Article 113Labor and Agrarian Laws and Social Legislation, p. 113

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

that harvest is normal harvests, the final consideration

shall be based on the average normal harvest during

these three preceding agricultural years.

In the absence of any agreement between the parties as

to

the

rental,

the Court of Agrarian Relations shall

summarily determine a provisional rental in pursuance of

existing

laws,

rules

and

regulations

and production

records

available

in

the

different

field units of the

department,

taking

into

account

the

extent

of the

development of the land at the time of the conversion

into leasehold and the participation of the lessee in the

development

thereof.

This

provisional

rental

shall

continue in force and effect until a fixed rental is finally

determined. The court shall determine the fixed rental

within thirty days after the petition is submitted for

decision.

If capital improvements are introduced on the farm not

by the lessee to increase its productivity, the rental shall

be increased proportionately to the consequent increase

in production due to said improvements. In case of

disagreement, the Court shall determine the reasonable

increase

in

rental.

(Amendments

to

RA

No.

3844

(Agricultural Land Reform Code), Republic Act No. 6389,

[September 10, 1971])

Section 34-A . Rental credited as amortization payment

on purchase price . — The rental paid under the preceding

section after the approval of this amendatory Act shall be

credited as amortization payment on the purchase price

of the landholding tilled by the lessee in any of the

following instances:

(1)

When

the

landholding

is

expropriated

by

the

government for the lessee; and

(2) When it is redeemed.

The

purchase

price

of

the

landholding

shall

be

determined by the parties or the government agencies

concerned on the same basis prescribed under section

fifty-six of this Code: Provided , That whatever balance

remains after crediting as amortization the rental paid,

the same may be financed by the Land Bank in the same

ratio and mode of payment as provided under section

eighty of this Code.

The provisions of Act Numbered Four hundred ninety-six,

as

amended,

and

other

laws

to

the

contrary

notwithstanding, the Land Registration Commission is

hereby authorized concurrently with the Bureau of Lands

to approve survey plans of lands intended for original

registration and to issue transfer certificate of title in favor

of the new amortizing-owner-beneficiaries under this

section and the Registries of Deeds to register the same.

For this purpose, the Land Registration Commissioner

shall issue the necessary rules and regulations for the

implementation

of

this

provision.

( Withdrawing

the

Authority

of

the

Land

Registration

Commission

to

Approve Original Survey Plans, Presidential Decree No.

239, [July 9, 1973])

The Department and/or the Bank, in appropriate cases,

shall

facilitate

the

immediate

issuance

of

the

corresponding

transfer

certificate

of

title

of

the

landholding

to the new amortizing owner with the

encumbrance thereof duly annotated.

Provisions of existing laws, rules and regulations to the

contrary notwithstanding, any amortizing owner may use

this transfer certificate of title to obtain a loan from any

public or private lending institution and he shall be

entitled to borrow therefor an amount not less than sixty

per

centum

of

the

fair

market

value

of

the

property: Provided , That the proceeds of such loan shall be

applied as follows: fifty per centum as partial payment of

any

unpaid

balance

on

the

landholding

and

the

remaining fifty per centum for the capital improvement

of the land and operating capital for farm operations of

the amortizing owner.

The payment of all loans obtained pursuant to the

provisions of this section shall be guaranteed by the Land

Bank and for this purpose, it shall set aside a sinking fund

in such amount as may be necessary to be determined by

its Board of Trustees.

In case of default in the payment of three consecutive

installments on the loan, the lender shall immediately

notify, among others, the Land Bank and the department

of such default, and thereafter, these agencies shall take

the appropriate steps either:

(1) To answer for the default in case the reason therefor is

due to fortuitous event, or

(2) In any other case, to take over the ownership and

administration of said property.

In

the

latter

case

mentioned

under

the

preceding

paragraph, the government shall endeavor to substitute

the defaulting amortizing owner with a new one who

does not own any land and who shall be subrogated to

the rights, and shall assume the obligations, of the former

amortizing owner.

The rules prescribed in the two immediately preceding

paragraphs shall apply in case the lessee defaults in the

payment

of

at

least

three

consecutive

rental

amortizations, with the former landowner giving the

required notice in proper cases.

In all instances where default is due to fortuitous events

the Land Bank shall be answerable for such default and

the farmers shall be released from the obligations to pay

such

installment

or

installments

due

together

with

interest

thereon.

(Amendments

to

RA

No.

3844

(Agricultural Land Reform Code), Republic Act No. 6389,

[September 10, 1971])

Section 35. Exemption from Leasehold of Other Kinds of

Lands - Notwithstanding the provisions of the preceding

Sections, in the case of fishponds, saltbeds, and lands

principally

planted to citrus, coconuts, cacao, coffee,

durian, and other similar permanent trees at the time of

the approval of this Code, the consideration, as well as the

tenancy system prevailing, shall be governed by the

provisions of Republic Act Numbered Eleven hundred

and ninety-nine, as amended.

Section 36. Possession of Landholding; Exceptions -

Notwithstanding any agreement as to the period or

future surrender, of the land, an agricultural lessee shall

continue

in

the

enjoyment

and

possession

of

his

landholding except when his dispossession has been

authorized by the Court in a judgment that is final and

executory if after due hearing it is shown that:

(1) The landholding is declared by the department head

upon

recommendation

of

the

National

Planning

Commission to be suited for residential, commercial,

industrial or some other urban purposes: Provided , That

the agricultural lessee shall be entitled to disturbance

compensation equivalent to five times the average of the

gross harvests on his landholding during the last five

preceding calendar years; (Amendments to RA No. 3844

(Agricultural Land Reform Code), Republic Act No. 6389,

[September 10, 1971])

(2) The agricultural lessee failed to substantially comply

with any of the terms and conditions of the contract or

any of the provisions of this Code unless his failure is

caused by fortuitous event or force majeure;

(3) The agricultural lessee planted crops or used the

landholding for a purpose other than what had been

previously agreed upon;

(4) The agricultural lessee failed to adopt proven farm

practices as determined under paragraph 3 of Section

twenty-nine;

(5) The land or other substantial permanent improvement

thereon is substantially damaged or destroyed or has

unreasonably

deteriorated

through

the

fault

or

negligence of the agricultural lessee;

(6) The agricultural lessee does not pay the lease rental

when it falls due: Provided, That if the non-payment of

the rental shall be due to crop failure to the extent of

seventy-five per centum as a result of a fortuitous event,

the non-payment shall not be a ground for dispossession,

© Compiled By RGL

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