RA 7652 Investors Lease Act

June 4, 1993
REPUBLIC ACT NO. 7652
AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN

INVESTORS
SECTION 1. Title. — This Act shall be known as the "Investors' Lease Act."
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State
to encourage foreign investments consistent with the constitutional mandate to conserve
and develop our own patrimony. Towards this end, the State hereby adopts a exible and
dynamic policy on 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. cdt
SECTION 3. Definitions. — For purposes of this Act, unless the context indicates
otherwise, the term:
(1) "Investing in the Philippines" 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,
formulae, or other technological rights or processes, upon
registration with the Securities and Exchange Commission; and cdtai
(2) "Withdrawal of approved investment" 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: Provided, That failure to pay lease
rental for three (3) consecutive months coupled with the failure to
operate the investment project for the same period shall be deemed
an outright abandonment of the project.
SECTION 4. Coverage. — 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 subject to the following conditions: cd
(1) No lease contract shall be for a period exceeding fty (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.
The leasehold right acquired under long-term lease contracts entered into pursuant
to this Act may be sold, transferred, or assigned: Provided, That when the buyer,
transferee, or assignee is a foreigner or a foreign-owned enterprise, the conditions and
CD Technologies Asia, Inc. 2018 cdasiaonline.com
limitations in respect to the use of the leased property as provided for under this Act shall
continue to apply. cdtai
SECTION 5. Limitations. — (1) Foreign individuals, corporations, associations, or

partnerships not otherwise investing in the Philippines as de ned herein shall continue to
be covered by Presidential Decree No. 471 and other existing laws in lease of lands to
foreigners.
(2) Withdrawal of the approved investment in the Philippines within the period of
the lease agreement entered into under this Act, or use of the leased area for the purpose
other than that authorized, shall warrant the ipso facto termination of the lease agreement
without prejudice to the right of the lessor to be compensated for the damages he may
have suffered thereby.
(3) Any lease agreement under this Act which is renewable at the option of the
lessee subject to the same terms and conditions of the original contract shall be
interpreted to mean as renewable upon the mutual agreement of the parties. acd
(4) In addition to the conditions for the renewal of a lease agreement after the
period of fty (50) years as provided herein, the foreign lease shall show that it has made
social and economic contributions to the country.
(5) In the case of tourism projects, lease of private lands by foreign investors
quali ed herein shall be limited to projects with an investment of not less than ve million
(5M) US dollars, seventy percent (70%) of which shall be infused in said project within
three years from the signing of the lease contract.
SECTION 6. Termination of Lease Contract . — 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. cd
SECTION 7. Penal Provision. — Any contract or agreement made or executed in

violation of any of the following prohibited acts shall be null and void ab initio and both
contracting parties shall be punished by a ne 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:
(1) Any provision in the lease agreement stipulating a lease period in
excess of that provided in paragraph (1) of 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: Provided, That, where the excess of
the totality of the area leased is due to the acts of the lessee, the
lessee shall be held solely liable therefor: Provided, further, That, in the
case of corporations, associations, or partnerships, the president,
manager, director, trustee, or o cers responsible for the violation
hereof shall bear the criminal liability.
acd
SECTION 8. Separability Clause. — In case any provision of this Act or the

application of such provision is deemed unconstitutional, the remaining provisions of this
Act or the application of such provisions shall not be affected thereby.
SECTION 9. Repealing Clause. — All acts, rules and regulations contrary to or
inconsistent with this Act are hereby repealed or modified accordingly.
SECTION 10. Effectivity Clause. — this Act shall take effect immediately upon its
approval.
Approved: June 4, 1993

RA 7652 Investors Lease Act

Uploaded by

Copyright:

Available Formats

RA 7652 Investors Lease Act

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RA 7652 Investors Lease Act

Uploaded by

Copyright:

Available Formats

June 4, 1993

REPUBLIC ACT NO. 7652

AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN

SECTION 5. Limitations. — (1) Foreign individuals, corporations, associations, or

SECTION 7. Penal Provision. — Any contract or agreement made or executed in

SECTION 8. Separability Clause. — In case any provision of this Act or the

CD Technologies Asia, Inc. 2018 cdasiaonline.com

You might also like