TITLE I barangays, shall ensure that the acts of their component units

BASIC PRINCIPLES are within the scope of their prescribed powers and functions;

CHAPTER I (f) Local government units may group themselves, consolidate or

The Code: Policy and Application coordinate their efforts, services, and resources commonly
beneficial to them;
Section 1. Title. - This Act shall be known and cited as the "Local
Government Code of 1991". (g) The capabilities of local government units, especially the
municipalities and barangays, shall be enhanced by providing
them with opportunities to participate actively in the
Section 2. Declaration of Policy. -
implementation of national programs and projects;

(a) It is hereby declared the policy of the State that the territorial
(h) There shall be a continuing mechanism to enhance local
and political subdivisions of the State shall enjoy genuine and
autonomy not only by legislative enabling acts but also by
meaningful local autonomy to enable them to attain their
administrative and organizational reforms;
fullest development as self-reliant communities and make
them more effective partners in the attainment of national
goals. Toward this end, the State shall provide for a more (i) Local government units shall share with the national
responsive and accountable local government structure government the responsibility in the management and
instituted through a system of decentralization whereby local maintenance of ecological balance within their territorial
government units shall be given more powers, authority, jurisdiction, subject to the provisions of this Code and
responsibilities, and resources. The process of national policies;
decentralization shall proceed from the national government
to the local government units.
(j) Effective mechanisms for ensuring the accountability of local
government units to their respective constituents shall be
(b) It is also the policy of the State to ensure the accountability of strengthened in order to upgrade continually the quality of
local government units through the institution of effective local leadership;
mechanisms of recall, initiative and referendum.
(k) The realization of local autonomy shall be facilitated through
(c) It is likewise the policy of the State to require all national improved coordination of national government policies and
agencies and offices to conduct periodic consultations with programs an extension of adequate technical and material
appropriate local government units, nongovernmental and assistance to less developed and deserving local government
people's organizations, and other concerned sectors of the units;
community before any project or program is implemented in
their respective jurisdictions.1awphil.net
(l) The participation of the private sector in local governance,
particularly in the delivery of basic services, shall be
Section 3. Operative Principles of Decentralization. - The encouraged to ensure the viability of local autonomy as an
formulation and implementation of policies and measures on alternative strategy for sustainable development; and
local autonomy shall be guided by the following operative
principles:
(m) The national government shall ensure that decentralization
contributes to the continuing improvement of the
(a) There shall be an effective allocation among the different local performance of local government units and the quality of
government units of their respective powers, functions, community life.
responsibilities, and resources;
Section 4. Scope of Application. - This Code shall apply to all
(b) There shall be established in every local government unit an provinces, cities, municipalities, barangays, and other political
accountable, efficient, and dynamic organizational structure subdivisions as may be created by law, and, to the extent
and operating mechanism that will meet the priority needs herein provided, to officials, offices, or agencies of the
and service requirements of its communities; national government.

(c) Subject to civil service law, rules and regulations, local officials Section 5. Rules of Interpretation. - In the interpretation of the
and employees paid wholly or mainly from local funds shall be provisions of this Code, the following rules shall apply:
appointed or removed, according to merit and fitness, by the
appropriate appointing authority;
(a) Any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any
(d) The vesting of duty, responsibility, and accountability in local question thereon shall be resolved in favor of devolution of
government units shall be accompanied with provision for powers and of the lower local government unit. Any fair and
reasonably adequate resources to discharge their powers and reasonable doubt as to the existence of the power shall be
effectively carry out their functions: hence, they shall have interpreted in favor of the local government unit concerned;
the power to create and broaden their own sources of
revenue and the right to a just share in national taxes and an
(b) In case of doubt, any tax ordinance or revenue measure shall
equitable share in the proceeds of the utilization and
be construed strictly against the local government unit
development of the national wealth within their respective
enacting it, and liberally in favor of the taxpayer. Any tax
areas;
exemption, incentive or relief granted by any local
government unit pursuant to the provisions of this Code shall
(e) Provinces with respect to component cities and municipalities, be construed strictly against the person claiming it.
and cities and municipalities with respect to component
(c) The general welfare provisions in this Code shall be liberally The income classification of local government units shall be
interpreted to give more powers to local government units in updated within six (6) months from the effectivity of this Code
accelerating economic development and upgrading the to reflect the changes in their financial position resulting from
quality of life for the people in the community; the increased revenues as provided herein.

