Section 8Sec./Art. 8

Section 7 of Republic Act No. 7652 is hereby amended to read as follows:

"Section 7. Penal Provision. - Any contract made or executed in violation of any of the following prohibited acts shall be null and void ab initio and both contracting parties shall be punished by a fine of not less than One million pesos (P1,000,000.00) but not more than Ten million pesos (P10,000,000.00) or imprisonment of six (6) months to six (6) years, at the discretion of the court:

(1) Any provision in the lease contract stipulating a lease period in excess of that provided in paragraph (1) of Section 4;

(2) Use of the leased premises for a purpose contrary to existing laws of the land, public order, public policy, morals, or good customs;

(3) Any agreement resulting in the lease of land in excess of the approved area: Provided, That, where the excess of the totality of the area leased is due to the acts of the lessee, the lessee shall be held solely liable therefor: Provided, further, That, in the case of corporations, associations, or partnerships, the president, manager, director, trustee, or officers responsible for the violation hereof shall bear the criminal liability.

The penalties provided under this section shall likewise apply to all sublease contracts."