Code of Agrarian Reforms

Section 54

The Authority, after commencing the expropriation suit, may take immediate possession of the land upon deposit with the Court that has acquired jurisdiction over the expropriation proceedings in accordance with the Rules of Court, of money, and bonds of the Land Bank, in accordance with the proportions provided for under Section eighty of this Code, equal to the value as determined by the Court in accordance with the provisions of Section fifty-six hereof.

Section 55

Immediately after the Authority takes possession of lands to be acquired by it under this Code, it shall undertake a subdivision survey of the land into economic family-size farms which shall be immediately assigned to beneficiaries selected in accordance with Section one hundred and twenty-eight subject to such rules and regulations as it may prescribe.

Section 56

In determining the just compensation of the land to be expropriated pursuant to this Chapter, the Court shall consider as basis, the fair market value, without prejudice to considering the assessed value and other pertinent factors. The owner of the land expropriated shall be paid in accordance with Section eighty of this Code by the Land Bank and pursuant to an arrangement herein authorized. (Amendments to RA No. 3844 (Agricultural Land Reform Code), Republic Act No. 6389, [September 10, 1971])

Section 57

In expropriation proceedings, it shall be the duty of the Court to include in its resolution or order of expropriation a provision that the Department of Agrarian Reform shall, after taking possession of the land and after the subdivision thereof, allow the Land Bank to have the title thereto for the purpose of paying the owner the just compensation therefor.

Section 58

After the payment of just compensation on the land expropriated the Land Bank shall cause the issuance of separate certificates of titles for each parcel or lot in accordance with the subdivision survey made under Section fifty-five.

Section 59

Upon the filing of the petition referred to in Section fifty-three the landowner may not alienate any portion of the land covered by such petition except in pursuance of the provisions of this Code, or enter into any form of contract to defeat the purposes of this Code, and no ejectment proceedings against any lessee or occupant of the land covered by the petition shall be instituted or prosecuted until it becomes certain that the land shall not be acquired by the Authority.

Section 60

After separate certificates of titles have been issued in accordance with Section fifty-eight, the Department of Agrarian Reform, on behalf of the Republic of the Philippines and in representation of the Land Bank as the financing agency, shall allot and sell each parcel or lot to a qualified beneficiary selected under Section fifty-five of this Code, subject to uniform terms and conditions imposed by the Land Bank: Provided, That the resale shall be at cost which shall mean the purchase price not more than six per centum per annum, which shall cover administrative expenses, and actual expenses for subdivision, surveying, and registration: Provided, further, That such cost shall be paid on the basis of an amortization plan not exceeding twenty-five years at the option of the beneficiary. In case some agricultural lessees working portions of agricultural lands acquired by the government under this Code prefer to remain as lessees thereof, which preference shall be expressed in writing and attested by a representative of the Office of Agrarian Counsel, the resale and redistribution to them shall be deferred until such time that such lessees are ready and willing to assume the obligations and responsibilities of independent owners, which shall be manifested by a written notice to this effect by the lessees and which shall oblige the Department of Agrarian Reform forthwith to allot and sell such portions to such lessees under the same uniform terms and conditions. Pending the sale, such lessees shall continue to work on their landholdings and receive the produce thereof, subject, however, to the requirement that they pay the Land Bank the allowable rental established in Section thirty-four. The Land Bank shall apply the rental to the six percent added to the acquisition price and credit the balance to the acquisition cost in the name of the lessee as partial payment for the land. The Department of Agrarian Reform shall administer said parcels of land during the period they are under lease. Competent management and adequate production credit shall be provided in accordance with the program developed by the Land Reform Project Team for such area.

Section 61

For the purpose of more efficient management, adoption of modern farm methods and techniques, and spreading risk, either through diversification of farm projects or mutual assumption of risks the farmer beneficiaries may organize themselves into cooperative associations with the advice or assistance of the Agricultural Productivity Commission and in accordance with the guidelines established by said Commission for such associations.

Section 62

Except in hereditary succession by one heir, landholding acquired under this Code shall not be sold or transferred except in favor of the Government, valued at its acquisition cost plus cost of improvements. Said landholding may be mortgaged or encumbered in favor of any financing or banking institution up to the original cost of acquisition thereof to be guaranteed by the Samahang Nayon or duly recognized farmers cooperative where the farmer is a full-pledged member: Provided, That in case of default, the loan becomes immediately due and demandable and the mortgagor is given a grace period of one year within which to settle his obligation: Provided, Further, That in case of non-payment within one year grace period, the landholding shall be disposed of only in favor of the Government which shall endeavor to substitute the defaulting farmer-beneficiary preferable with a new one who does not own any land duly certified by the Ministry of Agrarian Reform and who shall be subrogated to the rights and shall assume the obligations of the replaced farmer-beneficiary, subject, however, to the preferential right of first refusal of the other heirs of the latter: Provided, Further, That a purchaser who acquired his landholding under a contract to sell from Land Bank, or has been issued an Order of Award, may also secure a loan from any financing or banking institution in an amount not exceeding his equity on said landholding. (Amending Section 62 of R.A. No. 3844 (Code of Agrarian Reforms of the Philippines), Presidential Decree No. 1817, [January 16, 1981])

Section 63

Certificates of titles of landholdings acquired by the Department of Agrarian Reform and resold to purchasers shall contain therein a specific inscription prohibiting further subdivision and the resale, transfer or encumbrance of said landholdings except as provided in the preceding Section.

Section 64

Lands acquired under the provisions of this Chapter shall be exempt from execution and attachment, except when the land itself is the property mortgaged, in accordance with Section sixty-two of this Code.

Section 65

Expropriation cases filed by the Authority under provisions of this Chapter shall take precedence over all other civil cases pending before the Court and shall be terminated within a period not exceeding six months from the date of filing.