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By authority of the  United States, be it enacted by the Philippine Legislature, that:

SECTION 1. Section two of Act Numbered Twenty-three hundred and sixty, entitled "An Act providing for the sale of the land known as the San Lazaro estate, in the city of Manila," is hereby amended so as to read as follows:

"SEC. 2. Prior to July first, nineteen hundred and fifteen, all bona fide occupants of the said estate shall be entitled to purchase all the lands occupied by them or by their legal representatives as shown by the records of the Bureau of Lands, not to exceed fifteen hundred square meters for residential and twelve thousand square meters for charitable, religious, or any other purposes, at a, price to be fixed by the Director of Lands with the approval of the Secretary of the Interior not to exceed the value at which said lands are now assessed by the city assessor and collector of Manila, and the purchase price may be paid cash down or in semiannual installments within a period of not more than fifteen years, and the purchasers shall be compelled to pay the cost of the surveys necessary to carry out the purposes of this Act, which shall be added to the sale value of the lands surveyed. Land or lands purchased in accordance with the provisions of this Act shall be subject to the payment of the land tax, like any other property, from the date of the execution of the contract covering it or them.

"For the purposes of this Act, lands purchased by the city of Manila shall be considered as residential lots, without limitation as to area, and the actual cost of the improvements made on said lots by the city of Manila shall be deducted from the price thereof."

SEC. 2. Section three of said Act Numbered Twenty-three hundred and sixty, entitled "An Act providing for the sale of the land known as the San Lazaro estate, in the city of Manila," is hereby amended so as to read as follows:

"SEC. 3. Any occupied lands not sold in accordance with the last preceding section may be leased in accordance with the provisions of Act Numbered Twenty-two hundred and thirty or sold at auction at a price not less than their assessed value, fixed by the Director of Lands with the approval of the Secretary of the Interior, and payment shall be made as provided in the last preceding section hereof.

"Vacant lands may be leased for a period not to exceed fifteen years or sold at public auction for cash, at a price not less than their assessed value to be fixed by the Director of Lands with the approval of the Secretary of the Interior:

Provided, That at the expiration of the leases herein provided, all lands covered thereby shall be offered for sale at public auction, for cash.

"The purchasers of lands at public auction shall respect any contract of lease that the Director of Lands may have made prior thereto.

"If the purchasers at public auction are not the lessees   improvements, themselves, they shall pay to the owners of the improvements made on said lands the value thereof, which shall be agreed upon between the Director of Lands and the owners of said improvements."

SEC. 3. Section four of said Act Numbered Twenty-three hundred and sixty is likewise amended, so as to read as follows:

"SEC. 4. Deferred payments of the price of the lands ed sold under the provisions of this Act for residential, charitable, and religious purposes shall bear interest at the rate of four per centum per annum, and on lands sold for any other purpose at six and one-half per centum per annum."

SEC. 4. Section five of the said Act Numbered Twenty-three hundred and sixty is hereby amended so as to read as follows:

"SEC. 5. The title to any lands sold under the provisions conveyance of title, of this Act shall not be conveyed until the purchasers shall have fully paid all installments on the purchase price and interest thereon, and any sale or encumbrance thereof shall be null and void as against the Government of the Philippine Islands and shall be in all respects subordinate to its prior claim."

SEC. 5. Section six of said Act Numbered Twenty-three hundred and sixty is likewise amended, so as to read as follows:

"SEC. 6. In the event of the death of a purchaser prior to the complete payment of the price of the lands purchased by him, the person succeeding him in accordance with existing law shall succeed in all his rights and obligations. In case a purchaser shall have conveyed to another his interest or right to the land or lands purchased by him before complete payment of said lands, the person acquiring the same shall succeed him upon notification of his assignment to the Director of Lands and its registration in the Bureau of Lands."

SEC. 6. Section seven of said Act Numbered Twenty-three hundred and sixty is likewise amended, so as to read as follows:

"SEC. 7. In the event that a purchaser is delinquent in the payment of the last installment or of two or more semiannual installments, the Director of Lands, in order to protect the Government from loss, may bring suit for the recovery of the installments or interest due, or for the total amount of the purchase price unpaid, with interest thereon, and may enforce the lien of the Government against the lands by selling the same in accordance with existing law relative to the foreclosure of mortgage liens. In the event of such sale the purchaser at such sale shall acquire a good title, subject to the right of repurchase prescribed by law.  The proceeds of sale shall be applied to the payment of the costs of court and of all installments and interest due or to become due on such lands, and the surplus, if any, shall be returned to the original purchaser or his representative."

SEC. 7. Section ten of Act Numbered Twenty-three hundred and sixty is hereby amended to read as follows:

"SEC. 10. Receipts from sales under the provisions of this Act shall constitute a trust fund set aside exclusively for the care and welfare of lepers in the Philippine Islands, and shall be deposited in the Insular Treasury subject to investment by the Director of Lands at not less than six per centum per annum for such purposes and with such securities as may be approved by the Secretary of the Interior. Receipts from rentals, interest on deferred payments, profits from investments, and miscellaneous collections shall be deposited in the Insular Treasury, to be expended upon appropriation by the Philippine Legislature for the care and welfare of the said lepers and all administrative expense incurred under the provisions of this Act. Should the Philippine Legislature fail to make such appropriation during any fiscal year, the Secretary of the Interior shall apply to the Emergency Board, if such exist, in order that it make said appropriation, and if such Board should no longer exist, or exist but fail to take appropriate action, said Secretary of the Interior shall allot the funds necessary for the purposes aforesaid. At the close of each fiscal year the unexpended balance of funds subject to appropriation as aforesaid shall accrue to and become a part of the trust fund, subject to investment by the Director of Lands."

SEC. 8. Until July first, nineteen hundred and fifteen, purchasers under Act Numbered Twenty-three hundred and sixty shall have the option to request the rescission of their contracts and the execution of new contracts under the provisions of this Act.

SEC. 9. This Act shall take effect on its passage.

Enacted, February 5, 1915.