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 June 4, 1960





Classification of NARRA Lands and Persons Qualified to Acquire Them

SECTION 1.  Classification. — The lands of NARRA in accordance with their corresponding locations and areas, are classified as follows:    cHaICD

(1)    Farm Lots — These are lots of not less than six (6) hectares nor more than ten (10) hectares each, depending on the topography, fertility and/or the productivity of the soil of the lots, for distribution to duly qualified settlers free of charge except for the cost of the survey and the value of the improvements introduced thereon;

(2)    Home Lots — These are residential lots in barrio sites and the outskirts of townsites with an area of not less than six hundred (600) square meters and not more than one thousand two hundred (1,200) square meters each, distributed to settlers for their residence at a nominal purchase price of one centavo (P0.01) per square meter plus the costs of survey and the value of the improvements introduced thereon;

(3)    Townsite Lots — These are lots within townsites in settlement projects which have been so declared by the Board of Directors, the subdivision schemes and plans of which have been approved by the National Planning Commission and are classified as follows:

a)     residential lots;

b)     commercial lots;

c)     industrial lots;

d)     town hall sites;

e)     public school sites;

f)      public market sites;

g)     hospital and health center sites;

h)     public cemetery sites;

i)      lots reserved for other public uses;

j)      church sites; and

k)     other lots reserved for educational, charitable, civic and other similar purposes.

SECTION 2.  Survey and Subdivision. — In no case shall NARRA lands be conveyed or distributed until they are subdivided and incorporated into plans of settlements.

SECTION 3.  Who May Acquire NARRA Lands. — Any citizen of the Philippines, qualified under the Public Land Law (C.A. No. 141) to acquire agricultural lands by homestead and who (a) is a bona fide farmer in a highly settled area, (b) does not own any land with an area of five hectares or more, (c) has not owned any homestead, (d) has not secured any homestead rights from any homesteader, (e) is capable of discharging his responsibilities as a settler, and (f) shall work the land in the settlement area on the basis of the family-operated, family-type farms, may acquire a farm lot and a home lot under such terms and conditions as provided in this policy and in such other rules and regulations as the Board of Directors may prescribe.

Any person, corporation, or association authorized to purchase or lease public lands for agricultural purposes under the Public Land Law, may acquire townsite lots by sale, exchange, lease or donation as determined by the Board of Directors.

SECTION 4.  Order of Preference in Selection of Applicants for Farm and Home Lots. — In the selection of applicants the following order or priority shall be observed: (a) actual bona fide tenants or occupants of the land; (b) surrendered dissidents, who take an oath and show sincere desire to support the Constitution of the Philippines; (c) graduates of agricultural schools and colleges; (d) trainees who have completed military training; (e) veterans and members of guerrilla organizations; and (f) other applicants possessing the qualifications required.


Disposition of Farm and Home Lots and Conditions Thereof

SECTION 1.  Distribution and Allocation of Farm and Home Lots. — The distribution of farm and home lots to duly qualified and approved settlers shall be by drawing lots, The farm and home lots whose corresponding numbers the settlers draws shall be allocated to him and a "Certificate of Allocation" shall be issued to serve as authority to occupy the said lots until these are finally patented and titled in his name.

SECTION 2.  Requirements as to Home Lots. — Within one (1) year from the date of allocation of his home lot, a settler must build his house, plant a minimum of 10 fruit trees, cultivate and maintain a vegetable garden sufficient for his home supply and have at least 10 hens and a sow. Non-compliance with these requirements shall be a ground for forfeiture of his home lot.

SECTION 3.  Tenancy or Sharecropping Prohibited. — No farm lot shall be placed under tenancy, sharecropping or any other similar arrangement. However, if the settler becomes physically incapacitated or dies and his heirs or dependents are minors or are incapable of cultivating the land the General Manager may allow such sharecropping arrangement consistent with existing laws and policies or the employment of hired farm hands during the period of such minority or incapacity. Any settler who shall violate this rule shall be deprived or his farm lot and shall forfeit his rights thereto and be substituted by any person qualified to become a NARRA settler who shall assume the payment of the value of the improvements to the NARRA.

SECTION 4.  Abandonment. — No settler shall absent himself from the lots allocated to him without the approval of the General Manager or his authorized representative. Absence without permission for more than six months shall be considered as abandonment of the said lots and shall be a ground for the forfeiture of rights and discharge of the settler from the settlement, except where his lots are cultivated in accordance with this policy.

SECTION 5.  Cultivation of Farm Lots. — A settler should cultivate one-fourth of the area of the farm lot allocated to him within one (1) year from the date of allocation, one half within 2 years, and the whole area in five (5) years. Failure on the part of the settler to comply with this requirement without justification shall be a ground for forfeiture of rights and his discharge from the settlement.

