Be It Enacted by The Senate and House of Representatives of The Philippines in Congress Assembled
Be It Enacted by The Senate and House of Representatives of The Philippines in Congress Assembled
Be It Enacted by The Senate and House of Representatives of The Philippines in Congress Assembled
3844]
SECTION 1. Title—This Act shall be known as the Agricultural Land Reform Code.
(1) To establish owner-cultivatorship and the economic family-size farm as the basis of
Philippine agriculture and, as a consequence, divert landlord capital in agriculture to
industrial development;
(2) To achieve a dignified existence for the small farmers free from pernicious
institutional restraints and practices;
(3) To create a truly viable social and economic structure in agriculture conducive to
greater productivity and higher farm incomes;
(4) To apply all labor laws equally and without discrimination to both industrial and
agricultural wage earners;
(5) To provide a more vigorous and systematic land resettlement program and public
land distribution; and
(6) To make the small farmers more independent, self-reliant and responsible citizens,
and a source of genuine strength in our democratic society.
(1) An agricultural leasehold system to replace all existing share tenancy systems in
agriculture;
(3) An authority for the acquisition and equitable distribution of agricultural land;
(4) An institution to finance the acquisition and distribution of agricultural land;
(7) A unified administration for formulating and implementing projects of land reform;
(8) An expanded program of land capability survey, classification, and registration; and
(9) A judicial system to decide issues arising under this Code and other related laws
and regulations.
(1) Abandonment of the landholding without the knowledge of the agricultural lessor;
(2) Voluntary surrender of the landholding by the agricultural lessee, written notice of
which shall be served three months in advance; or
(3) Absence of the persons under Section nine to succeed to the lessee, in the event of
death or permanent incapacity of the lessee.
In case of death or permanent incapacity of the agricultural lessor, the leasehold shall
bind his legal heirs.
SEC. 11. Lessee’s Right of Pre-emption.—In case the agricultural lessor decides to sell
the landholding, the agricultural lessee shall have the preferential right to buy the same
under reasonable terms and conditions: Provided, That the entire landholding offered
for sale must be preempted by the Land Authority if the landowner so desires, unless
the majority of the lessees object to such acquisition: Provided, further, That where
there are two or more agricultural lessees, each shall be entitled to said preferential
right only to the extent of the area actually cultivated by him. The right of pre-emption
under this Section may be exercised within ninety days from notice in writing, which
shall be served by the owner on all lessees affected.
(1) If the agricultural lessee is required to pay a rental in excess of that which is
hereinafter provided for in this Chapter;
(2) If the agricultural lessee is required to pay a consideration in excess of the fair rental
value as defined here in, for the use of work animals and/or farm implements belonging
to the agricultural lessor or to any other person; or
(3) If it is imposed as a condition in the agricultural leasehold contract: (a) that the
agricultural lessee is required to rent work, animals or to hire farm implements from the
agricultural lessor or a third person, or to make use of any store or services operated by
the agricultural lessor or a third person; or (b) that the agricultural lessee is required to
perform any work or render any service other than his duties and obligations provided in
this Chapter with or without compensation; or (c) that the agricultural lessee is required
to answer for any fine, deductions and/or assessments.
Any contract by which the agricultural lessee is required to accept a loan or to make
payment therefor in kind shall also be contrary to law, morals or public policy.
SEC. 17. Form and Registration of Contract.—Should the parties decide to reduce their
agreement into writing, the agricultural leasehold contract shall be drawn in
quadruplicate in a language or dialect known to the agricultural lessee and signed or
thumb-marked both by the agricultural lessee personally and by the agricultural lessor
or his authorized representative, before two witnesses, to be chosen by each party. If
the agricultural lessee does not know how to read, the contents of the document shall
be read and explained to him by his witness. The contracting parties shall acknowledge
the execution of the contract before the justice of the peace of the municipality where
the land is situated. No fees or stamps of any kind shall be required in the preparation
and acknowledgment of the instrument. Each of the contracting parties shall retain a
copy of the contract. The justice of the peace shall cause the third copy to be delivered
to the municipal treasurer of the municipality where the land is located and the fourth
copy to the Office of the Agrarian Counsel.
SEC. 21. Exemption from Lien and/or Execution.—The following shall be exempt from
lien and/or execution against the agricultural lessee:
(1) Twenty-five per centum of the entire produce of the land under cultivation; and
(2) Work animals and farm implements belonging to the agricultural lessee:
Provided, That their value does not exceed one thousand pesos. But no article or
species of property mentioned in this Section shall be exempt from execution issued
upon a judgment recovered for its price or upon a judgment of foreclosure of a
mortgage thereon.
(4) To deal with millers and processors and attend to the issuance of quedans and
warehouse receipts for the produce due him.
SEC. 24. Right to a Home Lot.—The agricultural lessee shall have the right to continue
in the exclusive possession and enjoyment of any home lot he may have occupied upon
the effectivity of this Code, which shall be considered as included in the leasehold.
SEC. 25. Right to be Indemnified for Labor.—The agricultural lessee shall have the right
to be indemnified for the cost and expenses incurred in the cultivation, planting or
harvesting and other expenses incidental to the improvement of his crop in case he
surrenders or abandons his landholding for just cause or is ejected therefrom. In
addition, he has the right to be indemnified for one-half of the necessary and useful
improvements made by him on the landholding: Provided, That these improvements are
tangible and have not yet lost their utility at the time of surrender and/or abandonment
of the land-holding, at which time their value shall be determined for the purpose of the
indemnity for improvements.
SEC. 26. Obligations of the Lessee.—It shall be the obligation of the agricultural lessee:
(1) To cultivate and take care of the farm, growing crops, and other improvements on
the landholding as a good father of a family and perform all the work therein in
accordance with proven farm practices;
(2) To inform the agricultural lessor within a reasonable time of any trespass committed
by third persons upon the farm, without prejudice to his direct action against the
trespasser;
(3) To take reasonable care of the work animals and farm implements delivered to him
by the agricultural lessor and see that they are not used for purposes other than those
intended or used by another without the knowledge and consent of the agricultural
lessor: Provided, however, That if said work animals get lost or die, or said farm
implements get lost or are destroyed, through the negligence of the agricultural lessee,
he shall be held responsible and made answerable therefor to the extent of the value of
the work animals and/or farm implements at the time of the loss, death or destruction;
(4) To keep his farm and growing crops attended to during the work season. In case of
unjustified abandonment or neglect of his farm, any or all of his expected produce may,
upon order of the Court, be forfeited in favor of the agricultural lessor to the extent of the
damage caused thereby;
(5) To notify the agricultural lessor at least three days before the date of harvesting or,
whenever applicable, of threshing; and
(6) To pay the lease rental to the agricultural lessor when it falls due.
(1) Cruel, inhuman or offensive treatment of the agricultural lessee or any member of
his immediate farm house hold by the agricultural lessor or his representative with the
knowledge and consent of the lessor;
(2) Non-compliance on the part of the agricultural lessor with any of the obligations
imposed upon him by the provisions of this Code or by his contract with the agricultural
lessee;
(3) Compulsion of the agricultural lessee or any member of his immediate farm
household by the agricultural lessor to do any work or render any service not in anyway
connected with farm work or even without compulsion if no compensation is paid;
(4) Commission of a crime by the agricultural lessor or his representative against the
agricultural lessee or any member of his immediate farm household; or
(5) Voluntary surrender due to circumstances more advantageous to him and his family.
