IRR of REPUBLIC ACT NO. 11953 IMPLEMENTING RULES AND REGULATIONS REPUBLIC ACT NO. 11953, “AN ACT EMANCIPATING AGRARIAN REFORM BENEFICIARIES FROM FINANCIAL BURDEN BY CONDONING ALL PRINCIPAL LOANS, UNPAID AUTHORIZATIONS AND EXEMPTING PAYMENT OF ESTATE TAX ON AGRICULTURAL LANDS AWARDED UNDER THE COMPREHENSIVE AGRARIAN REFORM PROGRAM,” OTHERWISE KNOWN AS THE NEW AGRARIAN EMANCIPATION ACT September 06, 2023

Pursuant to Section 12 of Republic Act (R.A.) No. 11953, otherwise known as the “New Agrarian Emancipation Act” (NAEA), the following Implementing Rules and Regulations (hereinafter referred to as “Rules”) are hereby prescribed in order to carry out the provisions of the said Act.

s.Land Amortization- is the amount due annually or the annuity at an interestrate of six percent (6%) per annum payable by the ARB within twenty (20) years, based on P.D. No. 27 and E.O. No. 228, Series of 1987 or thrity (30) years, based on Section 26 of R.A. No. 6657, as amended;

t. Outstanding Loan Balance- refers to outstanding loan balance or unpaid amortization to be paid by ARBs for the land awarded to them as of 24 July 2023.

u. Penalty- refers to an additional or extra interest on outstanding loan balance of delinquent ARBs for failure to pay the land amortization on time.

v. Primary Entry Book (PEB)- refers to primary entry book which serves as an official record of all instruments that pertain to lane registration, including copies of writs and processes entered manually by the RODs, which are not yet computerized. In the order of reception and upon payment of required fees.

w. Reallocation- refers to the process of selecting, identifying, and qualifying persons to become ARBs to replace those who have been disqualified from the Agrarian Reform Program as a result of a final and executory forfeiture decision arising from the violations of Agrarian Reform laws except disqualifications for non-payment of land amortization.

x. Surcharge- refers to the penalty imposed on the unpaid amortization or remaining cost of the awarded land that is already due and demandable.

y. Termination of Payment- refers to the extinguishment of the ARBs obligation or liability to pay any remaining balance of compensation due to the concerned landowners under the VLT/DPS as the same shall be assumed and paid by the National Government through the Land Bank of the Philippines (LBP) chargeable against the Agrarian Reform Fund (ARF).

z. Unclassified ARRs- refers to those land amortization receivables from ARRs without LAS but with outstanding principal obligation only.

aa. Unclassified ARRs List- refers to a list of Unclassified ARRs containing the names of the landowners, total amount of valuation, title numbers, location and the area of the landholding awarded to them.

bb. Validation- refers to the process of thoroughly validating and investigating the qualifications of ARBs, their outstanding balance or compensation still due to the concerned landowners under the VLT/DPS to be paid by the National Government through the LBP.

cc. Voluntary Land Transfer (VLT)- refers to an arrangement under Section 20 of R.A. No. 6657, as amended, where the landowners of agricultural lands subject to acquisition under the CARP may enter a voluntary arrangement for the direct transfer of their lands to qualified beneficiaries. Under this Scheme, the beneficiaries directly pay the landowner for the price of the agricultural land. It is a product of negotiation between the landowners and qualified beneficiaries approved by the DAR.

dd. Write-off- refers to the derecognition of the ARR assets in the books of the ARF-National Government.

Section 2. Coverage. - These Rules shall cover landholdings acquired under P.D. No. 27/E.O. No. 228, R.A. No. 6657, R.A. No. 9700 and all other Agrarian Reform laws as of 24 July 2023.

Section 3. Cancellation of Mortgage Liens on Awarded Lands.- The Land Registration Authority (LRA), through the concerned ROD, and upon Order of the Secretary or his duly authorized representative, shall immediately cancel all mortgage liens pertinent and/or related to the amortization of the acquired landholdings. The Order shall be accompanied by a list of landholdings subject of cancellation bearing the title numbers, names of the registered owners or ARBs, location, area of the acquired landholdings, and other pertinent information.

Section 4. Submission of ARR Lists. - The LBP, within fifteen (15) days from the effectivity of the Rules, shall submit to the DAR Secretary the updated Classified and Unclassified ARRs lists of landholdings awarded to ARBs with outstanding loan balances in principal, interest, surcharges and penalties, if any, which were already outright condonation of the individual loans of the ARBs under paragraphs 2 and 3, Section 2 of RA No. 11953.