(d) Rights and obligations existing on the date of effectivity of this Section 9. Abolition of Local Government Units. - A local
Code and arising out of contracts or any other source of government unit may be abolished when its income,
presentation involving a local government unit shall be population, or land area has been irreversibly reduced to less
governed by the original terms and conditions of said than the minimum standards prescribed for its creation under
contracts or the law in force at the time such rights were Book III of this Code, as certified by the national agencies
vested; and mentioned in Section 7 hereof to Congress or to the
sangguniang concerned, as the case may be.
(e) In the resolution of controversies arising under this Code
where no legal provision or jurisprudence applies, resort may The law or ordinance abolishing a local government unit shall
be had to the customs and traditions in the place where the specify the province, city, municipality, or barangay with
controversies take place. which the local government unit sought to be abolished will
be incorporated or merged.
CHAPTER II
General Powers and Attributes of Local Government Units Section 10. Plebiscite Requirement. - No creation, division, merger,
abolition, or substantial alteration of boundaries of local
government units shall take effect unless approved by a
Section 6. Authority to Create Local Government Units. - A local
majority of the votes cast in a plebiscite called for the purpose
government unit may be created, divided, merged, abolished,
in the political unit or units directly affected. Said plebiscite
or its boundaries substantially altered either by law enacted
shall be conducted by the Commission on Elections
by Congress in the case of a province, city, municipality, or
(COMELEC) within one hundred twenty (120) days from the
any other political subdivision, or by ordinance passed by the
date of effectivity of the law or ordinance effecting such
sangguniang panlalawigan or sangguniang panlungsod
action, unless said law or ordinance fixes another date.
concerned in the case of a barangay located within its
territorial jurisdiction, subject to such limitations and
requirements prescribed in this Code. Section 11. Selection and Transfer of Local Government Site,
Offices and Facilities. -
Section 7. Creation and Conversion. - As a general rule, the
creation of a local government unit or its conversion from one (a) The law or ordinance creating or merging local government
level to another level shall be based on verifiable indicators of units shall specify the seat of government from where
viability and projected capacity to provide services, to wit: governmental and corporate services shall be delivered. In
selecting said site, factors relating to geographical centrality,
accessibility, availability of transportation and communication
(a) Income. - It must be sufficient, based on acceptable standards,
facilities, drainage and sanitation, development and economic
to provide for all essential government facilities and services
progress, and other relevant considerations shall be taken
and special functions commensurate with the size of its
into account.
population, as expected of the local government unit
concerned;
(b) When conditions and developments in the local government
unit concerned have significantly changed subsequent to the
(b) Population. - It shall be determined as the total number of
establishment of the seat of government, its sanggunian may,
inhabitants within the territorial jurisdiction of the local
after public hearing and by a vote of two-thirds (2/3) of all its
government unit concerned; and
members, transfer the same to a site better suited to its
needs. Provided, however, That no such transfer shall be
(c) Land Area. - It must be contiguous, unless it comprises two or made outside the territorial boundaries of the local
more islands or is separated by a local government unit government unit concerned.
independent of the others; properly identified by metes and
bounds with technical descriptions; and sufficient to provide
The old site, together with the improvements thereon, may be
for such basic services and facilities to meet the requirements
disposed of by the sale or lease or converted to such other
of its populace.
use as the sangguniang concerned may deem beneficial to the
local government unit concerned and its inhabitants.
Compliance with the foregoing indicators shall be attested to by
the Department of Finance (DOF), the National Statistics
(c) Local government offices and facilities shall not be transferred,
Office (NSO), and the Lands Management Bureau (LMB) of the
relocated, or converted to other uses unless public hearings
Department of Environment and Natural Resources (DENR).
are first conducted for the purpose and the concurrence of
the majority of all the members of the sanggunian concerned
Section 8. Division and Merger. - Division and merger of existing is obtained.
local government units shall comply with the same
requirements herein prescribed for their creation: Provided,
Section 12. Government Centers. - Provinces, cities, and
however, That such division shall not reduce the income,
municipalities shall endeavor to establish a government
population, or land area of the local government unit or units
center where offices, agencies, or branches of the national
concerned to less than the minimum requirements prescribed
government, local government units, or government-owned
in this Code: Provided, further, That the income classification
or controlled corporations may, as far as practicable, be
of the original local government unit or units shall not fall
located. In designating such a center, the local government
below its current classification prior to such division.
unit concerned shall take into account the existing facilities of
 national and local agencies and offices which may serve as the (4) City and municipal hospitals, health centers and other health
government center as contemplated under this Section. The facilities; and
national government, local government unit or government-
owned or controlled corporation concerned shall bear the
(5) Any other public place or building owned by the municipal
expenses for the construction of its buildings and facilities in
government.
the government center.