SEC. 29. Rights of the Agricultural Lessor.—It shall be the right of the agricultural
lessor:
(1) To inspect and observe the extent of compliance with the terms and conditions of
their contract and the provisions of this Chapter;
(2) To propose a change in the use of the landholding to other agricultural purposes, or
in the kind of crops to be planted: Provided, That in case of disagreement as to the
proposed change, the same shall be settled by the Court according to the best interest
of the parties concerned: Provided, further, That in no case shall an agricultural lessee
be ejected as a consequence of the conversion of the land to some other agricultural
purpose or because of a change in the crop to be planted;
(3) To require the agricultural lessee, taking into consideration his financial capacity and
the credit facilities available to him, to adopt in his farm proven farm practices necessary
to the conservation of the land, improvement of its fertility and increase of its
productivity: Provided, That in case of disagreement as to what proven farm practice
the lessee shall adopt, the same shall be settled by the Court according to the best
interest of the parties concerned; and
(1) To keep the agricultural lessee in peaceful possession and cultivation of his
landholding; and
(2) To keep intact such permanent useful improvements existing on the landholding at
the start of the leasehold relation as irrigation and drainage systems and marketing
allotments, which in the case of sugar quotas shall refer both to domestic and export
quotas, provisions of existing laws to the contrary notwithstanding.
SEC. 31. Prohibitions to the Agricultural Lessor.—It shall be unlawful for the agricultural
lessor:
(1) To dispossess the agricultural lessee of his landholding except upon authorization
by the Court under Section thirty-six. Should the agricultural lessee be dispossessed of
his landholding without authorization from the Court, the agricultural lessor shall be
liable for damages suffered by the agricultural lessee in addition to the fine or
imprisonment prescribed in this Code for unauthorized dispossession;
(2) To require the agricultural lessee to assume, directly or indirectly, the payment of the
taxes or part thereof levied by the government on the landholding;
(3) To require the agricultural lessee to assume, directly or indirectly, any part of the
rent, “canon” or other consideration which the agricultural lessor is under obligation to
pay to third persons for the use of the land;
(4) To deal with millers or processors without written authorization of the lessee in cases
where the crop has to be sold in processed form before payment of the rental; or
(5) To discourage, directly or indirectly, the formation, maintenance or growth of unions
or organizations of agricultural lessees in his landholding, or to initiate, dominate, assist
or interfere in the formation or administration of any such union or organization.
SEC. 33. Manner, Time and Place of Rental Payment.—The consideration for the lease
of the land shall be paid in an amount certain in money or in produce, or both, payable
at the place agreed upon by the parties immediately after threshing or processing if the
consideration is in kind, or within a reasonable time thereafter, if not in kind.
In no case shall the agricultural lessor require the agricultural lessee to file a bond,
make a deposit or pay the rental in advance, in money or in kind or in both, but a special
and preferential lien is hereby created in favor of the agricultural lessor over such
portion of the gross harvest necessary for the payment of the rental due in his favor.
SEC. 34. Consideration for the Lease of Riceland and Lands Devoted to Other Crops.—
The consideration for the lease of riceland and lands devoted to other crops shall not be
more than the equivalent of twenty-five per centum of the average normal harvest
during the three agricultural years immediately preceding the date the leasehold was
established after deducting the amount used for seeds and the cost of harvesting,
threshing, loading, hauling and processing, whichever are applicable: Provided, That if
the land has been cultivated for a period of less than three years, the initial
consideration shall be based on the average normal harvest during the preceding years
when the land was actually cultivated, or on the harvest of the first year in the case of
newly-cultivated lands, if that harvest is normal: Provided, further, That after the lapse of
the first three normal harvests, the final consideration shall be based on the average
normal harvest during these three preceding agricultural years: Provided, furthermore,
That in the absence of any agreement between the parties as to the rental, the
maximum allowed herein shall apply: Provided, finally, That 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.
(1) The agricultural lessor-owner or a member of his immediate family will personally
cultivate the landholding or will convert the landholding, if suitably located, into
residential, factory, hospital or school site or other useful non-agricultural purposes:
Provided, That the agricultural lessee shall be entitled to disturbance compensation
equivalent to five years rental on his landholding in addition to his rights under Sections
twenty-five and thirty-four, except when the land owned and leased by the agricultural
lessor is not more than five hectares in which case instead of disturbance compensation
the lessee may be entitled to an advanced notice of at least one agricultural year before
ejectment proceedings are filed against him: Provided, further, That should the
landholder not cultivate the land himself for three years or fail to substantially carry out
such conversion within one year after the dispossession of the tenant, it shall be
presumed that he acted in bad faith and the tenant shall have the right to demand
possession of the land and recover damages for any loss incurred by him because of
said dispossession;
(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;
(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, although the obligation to pay the rental due that
particular crop is not thereby extinguished; or
(7) The lessee employed a sub-lessee on his landholding in violation of the terms of
paragraph 2 of Section twenty-seven.
SEC. 37. Burden of Proof.—The burden of proof to show the existence of a lawful cause
for the ejectment of an agricultural lessee shall rest upon the agricultural lessor.
SEC. 38. Statute of Limitations.—An action to enforce any cause of action under this
Code shall be barred if not commenced within three years after such cause of action
accrued.
SEC. 39. Rights for Agricultural Labor—To enable the farm workers to enjoy the same
rights and opportunities in life as industrial workers, they shall enjoy the following:
(5) Right to claim for damages for death or injuries sustained while at work;
SEC. 40. Right to Self-Organization.—The farm workers shall have the right to self-
organization and to form, join or assist farm workers’ organizations of their own
choosing for the purpose of collective bargaining through representatives of their own
choosing: Provided, That this right shall be exercised in a manner as will not unduly
interfere with the normal farm operations. Individuals employed as supervisors shall not
be eligible for membership in farm workers’ organizations under their supervision but
may form separate organizations of their own.
SEC. 41. Right to Engage in Concerted Activities.—The farm workers shall also have
the right to engage in concerted activities for the purpose of collective bargaining and
other mutual aid or protection.
For the purpose of this and the preceding Section, it shall be the duty of the farm
employer or manager to allow the farm workers, labor leaders, organizers, advisers and
helpers complete freedom to enter and leave the farm, plantation or compound at the
portion of the same where said farm workers live or stay permanently or temporarily.
SEC. 42. Right to Minimum Wage.—Notwithstanding any provision of law or contract to
the contrary, farm workers in farm enterprises shall be entitled to at least P3.50 a day
for eight hours’ work: Provided, That this wage may, however, be increased by the
Minimum Wage Board as provided for in Republic Act Numbered Six hundred and two.
Work may be performed beyond eight hours a day in case of actual or impending
emergencies caused by serious accidents, fire, flood, typhoon, epidemic, or other
disaster or calamity, or in case of urgent work to be performed on farm machines,
equipment or installations in order to avoid a serious loss which the farm employer or
manager would otherwise suffer, or some other just cause of a similar nature, but in all
such cases the farm workers shall be entitled to receive compensation for the overtime
work performed at the same rate as their regular wages, plus at least twenty-five per
centum additional, based on their daily wages.
