Question & AnswerQ&A (EXECUTIVE ORDER NO. 228)
All qualified farmer beneficiaries are recognized as full owners as of October 21, 1972, of the land they acquired by virtue of Presidential Decree No. 27, as stated in Section 1.
Valuation is based on the average gross production per hectare determined by the Barangay Committee on Land Production, multiplied by 2.5, then multiplied by the government support price per cavan (P35.00 for palay and P31.00 for corn as of October 21, 1972), as stated in Section 2.
Lease rentals paid to the landowner by the farmer beneficiary after October 21, 1972, are considered as advance payment for the land, according to Section 2.
Landowners may choose (a) bond payment over ten years with a 10% cash down payment and LBP bonds for the balance, (b) direct payment in cash or kind by farmer-beneficiaries with terms approved by the Department of Agrarian Reform, or (c) other modes as prescribed or approved by the Presidential Agrarian Reform Council (Section 3).
They are deemed matured up to 1/25 of their yearly face value per year from issuance to the date of this Executive Order and may be surrendered for payment. Remaining unpaid periods can be claimed under the modes provided in Section 3 (Section 4).
The compensation will be held in trust by the Trust Department of the Land Bank, invested in government securities, and the earnings are for the benefit of the landowner or heirs (Section 5).
The cost including interest shall be paid over up to 20 years in equal annual amortizations, with possible early payment or shorter periods approved by the Land Bank (Section 6).
A lien by way of mortgage exists in favor of the Land Bank on all such lands until all amortizations and interest are fully paid (Section 7).
Failure to pay three annual amortizations is ground for foreclosure. After a final payment notice and a 30-day period, Land Bank may register a certificate of foreclosure with the Registry of Deeds, which effects legal foreclosure (Sections 8 and 9).
The tenant-farmer or compulsory heirs may lift foreclosure within 2 years from registration by paying all unpaid amortizations plus 6% interest (Section 10).
They certify bona fide landless farmers eligible to purchase foreclosed lands and may participate in the lottery to determine the buyer if there are multiple interested parties (Section 11).
All transactions and documents registered with the Register of Deeds pursuant to this Order and P.D. No. 27 are exempt from documentary stamps and registration fees (Section 13).
Such partial invalidity does not affect the other parts of the Executive Order (Section 16).