(d) None of the foregoing local government units, institutions,

Section 13. Naming of Local Government Units and Public Places,
places, or buildings shall be named after a living person, nor
Streets and Structures. -
may a change of name be made unless for a justifiable reason
and, in any case, not oftener than once every ten (10) years.
(a) The sangguniang panlalawigan may, in consultation with the The name of a local government unit or a public place, street
Philippine Historical Commission (PHC), change the name of or structure with historical, cultural, or ethnic significance
the following within its territorial jurisdiction: shall not be changed, unless by a unanimous vote of the
sanggunian concerned and in consultation with the PHC.
(1) Component cities and municipalities, upon the
recommendation of the sanggunian concerned; (e) A change of name of a public school shall be made only upon
the recommendation of the local school board concerned.
(2) Provincial roads, avenues, boulevards, thoroughfares, and
bridges; (f) A change of name of public hospitals, health centers, and other
health facilities shall be made only upon the recommendation
of the local health board concerned.
(3) Public vocational or technical schools and other post-
secondary and tertiary schools;
(g) The change of name of any local government unit shall be
effective only upon ratification in a plebiscite conducted for
(4) Provincial hospitals, health centers, and other health facilities;
the purpose in the political unit directly affected.
and

(h) In any change of name, the Office of the President, the

(5) Any other public place or building owned by the provincial
representative of the legislative district concerned, and the
government.
Bureau of Posts shall be notified.

(b) The sanggunian of highly urbanized cities and of component

Section 14. Beginning of Corporate Existence. - When a new local
cities whose charters prohibit their voters from voting for
government unit is created, its corporate existence shall
provincial elective officials, hereinafter referred to in this
commence upon the election and qualification of its chief
Code as independent component cities, may, in consultation
executive and a majority of the members of its sanggunian,
with the Philippine Historical Commission, change the name
unless some other time is fixed therefor by the law or
of the following within its territorial jurisdiction:
ordinance creating it.

(1) City barangays, upon the recommendation of the sangguniang

Section 15. Political and Corporate Nature of Local Government
barangay concerned;
Units. - Every local government unit created or recognized
under this Code is a body politic and corporate endowed with
(2) City roads, avenues, boulevards, thoroughfares, and bridges; powers to be exercised by it in conformity with law. As such, it
shall exercise powers as a political subdivision of the national
(3) Public elementary, secondary and vocational or technical government and as a corporate entity representing the
schools, community colleges and non-chartered colleges; inhabitants of its territory.

(4) City hospitals, health centers and other health facilities; and Section 16. General Welfare. - Every local government unit shall
exercise the powers expressly granted, those necessarily
implied therefrom, as well as powers necessary, appropriate,
(5) Any other public place or building owned by the city or incidental for its efficient and effective governance, and
government. those which are essential to the promotion of the general
welfare. Within their respective territorial jurisdictions, local
(c) The sanggunians of component cities and municipalities may, in government units shall ensure and support, among other
consultation with the Philippine Historical Commission, things, the preservation and enrichment of culture, promote
change the name of the following within its territorial health and safety, enhance the right of the people to a
jurisdiction: balanced ecology, encourage and support the development of
appropriate and self-reliant scientific and technological
capabilities, improve public morals, enhance economic
(1) City and municipal barangays, upon recommendation of the prosperity and social justice, promote full employment among
sangguniang barangay concerned; their residents, maintain peace and order, and preserve the
comfort and convenience of their inhabitants.
(2) City, municipal and barangay roads, avenues, boulevards,
thoroughfares, and bridges; Section 17. Basic Services and Facilities. -

