7.

Land Acquisition and Distribution

a. NOC/VOS

- Chapters 4-5, DAR AO 7, s.2011

See other fi

le page 9-14

b. Selection of Beneficiaries

- Sec. 22-25, R.A 6657, as amended by R.A 9700

CHAPTER VII
Land Redistribution

Section 22. Qualified Beneficiaries. — The lands covered by the CARP shall
be distributed as much as possible to landless residents of the same barangay,
or in the absence thereof, landless residents of the same municipality in the
following order of priority:

(a) agricultural lessees and share tenants;

(b) regular farmworkers;

(c) seasonal farmworkers;

(d) other farmworkers;

(e) actual tillers or occupants of public lands;

(f) collectives or cooperatives of the above beneficiaries; and

(g) others directly working on the land.

Provided, however, that the children of landowners who are qualified under
Section 6 of this Act shall be given preference in the distribution of the land of
their parents: and provided, further, that actual tenant-tillers in the
landholdings shall not be ejected or removed therefrom.

Beneficiaries under Presidential Decree No. 27 who have culpably sold,

disposed of, or abandoned their land are disqualified to become
beneficiaries under this Program.

Additional : RA9700 22-a-

A basic qualification of a beneficiary shall be his willingness, aptitude, and ability
to cultivate and make the land as productive as possible. The DAR shall adopt a
system of monitoring the record or performance of each beneficiary, so that any
beneficiary guilty of negligence or misuse of the land or any support
extended to him shall forfeit his right to continue as such beneficiary.
The DAR shall submit periodic reports on the performance of the beneficiaries to
the PARC.

If, due to the landowner's retention rights or to the number of tenants, lessees,
or workers on the land, there is not enough land to accommodate any or some
of them, they may be granted ownership of other lands available for distribution
under this Act, at the option of the beneficiaries.

Farmers already in place and those not accommodated in the distribution of

privately-owned lands will be given preferential rights in the distribution of
lands from the public domain.

Section 23. Distribution Limit. — No qualified beneficiary may own more

than three (3) hectares of agricultural land.

Section 24. Award to Beneficiaries. — The rights and responsibilities of the

beneficiary shall commence from the time the DAR makes an award of the land
to him, which award shall be completed within one hundred eighty (180) days
from the time the DAR takes actual possession of the land. Ownership of the
beneficiary shall be evidenced by a Certificate of Land Ownership Award
(CLOA), which shall contain the restrictions and conditions provided for in this
Act, and shall be recorded in the Register of Deeds concerned and annotated on
the Certificate of Title.

Section 25. Award Ceilings for Beneficiaries. — Beneficiaries shall be

awarded an area not exceeding three (3) hectares which may cover a
contiguous tract of land or several parcels of land cumulated up to the
prescribed award limits.

For purposes of this Act, a landless beneficiary is one who owns less than
three (3) hectares of agricultural land.

The beneficiaries may opt for collective ownership, such as co-ownership or

farmers cooperative or some other form of collective organization: provided,
that the total area that may be awarded shall not exceed the total number of
co-owners or member of the cooperative or collective organization multiplied by
the award limit above prescribed, except in meritorious cases as determined by
the PARC. 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.

- Sec. 42-49, DAR AO 7, s.2011

See other file Page 19-21

- Sec. 39, DAR AO 7, s.2011

SECI'ION 39. Tenant Chooses to Remain in the Retention Area. In case a tenant

chooses to remain in the La's retained area, lhe former shall be a leaseholder in the said

land and shall not qualify as a beneficiary under CARP. Conversely, if the tenant chooses

to be a beneficiary in another agricultural land, he/she cannot be a leaseholder in the

land retained by the La. The tenant must exercise this option within a period of one (1)

year from the time the ill manifests his/her choice of lhe area for retention.

Tenants/lessees in lhe retained areas who do not wish to become leaseholders in the retained lands
shall be given preference in other landholdings whether or not these lands belong to the same ill,
without prejudice to the furmers who are already in place in said other landholdings and subject to
the priorities under Section 22 of R.A. No. 6657, as amended.

In all cases, the security of tenure of the farmers or farmworkers on the rD's retUned

land prior to the approval of R.A. No. 6657, as amended, shall be respected. Further,

actual tenant-farmers in the landholdings shall not be ejected or removed therefrom.

c. Land Valuation and Landowner Compensation

- Sec. 17-18, R.A. 6657, as amended by R.A. 9700

Section 17. Determination of Just Compensation. — In determining just

compensation, the cost of acquisition of the land, the current value of the like
properties, its nature, actual use and income, the sworn valuation by the owner,
the tax declarations, and the assessment made by government assessors shall
be considered. The social and economic benefits contributed by the farmers and
the farmworkers and by the Government to the property as well as the
non-payment of taxes or loans secured from any government financing
institution on the said land shall be considered as additional factors to determine
its valuation.

Section 18. Valuation and Mode of Compensation. — The LBP shall

compensate the landowner in such amounts as may be agreed upon by the
landowner and the DAR and the LBP, in accordance with the criteria provided for
in Sections 16 and 17, and other pertinent provisions hereof, or as may be
finally determined by the court, as the just compensation for the land.

