Comprehensive Agrarian Reform Program

What are the properties covered under the Comprehensive Agrarian Reform Law?

Under Section 4 of the said law, the Comprehensive Agrarian Reform Law (hereinafter
stated as “CARL”) in general covers all public and private agricultural lands as well as other lands
of the public domain suitable for agriculture.

Agricultural lands are lands (other than mineral, forest, residential, commercial or industrial) that
are devoted to the cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock,
poultry or fish, including the harvesting of such farm products, and other farm activities and
practices performed by a farmer in conjunction with such farming operations done by person
whether natural or juridical.1

More specifically the following lands are covered by the Comprehensive Agrarian Reform
Program2:

(a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture.
No reclassification of forest or mineral lands to agricultural lands shall be undertaken after the
approval of this Act until Congress, taking into account ecological, developmental and equity
considerations, shall have determined by law, the specific limits of the public domain.

(b) All lands of the public domain in excess of the specific limits,

Retention Limit

Under Section 6 of CARL, except as otherwise provided, no person may own or retain,
directly or indirectly, any public or private agricultural land, the size of which shall vary
according to factors governing a viable family-size farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by the Presidential Agrarian Reform,
but in no case shall retention by the landowner exceed five (5) hectares.

Three (3) hectares may be awarded to each child of the landowner, subject to the
following qualifications:
(1) that he is at least fifteen (15) years of age; and
(2) that he is actually tilling the land or directly managing the farm.

Landowners whose lands have been covered by Presidential Decree No. 27 shall be allowed
to keep the areas originally retained by them thereunder: provided, further, that original
homestead grantees or their direct compulsory heirs who still own the original homestead at
the time of the approval CARL shall retain the same areas as long as they continue to
cultivate said homestead.3

Provincial, city and municipal government units acquiring private agricultural lands by
expropriation or other modes of acquisition to be used for actual, direct and exclusive public
purposes, such as roads and bridges, public markets, school sites, resettlement sites, local
government facilities, public parks and barangay plazas or squares, consistent with the
approved local comprehensive land use plan, shall not be subject to the five (5)-hectare
retention limit4

1
Sec. 3 (a), (b), R.A. 6657
2
Sec. 4, R.A. 6657
3
Sec. 6, R.A. 6657
4
Sec. 4, R.A. 9700, Comprehensive Agrarian Reform Program Extension with Reforms
(c) All other lands owned by the Government devoted to or suitable for agriculture; and

(d) All private lands devoted to or suitable for agriculture regardless of the agricultural products
raised or that can be raised thereon.

Properties that are exempt under CARL

Excluded from coverage:

a. All undeveloped lands with 18% slope and over;
b. All lands duly classified by the proper Local Government Unit (LGU) as commercial,
industrial, or residential as of 15, June 1988;
c. All ancestral lands/ domains that may be identified in accordance with rules that may be
jointly issued by the DAR, DENR, LRA, and the National Commission on Indigenous
People;
d. Retention areas granted to landowners who exercised their retention rights; and
e. All agricultural landholdings of a landowner with an aggregate size of five (5) hectares or
less.5
Exempted from coverage:
a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds;
g. Mangroves;
h. National defense;
i. School sites and campuses, including experimental farm stations operated by public or
private schools for educational purposes;
j. Seeds and seedlings research and pilot production centers;
k. Church sites and Islamic centers appurtenant thereto;
l. Communal burial grounds and cemeteries;
m. Penal colonies and penal farms actually worked by the inmates;
n. Government and private research and quarantine centers;
o. Fish ponds and prawn farms; and
p. Livestock, poultry, and swine raising since 15 June 1988.6

5
Sec. 7, DAR A.O. no. 07, series of 2011
6
Sec. 8, DAR A.O. no. 07, series of 2011
What happens after issuance of Notice of Acquisition?

A notice of acquisition is issued by the DAR to the landowner advising the latter that the
subject property is being acquired under the agrarian reform program.

Within a non-extendible period of thirty (30) days from receipt of the Notice of coverage, the
landowner may do the following7:

1. Protest against coverage, which must be filed before the PARO and should contain the
substantial bases thereof;
2. Nominate child/ren who may qualify as preferred beneficiary/ies;
3. File a Manifestation for Exemption or exclusion from CARP coverage before the PARO;
and

The manifestation for exemption/exclusion is not the same as the application for exemption
and petition for the exclusion* The application/ petition may be filed together with the
manifestation, if not filed jointly, the landowner can file it, together with the documents
required by the rules within 60 days from receipt of notice of coverage.8

4. File a manifestation to exercise the Right of Retention before the PARO.

The failure to do any of the foregoing within the abovementioned reglementary periods shall be
construed as a waiver on the part of the landowner to exercise the aforementioned rights.