(3) City and municipal public elementary, secondary and (a) Local government units shall endeavor to be self-reliant and
vocational or technical schools, post- secondary and other shall continue exercising the powers and discharging the
tertiary schools; duties and functions currently vested upon them. They shall
 also discharge the functions and responsibilities of national equipment needed to carry out the services herein
agencies and offices devolved to them pursuant to this Code. enumerated;
Local government units shall likewise exercise such other
powers and discharge such other functions and
(iv) Social welfare services which include programs and projects on
responsibilities as are necessary, appropriate, or incidental to
child and youth welfare, family and community welfare,
efficient and effective provisions of the basic services and
women's welfare, welfare of the elderly and disabled persons;
facilities enumerated herein.
community-based rehabilitation programs for vagrants,
beggars, street children, scavengers, juvenile delinquents, and
(b) Such basic services and facilities include, but are not limited to, victims of drug abuse; livelihood and other pro-poor projects;
the following: nutrition services; and family planning services;

(1) For Barangay: (v) Information services which include investments and job
placement information systems, tax and marketing
information systems, and maintenance of a public library;
(i) Agricultural support services which include planting materials
distribution system and operation of farm produce collection
and buying stations; (vi) Solid waste disposal system or environmental management
system and services or facilities related to general hygiene
and sanitation;
(ii) Health and social welfare services which include maintenance
of barangay health center and day-care center;
(vii) Municipal buildings, cultural centers, public parks including
freedom parks, playgrounds, and other sports facilities and
(iii) Services and facilities related to general hygiene and
equipment, and other similar facilities;
sanitation, beautification, and solid waste collection;

(viii) Infrastructure facilities intended primarily to service the

(iv) Maintenance of katarungang pambarangay;
needs of the residents of the municipality and which are
funded out of municipal funds including but not limited to,
(v) Maintenance of barangay roads and bridges and water supply municipal roads and bridges; school buildings and other
systems; facilities for public elementary and secondary schools; clinics,
health centers and other health facilities necessary to carry
(vi) Infrastructure facilities such as multi-purpose hall, out health services; communal irrigation, small water
multipurpose pavement, plaza, sports center, and other impounding projects and other similar projects; fish ports;
similar facilities; artesian wells, spring development, rainwater collectors and
water supply systems; seawalls, dikes, drainage and
sewerage, and flood control; traffic signals and road signs; and
(vii) Information and reading center; and similar facilities;

(viii) Satellite or public market, where viable; (ix) Public markets, slaughterhouses and other municipal
enterprises;
(2) For a Municipality:
(x) Public cemetery;
(i) Extension and on-site research services and facilities related to
agriculture and fishery activities which include dispersal of (xi) Tourism facilities and other tourist attractions, including the
livestock and poultry, fingerlings, and other seedling materials acquisition of equipment, regulation and supervision of
for aquaculture; palay, corn, and vegetable seed farms; business concessions, and security services for such facilities;
medicinal plant gardens; fruit tree, coconut, and other kinds and
of seedling nurseries; demonstration farms; quality control of
copra and improvement and development of local distribution
channels, preferably through cooperatives; interbarangay (xii) Sites for police and fire stations and substations and municipal
irrigation system; water and soil resource utilization and jail;
conservation projects; and enforcement of fishery laws in
municipal waters including the conservation of mangroves; (3) For a Province:

(ii) Pursuant to national policies and subject to supervision, control (i) Agricultural extension and on-site research services and
and review of the DENR, implementation of community-based facilities which include the prevention and control of plant
forestry projects which include integrated social forestry and animal pests and diseases; dairy farms, livestock markets,
programs and similar projects; management and control of animal breeding stations, and artificial insemination centers;
communal forests with an area not exceeding fifty (50) square and assistance in the organization of farmers and fishermen's
kilometers; establishment of tree parks, greenbelts, and cooperatives, and other collective organizations, as well as
similar forest development projects; the transfer of appropriate technology;