SECTION 6.  Homestead and Sales Application. — Within one (1) year from allocation of the lots the settler shall be required to file his homestead application with the NARRA, if he has complied with the provision of the next preceding section.

The settler shall file the corresponding application for the sale of the home lot at any time after he has complied with section 2 hereof.

SECTION 7.  Encumbrance and Alienation of Lots. — Except in favor of the Government or any of its branches, units, or institutions, and except as provided in Article VII hereof, farm and home lots shall not be subject to encumbrance or alienation from the date of allocation and for a term of five years from and after the date of issuance of the patent or grant, nor shall they become liable to the satisfaction of any debt contracted prior to the expiration of said period but the improvements or crops thereon may be mortgaged or pledged to the Agricultural Credit Cooperatives and Financing Administration (ACCFA) or its subsidiaries, Farmers' Cooperative Marketing Associations (FACOMAS), rural banks or other credit agencies with the approval of the Board of Directors upon recommendation of the General Manager. Any contract or agreement made or executed in violation of this prohibition shall be void ab initio.


Disposition of Townsite Lots and Conditions Thereof

SECTION 1.  Mode of Disposition. — All townsite lots, except those reserved for town hall, public market, public schools, hospital or health centers, public cemetery and other public uses as well as lots reserved for charitable, civic and other similar purposes, shall be sold, after due notice, at public auction in the Office of the Project Superintendent of the settlement where the lots are located, to the highest bidder, but no bid shall be accepted that does not equal at least two-thirds of the appraised value, nor shall bids be accepted from persons, corporations, associations or partnerships not authorized to purchase public lands for commercial, residential or industrial purposes under the provisions of the Public Land Law (C.A. No. 141), Provided, however, that with respect to church and educational sites, the same may be sold at private sales for such terms, conditions, and stipulations and for such price as may be determined by the Board of Directors.

SECTION 2.  Right of Occupants to Equal Highest Bid. — Persons who were duly authorized to occupy residential, commercial and/or industrial lots and who have introduced improvements thereon shall have the option to equal the highest bid for the lots they correspondingly occupy and in such cases, the lots shall be awarded to them.

SECTION 3.  Bids. — All bids must be sealed and addressed to the General Manager and must have enclosed therewith cash of certified check, treasury warrant, or post office money order payable to the order of the General Manager, for twenty per centum (20%) of the amount of the bid which amount shall be considered as part payment of the purchased price in case the bid is accepted, otherwise the amount shall be returned to the unsuccessful bidder.

SECTION 4.  Term of Payment. — Residential lots shall be paid for in ten (10) years with moratorium during the first two years after which the successful bidder shall start paying for the lot on the basis of eight equal yearly installments with twelve per centum (12%) interest per annum on overdue installments, but the bidder may pay in full at anytime during the ten-year period.

Commercial and Industrial lots shall be paid for in full not later than thirty days after the award to the successful bidder, otherwise the award shall be null and void and of no effect and the twenty per centum (20%) of the amount of bid required in section three of this Article shall be forfeited in favor of the NARRA.    CADacT

SECTION 5.  Appraisal Committee. — All townsite lots shall be appraised by the Board of Directors. The value of townsite lots shall include the costs of the subdivision survey and the value of whatever improvements introduced thereon, but in no case shall the appraised value of commercial and industrial lots be less than twenty (20) centavos per square meter.

SECTION 6.  Number of Lots That May be Acquired — Not more than one residential lot and one lot for commercial and industrial uses in any townsite shall be sold to any one person, corporation, or association without the specific approval of the Board of Directors.

SECTION 7.  Condition of Sale — The purchaser of any townsite lot shall make improvements of a permanent character appropriate for the purpose for which the land is purchased, within one (1) year from the receipt of the award, the value of which shall at least be equal to the purchase price of lot. Non-compliance with this condition shall annul the sale and all payments shall be forfeited in favor of, and the lot reverted to, the NARRA.

SECTION 8.  Other Modes of Disposition — Townsite lots which are not to be sold at public auction in accordance with section one of this article shall be disposed of by sale, donation, lease or exchange as the Board of Directors shall determine


Cancellation, Forfeiture and Renunciation of Rights

SECTION 1.  Grounds for Involuntary Cancellation or Forfeiture of Rights. — Any violation of, or non-compliance with any provisions of this Policy or of the Contract of Agricultural settlement on the part of a settler shall be a ground for forfeiture of his rights and discharge from the settlement if the particular provision which is violated or not complied with expressly so provides.

SECTION 2.  Grounds for Voluntary Cancellation or Renunciation and Transfer of Rights. — Cancellation is likewise proper in case the settler voluntary forfeits or renounce in writing all his rights and interests as such and leaves the settlement project with the consent of the General Manager or his duly authorized representative.

