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A
Policy Statements

Section 24 of Republic Act No. 6657 provides that the rights and responsibilities of the beneficiary shall commence from the time the DAR makes an award of the land to him, which award shall be completed within 180 days from the time the DAR takes actual possession of the land.  Ownership of the land by the beneficiary shall be evidenced by an Emancipation Patent (EP) or a Certificate of Landownership Award (CLOA), which shall contain the restrictions and conditions provided by law, and which shall be recorded in the Register of Deeds concerned and  annotated on the Certificate of Title.

In several instances, however, the EP or CLOA cannot be immediately issued pending the fulfillment of certain legal and administrative requirements.  Examples of these are:

	-	the Supreme Court ruling in the case “Association of Small Landowners in the Philippines, Inc., et al. versus the Honorable Secretary of Agrarian Reform” (G.R. No. 78742, 14 July 1989) that title to all expropriated properties shall be transferred to the State only upon full payment of compensation to their respective landowners;
	-	the conduct of subdivision surveys to define the specific parcel of land being awarded through the EP or CLOA; and
	-	the consolidation of titles in foreclosure proceedings for lands acquired and distributed through Executive Order (EO) No. 407, series of 1990, as amended by EO No. 448, series of 1991.

Thus, pending the fulfillment of the said requirements, the identified beneficiaries may already be in possession of the land but still have no EP or CLOA therefor.  For this reason, the DAR shall first issue a CARP Beneficiary Certificate (CBC) to provide the would-be beneficiaries an intermediate document to evidence that they have been identified and have qualified as agrarian reform beneficiaries under the CARP.

Moreover, aside from attesting to the inchoate right of the identified beneficiary to be awarded the land or portion thereof, the CBC issued shall entitle the recipient to receive support services under the CARP

B
Coverage

CBCs shall be issued to farmers or farm-workers who have been properly identified and have qualified as beneficiaries of the CARP and have executed the required Application to Purchase-Farmer’s Undertaking (APFU) or Land Valuation Summary-Farmer’s Undertaking (LVSFU).  Moreover, these qualified beneficiaries must be in actual possession of the land to be awarded to them, either because they are tenants, they are already working on the land under a system of labor administration, or the landowner does not object to the takeover by the DAR and the beneficiaries.

With respect to the land, CBCs shall be issued for:

1. all lands covered by CARP for which Notices of Acquisition (CARP Form Nos. 10 or 11, Administrative Order No. 9, series of 1990) have been issued by the Regional Director;

2. agricultural landholdings (private or public) turned over to the DAR through a Deed of Transfer or Memorandum of Agreement pursuant to EO No. 407, as amended by EO No. 448, and other laws;

3. areas for which EPs have already been generated but cannot be registered in view of LRA Circular No. 29 dated October 1, 1990, as supplemented by LRA Circular No. 29-A dated November 7, 1990, and other constraints; and

4. areas covered under Operation Land Transfer which have not been covered  by a Certificate of Land Transfer (CLT) or an EP, as well as those subject to subsequent land transfer actions.

C
Operating Procedures

On the basis of the APFU or LVSFU signed by prospective recipients as qualified under Section B of these rules:

1. The Provincial Agrarian Reform Office (PARO) shall:

1. Prepare the CBCs and Acknowledgement Receipts (Annexes 1^* and 2^*) based on the copy of the duly accomplished CARP Form No. 19, Administrative Order No. 10, series of 1990;
   
   
2. Forward the duly accomplished CBCs together with the original and duplicate Acknowledgment Receipts attached thereto to the Regional Office for the signature of the Regional Director, but retain the LDF for use in subsequent EP/CLOA generation; and
   
   
3. Log all generated CBCs forwarded to the Regional Director.

2. The Regional Director shall then:

1. Review the generated CBCs and Acknowledgment Receipts for accuracy and consistency;
   
   
2. Sign the CBCs and return these and the Acknowledgment Receipts to the PARO; and
   
   
3. Log all signed CBCs.

3. Upon receipt of the signed CBCs, the PARO shall:

1. In collaboration with concerned MARO, distribute the CBCs to the beneficiaries, requiring them to sign the original and duplicate of the Acknowledgment Receipts;
   
   
2. Transmit, for record purposes, the original copy of the Acknowledgment Receipts to the Regional Director, retaining the duplicates thereof;
   
   
3. Maintain a separate Record Book for all CBCs distributed by landholding and by municipality for proper control and monitoring purposes; and
   
   
4. Submit to the DAR Central Office (Attention: Management Information Service and Bureau of Land Acquisition and Distribution) periodic reports on CBCs distributed.
   

D
Cancellation or Nullification of Issued
CBCs

CBCs issued by the Regional Director may be cancelled, nullified, or withdrawn upon:

1. Subsequent verification that the recipient is disqualified to be a beneficiary of the CARP;

2. Proper determination that the land subject of the CBC is not transferable under the CARP; and

3. Receipt of written notice from the identified beneficiary that he is no longer interested in becoming a beneficiary or he is waiving his right to the land award, which will forever bar the identified beneficiary from becoming an awardee of the CARP.

The prohibited acts under existing laws that would warrant the disqualification of the beneficiary or his forfeiture of his rights to the land shall apply in these rules in a suppletory character.

The Regional Director shall issue the proper Orders of Cancellation which shall be serially numbered.  A report thereof shall be included in the monthly report of the Regional Office to the Secretary (Attention: MIS and BLAD).

In all cases, recipients of CBCs shall be required to surrender to the Regional Director the certificates subject of Orders of Cancellation.

E
Effectivity

This Administrative Order shall take effect ten (10) days after publication in two (2) newspapers of general circulation pursuant to Section 49 of RA 6657.  This Order supersedes DAR Memorandum Circular No. 5, series of 1990, and modifies or revokes all other issuances which are inconsistent with it.

Adopted: 2 Oct. 1991

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^* Text available upon request at the Office of the National Administrative Register (ONAR), U.P. Law Center, Diliman, Quezon City