No farm employer or manager shall compel a farm worker to work during Sundays and
legal holidays: Provided, however, That should the farm worker agree to work on said
days, he shall be paid an additional sum of at least twenty-five per centum of his regular
compensation: Provided, further, That the farm employer or manager shall not be held
liable for any claim for overtime work which he had not previously authorized, except if
the work rendered was to avoid damages to crops, produce, work animals or
implements, buildings or the like.
Any agreement or contract between the farm employer or manager and the farm worker
contrary to the provisions of this Section shall be null and void.
SEC. 49. Creation of the Land Authority.—For the purpose of carrying out the policy of
establishing owner-cultivatorship and the economic family-size farm as the basis of
Philippine agriculture and other policies enunciated in this Code, there is hereby created
a Land Authority, hereinafter called the Authority, which shall be directly under the
control and supervision of the President of the Philippines. The Authority shall be
headed by a Governor who shall be appointed by the President with the consent of the
Commission on Appointments.
He shall be assisted by two Deputy Governors who shall be appointed by the President
with the consent of the Commission on Appointments, each of whom shall head such
operating departments as may be set up by the Governor. The Governor and the
Deputy Governors shall hold office for five years.
The Governor shall receive an annual compensation of twenty-four thousand pesos; the
Deputy Governors shall each receive an annual compensation of eighteen thousand
pesos.
SEC. 51. Powers and Functions.—It shall be the responsibility of the Authority:
(1) To initiate and prosecute expropriation proceedings for the acquisition of private
agricultural lands as defined in Section one hundred sixty-six of Chapter XI of this Code
for the purpose of subdivision into economic family-size farm units and resale of said
farm units to bona fide tenants, occupants and qualified farmers: Provided, That the
powers herein granted shall apply only to private agricultural lands subject to the terms
and conditions and order of priority hereinbelow specified:
a. all idle or abandoned private agricultural lands, except those held or purchased within
one year from the approval of this Code by private individuals or corporations for the
purpose of resale and subdivision into economic family-size farm units in accordance
with the policies enunciated in this Code: Provided, That the subdivision and resale
shall be substantially carried out within one year from the approval of this Code;
b. all private agricultural lands suitable for subdivision into economic family-size farm
units, owned by private individuals or corporations worked by lessees, no substantial
portion of whose landholding in relation to the area sought to be expropriated, is planted
to permanent crops under labor administration, in excess of seventy-five hectares
except all private agricultural lands under labor administration and lands acquired under
Section seventy-one of this Code; and
(3) To administer and dispose of agricultural lands of the public domain under the
custody and administration of the National Resettlement and Rehabilitation
Administration prior to the approval of this Code and such other public agricultural lands
as may hereafter be reserved by the President of the Philippines for resettlement and
sale, in accordance with such terms and conditions as are set forth under this Chapter:
Provided, That the exercise of the authority granted herein, as well as in the preceding
sub-paragraph, shall not contravene public policy on the permanency of forest reserves
or other laws intended for the preservation and conservation of public forests;
(4) To develop plans and initiate actions for the systematic opening of alienable and
disposable lands of the public domain for speedy distribution to and development by
deserving and qualified persons or corporations;
(5) To recommend to the President, from time to time after previous consultation with
the Secretary of Agriculture and Natural Resources, what portion of the alienable or
disposable public lands shall be reserved for settlement or disposition under this
Chapter;
(6) To give economic family-size farms to landless citizens of the Philippines who need,
deserve, and are capable of cultivating the land personally, through organized
resettlement, under the terms and conditions the Authority may prescribe, giving priority
to qualified and deserving farmers in the province where such lands are located;
(7) To reclaim swamps and marshes, obtain titles there to whenever feasible and
subdivide them into economic family-size farms for distribution to deserving and
qualified farmers;
(8) To undertake measures which will insure the early issuance of titles to persons or
corporations who have actually settled and cultivated disposable and alienable lands of
the public domain;
(9) To survey, subdivide and set aside lands or areas of landholdings under its
administration for economic family-size farms, large-scale farm operations, town sites,
roads, parks, government centers and other civic improvements as circumstances may
warrant and to submit subdivision survey plans conducted either by the government or
private surveyors on parcels of lands under its administration for verification and
approval either by the Director of Lands or by the Land Registration Commission;
(10) To inform the Agricultural Productivity Commission and the Office of the Agrarian
Counsel of the problems of settlers and farmers on lands under its administration;
(11) To acquire for agricultural lessees exercising their right of pre-emption under
Chapter I of this Code, any landholdings mentioned thereunder;
(12) To conduct land capability survey and classification of the entire country and print
maps;
(13) To make such arrangements with the Land Bank with respect to titles of agricultural
lands of the public domain under its administration as will be necessary to carry out the
objectives of this Code;
SEC. 58. Issuance of Certificates of Title for Parcel or Lot.—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.
SEC. 59. Prohibition Against Alienation and Ejectment.—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.
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 Land Authority 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 Land Authority 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.
The Land Authority shall thereupon distribute in accordance with the provisions of this
Code, each parcel or lot, subject to the terms and conditions of the Land Bank, to a
beneficiary selected pursuant to Section seventy-one or in accordance with paragraph 3
of Section fifty-one, to a beneficiary selected pursuant to paragraph 3 of Section one
hundred twenty-eight.
SEC. 71. Power of the Land Authority to Sell to Holders of Bonds Issued to Former
Landowners Whose Lands Have Been Purchased for Redistribution.—The Land
Authority shall sell, for a price not less than the appraised value, any portion not
exceeding one hundred forty-four hectares in the case of individuals or one thousand
twenty-four hectares in the case of corporations of the public agricultural lands
transferred to the Land Bank which is suitable for large-scale farm operations to any
holder, who is qualified to acquire agricultural lands through purchase, of bonds issued
to former landowners whose lands have been purchased for redistribution under this
Code, subject to the condition that the purchaser shall, within two years after
acquisition, place under cultivation at least thirty per centum of the entire area under
plantation administration and the remaining seventy per centum within five years from
the date of acquisition. The Governor of the Land Authority shall issue the title of said
land upon showing that the purchaser has begun the development and cultivation of his
land under plantation administration: Provided, That public agricultural land sold as
hereinabove specified shall not be the object of any expropriation as long as the same
shall be developed and cultivated for large-scale production under farm labor
management, except as allowed by the Constitution.
The selling price of the portion of the public agricultural land sold under this Section
shall be credited to the Government’s subscription to the Land Bank. As payment for the
land sold under this Section, the Land Bank shall accept as sole instruments of payment
the bonds issued pursuant to Section seventy-six. Issued bonds accepted as payment
for the land sold shall be cancelled to the extent of the amount paid.
All sales under this Code shall be subject to the provision of Chapter V of the Public
Land Act covering sales of public agricultural lands insofar as they are not inconsistent
with the provisions of this Code.
SEC. 74. Creation.—To finance the acquisition by the Government of landed estates for
division and resale to small landholders, as well as the purchase of the land-holding by
the agricultural lessee from the landowner, there is hereby established a body corporate
to be known as the “Land Bank of the Philippines”, hereinafter called the “Bank”, which
shall have its principal place of business in Manila. The legal existence of the Bank shall
be for a period of fifty years counting from the date of the approval hereof. The Bank
shall be subject to such rules and regulations as the Central Bank may from time to time
promulgate.
