(NAR) VOL. 25 NO. 1 / JANUARY - MARCH 2014
I. COVERAGE
These guidelines shall apply to ARBs who are:
a) | Awardees under R.A. No. 6657, as amended, who have fully paid the land amortizations and applicable interests to the LBP pursuant to Section 26 of this Act; and |
b) | Awardees under Presidential Decree (P.D.) No. 27 who have fully paid the land amortizations and applicable interests to the LBP pursuant to Executive Order (E.O.) No. 228. |
II. LEGAL BASES
a) | Section 26 of R.A. No. 6657, as amended, provides that lands awarded pursuant to this act shall be paid by the ARBs to LBP in thirty (30) annual amortizations at six percent (6%) interest per annum. |
b) | Section 12 of Executive Order (E.O.) No. 229 states that lands acquired and redistributed by the government shall be paid for by the beneficiaries in thirty (30) equal annual payments at six percent (6%) per annum interest, with the first repayment due one year after resale, and a two percent (2%) interest rebate for amortizations paid on time, provided that in no case shall the annual amortizations exceed ten percent (10%) of the land's annual value of gross production. Should the amortization exceed ten percent (10%), the LBP shall reduce the interest rate and/or reduce the principal obligation to make the repayments affordable. |
c) | Section 6 of E.O. No. 228 provides that the total cost of the land awarded pursuant to P.D. No. 27, including interest at the rate of six percent (6%) per annum with a two percent (2%) interest rebate for amortizations paid on time, shall be paid by the farmer-beneficiary or his heirs to the LBP over a period of up to twenty (20) years in twenty (20) equal amortizations. Lands already valued and financed by the LBP are likewise extended a 20-year period of payment of twenty (20) equal annual amortizations. However, the farmer-beneficiary if he so elects, may pay in full before the twentieth year or may request the LBP to restructure a repayment period of less than twenty (20) years if the amount to be financed and the corresponding annual obligations are well within the farmer’s capacity to meet. |
d) | Section III, Item 2 of DAR AO No. 1, series of 2011 provides that the basis of the amortization by the farmer-beneficiary shall be the DAR valuation determined pursuant to PD 27/EO 228. |
e) | Department of Justice (DOJ) Opinion No. 67, series of 2013 categorically states that “the Government shall subsidize the amount of the adjustment or increase as a result of the re-evaluation made by either the DARAB or the court in the administrative proceedings or just compensation case, respectively.” |
III. GENERAL GUIDELINES AND PROCEDURES IN THE DETERMINATION
OF THE LAND AMORTIZATIONS TO BE PAID BY THE ARBs
IV. ISSUANCE OF CERTIFICATE OF FULL PAYMENT
AND RELEASE OF REAL ESTATE MORTGAGE BY THE LBP
V. EFFECTIVITY
This Joint Memorandum Circular shall take effect immediately.
Metro Manila, 23 December, 2013.
(SGD) VIRGILIO R. DE LOS REYES Secretary Department of Agrarian Reform | (SGD) GILDA E. PICO President & CEO Land Bank of the Philippines |