(iii) Subject to the provisions of Title Five, Book I of this Code, (ii) Industrial research and development services, as well as the
health services which include the implementation of transfer of appropriate technology;
programs and projects on primary health care, maternal and
child care, and communicable and non-communicable disease
(iii) Pursuant to national policies and subject to supervision,
control services, access to secondary and tertiary health
control and review of the DENR, enforcement of forestry laws
services; purchase of medicines, medical supplies, and
limited to community-based forestry projects, pollution
 control law, small-scale mining law, and other laws on the (e) National agencies or offices concerned shall devolve to local
protection of the environment; and mini-hydroelectric government units the responsibility for the provision of basic
projects for local purposes; services and facilities enumerated in this Section within six (6)
months after the effectivity of this Code.
(iv) Subject to the provisions of Title Five, Book I of this Code,
health services which include hospitals and other tertiary As used in this Code, the term "devolution" refers to the act by
health services; which the national government confers power and authority
upon the various local government units to perform specific
functions and responsibilities.
(v) Social welfare services which include programs and projects on
rebel returnees and evacuees; relief operations; and
population development services; (f) The national government or the next higher level of local
government unit may provide or augment the basic services
and facilities assigned to a lower level of local government
(vi) Provincial buildings, provincial jails, freedom parks and other
unit when such services or facilities are not made available or,
public assembly areas and similar facilities;
if made available, are inadequate to meet the requirements of
its inhabitants.
(vii) Infrastructure facilities intended to service the needs of the
residence of the province and which are funded out of
(g) The basic services and facilities hereinabove enumerated shall
provincial funds including, but not limited to, provincial roads
be funded from the share of local government units in the
and bridges; inter-municipal waterworks, drainage and
proceeds of national taxes and other local revenues and
sewerage, flood control, and irrigation systems; reclamation
funding support from the national government, its
projects; and similar facilities;
instrumentalities and government-owned or controlled
corporations which are tasked by law to establish and
(viii) Programs and projects for low-cost housing and other mass maintain such services or facilities. Any fund or resource
dwellings, except those funded by the Social Security System available for the use of local government units shall be first
(SSS), Government Service Insurance System p. 172 (GSIS), allocated for the provision of basic services or facilities
and the Home Development Mutual Fund (HDMF): Provided, enumerated in subsection (b) hereof before applying the
That national funds for these programs and projects shall be same for other purposes, unless otherwise provided in this
equitably allocated among the regions in proportion to the Code.
ratio of the homeless to the population;
(h) Regional offices of national agencies or offices whose functions
(ix) Investment support services, including access to credit are devolved to local government units as provided herein
financing; shall be phased out within one (1) year from the approval of
this Code. Said national agencies and offices may establish
(x) Upgrading and modernization of tax information and collection such field units as may be necessary for monitoring purposes
services through the use of computer hardware and software and providing technical assistance to local government units.
and other means; The properties, equipment, and other assets of these regional
offices shall be distributed to the local government units in
the region in accordance with the rules and regulations issued
(xi) Inter-municipal telecommunications services, subject to by the oversight committee created under this Code.
national policy guidelines; and

