Full Ownership to Farmer Beneficiaries P.D.27

Valuation is based on average gross production determined by Barangay Committee on Land Production per relevant guidelines.
The value formula: average gross production per hectare × 2.5 × government support price (₱35.00 for palay, ₱31.00 for corn, as of Oct 21, 1972).
Lease rentals paid after the base date by farmer-beneficiaries are considered advance payments for land.
Disputes on lease payments resolved by the Department of Agrarian Reform and Barangay Committee within 30 days; disputed compensations to landowners are processed and held in trust pending court resolution.

Payment options available to landowners:
a) LBP bond payment over 10 years; 10% in cash upfront, balance with bonds bearing market interest rates.
b) Direct payment in cash or kind by farmers with mutual consent and Department approval.
c) Other approved payment modes by Presidential Agrarian Reform Council.

Outstanding Land Bank bonds are deemed matured proportionally from issue date to present and payable upon surrender.
Original landowners may claim remaining unpaid bonds under any compensation modes.
Capital gains tax exemption on compensation payments.

Compensation unaccepted by landowners shall be held in trust by Land Bank’s Trust Department.
Funds are invested only in government securities guaranteeing safety and returns benefit landowners or heirs.

Total land cost plus 6% interest payable over 20 years in equal annual amortizations.
2% interest rebate for timely payments.
Early full payment allowed or shorter repayment periods negotiated.
Ownership transfers upon full amortization payment.

All Land Bank financed lands bear a mortgage lien until full payment of principal and interest.
Non-payment for three consecutive years constitutes grounds for foreclosure by Land Bank.

Land Bank issues final payment notice to delinquent farmers and Dept. of Agrarian Reform.
After 30 days and with proof of service, Land Bank files sworn certification with Registry of Deeds.
Mortgage is foreclosed upon registration.
Alternative public posting of notice if farmer cannot be served.
Creation of a separate registry book for foreclosure entries at Registry of Deeds.

Farmer or compulsory heirs have 2 years to lift foreclosure by paying all unpaid amortizations with interest.
Failure to redeem within period results in ownership transfer to Land Bank.

Land Bank sells foreclosed land within 3 months to bona fide landless farmers certified by Dept. of Agrarian Reform.
Price includes unpaid amortizations and 6% interest.
Multiple interested buyers resolved by lottery.
Transfer ownership upon registration of Deed of Conveyance.
Mortgage lien continues on title for remaining balance.

Land Bank to notify Dept. of Agrarian Reform and post notice in public places at least 1 month before sale.
Notice must specify land description, price, sale date, and venue.

National Land Titles and Deeds Registration Administration authorized to promulgate relevant rules protecting Torrens System integrity and parties' interests.
All registration of transactions and documents under P.D. No. 27 and this order exempted from documentary stamp taxes and registration fees.

Department of Agrarian Reform and Land Bank tasked to issue implementing rules within 60 days.

An Agrarian Reform Operating Fund established in Land Bank, overseen by the Government Corporation Monitoring and Coordinating Committee (GCMCC).
Fund used to cover operating costs, losses, and credit facilities for farmers and organizations.
Land Bank must submit annual accounting and funding requirements to GCMCC for approval.
Approved funds coordinated for release with relevant government departments.

Inconsistent laws, decrees, orders, regulations, or parts are repealed or modified accordingly.

The Executive Order is effective upon signing and publication as mandated by law.