SEC. 75. Powers in General.—To carry out this main purpose, the Bank shall have the
power:
(1) To prescribe, repeal, and alter its own by-laws, To determine its operating policies,
and to issue such rules and regulations as may be necessary to achieve the main
purpose for the creation of the Bank;
(3) To acquire and own real and personal property, and to sell, mortgage or otherwise
dispose of the same;
(4) To sue and be sued, make contracts, and borrow money from both local and foreign
sources. Such loans shall be subject to approval by the President of the Philippines and
shall be fully guaranteed by the Government of the Philippines;
The Board of Trustees shall have the power to prescribe rules and regulations for the
registration of the bonds issued by the Bank at the request of the holders thereof.
SEC. 78. Special Guaranty Fund.—In the event that the Bank shall be unable to pay the
bonds, debentures, and other obligations issued by it, a fixed amount thereof shall be
paid from a special guaranty fund to be set up by the Government, to guarantee the
obligation of the Land Bank, and established in accordance with this Section, and
thereupon, to the extent of the amounts so paid, the Government of the Republic of the
Philippines shall succeed to all the rights of the holders of such bonds, debentures or
other obligations: Provided, however, That for the next four years after the
establishment of the Bank, the payment to the special guaranty fund should not exceed
one million pesos per year, after which period, the Government shall pay into the
guaranty fund the sum of five hundred thousand pesos each year until the cumulative
total of such guaranty fund is no less than twenty percent of the outstanding net
obligation of the Land Bank at the end of any single calendar year.
The guaranty fund shall be administered by the Central Bank of the Philippines in the
manner most consistent with its charter. For the purpose of such fund, there shall be
appropriated annually the sum of one million pesos out of any moneys in the National
Treasury not otherwise appropriated, until the total amount of twenty million pesos shall
have been attained.
SEC. 79. Receiving Payments and Time Deposits.—The Bank, under the supervision of
the Monetary Board and subject to the provisions of the General Banking Act, shall
receive savings and time deposits from the small landholders in whose favor public
lands or landed estates acquired by the Land Authority have been sold and, for this
purpose, establish, and maintain branches and offices in such areas as may be
necessary to service such deposits. The Monetary Board shall supervise and authorize
the Bank to receive savings and time deposits from the public in areas where facilities
for such a service do not exist or cannot be adequately provided by other depositor
institutions.
SEC. 80. Making Payment to Owners of Landed Estates.—The Land Bank shall make
payments in the form herein prescribed to the owners of land acquired by the Land
Authority for division and resale under this Code. Such payment shall be made in the
following manner: ten per centum in cash and the remaining balance in six percent, tax-
free, redeemable bonds issued by the Bank in accordance with Section seventy-six,
unless the landowner desires to be paid in shares of stock issued by the Land Bank in
accordance with Section seventy-seven in an amount not exceeding thirty per centum of
the purchase price.
In the event there is an existing lien or encumbrance on the land in favor of any
Government institution at the time of acquisition by the Land Bank, the bonds and/or
shares, in that order, shall be accepted as substitute collaterals to secure the
indebtedness.
The profits accruing from payment shall be exempt from the tax on capital gains.
SEC. 81. Capital.—The authorized capital stock of the Bank shall be one billion five
hundred million pesos divided into ninety million shares with a par value of ten pesos
each, which shall be fully subscribed by the Government and sixty million preferred
shares with a par value of ten pesos each which shall be issued in accordance with the
provisions of Sections seventy-seven and eighty-three of this Code. Of the total capital
subscribed by the Government, two hundred million pesos shall be paid by the
Government within one year from the approval of this Code, and one hundred million
pesos every year thereafter for two years for which purpose the amount of two hundred
million pesos is hereby appropriated upon the effectivity of this Code, and one hundred
million pesos every year for the next two years thereafter, out of the funds in the
National Treasury not otherwise appropriated for the purpose: Provided, That if there
are not enough funds in the National Treasury for the appropriation herein made, the
Secretary of Finance, with the approval of the President of the Philippines, shall issue
bonds or other evidence of indebtedness to be negotiated either locally or abroad in
such amount as may be necessary to cover any deficiency in the amount above
appropriated but not exceeding four hundred million pesos, the proceeds of which are
hereby appropriated: Provided, further, That the bonds to be issued locally shall not be
supported by the Central Bank: Provided, finally, That there is automatically
appropriated out of the unappropriated funds in the National Treasury such amounts as
is necessary to cover the losses which shall include among other things loss of earnings
occasioned by the limitation of the resale cost herein provided such that said amount
together with the administrative expenses mentioned in Section ninety hereof shall not
exceed in the aggregate the equivalent of two and one-half per centum of its assets
limited therein.
SEC. 85. Use of Bonds.—The bonds issued by the Land Bank may be used by the
holder thereof and shall be accepted in the amount of their face value as any of the
following:
(1) Payment for agricultural lands or other real properties purchased from the
Government;
(2) Payment for the purchase of shares of stock of all or substantially all of the assets of
the following Government owned or controlled corporations: The National Development
Company; Cebu Portland Cement Company; National Shipyards and Steel Corporation;
Manila Gas Corporation; and the Manila Hotel Company.
Upon offer by the bondholder, the corporation owned or controlled by the Government
shall, through its Board of Directors, negotiate with such bondholder with respect to the
price and other terms and conditions of the sale. In case there are various bondholders
making the offer, the one willing to purchase under terms and conditions most favorable
to the corporation shall be preferred. If no price is acceptable to the corporation, the
same shall be determined by a Committee of Appraisers composed of three members,
one to be appointed by the corporation, another by the bondholder making the highest
or only offer, and the third by the two members so chosen. The expenses of appraisal
shall be borne equally by the corporation and the successful purchaser.
Should the Government offer for sale to the public any or all of the shares of stock or
the assets of any of the Government owned or controlled corporations enumerated
herein, the bidder who offers to pay in bonds of the Land Bank shall be preferred
provided that the various bids be equal in every respect except in the medium of
payment.
(3) Surety or performance bonds in all cases where the Government may require or
accept real property as bonds; and
SEC. 86. Board of Trustees.—The affairs and business of the Bank shall be directed, its
powers exercised and its property managed and preserved by a Board of Trustees.
Such Board shall be composed of one Chairman and four members, one of whom shall
be the head of the Land Authority who shall be an ex-officio member of such Board and
another to be elected by the holders of preferred shares. The Chairman and two
members of the Board of Trustees shall serve on full-time basis with the Bank. With the
exception of the head of the Land Authority and the member elected by the holders of
preferred shares, the Chairman and all members of the Board shall be appointed by the
President with the consent of the Commission on Appointments for a term of seven
years, except that the first Chairman and members to be appointed under this Code
shall serve for a period of three, five and seven years, such terms to be specified in their
respective appointments. Thereafter the Chairman and members, with the exception of
the ex-officio member, appointed after such initial appointment shall serve for a term of
seven years including any Chairman or member who is appointed in place of one who
resigns or is removed or otherwise vacates his position before the expiration of his
seven-year term. The Chairman and the two full-time members of the Board shall act as
the heads of such operating departments as may be set up by the Board under the
authority granted by Section eighty-seven of this Code. The Chairman shall have
authority, exerciseable at his discretion, to determine from time to time the
organizational divisions to be headed by each member serving full time and to make the
corresponding shifts in designations pursuant thereto. The compensation of the
Chairman and the members of the Board of Trustees serving full time shall be twenty-
four thousand and eighteen thousand pesos, respectively. The other members of the
Board shall receive a per diem of one hundred pesos for each session of the Board that
they attend.