(i) The devolution contemplated in this Code shall include the

(xii) Tourism development and promotion programs; transfer to local government units of the records, equipment,
and other assets and personnel of national agencies and
(4) For a City: offices corresponding to the devolved powers, functions, and
responsibilities.
All the services and facilities of the municipality and province, and
in addition thereto, the following: Personnel of said national agencies or offices shall be absorbed by
the local government units to which they belong or in whose
areas they are assigned to the extent that it is administratively
(1) Adequate communication and transportation facilities; viable as determined by the said oversight committee:
Provided, That the rights accorded to such personnel pursuant
(c) Notwithstanding the provisions of subsection (b) hereof, public to civil service law, rules and regulations shall not be
works and infrastructure projects and other facilities, impaired: Provided, further, That regional directors who are
programs and services funded by the national government career executive service officers and other officers of similar
under the annual General Appropriations Act, other special rank in the said regional offices who cannot be absorbed by
laws, pertinent executive orders, and those wholly or partially the local government unit shall be retained by the national
funded from foreign sources, are not covered under this government, without any diminution of rank, salary or tenure.
Section, except in those cases where the local government
unit concerned is duly designated as the implementing agency (j) To ensure the active participation of the private sector in local
for such projects, facilities, programs, and services. governance, local government units may, by ordinance, sell,
lease, encumber, or otherwise dispose of public economic
(d) The designs, plans, specifications, testing of materials, and the enterprises owned by them in their proprietary capacity.
procurement of equipment and materials at P170 from both
foreign and local sources necessary for the provision of the Costs may also be charged for the delivery of basic services or
foregoing services and facilities shall be undertaken by the facilities enumerated in this Section.
local government unit concerned, based on national policies,
standards and guidelines.
Section 18. Power to Generate and Apply Resources. - Local otherwise known as "The Comprehensive Agrarian Reform
government units shall have the power and authority to Law", shall not be affected by the said reclassification and the
establish an organization that shall be responsible for the conversion of such lands into other purposes shall be
efficient and effective implementation of their development governed by Section 65 of said Act.
plans, program objectives and priorities; to create their own
sources of revenues and to levy taxes, fees, and charges which
(b) The President may, when public interest so requires and upon
shall accrue exclusively for their use and disposition and
recommendation of the National Economic and Development
which shall be retained by them; to have a just share in
Authority, authorize a city or municipality to reclassify lands in
national taxes which shall be automatically and directly
excess of the limits set in the next preceding paragraph.
released to them without need of any further action; to have
an equitable share in the proceeds from the utilization and
development of the national wealth and resources within (c) The local government units shall, in conformity with existing
their respective territorial jurisdictions including sharing the laws, continue to prepare their respective comprehensive
same with the inhabitants by way of direct benefits; to land use plans enacted through zoning ordinances which shall
acquire, develop, lease, encumber, alienate, or otherwise be the primary and dominant bases for the future use of land
dispose of real or personal property held by them in their resources: Provided. That the requirements for food
proprietary capacity and to apply their resources and assets production, human settlements, and industrial expansion
for productive, developmental, or welfare purposes, in the shall be taken into consideration in the preparation of such
exercise or furtherance of their governmental or proprietary plans.
powers and functions and thereby ensure their development
into self-reliant communities and active participants in the (d) Where approval by a national agency is required for
attainment of national goals. reclassification, such approval shall not be unreasonably
withheld. Failure to act on a proper and complete application
Section 19. Eminent Domain. - A local government unit may, for reclassification within three (3) months from receipt of the
through its chief executive and acting pursuant to an same shall be deemed as approval thereof.
ordinance, exercise the power of eminent domain for public
use, or purpose or welfare for the benefit of the poor and the (e) Nothing in this Section shall be construed as repealing,
landless, upon payment of just compensation, pursuant to the amending, or modifying in any manner the provisions of R.A.
provisions of the Constitution and pertinent laws: Provided, No. 6657.
however, That the power of eminent domain may not be
exercised unless a valid and definite offer has been previously
made to the owner, and such offer was not accepted: Section 21. Closure and Opening of Roads. -
Provided, further, That the local government unit may
immediately take possession of the property upon the filing of (a) A local government unit may, pursuant to an ordinance,
the expropriation proceedings and upon making a deposit permanently or temporarily close or open any local road,
with the proper court of at least fifteen percent (15%) of the alley, park, or square falling within its jurisdiction: Provided,
fair market value of the property based on the current tax however, That in case of permanent closure, such ordinance
declaration of the property to be expropriated: Provided, must be approved by at least two-thirds (2/3) of all the
finally, That, the amount to be paid for the expropriated members of the sanggunian, and when necessary, an
property shall be determined by the proper court, based on adequate substitute for the public facility that is subject to
the fair market value at the time of the taking of the property. closure is provided.