Despite the pendency of a Protest against Coverage, a Petition for Exemption or Exclusion, or
other agrarian law implementations case, the Land acquisition shall continue until all the identified
Beneficiaries have been successfully installed on the awarded land.9

However, the process will be suspended by the following:

A. Cease and Desist Order or a Status Quo Order from the Secretary;
B. Temporary Restraining Order or Preliminary Injunction from the Supreme Court.

it also advices the landowner of the period within which-

A. To file a (i) protest on the coverage; (ii) manifestation for exemption or exclusions; or (iii)
manifestation to exercise the right of retention;
B. To nominate preferred beneficiary/ies; and
C. To submit a list of agricultural lessees, regular and seasonal farmers, and or his/her
tenants.

7
Sec. 27, DAR A.O. no. 07, series of 2011
8
Sec. 28, DAR A.O. no. 07, series of 2011
9
Sec. 29, DAR A.O. no. 07, series of 2011 as amended by A.O. no. 5, series of 2017
 *Image taken from: Updates to Agrarian Reform Laws, Rules and Regulations: A paralegal
Manual

LBP Bonds

LBP bonds issued to landowners as just compensation for property acquired under CARL
have the following features:

(a) Market interest rates aligned with 91-day treasury bill rates. Ten percent (10%) of the face
value of the bonds shall mature every year from the date of issuance until the tenth (10th) year:
provided, that should the landowner choose to forego the cash portion, whether in full or in part,
he shall be paid correspondingly in LBP bonds;

(b) Transferability and negotiability. Such LBP bonds may be used by the landowner, his
successors in interest or his assigns, up to the amount of their face value, for any of the
following:
 (i) Acquisition of land or other real properties of the government, including assets under
the Asset Privatization Program and other assets foreclosed by government financial
institutions in the same province or region where the lands for which the bonds were paid
are situated;

(ii) Acquisition of shares of stock of government-owned or -controlled corporations or

shares of stocks owned by the government in private corporations;

(iii) Substitution for surety or bail bonds for the provisional release of accused persons, or
performance bonds;

(iv) Security for loans with any government financial institution, provided the proceeds of
the loans shall be invested in an economic enterprise, preferably in a small-and medium-
scale industry, in the same province or region as the land for which the bonds are paid;

(v) Payment for various taxes and fees to government; provided, that the use of these
bonds for these purposes will be limited to a certain percentage of the outstanding
balance of the financial instruments: provided, further, that the PARC shall determine the
percentage mentioned above;

(vi) Payment for tuition fees of the immediate family of the original bondholder in
government universities, colleges, trade schools, and other institutions;

(vii) Payment for fees of the immediate family of the original bondholder in government
hospitals; and

(viii) Such other uses as the PARC may from time to time allow.10

10
Sec. 18 (4), R.A. 6657
Agrarian Bond Transactions

Processing, Approval and Release of Land Transfer Claims' Proceeds: Preparation, approval
and releasing of proceeds of Land Transfer Claims (LTC) in Cash and AR Bond in favour of
landowners or their heirs, whose lands were covered under the Comprehensive Agrarian Reform
Program(CARP).

Documentary Requirements:

For Individuals

 Documentary Requirements
 Photocopy of two (2) government issued IDs
 Customer Information Sheet (CIS)

For Corporations/Partnerships

 AR Bond Certificate
 Board Resolution or a duly notarized Corporate/Partnership Secretary's Certificate of such
Resolution, certified by the Corporate/Partnership Secretary and duly attested by the
President, authorizing the bond transaction (e.g. to receive bond/check proceed of land
transfer, bond transfer/assignment/convertion/replacement, redemption and
interest claims and/or bond selling/trading) and naming the corporate/partnership officials
authorized to make such bond transaction in behalf of the corporation/partnership
 Photocopy of the Articles of Incorporation/Partnership and By-laws, duly authenticated by
the Securities and Exchange Commission (SEC)
 Photocopy of the Certificate of Registration, duly authenticated by the SEC
 Latest General Information Sheet received/authenticated by the SEC
 Specimen Signature of the President, Corporate/Partnership Secretary and the
corporate/partnership officials authorized to make the bond transaction in behalf of the
corporation/partnership supported by photocopy of at least two (2) of their valid
identification documents, duly authenticated by a LANDBANK Officer
 CIS for Institutions signed by the President or Corporate Secretary
 Duly accomplished Application for Bond Transaction (ABST)-Form II
 Documentary Stamp Tax (if applicable)