SEC. 87. The Chairman and Vice-Chairmen.—The Chairman of the Board shall be the
chief executive officer of the Bank. He shall have direct control and supervision of the
business of the Bank in all matters which are not by this Code or by the by-laws of the
Bank specifically reserved to be done by the Board of Trustees. He shall be assisted by
an Executive Vice-Chairman and one or more vice-chairmen who shall be chosen and
may be removed by the Board of Trustees. The salaries of the Vice-Chairmen shall be
fixed by the Board of Trustees with the approval of the President of the Philippines.
The Land Bank shall not invest in any corporation, partnership or company wherein any
member of the Board of Trustees or of the Committee on Investments or his spouse,
direct descendant or ascendant has substantial pecuniary interest or has participation in
the management or control of the enterprise except with the unanimous vote of the
members of the Board of Trustees and of the Committee on Investments, excluding the
member interested, in a joint meeting held for that purpose where full and fair
information of the extent of such interest or participation has been adequately disclosed
in writing and recorded in the minutes of the meeting: Provided, That such interested
member shall not in any manner participate in the deliberations and shall refrain from
exerting any pressure or influence whatever on any official or member of the Bank
whose functions bear on or relate to the investment of the funds of the Bank in the
enterprise: Provided, further, That the total investment in any single corporation,
partnership, company, or association shall not exceed five per centum of the total
investible funds.
(3) Any act or performance tending to prejudice or impair the substantial rights of the
stockholders.
Conviction of the Chairman or a member for a crime carrying with it a penalty greater
than arresto mayor shall cause the removal of such Chairman or member without the
necessity of Presidential action.
The Chairman or member may, in any of the above cases, be civilly liable for any
damage that may have been suffered by the stockholders.
SEC. 96. Transfer of Claims and Liabilities.—The assets of the former Land Tenure
Administration and the National Resettlement and Rehabilitation Administration in the
form of claims and receivables arising from the sale or transfer of private and public
lands, agricultural equipment, machinery, tools and work animals, but excluding
advances made for subsistence, to small landholders shall, after an exhaustive
evaluation to determine their true asset value, be irrevocably transferred to the Bank
under such arrangements as the Land Authority and the Bank shall agree upon.
Thereafter, the Bank shall have authority and jurisdiction to administer the claims, to
collect and make adjustments on the same and, generally, to do all other acts properly
pertaining to the administration of claims held by a financial institution. The Land
Authority, upon request of the Bank, shall assist the latter in the collection of such
claims. The Land Authority shall be entitled to collect from the Bank no more than the
actual cost of such collection services as it may extend. The claims transferred under
this Section shall not be considered as part of the Government’s subscription to the
capital of the Bank.
SEC. 97. Regulation.—The Bank shall not be subject to the laws, rules and regulations
governing banks and other financial institutions of whatever type except with respect to
the receipt of savings and time deposits in accordance with Section seventy-nine of this
Code, in which case the legal reserve and other requirements prescribed by the Central
Bank for such deposits shall apply. The Bank shall be operated as an autonomous body
and shall be under the supervision of the Central Bank.
SEC. 98. Tax Exemption.—The operations, as well as holdings, equipment, property,
income and earnings of the Bank from whatever sources shall be fully exempt from
taxation.
SEC. 99. Organization of Bank.—The Bank shall be organized within one year from the
date that this Code takes effect.
SEC. 100. Penalty for Violation of the Provisions of this Chapter.—Any trustee, officer,
employee or agent of the Bank who violates or permits the violation of any of the
provisions of this Chapter, or any person aiding or abetting the violations of any of the
provisions of this Chapter, shall be punished by a fine not to exceed ten thousand pesos
or by imprisonment of not more than five years, or both such fine and imprisonment at
the discretion of the Court.
SEC. 104. Power to Obtain Additional Funds.—Nothing in this Section shall limit the
power of the Agricultural Credit Administration to obtain from the Central Bank of the
Philippines, the Development Bank of the Philippines, the Philippine National Bank and
other financing institutions, such additional funds as may be necessary for the effective
implementation of this Act: Provided, That such additional funds are to be utilized as
loans to farmers and/or farmers’ cooperatives.
Under such rules and regulations in accordance with generally accepted banking
practices and procedures as may be promulgated by the Agricultural Credit
Administration, Rural Banks and Development Banks may, in their respective localities,
be designated to act as agents of the Agricultural Credit Administration in regard to its
loaning activities.
SEC. 106. Credit to Small Farmers.—Production loans and loans for the purchase of
work animals, tillage equipment, seeds, fertilizer, poultry, livestock, feeds and other
similar items, may be extended to small farmers as defined in Republic Act Numbered
Eight hundred twenty-one, based upon their paying capacity and such securities as they
can provide, and under such terms and conditions as the Agricultural Credit
Administration may impose, provided the amount thereof does not exceed two thousand
pesos, or such amount as may be fixed by the President, but in no case shall the
amount of loan exceed eighty per centum of the value of the collateral pledged. In
instances where credit is extended for items which are not consumed in their use, such
items may be pledged as security therefor. The Agricultural Credit Administration shall
promulgate such rules and regulations as may be necessary in the extension of the
loans herein authorized so as to assure their repayment: Provided, That such rules and
regulations shall follow and be in accordance with generally accepted financing
practices and procedures.
SEC. 107. Security for Loans.—The production of the borrower, after deducting the
lease rental and/or liens thereon, shall be accepted as security for loans: Provided, That
said production is pledged to the Agricultural Credit Administration with appropriate
safeguards to insure against its unauthorized disposition: Provided, further, That the
amount of loan shall not exceed sixty per centum of the value of the estimated
production.
SEC. 111. Institution of Supervised Credit.—To provide for the effective use of credit by
farmers, the Agricultural Credit Administration may institute a program of supervised
credit in cooperation with the Agricultural Productivity Commission.
(1) To reside in the locality where they are assigned, to disseminate technical
information to farmers, and to demonstrate improved farm management practices and
techniques;
(2) To work with individual farmers in farm planning and budgeting, guide them in the
proper conduct of farm business and work out schedules of re-payment of loans
obtained by farmers;
(3) To assist farmers in securing the services or assistance of other agencies, or their
personnel, having to do with relevant activities and problems of farmers;
(5) To conduct educational activities that will acquaint leaseholders and other
independent farm operators with their rights and responsibilities under this Code;
(6) To encourage the formation and growth of private associations, study clubs,
committees and other organized groups of farmers, familiarize them with modern
methods of farming and interest them to actively participate, collaborate or take the
initiative in agricultural research, experimentation and implementation of projects in
cooperation with the Agricultural Productivity Commission and other agencies; and
It shall be the duty of the members to attend any meeting of the Council upon the call of
the Chairman. In case of inability, a member may require the officer next in rank in his
agency to attend the meeting in his behalf.
A majority vote of the members present if there is a quorum shall be necessary for the
approval of a resolution. Upon such approval the resolution shall be final and binding
upon all members of the Council and their respective agencies insofar as their
functions, powers and duties required under this Code are concerned.
The refusal of any member to implement any resolution or part thereof falling within the
scope of the powers granted to his agency shall be sufficient ground for the President of
the Philippines to remove said member from office or to impose upon him disciplinary or
administrative sanctions.
