Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 500)
It concerns the donation, transfer, or conveyance of a portion of land and its improvements from the Government Service Insurance System (GSIS) to the National Press Club of the Philippines (NPC), specifically a parcel of land covered by Transfer Certificate of Title No. 38690 in Manila.
The National Press Club originally acquired a parcel of land with an area of Four Thousand Two Hundred Eighty-Eight (4,288) square meters.
NPC leased a portion of the land measuring 1,884 square meters to PLDT for 50 years, with the condition that ownership of all PLDT improvements on the land would revert to NPC upon lease termination.
The NPC mortgaged the entire parcel of land to GSIS to secure loans. Upon defaulting on the loans, ownership of the land and improvements was registered under GSIS.
The appraised value of the land leased to PLDT and the building thereon (P2,272,000) exceeds the GSIS financial exposure (P1,281,696.73), ensuring the donation of the NPC building and remaining land would not prejudice GSIS' financial interest.
A portion of the land covering 2,404 square meters described as Lot 7-B-1-A in Intramuros, Manila, with detailed boundary descriptions as per the subdivision plan Psd-247274.
NPC shall assign, transfer, and convey its rights and privileges under the lease contract with PLDT to GSIS.
NPC shall not sell, transfer, donate, convey, or encumber the donated land and improvements without prior written consent from GSIS.
The land and/or improvements shall ipso facto revert to GSIS without compensation.
They are directed to assist in the transfer or conveyance of the land and improvements and in the issuance of the Transfer Certificate of Title in the name of the National Press Club of the Philippines.