SECTION 3.  Effect of Involuntary or Voluntary Cancellation. — The cancellation or forfeiture of rights of settlers, voluntary or involuntary shall have the effect of rendering due and demandable the outstanding indebtedness, if any, of the settler with the NARRA.


Amended Procedure in the Investigation of Cases of Involuntary Cancellation of Rights

SECTION 1.  Complaint. — Any person may file a complaint under oath against a settler specifying any of the acts or omissions which is a ground under this Policy for the involuntary cancellation or forfeiture of rights as a NARRA settler. Where the complaint is made by any official or employee of the NARRA, the complaint need not be under oath.

SECTION 2.  Answer. (Now — in lieu of original Sec. 2 which was entirely deleted.) — After the complaint is received by the General Manager of his duly authorized representative, the respondent shall be furnished with a copy thereof and shall be required to submit his answer within 10 days after receipt of same. He may engage the services of a lawyer should he so desire.

SECTION 3.  Investigation. — All complaints for involuntary cancellation and forfeiture filed in accordance with the preceding section shall be investigated by the General Manager or his duly authorized representative. (Amending Sec. 3 of original).

SECTION 4.  Notice. — As soon as the answer of the respondent is received by the General Manager or his duly authorized representative, or after it is sufficiently shown that the respondent refuses to answer, a notice of hearing shall be served to both complainant and respondent at least one week before the date of hearing. Such notice shall specify the nature of the case, hour, date and place where it will be held. In no case shall investigations be held out of the settlement. In all cases where personal service of the notice cannot be had, a copy thereof must be posted at his residence.

SECTION 5.  Hearing. — In every hearing, the parties shall appear in person and may avail themselves of the assistance of counsel, provided, that in case of refusal of respondent to appear after having been given proper notice of such hearing, such respondent may be declared in default and the investigation shall be conducted, allowing the complainant to present his evidence in the absence of the respondent; all witnesses must be sworn to by the investigator. (Amending sec. 5 of original).

SECTION 6.  Report of Investigation. — If the duly authorized representative of the General Manager investigates the case, he shall submit a written report to the General Manager within 20 days after termination of the investigation. (Amending Sec. 6 of the original). The report of the investigation shall state: (a) the location, area and number of the lot; (b) date of allocation; and (c) improvements found thereon and the estimated value of the same as appraised by the Settlement Appraisal Committee. The testimonies of the parties and their respective witnesses who testified during the investigation, shall be taken down in writing and duly subscribed by the person taking down the testimonies or by the investigator himself, and shall also be accompanied with copies of the notices sent to the complainant and to the respondent settlers evidencing their receipt of the original thereof, but where personal service could not be made, the serving officer shall certify on the back thereof, that a copy was posted at the residence of the party concerned.

SECTION 7.  Decision. — After receipt of the report of investigation the General Manager of the NARRA shall decide the case within 30 days. A copy of the decision or order shall be sent to the parties in the same manner, as the notices of hearing provided for in Section 4 of this Article.

SECTION 8.  Appeal. — Within fifteen (15) days from receipt of the copy of the order or decision of the General Manager, the parties may appeal by filing a notice with the General Manager who shall forward the same with the records to the Board of Directors within fifteen (15) days from receipt thereof, otherwise the order or decision shall become final and executory.

SECTION 9.  Appeal from the Decision of the Board of Directors. Within 15 days from receipt of the copy of the order or decision of the Board of Directors, the parties may appeal to the President of the Philippines through the Secretary of Agriculture and Natural Resources by filing a notice of appeal with the said Board through the General Manager, who shall forward the record of the case to the Department of Agriculture and Natural Resources, otherwise the decision of the Board becomes final and executory.

SECTION 10.            (DELETED)


Execution of Decision or Order

SECTION 1.  How Final Decision or Order of Cancellation or Forfeiture Carried Out. — In all cases of involuntary cancellation or forfeiture of rights of a settler and when the decision or order calls for expulsion, the respondent settler shall be ejected from the settlement and all his rights shall be forfeited, The settler so expelled shall thenceforth be disqualified from again becoming a NARRA settler.

SECTION 2.  Application of the Value of Improvements. — In all cases of involuntary cancellation or forfeiture, as well as of voluntary cancellation or renunciation as provided in Section 2, Article IV hereof, the value of the improvements, if any, introduced by the settler on the lots allocated to him shall be determined by the Settlement Appraisal Committee for the settlement project concerned and applied to the payment of his obligations, if any, with the NARRA and to cover costs of ejectment, if necessary. In the event that there is any excess over the obligations and costs, the same shall be forfeited in favor of the NARRA, except in cases of voluntary cancellation or renunciation where the excess, if any, shall be given to the settler.