(1) To construct the general program of land reform contemplated by this Code;
(2) To establish guidelines, plans and policies for its member-agencies relative to any
particular land reform project;
(3) To formulate such rules and regulations as may be necessary to carry out the
provisions of this Code for (a) the selection of agricultural land to be acquired and
distributed under this Code; (b) the determination of sizes of family farms as defined in
Section one hundred sixty-six; and (c) the selection of beneficiaries to family farms
available for distribution: Provided, That priority shall be given in the following order:
First, to members of the immediate family of the former owner of the land within the first
degree of consanguinity who will cultivate the land personally with the aid of labor
available within his farm household; Second, to the actual occupants personally
cultivating the land either as agricultural lessees or otherwise with respect to the area
under their cultivation ; Third, to farmers falling under the preceding category who are
cultivating uneconomic-size farms with respect to idle or abandoned lands; Fourth, to
owner-operators of uneconomic-size farms; and Fifth, to such other categories as may
be fixed by virtue of this Code, taking into consideration the needs and qualifications of
the applicants;
(4) To revise, approve, or reject any land reform proposal or project; and
(5) To proclaim in accordance with the provisions of this Code, which proclamation shall
be considered as having been promulgated immediately after three successive weekly
publications in at least two newspapers of general circulation in the region or locality
affected by the proclamation, preference being given to local newspapers, if any, that all
the government machineries and agencies in any region or locality relating to leasehold
envisioned in this Code are operating: Provided, That the conversion to leasehold in the
proclaimed area shall become effective at the beginning of the next succeeding
agricultural year after such promulgation: Provided, further, That the proclamation shall
be made after having considered factors affecting feasibility and fund requirements and
the other factors embodied in Sections one hundred twenty-nine, one hundred thirty and
one hundred thirty-one.
SEC. 129. Creation of Land Reform Districts.—The Council shall exercise the functions
enumerated in the preceding Section for particular areas which the Council shall select
and designate as land reform districts. A district shall constitute one or more land reform
projects, each project to comprise either a large landed estate or several areas within
small estates. In the selection of a district, the Council shall consider factors affecting
the feasibility of acquiring for redistribution the areas within the district, including:
(4) The minimum fixed capital outlay required to develop the area;
(6) The number of farmers that cultivate uneconomic-size farms, the ability and
readiness of such farmers to be resettled, and the availability of idle or abandoned lands
that may be acquired or expropriated as well as of other resettlement facilities.
SEC. 130. Regional Land Reform Committee.—For the purpose of implementing the
program and policies of the Council on the local level, the Council shall establish in
each region of the Philippines a Regional Land Reform Committee which shall be
composed of the representatives of the agencies composing the National Land Reform
Council and shall be under the chairmanship of the representative of the Land Authority.
The Committee shall recommend to the Council such plans for projects of land reform in
its jurisdiction as it may deem appropriate. The Committee shall conduct public
hearings, gather and analyze data, estimate the essentials of such plans for projects or
programs and consolidate its findings in a report to be submitted to the Council for its
consideration. The decision of the Council upon such projects or programs shall be
returned to the Committee, within thirty days from the submission thereof, for early
implementation or execution by said Committee and the agencies represented therein.
SEC. 131. Land Reform Project Team.—The Regional Land Reform Committee shall
direct and assign a Land Reform Project Team for any project or projects within the
region, to be composed of an appropriate number of personnel from the member-
agencies. The Team shall be headed by a representative of the Land Authority
designated by the Committee, but each agency shall, in every case, be duly
represented by at least one member in the Team. On the basis of national, regional,
and local policies and programs formulated and approved by the Council through the
Committee, the Team shall determine (a) the suitability of any area for redistribution into
economic family-size farms; (b) the economic size of farm units; (c) the feasibility of
acquiring and distributing the area; (d) the willingness of the lessees to assume the
responsibilities of ownership; and (e) the financial and other requirements of the project.
For this purpose, it shall gather data, obtain opinions, conduct surveys, pursue
investigations, and incorporate any information thus established in a development
program for the area concerned to be submitted in the form of a consolidated report to
the Committee.
SEC. 136. Payment of Costs of Land in Its Entirety in Case of Transfer of Land .—In
case of the sale, transfer, or conveyance, for a pecuniary consideration, of any property,
or part thereof, registered by virtue of a decree issued in a cadastral proceeding, prior to
the payment of the total amount of the costs taxed against such property in accordance
with the preceding Section endorsed as an encumbrance or lien upon each cadastral
certificate of title, the vendor or his legal representative shall pay such costs in their
entirety in case the order apportioning the costs has already been issued in the
cadastral proceeding in which the property being sold, transferred, or conveyed is
included, and the register of deeds concerned shall demand of the vendor, before
registering the deed for such sale, transfer, or conveyance of said property, that he
exhibit a receipt signed by the Director of Lands or his duly authorized representative
showing that such encumbrance or lien has been paid.
SEC. 139. Revolving Fund.—All amounts collected by the Bureau of Lands or its duly
authorized representatives from the owners of the various lots as costs of proceedings,
survey, and monumenting in relation to the cadastral survey program herein described
shall be paid into a Special Cadastral Program Revolving Fund to finance the cadastral
land survey and registration of other unregistered lands.
SEC. 140. Appropriation.—To finance and support the expanded cadastral land survey
and registration program set forth herein, the amount of one hundred million pesos is
hereby appropriated out of funds in the National Treasury not otherwise appropriated,
which amount shall be paid into a “Special Cadastral Program Revolving Fund”, to
finance the cadastral land survey and registration of other unregistered areas.
