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 thereto 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 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;

(14) To expropriate home lots occupied by agricultural lessees outside their landholdings for resale at
cost to said agricultural lessees; and

(15) To submit to the President of the Philippines and to both Houses of Congress through their
presiding officers, to the Secretary of Finance and to the Auditor General within sixty days of the close of
the fiscal year, an annual report showing its accomplishments during the year; the expropriation
proceedings it has undertaken; the expenditures it has incurred and other financial transactions
undertaken with respect thereto.

Section 52. Appointment of Subordinate Officials and Employees - The Governor shall organize the
personnel in such departments, divisions and sections of the Authority as will insure their maximum
efficiency. He shall appoint, subject to civil service rules and regulations, fix the compensation, subject to
WAPCO rules and regulations, and determine the duties of subordinate officials and employees as the
exigencies of the service may require.

ARTICLE II

Expropriation of Private Agricultural Lands

Section 53. Compulsory Purchase of Agricultural Lands - The Authority shall, upon petition in writing of
at least one-third of the lessees and subject to the provisions of Chapter VII of this Code, institute and
prosecute expropriation proceedings for the acquisition of private agricultural lands and home lots
enumerated under Section fifty-one. In the event a landowner agrees to sell his property under the
terms specified in this Chapter and the National Land Reform Council finds it suitable and necessary to
acquire such property, a joint motion embodying the agreement, including the valuation of the
property, shall be submitted by the Land Authority and the land-owner to the Court for approval:
Provided, That in such case, any person qualified to be a beneficiary of such expropriation or purchase
may object to the valuation as excessive, in which case the Court shall determine the just compensation
in accordance with Section fifty-six of this Code.

Section 54. Possession of the Land; Procedure - The Authority, after commencing the expropriation suit,
may take immediate possession of the land upon deposit with the Court that has acquired jurisdiction
over the expropriation proceedings in accordance with the Rules of Court, of money, and bonds of the
Land Bank, in accordance with the proportions provided for under Section eighty of this Code, equal to
the value as determined by the Court in accordance with the provisions of Section fifty-six hereof.

Section 55. Expeditious Survey and Subdivision - Immediately after the Authority takes possession of
lands to be acquired by it under this Code, it shall undertake a subdivision survey of the land into
economic family-size farms which shall be immediately assigned to beneficiaries selected in accordance
with Section one hundred and twenty-eight subject to such rules and regulations as it may prescribe.

Section 56. Just Compensation - In determining the just compensation of the land to be expropriated
pursuant to this Chapter, the Court, in land under leasehold, shall consider as a basis, without prejudice
to considering other factors also, the annual lease rental income authorized by law capitalized at the
rate of six per centum per annum.

The owner of the land expropriated shall be paid in accordance with Section eighty of this Act by the
Land Bank and pursuant to an arrangement herein authorized.

Section 57. Duty of Court in Expropriation Proceedings - In expropriation proceedings, it shall be the
duty of the Court to include in its resolution or order of expropriation a provision that the Land
Authority shall, after taking possession of the land and after the subdivision thereof, allow the Land Bank
to have the title thereto for the purpose of paying the owner the just compensation therefor.

Section 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.
Section 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.

Section 60. Disposition of Expropriated Land - After separate certificates of titles have been issued in
accordance with Section fifty-eight, the Land Authority, on behalf of the Republic of the Philippines and
in representation of the Land Bank as the financing agency, shall allot and sell each parcel or lot to a
qualified beneficiary selected under Section fifty-five of this Code, subject to uniform terms and
conditions imposed by the Land Bank: Provided, That the resale shall be at cost which shall mean the
purchase price not more than six per centum per annum, which shall cover administrative expenses, and
actual expenses for subdivision, surveying, and registration: Provided, further, That such cost shall be
paid on the basis of an amortization plan not exceeding twenty-five years at the option of the
beneficiary.

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.

Section 61. Organization of Cooperative Associations - For the purpose of more efficient management,
adoption of modern farm methods and techniques, and spreading risk, either through diversification of
farm projects or mutual assumption of risks the farmer beneficiaries may organize themselves into
cooperative associations with the advice or assistance of the Agricultural Productivity Commission and in
accordance with the guidelines established by said Commission for such associations.

Section 62. Limitation on Land Rights - Except in case of hereditary succession by one heir, landholdings
acquired under this Code may not be resold, mortgaged, encumbered or transferred until after the lapse
of ten years from the date of full payment and acquisition and after such ten-year period, any transfer,
sale or disposition may be made only in favor of persons qualified to acquire economic family-size farm
units in accordance with the provisions of this Code: Provided, That a purchaser who acquired his
landholding under a contract to sell may secure a loan on the same from any private lending institution
or individual for an amount not exceeding his equity on said landholding upon a guaranty by the Land
Bank.

Section 63. Inscription of Specific Prohibiti