Guidelines on Full Payment and Mortgage Release

RA 6657, Section 26: ARBs shall pay land awarded in thirty (30) annual amortizations at 6% interest per annum.
EO No. 229, Section 12: Lands acquired and redistributed to be paid in 30 equal annual payments at 6% interest per annum, with a 2% rebate for timely payments. Amortization shall not exceed 10% of land’s annual value; otherwise, LBP must adjust terms.
EO No. 228, Section 6: Land cost under PD 27 to be paid over 20 years in 20 equal amortizations at 6% interest with a 2% rebate for timely payments. Options for early full payment or shorter restructuring allowed.
DAR AO No. 1, series 2011: Amortizations based on DAR valuation under PD 27/EO 228.
DOJ Opinion No. 67, series 2013: Government subsidizes cost increases arising from re-evaluation by DARAB or courts in administrative or just compensation cases.

For R.A. 6657 claims: Amortizations based on Notice of Land Valuation and Acquisition (NLVA).
For PD 27/EO 228 claims: Amortizations depend on Land Valuation Summary and Farmer's Undertaking (LVSFU).
If PMS valuation used under PD 27, DAR must generate Claims Adjustment Folder (CAF) or submit Final Survey Documents (FSD) to LBP for Land Amortization Schedule (LAS) adjustment before processing full payment.
Increases or decreases in total area acquired are reflected in the LAS.
Amortization amounts remain unaffected by any higher valuations awarded by DARAB or courts.
Higher Average Gross Production (AGP) data used by courts does not increase amortization amounts; original AGP per LBP-approved schedule is maintained.
These provisions intend to ensure affordability for ARBs and government subsidy is protected regardless of valuation increases.

Upon full payment of amortizations, LBP shall issue:
- Certificate of Full Payment (CFP)
- Release of Real Estate Mortgage (ROREM)
These documents enable ARBs to request cancellation or release of liens on Emancipation or CLOA titles from the Register of Deeds.
The CFP integrated with ROREM is notarized and must be registered with the concerned Register of Deeds.
LBP shall follow established accounting and auditing procedures in issuance.

The Joint Memorandum Circular immediately takes effect as of December 23, 2013.
Signed by the Secretary of the Department of Agrarian Reform and the President & CEO of the Land Bank of the Philippines.