The first Regional District shall consist of the provinces of Cagayan, Batanes, Isabela
and Nueva Vizcaya, with seat in Tuguegarao, Cagayan for Branch I and in Ilagan,
Isabela for Branch II;
The second Regional District, of the provinces of Ilocos Norte, Ilocos Sur, Abra,
Mountain Province, La Union and the City of Baguio, with seat in Laoag, Ilocos Norte for
Branch I and in San Fernando, La Union for Branch II;
The third Regional District, of the provinces of Pangasinan and Zambales, and the City
of Dagupan, with seat in Lingayen, Pangasinan for Branch I, in Tayug, Pangasinan for
Branch II and in Iba, Zambales for Branch III;
The fourth Regional District, of the provinces of Nueva Ecija and Tarlac, and
Cabanatuan City, with seat in Cabanatuan City for Branch I, in Guimba, Nueva Ecija for
Branch II, in Tarlac, Tarlac for Branch III and in Moncada, Tarlac for Branch IV;
The fifth Regional District, of the provinces of Pampanga, Bataan and Bulacan, with
seat in Malolos, Bulacan for Branch I, in San Fernando, Pampanga for Branch II, in
Angeles, Pampanga for Branch III and in Balanga, Bataan for Branch IV;
The sixth Regional District, of the City of Manila, Quezon City, Pasay City, the province
of Rizal, the City of Cavite, the province of Cavite, the City of Tagaytay, Trece Martires
City, and the province of Palawan, with seat in Manila for Branch I (Executive Judge) ,
in Cavite City for Branch 11 and in Pasig, Rizal for Branch III;
The seventh Regional District, of the province of Laguna, the City of San Pablo, the
province of Batangas, the City of Lipa, and the provinces of Oriental Mindoro and
Occidental Mindoro, with seat in Los Baños, Laguna for Branch I, in Batangas,
Batangas for Branch II and in Mamburao, Mindoro Occidental for Branch III;
The eighth Regional District, of the province of Quezon, the subprovince of Aurora, the
City of Lucena, and the province of Camarines Norte, with seat in the City of Lucena for
Branch I and in Daet, Camarines Norte for Branch II;
The ninth Regional District, of the province of Camarines Sur, Naga City, Legazpi City
and the provinces of Albay, Catanduanes, Sorsogon and Masbate, with seat in Naga
City for Branch I, in Legazpi City for Branch II and in Sorsogon, Sorsogon for Branch III;
The tenth Regional District, of the province of Capiz, Roxas City, the provinces of Aklan,
Romblon, Marinduque and Iloilo, the City of Iloilo, and the province of Antique, with seat
in the City of Iloilo for Branch I and in Roxas City for Branch II;
The eleventh Regional District, of the province of Occidental Negros, the Cities of
Bacolod and Silay, the province of Oriental Negros, Dumaguete City, and the
subprovince of Siquijor, with seat in Bacolod City for Branch I, in Dumaguete City for
Branch II and in San Carlos City for Branch III;
The twelfth Regional District, of the province of Samar, the City of Calbayog, the
province of Leyte, and the Cities of Ormoc and Tacloban, with seat in Catbalogan,
Samar for Branch I and in Ormoc City for Branch II;
The thirteenth Regional District, of the province of Cebu, the City of Cebu, and the
province of Bohol, with seat in the City of Cebu for Branch I and in Tagbilaran, Bohol for
Branch II;
The fourteenth Regional District, of the provinces of Surigao and Agusan, Butuan City,
the province of Oriental Misamis, Cagayan de Oro City, the provinces of Bukidnon,
Lanao del Sur and Lanao del Norte, and the Cities of Iligan and Marawi, with seat in
Cagayan de Oro City for Branch I and in Iligan City for Branch II;
The fifteenth Regional District, of the province of Davao, the City of Davao, the
provinces of Cotabato and Occidental Misamis, Ozamiz City, the provinces of
Zamboanga del Norte and Zamboanga del Sur, Zamboanga City, Basilan City and the
province of Sulu, with seat in the City of Davao for Branch I, Cotabato City for Branch II
and Ozamiz City for Branch III.
Regional District Judges shall be appointed to serve during good behavior, until they
reach the age of seventy years or become incapacitated to discharge the duties of their
office, unless sooner removed in accordance with law.
The judges may be suspended or removed in the same manner and upon the same
grounds as judges of the Court of First Instance.
The Executive Judge shall receive an annual compensation which shall be equal to that
allowed or may hereafter be allowed for judges of the Court of First Instance and the
Regional District Judges shall receive an annual compensation of one thousand pesos
less than that of the Executive Judge.
SEC. 145. Leave Privileges; Traveling Expenses.—Judges of the Courts of Agrarian
Relations shall be entitled to the same retirement and leave privileges now granted or
may hereafter be granted to judges of the Court of First Instance. They shall be entitled
to traveling expenses when performing their duties outside official stations.
Such order shall specify, in the case of each judge assigned to vacation duty, the
territory over which in addition to his own district his authority as vacation judge shall
extend.
The Executive Judge may from time to time modify his order assigning the judges to
vacation duty as newly arising conditions or emergencies may require.
A judge assigned to vacation duty shall not ordinarily be required to hold court during
such vacation; but the Executive Judge may, when in his judgment the emergency shall
require, direct any judge assigned to vacation duty to hold during the vacation a special
term of court in any district.
SEC. 149. Oath of Office.—Before entering upon the discharge of the duties of their
office, the judges shall take and subscribe to an oath of office in accordance with the
provisions of Section twenty-three of the Revised Administrative Code.
SEC. 152. Official Station of Regional District Judges.—Within thirty days after the
approval of this Code, the Executive Judge shall issue an order designating the official
station of the judges of the branches of each of the Regional Districts.
SEC. 153. Time and Place of Molding Court.—Sessions of the Court shall be convened
on all working days when there are cases ready for trial or other court business to be
dispatched. The hours for the daily session of the Court shall be from nine to twelve in
the morning, and from three to five in the afternoon, except on Saturdays, when a
morning session only shall be required; but the judge may extend the hours of session
whenever in his judgment it is proper to do so. The judge, in his discretion, may order
that but one session per day shall be held instead of two, at such hours as he may
deem expedient for the convenience both of the Court and of the public; but the number
of hours that the Court shall be in session per day shall be not less than five.
Sessions of the Court shall be held at the places of the official station of the respective
judges: Provided, however, That whenever necessary in the interest of speedy and
inexpensive justice and litigation, a judge shall hold court in the municipality where the
subject matter of the dispute is located, utilizing the sala of the local justice of the peace
court for this purpose.
A brief monthly report which shall be submitted within the first five days of the
succeeding month showing the number and nature of the cases tried in his sala, the
place of hearing in each case, the progress of the litigation with corresponding dates
and the disposition made thereon shall be rendered by every judge under his signature
and copies thereof shall be furnished the Executive Judge, who shall compile and report
in an appropriate form the decisions promulgated in important cases. A judge who fails
or neglects to make his report shall, upon first offense, be liable to warning by the
Executive Judge, and upon repeated failure or neglect may be suspended or removed
from office.
SEC. 154. Jurisdiction of the Court.—The Court shall have original and exclusive
jurisdiction over:
(1) All cases or actions involving matters, controversies, disputes, or money claims
arising from agrarian relations: Provided, however, That all cases still pending in the
Court of Agrarian Relations, established under Republic Act Numbered Twelve hundred
and sixty-seven, at the time of the effectivity of this Code, shall be transferred to and
continued in the respective Courts of Agrarian Relations within whose district the sites
of the cases are located;
(2) All cases or actions involving violations of Chapters I and II of this Code and
Republic Act Numbered Eight hundred and nine; and
(3) Expropriations to be instituted by the Land Authority: Provided, however, That
expropriation proceedings instituted by the Land Tenure Administration pending in the
Court of First Instance at the time of the effectivity of this Code shall be transferred to
and continued in the respective Courts of Agrarian Relations within whose district the
subject matter or property is located.
Whenever a judge appointed or assigned in any branch of the Court shall leave his
district by transfer or assignment to another Court of equal jurisdiction without having
decided a case totally heard by him and which was duly argued or opportunity given for
argument to the parties or their counsel, it shall be lawful for him to prepare and sign his
decision in said case anywhere within the Philippines and send the same by registered
mail to the clerk of court to be filed in the Court as of the date when the same was
received by the clerk, in the same manner as if the judge had been present in the Court
to direct the filing of the judgment: Provided, however, That if a case has been heard
only in part, the Supreme Court, upon petition of any of the interested parties to the
case and the recommendation of the respective district judge, may also authorize the
judge who has partly heard the case to continue hearing and to decide said case
notwithstanding his transfer or appointment to another court of equal jurisdiction.
Before entering upon the discharge of the duties of his office, he shall file a bond in the
amount of ten thousand pesos in the same manner and form as required of the Clerk of
the Supreme Court, such bond to be approved by, and filed with, the Treasurer of the
Philippines and shall be subject to inspection by interested parties. The Clerk of Court
shall require his deputy to give an adequate bond as security against loss by reason of
his wrongdoing or gross negligence.
