Article 100Labor and Agrarian Laws and Social Legislation, p. 100

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

collective ownership titles: Provided, That the total area

that may be awarded shall not exceed the total number

of co-owners or members of the cooperative or collective

organization

multiplied

by

the

award

limit

above

prescribed, except in meritorious cases as determined by

the PARC.

The conditions for the issuance of collective titles are

as follows:

(a) The current farm management system of the land

covered by CARP will not be appropriate for individual

farming of farm parcels;

(b) The farm labor system is specialized, where the

farmworkers are organized by functions and not by

specific parcels such as spraying, weeding, packing and

other similar functions;

(c)

The

potential

beneficiaries

are

currently

not

farming individual parcels hut collectively work on large

contiguous areas; and

(d) The farm consists of multiple crops being farmed

in

an

integrated

manner

or

includes

non-

crop

production areas that are necessary for the viability of

farm operations, such as packing plants, storage areas,

dikes,

and

other

similar

facilities

that

cannot

be

subdivided or assigned to individual farmers.

For idle and abandoned lands or underdeveloped

agricultural lands to be covered by CARP, collective

ownership shall be allowed only if the beneficiaries opt

for it and there is a clear development plan that would

require collective farming or integrated farm operations

exhibiting the conditions described above. Otherwise, the

land awarded to a farmer-beneficiary should be in the

form of a n individual title, covering one (1) contiguous

tract

or several parcels of land cumulated up to a

maximum of three (3) hectares.

In case of collective ownership, title to the property

shall be issued in the name of the co- owners or the

cooperative or collective organization as the case may be.

If the certificates of land ownership award are given to

cooperatives then the names of the beneficiaries must

also be listed in the same certificate of land ownership

award.

With regard to existing collective certificates of land

ownership

award,

the

DAR

should

immediately

undertake the parcelization of said certificates of land

ownership award, particularly those that do not exhibit

the conditions for collective ownership outlined above.

The DAR shall conduct a review and redocumentation of

all the collective certificates of land ownership award. The

DAR shall prepare a prioritized list of certificates of land

ownership award to be parcelized. The parcelization shall

commence immediately upon approval of this Act and

shall not exceed a period of three (3) years. Only those

existing certificates of land ownership award that are

collectively farmed or are operated in an integrated

manner shall remain as collective.

Section 26. Payment by Beneficiaries . — Lands

awarded pursuant to this Act shall be paid for by the

beneficiaries

to

the

LBP

in

thirty

(30)

annual

amortizations at six percent (6%) interest per annum. The

annual amortization shall start one (1) year from the date

of the certificate of land ownership award registration.

However, if the occupancy took place after the certificate

of land ownership award registration, the amortization

shall

start

one (1) year from actual occupancy. The

payments for the first three (3) years after the award shall

be at reduced amounts as established by the PARC:

Provided, That the first five (5) annual payments may not

be more than five percent (5%) of the value of the annual

gross production as established by the DAR. Should the

scheduled annual payments after the fifth (5th) year

exceed ten percent (10%) of the annual gross production

and the failure to produce accordingly is not due to the

beneficiary's fault, the LBP shall reduce the interest rate

and/or

reduce

the principal obligation to make the

repayment affordable.

The LBP shall have a lien by way of mortgage on the

land awarded to the beneficiary; and this mortgage may

be

foreclosed

by

the

LBP

for

non-payment

of

an

aggregate of three (3) annual amortizations. The LBP

shall advise the DAR of such proceedings and the latter

shall subsequently award the forfeited landholding to

other qualified beneficiaries. A beneficiary whose land, as

provided herein, has been foreclosed shall thereafter be

permanently disqualified from becoming a beneficiary

under this Act.

Section 27. Transferability of Awarded Lands . —

Lands acquired by beneficiaries under this Act or other

agrarian reform laws shall not be sold, transferred or

conveyed except through hereditary succession, or to the

government,

or

to

the

LBP,

or

to

other

qualified

beneficiaries through the DAR for a period of ten (10)

years: Provided , however , That the children or the spouse

of the transferor shall have a right to repurchase the land

from the government or LBP within a period of two (2)

years. Due notice of the availability of the land shall be

given by the LBP to the BARC of the barangay where the

land is situated. The PARCCOM, as herein provided, shall,

in turn, be given due notice thereof by the BARC.

The title of the land awarded under the agrarian

reform must indicate that it is an emancipation patent or

a certificate of land ownership award and the subsequent

transfer title must also indicate that it is an emancipation

patent or a certificate of land ownership award.

If the land has not yet been fully paid by the

beneficiary, the rights to the land may be transferred or

conveyed, with prior approval of the DAR, to any heir of

the beneficiary or to any other beneficiary who, as a

condition for such transfer or conveyance, shall cultivate

the land himself/herself. Failing compliance herewith, the

land shall be transferred to the LBP which shall give due

notice of the availability of the land in the manner

specified in the immediately preceding paragraph.

In the event of such transfer to the LBP, the latter

shall compensate the beneficiary in one lump sump for

the amounts the latter has already paid, together with

the value of improvements he/she has made on the land.

Section

28.

Standing

Crops

at

the

Time

of

Acquisition . — The landowner shall retain his share of any

standing crops unharvested at the time the DAR shall

take possession of the land under Section 16 of the Act,

and shall be given a reasonable time to harvest the same.

CHAPTER VIII Corporate Farms

Section

29.

Farms

Owned

or

Operated

by

Corporations or Other Business Associations . — In the

case of farms owned or operated by corporations or other

business

associations,

the

following

rules

shall

be

observed by the PARC:

In general, lands shall be distributed directly to the

individual worker-beneficiaries.

In case it is not economically feasible and sound to

divide the land, then it shall be owned collectively by the

workers' cooperative or association which will deal with

the corporation or business association. Until a new

agreement is entered into by and between the workers'

cooperative

or

association

and

the

corporation

or

business association, any agreement existing at the time

this Act takes effect between the former and the previous

landowner

shall

be

respected by both the workers'

cooperative

or

association

and

the

corporation

or

business association.

Section 30. Homelots and Farmlots for Members of

Cooperatives .

—

The

individual

members

of

the

cooperatives or corporations mentioned in the preceding

section

shall

be

provided

with homelots and small

farmlots for their family use, to be taken from the land

owned by the cooperative or corporation.

Section 31. Corporate Landowners . — Corporate

landowners may voluntarily transfer ownership over their

agricultural

landholdings

to

the

Republic

of

the

Philippines pursuant to Section 20 hereof or to qualified

beneficiaries,

under

such

terms

and

conditions,

consistent with this Act, as they may agree upon, subject

to confirmation by the DAR.

Upon certification by the DAR, corporations owning

agricultural lands may give their qualified beneficiaries

the right to purchase such proportion of the capital stock

of the corporation that the agricultural land, actually

devoted to agricultural activities, bears in relation to the

© Compiled By RGL

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