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    Republic Act No. 7652

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    Ju Balajadia
    The Investors' Lease Act allows foreign investors to lease private lands through long-term agreements not exceeding 50 years to establish industrial facilities, factories, tourism projects, and other priority endeavors. It aims to encourage foreign investment while protecting Philippine patrimony. The lease contracts must use the land solely for the approved investment purpose and may be terminated for non-operation of 3 years or outright project abandonment. Prohibited acts like excessive lease periods or unauthorized land uses are punishable with fines and imprisonment.

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    Republic Act No. 7652

    Uploaded by

    Ju Balajadia
    364 views2 pages
    The Investors' Lease Act allows foreign investors to lease private lands through long-term agreements not exceeding 50 years to establish industrial facilities, factories, tourism projects, and other priority endeavors. It aims to encourage foreign investment while protecting Philippine patrimony. The lease contracts must use the land solely for the approved investment purpose and may be terminated for non-operation of 3 years or outright project abandonment. Prohibited acts like excessive lease periods or unauthorized land uses are punishable with fines and imprisonment.

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    The Investors' Lease Act allows foreign investors to lease private lands through long-term agreements not exceeding 50 years to establish industrial facilities, factories, tourism projects, and other priority endeavors. It aims to encourage foreign investment while protecting Philippine patrimony. The lease contracts must use the land solely for the approved investment purpose and may be terminated for non-operation of 3 years or outright project abandonment. Prohibited acts like excessive lease periods or unauthorized land uses are punishable with fines and imprisonment.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    364 views2 pages

    Republic Act No. 7652

    Uploaded by

    Ju Balajadia
    The Investors' Lease Act allows foreign investors to lease private lands through long-term agreements not exceeding 50 years to establish industrial facilities, factories, tourism projects, and other priority endeavors. It aims to encourage foreign investment while protecting Philippine patrimony. The lease contracts must use the land solely for the approved investment purpose and may be terminated for non-operation of 3 years or outright project abandonment. Prohibited acts like excessive lease periods or unauthorized land uses are punishable with fines and imprisonment.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    REPUBLIC ACT NO. 7652
    .

    AN ACT ALLOWING THE LONG-TERM LEASE


    OF PRIVATE LANDS BY FOREIGN INVESTORS

    Q:1) What are the purpose of the investors Lease Act?

    A:) The purposes are as follows:


    a.) To encourage foreign investments consistent with the constitutional
    mandate to conserve and develop our own patrimony.
    b.) To adopts a flexible and dynamic policy of the granting of long-term
    lease on private lands to foreign investors for the establishment of
    industrial estates, factories, assembly or processing plants, agro-
    industrial enterprises, land development for industrial, or commercial
    use, tourism, and other similar priority productive endeavors.

    Q:2) What is meant by "Investing in the Philippines"?

    A:) It shall mean making an equity investment in the Philippines through actual
    remittance of foreign exchange or transfer of assets, whether in the form of
    capital goods, patents, formulas, or other technological rights or processes, upon
    registration with the Securities and Exchange Commission.

    Q:) Who are those covered by the lease agreement?

    A:) Any foreign investor investing in the Philippines shall be allowed to lease
    private lands in accordance with the laws of the Republic of the Philippines.

    Q:) Enumerate the conditions provided in the lease agreement entered into with
    the foreign investors.

    A:) (1) No lease contract shall be for a period exceeding fifty (50) years, renewable
    once for a period of not more than twenty- five (25) years;

    (2) The leased area shall be used solely for the purpose of the
    investment upon the mutual agreement of the parties;

    (3) The leased premises shall comprise such area as may reasonably be
    required for the purpose of the investment subject however to the
    Comprehensive Agrarian Reform Law and the Local Government Code.
    Q:) Under what circumstances may ipso facto warrant the termination of the lease
    agreement?

    A:) (1) Withdrawal of the approved investment in the Philippines within the period
    of the lease agreement entered into which shall mean either:
    a) the failure to operate the investment project for any three (3)
    consecutive years; or
    b) outright abandonment of the investment project at any time during
    the approved lease period.
    (2) use of the leased area for the purpose other than that authorized.

    Q:) Who shall effect the termination of lease?

    A:) The Secretary of Trade and Industry shall terminate any lease contract entered
    into under the provisions of this Act, if the investment project is not initiated
    within three (3) years from the signing of the lease contract.

    Q:) Enumerate the prohibited acts provided in the lease agreement.

    A:) (1) Any provision in the lease agreement stipulating a lease period in excess of
    that provided in paragraph (1) Section 4;

    (2) Use of the leased premises for the purpose contrary to existing laws
    of the land, public order, public policy, morals, or good customs;

    (3) Any agreement or agreements resulting is the lease of land in


    excess of the area approved by the DTI.

    Q:) What is the effect if the prohibited act is violated?

    A:) (1) Any contract or agreement made or executed in violation of any of


    the preceding prohibited acts shall be null and void ab initio.

    (2) Both contracting parties shall be punished by a fine of not less than
    One Hundred thousand pesos (P100,000) nor more than One million pesos
    (P1,000,000), or imprisonment of six (6) months to (6) years, or both, at the
    discretion of the court.

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