The Clerks of Court shall each receive an annual compensation of seven thousand two
hundred pesos. They shall exercise the same powers and perform the same duties on
all matters within the jurisdiction of the Courts as those exercised by the Clerks of Court
of the Courts of First Instance.
Clerks of Courts and other subordinate employees of the Courts of Agrarian Relations
shall, for administrative purposes, belong to the Department of Justice; but in the
performance of their duties, they shall be subject to the supervision of the judges of the
Court to which they respectively pertain.
The Agrarian Counsel shall have the power to organize such divisions and sections as
will insure maximum efficiency of the Office.
(1) “Agricultural land” means land devoted to any growth, including but not limited to
crop lands, salt beds, fish ponds, idle land and abandoned land as defined in
paragraphs 18 and 19 of this Section, respectively.
(2) “Agricultural lessee” means a person who, by himself and with the aid available from
within his immediate farm household, cultivates the land belonging to, or possessed by,
another with the latter’s consent for purposes of production, for a price certain in money
or in produce or both. It is distinguished from civil law lessee as understood in the Civil
Code of the Philippines.
(3) “Agricultural lessor” means a person, natural or juridical, who, either as owner, civil
law lessee, usufructuary, or legal possessor, lets or grants to another the cultivation and
use of his land for a price certain.
(4) “Agricultural year” means the period of time required for raising a particular
agricultural product, including the preparation of the land, sowing, planting and
harvesting of crops and, whenever applicable, threshing of said crops: Provided,
however, That in case of crops yielding more than one harvest from one planting,
“agricultural year” shall be the period from the preparation of the land to the first harvest
and thereafter from harvest to harvest. In both cases, the period may be shorter or
longer than a calendar year.
(6) “Fair rental value” means the value not in excess of allowable depreciation plus six
per cent interest per annum on the investment computed at its market value: Provided,
That the fair rental value for work animal or animals and farm implements used to
produce the crop shall not exceed five per cent of the gross harvest for the work animal
or animals and five per cent for implements.
(7) “Farm implements” means hand tools or machines ordinarily employed in a farm
enterprise.
(8) “Immediate farm household” means the members of the family of the lessee or
lessor and other persons who are dependent upon him for support and who usually help
him in his activities.
(9) “Incapacity” means any cause or circumstance which prevents the lessee from
fulfilling his contractual and other obligations under this Code.
(11) “Proven farm practices” means sound farming practices generally accepted through
usage or officially recommended by the Agricultural Productivity Commission for a
particular type of farm.
(12) “Work animals” means animals ordinarily employed in a farm enterprise, such as
carabaos, horses, bullocks, etc. (13) “Personal cultivation” means cultivation by the
lessee or lessor in person and/or with the aid of labor from within his immediate
household. As used in Chapter II:
(14) “Farm employer” includes any person acting directly or indirectly in the interest of a
farm employer whether for profit or not, as well as a labor contractor but shall not
include any labor organization (otherwise than when acting as a farm employer) or
anyone acting in the capacity of an officer or agent of such labor organization.
(15) “Farm worker” includes any agricultural wage, salary or piece worker but is not
limited to a farm worker of a particular farm employer unless the Code explicitly states
otherwise and any individual whose work has ceased as a consequence of, or in
connection with, a current agrarian dispute or an unfair labor practice and who has not
obtained a substantially equivalent and regular employment. Whenever the term “farm
worker” is used in this Code, it shall be understood to include farm laborer and/or farm
employee.
(16) “Farm workers’ organization” includes any union or association of farm workers
which exists, in whole or in part, for the purpose of collective bargaining or dealing with
farm employers concerning terms and conditions of employment.
(17) “Agrarian dispute” means any controversy relating to terms, tenure or conditions of
employment, or concerning an association or representation of persons in negotiating,
fixing, maintaining, changing, or seeking to arrange terms or conditions of employment,
regardless of whether the disputants stand in the proximate relation of farm employers
and employees. As used in Chapter III of this Code:
(18) “Idle lands” means land not devoted directly to any crop or to any definite economic
purpose for at least one year prior to the notice of expropriation except for reasons other
than force majeure or any other fortuitous event but used to be devoted or is suitable to
such crop or is contiguous to land devoted directly to any crop and does not include
land devoted permanently or regularly to other essential and more productive purpose.
(19) “Abandoned lands” means lands devoted to any crop at least one year prior to the
notice of expropriation, but which was not utilized by the owner for his benefit for the
past five years prior to such notice of expropriation.
(20) “Economic family-size farm units” means an area of farm land that permits efficient
use of labor and capital resources of the farm family and will produce an income
sufficient to provide a modest standard of living to meet a farm family’s needs for food,
clothing, shelter, and education with possible allowance for payment of yearly
installments on the land, and reasonable reserves to absorb yearly fluctuations in
income.
(21) “Suitability for economic family-size farms” refers to situations where a parcel of
land whose characteristics, such as climate, soil, topography, availability of water and
location, will support a farm family if operated in economic family-size farm units and
does not include those where large-scale operations will result in greater production and
more efficient use of the land.
(22) “Agricultural owner-cultivator” means any person who, providing capital and
management, personally cultivates his own land with the aid of his immediate family and
household.
(24) “Labor administration” means cases where farm workers are employed wholly in
the agricultural production.
(25) “Share tenancy” as used in this Code means the relationship which exists
whenever two persons agree on a joint undertaking for agricultural production wherein
one party furnishes the land and the other his labor, with either or both contributing any
one or several of the items of production, the tenant cultivating the land personally with
the aid of labor available from members of his immediate farm household, and the
produce thereof to be divided between the landholder and the tenant.
(26) “Tax free” in reference to bonds and shares of stock issued by the Land Bank as
payment for acquired private agricultural land shall mean all government taxes except
gift tax and inheritance tax.
(3) Any person who executes an affidavit as required by Section thirteen of Chapter I,
knowing the contents thereof to be false, shall be punished by a fine not exceeding one
thousand pesos or imprisonment of not more than one year, or both, in the discretion of
the court.
(4) Any person who wilfully violates the provisions of Sections forty and forty-one of this
Code shall be punished by a fine of not less than one hundred pesos nor more than one
thousand pesos or by imprisonment of not less than one month nor more than one year,
or both such fine and imprisonment, in the discretion of the court. If any violation of
Sections forty and forty-one of this Code is committed by a corporation, partnership or
association, the manager or, in his default, the person acting as such when the violation
took place shall be criminally responsible.
(5) Any person who wilfully violates the provisions of Section forty-two of this Code
shall, upon conviction thereof, be subject to a fine of not more than two thousand pesos
or, upon second conviction, to imprisonment of not more than one year or both such fine
and imprisonment, in the discretion of the court. If any violation of the provisions of
Section forty-two of this Code is committed by a corporation, partnership or association,
the manager or, in his default, the person acting as such when the violation took place
shall be criminally responsible.
To carry out the provisions of this Section, there is hereby appropriated the sum of five
hundred thousand pesos out of the unappropriated funds in the National Treasury.
SEC. 171. Separability of Provisions.—If, for any reason, any section or provision of this
Code shall be questioned in any court, and shall be held to be unconstitutional or
invalid, no other section or provision of this Code shall be affected thereby.
SEC. 172. Prior Inconsistent Laws.—All laws or parts of any law inconsistent with the
provisions of this Code are hereby repealed.
SEC. 173. Effective Date.—This Code shall take effect upon its approval.