The compensation shall be paid on one of the following modes, at the option of
the landowner:
(1) Cash payment, under the following terms and conditions;

(a) For lands above fifty (50) — Twenty-five percent (25%) cash,
hectares, insofar as the excess the balance to be paid in
hectarage is concerned. government financial instruments
negotiable at any time.

(b) For lands above twenty-four — Thirty percent (30%) cash, the
(24) hectares and up to fifty (50) balance to be paid in government
hectares. financial instruments negotiable
at any time.

(c) For lands twenty-four (24) — Thirty-five percent (35%) cash,

hectares and below. the balance to be paid in
government financial instruments
negotiable at any time.

(2) Shares of stock in government-owned or controlled corporations, LBP

preferred shares, physical assets or other qualified investments in accordance
with guidelines set by the PARC;

(3) Tax credits which can be used against any tax liability;

(4) LBP bonds, which shall have the following features:

(a) Market interest rates aligned with 91-day treasury bill rates. Ten percent
(10%) of the face value of the bonds shall mature every year from the date of
issuance until the tenth (10th) year: provided, that should the landowner
choose to forego the cash portion, whether in full or in part, he shall be paid
correspondingly in LBP bonds;

(b) Transferability and negotiability. Such LBP bonds may be used by the
landowner, his successors in interest or his assigns, up to the amount of their
face value, for any of the following:

(i) Acquisition of land or other real properties of the government, including

assets under the Asset Privatization Program and other assets foreclosed by
government financial institutions in the same province or region where the
lands for which the bonds were paid are situated;

(ii) Acquisition of shares of stock of government-owned or -controlled

corporations or shares of stocks owned by the government in private
corporations;

(iii) Substitution for surety or bail bonds for the provisional release of accused
persons, or performance bonds;

(iv) Security for loans with any government financial institution, provided the
proceeds of the loans shall be invested in an economic enterprise, preferably in
a small-and medium-scale industry, in the same province or region as the land
for which the bonds are paid;

(v) Payment for various taxes and fees to government; provided, that the use of
these bonds for these purposes will be limited to a certain percentage of the
outstanding balance of the financial instruments: provided, further, that the
PARC shall determine the percentage mentioned above;

(vi) Payment for tuition fees of the immediate family of the original bondholder
in government universities, colleges, trade schools, and other institutions;

(vii) Payment for fees of the immediate family of the original bondholder in
government hospitals; and

(viii) Such other uses as the PARC may from time to time allow.

In case of extraordinary inflation, the PARC shall take appropriate measures to

protect the economy.

- Chap. 8 & 9, DAR AO7, s.2011

See other file: Page 26-34

- Association of Small Landowners in the Philippines vs. Secretary of Agrarian Reform, GR. No. 78742,
July 14, 1989

- Land Bank of the Phils. vs. Natividad, G.R. No. 127198. May 16, 2005

- Land Bank of the Phils. vs. CA, GR No. 118712, Oct. 6, 1995

- Lubrica v. Land Bank of the Phils., G.R. No. 170220. November 20, 2006

d. CLOA Generation and Distribution

- Section 96-106, DAR AO 7 Series of 2011

See other file: Page 37-40

- Heirs of Griño vs CA (G.R. No. 165073)

- Estribillo vs DAR (G.R. No. 159674)

- Deleste vs LBP (G.R. No. 169913)

e. Installation

- Chap, 11, DAR AO 7, s.2011

Page 40-41
8. Prohibited Acts and Omissions
- Sec. 73, 73-A, 74 of R.A. 6657, as amended by R.A. 9700

Section 73. Prohibited Acts and Omissions. — The following are prohibited:

(a) The ownership or possession, for the purpose of circumventing the

provisions of this Act, of agricultural lands in excess of the total retention limits
or award ceilings by any person, natural or juridical, except those under
collective ownership by farmer-beneficiaries.

(b) The forcible entry or illegal detainer by persons who are not qualified
beneficiaries under this Act to avail themselves of the rights and benefits of the
Agrarian Reform Program.

(c) The conversion by any landowner of his agricultural land into any
non-agricultural use with intent to avoid the application of this Act to his
landholdings and to dispossess his tenant farmers of the land tilled by them.

(d) The willful prevention or obstruction by any person, association or entity of

the implementation of the CARP.

(e) The sale, transfer, conveyance or change of the nature of lands outside of
urban centers and city limits either in whole or in part after the effectivity of this
Act. The date of the registration of the deed of conveyance in the Register of
Deeds with respect to titled lands and the date of the issuance of the tax
declaration to the transferee of the property with respect to unregistered lands,
as the case may be, shall be conclusive for the purpose of this Act.

(f) The sale, transfer or conveyance by a beneficiary of the right to use or any
other usufructuary right over the land he acquired by virtue of being a
beneficiary, in order to circumvent the provisions of this Act.

Section 74. Penalties. — Any person who knowingly or willfully violates the
provisions of this Act shall be punished by imprisonment of not less than one (1)
month to not more than three (3) years or a fine of not less than one thousand
pesos (P1,000.00) and not more than fifteen thousand pesos (P15,000.00), or
both, at the discretion of the court.

If the offender is a corporation or association, the officer responsible therefore

shall be criminally liable.