Bond Interest and Maturities Payment: Preparation, approval and releasing of bond interest and
maturities to Landowner/Bondholder

a. For Agrarian Reform (AR) 10 Year Bond, based on outstanding principal balance at interest
rates aligned with the 91-day Treasury Bill rates, payable every six months from date of
issue until the tenth year
b. Annual payment of 10% of the face value (matured portion) of AR Bond, every anniversary
date
c. Full redemption/payment of the face value of LANDBANK 25-Year Bond on its maturity
date, including payment of accrued interest computed at 6% per annum, tax free

Documentary Requirements

 For Individuals
 AR Bond Certificate
 Specimen Signature Card (SSC)
  Photocopy of two (2) government issued IDs
 Customer Information Sheet (CIS)
 Duly accomplished Application for Bond Transaction (ABST)-Form I
 For Corporations/Partnerships
 AR Bond Certificate
 Board Resolution or a duly notarized Corporate/Partnership Secretary's Certificate of such
Resolution, certified by the Corporate/Partnership Secretary and duly attested by the
President, authorizing the bond transaction (e.g. to receive bond/check proceed of land
transfer, bond transfer/assignment/convertion/replacement, redemption and interest claims
and/or bond selling/trading) and naming the corporate/partnership officials authorized to
make such bond transaction in behalf of the corporation/partnership
 Photocopy of the Articles of Incorporation/Partnership and By-laws duly authenticated by
the Securities and Exchange Commission (SEC)
 Photocopy of the Certificate of Registration, duly authenticated by the SEC
 Latest General Information Sheet received/authenticated by the SEC
 Specimen Signature of the President, Corporate/Partnership Secretary and the
corporate/partnership officials authorized to make the bond transaction in behalf of the
corporation/partnership supported by photocopy of at least two (2) of their valid
identification documents, duly authenticated by a LANDBANK Officer
 CIS for Institutions signed by the President or Corporate Secretary

Bond Transfer, conversion, exchange and replacement: Preparation, approval and releasing
of new replacement bonds upon request of the Landowner/Bondholder for the following:

a. Assignment - transfer from inscribed or bearer bond to a named assignee/s

b. Conversion - changing of an inscribed bond to a bearer bond and vice-versa
c. Exchange - act of issuing one bond by consolidating two or more bonds and vice-versa
d. Replacement - issuance of a new AR Bond in lieu of lost bonds

Documentary Requirements

For Individuals

 AR Bond Certificate
 Specimen Signature Card (SSC)
 Photocopy of two (2) government issued IDs
 Customer Information Sheet (CIS)
 Duly accomplished Application for Bond Transaction (ABST)-Form II
 Documentary Stamp Tax (if applicable)
 Transfee Fee - P 150.00 per bond certificate

For Corporations/Partnerships

 AR Bond Certificate
 Board Resolution or a duly notarized Corporate/Partnership Secretary's Certificate of such
Resolution, certified by the Corporate/Partnership Secretary and duly attested by the
President, authorizing the bond transaction (e.g. to receive bond/check proceed of land
transfer, bond transfer/assignment/convertion/replacement, redemption and interest claims
and/or bond selling/trading) and naming the corporate/partnership officials authorized to
make such bond transaction in behalf of the corporation/partnership
 Photocopy of the Articles of Incorporation/Partnership and By-laws duly authenticated by the
Securities and Exchange Commission (SEC)
 Photocopy of the Certificate of Registration, duly authenticated by the SEC
 Latest General Information Sheet received/authenticated by the SEC
 Specimen Signature of the President, Corporate/Partnership Secretary and the
corporate/partnership officials authorized to make the bond transaction in behalf of the
 corporation/partnership supported by photocopy of at least two (2) of their valid identification
documents, duly authenticated by a LANDBANK Officer
 CIS for Institutions signed by the President or Corporate Secretary
 Duly accomplished Application for Bond Transaction (ABST)-Form II
 Documentary Stamp Tax (if applicable)
 Transfee Fee - P 150.00 per bond certificate

Certificate of Issuance of AR Bond: Certification issued by the Bond Servicing Department

(BSD) that the AR Bond is still outstanding and is not among those included in the list of bonds
with Adverse Claims

Documentary Requirements/Fees:

For Individuals

 AR Bond Certificate
 Certificate Fee of P 100.00 per bond certificate

For Corporation/Partnerships

 Certificate Fee of P 100.00 per bond certificate

 Letter request from authorized representative/signatory/ies of the
corporation/partnership11

11
Retrieved from: https://www.landbank.com/bond-transactions, date retrieved: 02/20/2019, 9:30 a.m.