Section 5. Outright Condonation of Classified ARRs.- (a) The Secretary or his duly authorized representative referred to hereunder, shall cause:

(b) Thereafter, the Undersecretary for Filed Operation Office (UFOO0 shall transmit to the DAR Regional Office (DARRO) anf Provincial Office (DARPO) the complete and properly generated signed and sealed COCROM, shall request the registration and annotation of the same with the concerned ROD and submit a report regarding the registered COCROM to the DARRO for consolidation;

(c) The concerned ROD, within sixty (60) days from receipt of the PARPO;s request pursuant to Section 8 of RA No. 11953, shallregister and annotate the COCROM in the ROD's copy of the agrarian title, if available. If the ROD copy of the agrarian title is unavailable, the concerned ROD shall record the COCROM in the EPEB or PEB of the Registry without prejudice to any judicial or administrative action for the reconstruction of the ROD's copy of the agrarian title.

(d) The DARRO shall consolidate all registered COCROM from the DARPO under its jurisdiction and submit a monthly accomplishment report to the UFOO for monitoring purposes. The DARRO/DARPO may immediately schedule a distribution and awarding of registered COCROM for the ARBs.

Section 6. Condonation of Unclassified ARRs without LAS. - (a) The UFOO, immediately upon receipt of the LBP's certified and updated list of landholdings with ARR outstanding loan balances to be amortized by ARBs, shall transmit the same to the DARRO for distribution to the DARPO.

(b) If the landholding is not covered by any judicial or administrative final decision on revision, retention, exemption, or exclusion from the coverage of Agrarian Reform Program or other issues, the PARPO shall issue an Order directing the LBP to write-off or rerecognize the ARB's outstanding loan balance in the books of the NG and issue the corresponding Certificate of Write-off or derecognition to the DARPO.

(c) Upon receipt of the Certificate of Write-off or derecognition processed and issued by the LBR, the DARPO through the PARPO shall request the registration of the same to the concerned ROD. The ROD shall register the Certificate of Write-off or derecognition by annotating it in the ROD's copy of the CCLOA, CLOA, Transfer Certificate of Title (TCT), Original Certificate of Title (OCT), if available within sixty (60) days from receipt of the PARPO's request if the agrarian title is unavailable, the ROD shall record the document in the EPEB or PEB without prejudice to any administative or judicial action for the reconstitution of the ROD's copy of the agrarian title.

(d) Likewise, the DARPO, upon receipt of the Certificate of Write-off or derecognition, shall likewise commence the subdivision of CCLOA, its allocation or reallocation to qualified beneficiaries and the issuance of individual CLOA tides bearing carry-over annotation of the Certificate of Write-off or derecognition. Thereafter, the DARRO/DARPO shall generate and issue a signed and sealed COCROM with the concerned ROD without need of CCLOA subdivision for individual titles. Further, CCLOAs with outstanding loan balances but without any issue may be condoned outright under Section 4 hereof.

(e) The DARRO shall consolidate all registered COCROM from the DARPO under its jurisdiction and submit a monthly accomplishment report to the UFOO for monitoring purposes. The DARPO may immediately schedule a distribution and awarding of registered COCROM to ARBs.

Section 7. Provincial Agrarian Reform Coordinating Committee (PARCCOM) and Farmers Group Participation.- The PARCCOM and/or farmers group, if warranted may send their authorized representative to participate in the activities under Section 6 hereof.

Section 8. List of Landholdings Under VLT/DPS.- (a) The DARPO, immediately upon the effectivity of the Rules, shall generate the list of landholdings with outstanding loan balances as of 24 July 2023 still due to the concerned landowners for the acquisition or purchase of agricultural lands by the ARBs under the VLT/DPS for submission to the DARRO.

(b) The Provincial Agrarian Reform Adjudicator (PARAD) shall conduct a summary administrative determination of the extent of ARBs indebtedness to the landowners. On the other hand, the DARRO shall consolidate the DARPOs' submitted list for transmittal to the UFOO to determine the funding requirements on the assumption by the NG of any unpaid loan balanced of the ARBs with the landowners. Thereaftr, the UFOO shall evaluate and process the list of landholding for inclusion in the Budget Execution Document (BED) requirement of the Department of Budget and Management (DBM) for funding appropriation.

(c) The PARAD, upon determination of the extent of ARBs' indebtedness acceptable to the landowners, shall issue an order directing the PARPO to document the compensable amount to be paid by the NG to the landowners.

(d) The PARPO shall process the documentation of compensation to be paid to the landowners. If all the documents are complete and in order and there is appropriated funding for the claim, the LBP shall process the landowners' claim and issue a COD to the PARPO for eventual release of the proceeds of unpaid compensation to the landowners. Otherwise, the PARPO shall forward the landowners' claim to the UFOO for determination of funding requirements under paragraph (b) hereof.

(e) If applicable, the PARPO shall initiate the subdivision of CCLOA, allocation or re-allocation to qualified ARBs, and the issuance of individual CLOA or EP titles without indebtedness to the NG. Finally, the DARRO/DARPO may publicly schedule the distribution and awarded of individual titles to the ARBs.

