land Bank to fund the implementation of the agrarian reform program. (Sec. 15)
- The amount of the fund will be determined by the Government Corporation Monitoring and Coordinating Committee (GCMCC) based on the Land Bank's funding requirements. (Sec. 15)