Section 20. Reclassification of Lands. - (b) No such way or place or any part thereof shall be permanently
closed without making provisions for the maintenance of
(a) A city or municipality may, through an ordinance passed by the public safety therein. A property thus permanently withdrawn
sanggunian after conducting public hearings for the purpose, from public use may be used or conveyed for any purpose for
authorize the reclassification of agricultural lands and provide which other real property belonging to the local government
for the manner of their utilization or disposition in the unit concerned may be lawfully used or conveyed: Provided,
following cases: (1) when the land ceases to be economically however, That no freedom park shall be closed permanently
feasible and sound for agricultural purposes as determined by without provision for its transfer or relocation to a new site.
the Department of Agriculture or (2) where the land shall
have substantially greater economic value for residential, (c) Any national or local road, alley, park, or square may be
commercial, or industrial purposes, as determined by the temporarily closed during an actual emergency, or fiesta
sanggunian concerned: Provided, That such reclassification celebrations, public rallies, agricultural or industrial fairs, or
shall be limited to the following percentage of the total an undertaking of public works and highways,
agricultural land area at the time of the passage of the telecommunications, and waterworks projects, the duration
ordinance: of which shall be specified by the local chief executive
concerned in a written order: Provided, however, That no
(1) For highly urbanized and independent component cities, national or local road, alley, park, or square shall be
fifteen percent (15%); temporarily closed for athletic, cultural, or civic activities not
officially sponsored, recognized, or approved by the local
government unit concerned.
(2) For component cities and first to the third class municipalities,
ten percent (10%); and
(d) Any city, municipality, or barangay may, by a duly enacted
ordinance, temporarily close and regulate the use of any local
(3) For fourth to sixth class municipalities, five percent (5%): street, road, thoroughfare, or any other public place where
Provided, further, That agricultural lands distributed to shopping malls, Sunday, flea or night markets, or shopping
agrarian reform beneficiaries pursuant to Republic Act areas may be established and where goods, merchandise,
Numbered Sixty-six hundred fifty-seven (R.A. No. 6657).
 foodstuffs, commodities, or articles of commerce may be sold
and dispensed to the general public.

Section 22. Corporate Powers. -

(a) Every local government unit, as a corporation, shall have the

following powers:

(1) To have continuous succession in its corporate name;

(2) To sue and be sued;

(3) To have and use a corporate seal;

(4) To acquire and convey real or personal property;

(5) To enter into contracts; and

(6) To exercise such other powers as are granted to corporations,

subject to the limitations provided in this Code and other
laws.

(b) Local government units may continue using, modify, or change

their existing corporate seals: Provided, That newly
established local government units or those without
corporate seals may create their own corporate seals which
shall be registered with the Department of the Interior and
Local Government: Provided, further, That any change of
corporate seal shall also be registered as provided hereon.

(c) Unless otherwise provided in this Code, no contract may be

entered into by the local chief executive in behalf of the local
government unit without prior authorization by the
sanggunian concerned. A legible copy of such contract shall be
posted at a conspicuous place in the provincial capitol or the
city, municipal or barangay hall.

(d) Local government units shall enjoy full autonomy in the

exercise of their proprietary functions and in the limitations
provided in this Code and other applicable laws,

Section 23. Authority to Negotiate and Secure Grants. - Local chief

executives may, upon authority of the sanggunian, negotiate
and secure financial grants or donations in kind, in support of
the basic services or facilities enumerated under Section 17
hereof, from local and foreign assistance agencies without
necessity of securing clearance or approval therefor from any
department, agency, or office of the national government of
from any higher local government unit: Provided, That
projects financed by such grants or assistance with national
security implications shall be approved by the national agency
concerned: Provided, further, That when such national agency
fails to act on the request for approval within thirty (30) days
from receipt thereof, the same shall be deemed approved.

The local chief executive shall, within thirty (30) days upon signing
of such grant agreement or deed of donation, report the
nature, amount, and terms of such assistance to both Houses
of Congress and the President.

Section 24. Liability for Damages. - Local government units and

their officials are not exempt from liability for death or injury
to persons or damage to property.