When no improvements exist on the lot of the settler or the value thereof is insufficient to pay his outstanding obligations with the NARRA the pertinent provisions of the Civil code and the Rules of Court shall apply.

SECTION 3.  Re-allocation of Lots. — Whenever rights to lots are cancelled or forfeited or renounced under these rules, settlers allocated farm lots found not fit for agriculture shall be preferred to other parties in the re-allocation of lots; Provided, however, that no settler shall be in simultaneous possession of more than one farm lot and one home lot. The re-allocatee shall assume, chargeable to his accounts, the appraised value of the improvements, if any, or such lots.    cdrep


Transfer of Rights

(Substitution of Settler)

SECTION 1.  Sale of Rights. — If at any time after the allocation of farm and home lots but before the patent is issued the settler should prove to the satisfaction of the General Manager that he has complied with all requirements of the Land Policy and the Contract of Agricultural Settlement, but that is impossible for him to continue with the cultivation of the land, through no fault of his, and that there exist a purchaser in good faith of the rights to the improvements made by the settler on the farm lot and home lot, and that the transfer is not being made for speculative purposes, the settler, upon recommendation of the General Manager and approval by the Board of Directors, may transfer his rights to the land and improvements thereon to any person possessing the requisite qualifications to become a settler; and immediately after transfer is made and duly approved, the purchaser shall succeed to the rights and obligations of his predecessor who may not again apply for resettlement. Any transfer made without the previous recommendation of the General manager and approval by the Board of Directors is null and void and shall be a ground for involuntary cancellation of forfeiture of rights as provided in Section 1 of Article IV hereof.

SECTION 2.  Other Forms of Transfer. — In cases of transfer of rights not through sale, upon proof of impossibility on the part of the settler to continue with the cultivation of the land, through no fault of his, and that the transfer is not made for speculative purposes, the transferee, upon recommendation of the General Manager and approval of the Board of Directors of the application to become a settler and of the substitution (transfer of rights), shall succeed to the rights and obligations of his predecessor, subject to the pertinent provisions of law.

SECTION 3.  Settler's Application to be Accomplished and Submitted by Transferee. —In all cases of substitution or transfer of rights by a settler, the transferee must be required to accomplish the "Application to Become A Settler" (NARRA FORM NO. 1) which shall be submitted together with the instrument of transfer to the General Manager.

SECTION 4.  Outstanding Indebtedness of the Transferor. — No transfer of rights or substitution of settler as contemplated in the next three preceding sections shall be effective unless the outstanding accounts (amount of indebtedness), if any, of the transferor with the NARRA have first been liquidated and paid or in lieu thereof, assumed by the transferee in writing or through proper contract with the NARRA.

SECTION 5.  Succession in Case of Death. — Any provision of this policy to the contrary notwithstanding, in case of death of a settler after the allocation of farm lot and a home lot to him is made but before the patent therefore is issued, his heirs represented by the surviving spouse or, in her absence, the eldest dependent of legal age or, in the absence of the foregoing, the guardian duly appointed a competent court, shall automatically succeed to the rights and obligations of the decedent, subject to the laws, rules and regulations pertinent thereto.    HAcaCS

SECTION 6.  Transfer of Rights by Non-Christian Settlers. — Transfer of rights made by non-Christian settlers, when proper, shall be valid if the settler making the transfer is able to read and can understand the language in which the instrument is written. Transfer of rights made illiterate non-Christian settlers shall not be valid unless duly approved by the provincial Governor, besides the approval mentioned in the last sentence of section 1 of this article.


Special Projects

SECTION 1.  Definitions. — Special projects are settlement projects established in landed estates or in portion thereof acquired by the NARRA through purchase for conveyance to the bona-fide and actual tenants or occupants thereof. The provisions of the preceding articles not inconsistent with this article may be applied to supplement these provisions on special projects.

SECTION 2.  Disposition and Persons Qualified. — Except as otherwise directed by the President of the Philippines or by law, all lots within special projects shall be disposed of only through sale to bona-fide and actual occupants and tenants qualified to acquire and own lands in the Philippines, at cost and under such terms and conditions as may be prescribed by the Board of Director; Provided, however, That where there is after the subdivision survey an excess of lots over the number of tenants or occupants such excess lots may be sold to other landless bona-fide tenants.    DcCITS


Miscellaneous Provisions

SECTION 1.  Revocation of Previous Policy and Other Rules. —The previous Land Policy is hereby revoked, by rights acquired and obligations incurred under said policy shall not in any way be affected by this revised Land Policy. All rules, regulations, orders and policies on cancellation or forfeiture and transfer of rights or substitution previously issued are hereby revoked or amended accordingly.

SECTION 2.  Effectivity. — This policy shall take effect upon its approval.

APPROVED: June 4, 1960


Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines
Tel. No.: (632) 928-7031 to 39

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