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May 25, 2004

DAR OPINION NO. 16-04

Atty. Miguel S. Gracilla
OIC-PARO
BRBDP Building, San Jose
Camarines Sur

 

Dear PARO Gracilla:

 

This refers to the letter-request of one Arsenio Espiritu, Sr., seeking a DAR clearance on his awarded farmlot in Fabrica, Bula, Camarines Sur to be used as bail-bond in favor of a certain Rogeta Sinfuego of Banase, Pawili, Bula, Camarines Sur, who was charged for qualified theft, subject of the memorandum-query for opinion of then OIC-PARO Eliezer A. Reuyan addressed to then DAR Region V Director Nestor R. Acosta dated 20 May 2003.   SEIaHT

The issue here is whether or not a Certificate of Land Ownership Award (CLOA) could be used as a bail-bond.

Pertinent to your query, by relative application, is the provision of Section 27 of Republic Act No. 6657 (Comprehensive Agrarian Reform Law), quote:

Section 27 of R.A. No. 6657:

"Section 27.   Transferability of Awarded Lands. — Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries for a period of ten (10) years: Provided, however, That the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within the period of two (2) years. . . . ."

As regards farmlots covered by CLOAs or lands acquired under R.A. No. 6657, we submit that within ten (10) years from award, the same cannot be offered as property bonds in view of the prohibition provided under Section 27 of R.A. No. 6657.   DSCIEa

However, since the awarded land in the instant case is already fully paid as it appears in the CLOA, and since the CLOA was issued way back 02 July 1991 (thus, the 10-year prohibitory period on the transferability of awarded lands had already lapsed), and considering, further, that the presiding judge had accepted the same as a bail, a DAR clearance may be issued.

It bears stressing, however, that in case the land is forfeited, the same may nonetheless be repurchased or redeemed by the children or spouse of the owner, or, be acquired by DAR for distribution to any qualified heir/s or qualified beneficiaries pursuant to the provisions of Section 27 of R.A. No. 6657 and DAR Administrative Order No. 08, Series of 1995 [Rules and Procedures Governing the Transferability of Lands Awarded to Agrarian Reform Beneficiaries (ARBs) Pursuant to Presidential Decree No. 27, as amended by Executive Order No. 228 and Republic Act No. 6657].

Finally, the offer to use the CLOA as bail-bond must advisably be with the consent of the wife and, the offer notwithstanding, the CLOA holder should not be deprived of his peaceful use and possession of the land.

We hope to have clarified the matter and please be guided accordingly.

 

Very truly yours,

 

(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office

 



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