May 28, 1986

MINISTRY MEMORANDUM CIRCULAR NO. 06-86

TO                :     All Regional Directors, District Officers, Team Leaders and All Others Concerned

SUBJECT    :     Amending Item 1, Paragraph B, Section III of Ministry Memorandum
                           Circular No. 19-81 by Providing Thereon Additional Guidelines and
                           Procedures in Effecting Land Transfer Compensation Claims

Item 1, Paragraph B, Section III of Ministry Memorandum Circular No. 19-81 is hereby amended to read as follows:   cETDIA

1.         Mode of Compensation to Landowners

Under PD 251, there are six (6) modes of payments prescribed. The more commonly opted by landowners are: payment through the Land Bank of the Philippines (LBP) and direct payment.

1.1       Payment through LBP

1.1.1   At the option of the landowner, the LBP shall finance the total value of the farmholding covered by Operation Land Transfer subject to existing laws, decrees, rules and regulations, and related issuances.

1.1.2   The land value initially expressed in kind pursuant to PD 27 shall be converted to peso, using the government buying support price at the time the Decree was promulgated on October 21, 1972 except those landholdings tenanted after said date and covered by OLT placement orders pursuant to Department (now Ministry) Memorandum Circular No. 2, series of 1978, in which case, the peso value of the palay or corn shall be based on the government buying support price at the time the farmholding was placed under OLT coverage. However, in case of those landholdings voluntarily offered for OLT coverage pursuant to Department (now Ministry) Memorandum Circular No. 11, series of 1978, the peso value of the palay or corn shall be based on the government buying support price at the time voluntary offer was accepted by MAR and placed under OLT coverage. All MAR personnel are enjoined to adhere to the true and actual average gross production (AGP) established by the Barangay Committee on Land Production (BCLP).

1.1.3   The MARFT shall assist the landowner and the farmer-beneficiaries concerned in the documentation of claims for land transfer compensation in accordance with the guidelines and procedures embodied in the Procedures Manual on Land Transfer Compensation System.

1.2       Direct Payment

On the basis of land value established pursuant to PD 27, the landowner and farmer-beneficiary may mutually agree on a direct payment either in kind or in cash.   ATcaEH

1.2.1   If in kind — the cavan of palay or corn shall weigh not less than fifty (50) kilos.

1.2.2   If in cash — the policy under 1.1.2 above shall apply.

This mode of land compensation can be availed of only if the following conditions prevail, otherwise all land compensations shall be done through Land Bank financing scheme.

—        Both Landowners and Farmer-Beneficiaries formally opted for a direct payment agreement;

—        Subject landholding is free from liens or encumbrances;

—        Landowner submits legal evidences of ownership enumerated under Ministry Memorandum Circular No. 16-81; and

—        To evidence the transaction between the parties, a Deed of Transfer Under PD 27 is to be executed.

This Memorandum Circular shall take effect immediately.

Please be guided accordingly.   SCEDAI

Diliman, Quezon City, May 28, 1986.

(SGD.) HEHERSON T. ALVAREZ
Minister