Section 9. PARCOM and Farmers Group Participation.- The PARCOM and/or farmers group, if warranted, may send their authorized representative to participate in the PARPO activities and/or PARAD proceeding under Section 8 hereof.

Section 10. Non-Diminution of the Right of the Landowners to Just Compensation/Interpretation.- The right of the landowners to a just and reasonable compensation for the taking of their agricultural lands under the Agrarian Reform Program shall neither be diminished nor shall be interpreted to remove any existing limitations of the transfer of ownership, and agricultural use of lands.

Section 11. Grounds for Disqualification.- ARBs convicted by final judgment of the prohibited acts and omissions under Section 73 and meted any of the penalties under Section 74 of R.A. No. 6657, as amended, are disqualified to avail of the benefits of R.A. No. 11953 and these Rules.

ARBs cannot also avail of the benefits of R.A. No. 11953 and these Rules if they are disqualified as a result of a final judgment in an administrative case grounded on the following:

a. Violation of Section 22 of R.A. No. 6657, as amended;

b. Willfully refused to make the awarded land as productive as possible; or

c. Deliberately neglected or abandoned the awarded land continuously for a period of two (2) calendar years. Provided that non-cultivation of the land due to non-installation of the ARBs, threat by other stakeholders or entities, lack of facilities and support services, or situations or conditions beyond the control of the ARBs and not due to heir fault and actuations shall not be considered as either neglect, abandonment, or grounds for disqualification.

Section 12. Disqualification Proceedings.- Any allegation of disqualification against ARBs shall be validated and investigated in accordance with the existing laws, rules and regulations, and the availment of the benefits of R.A. No. 11953 and the Rules shall be without prejudice to any legal action or proceedings against erring ARBs.

Section 13. Liberal Construction.- The rules on disqualification of ARBs prescribed by R.A. Bo. 11953 and related laws and rules shall be construed liberally in favor of the ARBs.

Section 14. ALI Cases Pending with the DAR.- All ALI cases involving the disqualification of ARBs or for forfeiture of Agrarian Reform award solely on the ground of non-payment or failure of the ARBs to pay the thirty (30) year amortization plus six percent (6%) interest and still pending with the PARPO, the Regional Director (RD), and/or the Secretary shall immediately be diminishedmotu proprio.

Section 15. ALI Cases on Appeal Pending with the Office of the President (OP).- The concerned ARB, through the Agrarian Reform Beneficiaries Legal Assistant Division (ARBLAD) under the Bureau of Agrarian Legal Assistance (BALA), shall submit a manifestation requesting the OP to immediately dismiss,motu proprio, all pending ALI cases involving the disqualification of ARBs or for forfeiture of Agrarian Reform award solely on the ground of non-payment or failure of the ARBs to pay amortization and interest.

Section 16. Cases Pending with the Courts.- The DAR, through the Office of the Solicitor General (OSG) with the assistance of the Legal Service (LS) shall move for the dismissal of all actions pending with the courts involving the disqualification of ARBs or for forfeiture of Agrarian Reform award solely on the ground of non payment of principal amortization and interest.

Section 17. Cancellation Cases Pending with the Office of the Secretary (OSEC).- All cases for cancellation of EPs, CLOAs, or other titles issued under any Agrarian Reform laws based on a final and executory judgment in ALI cases involving the disqualification of ARBs or for forfeiture of Agrarian Reform award solely on the ground of non-payment or failure of the ARBs to pay the thirty (30) year amortization plus six percent (6%) interest and still pending with the PARPO, the BALA, the Undersecretary of the Legal Affairs Office (ULAO), and/or Secretary shall immediately be dismissedmotu proprio.

Section 18. Termination of Execution and Restoration of Award.- All execution of final and executory decision of ALI cases due to the failure of the ARB to pay the thirty (30) year amortization plus six percent (6%) interest resulting in the disqualification of the ARB, the cancellation of Agrarian Reform titles, the extinguishment of rights of possession and ownership of the awarded land, as well as the removal of the person from the awarded land or the dismantling of any improvements found therein pending with the PARPO and/or RD shall be immediately terminated.

Consequently, the Agrarian Reform award shall be restored, and the disqualification or forfeiture decision against the ARB is accordingly reversed and set aside.

Section 19. Reinstatement of Cancelled EPs, CLOAs, or Other Titles Issued Under Any Agrarian Reform Laws.- The DAR, through the PARPO, shall immediately reinstate or restore in favor of the ARB concerned any cancelled EPs, CLOAs, or other titles issued under any Agrarian Reform laws as a result of the final and executory ALO case Decision. The ROD, within the period provided under Section 25 and 26 of Rule IX, shall register the reinstated or restored Agrarian Reform title. However, in the event that the awarded land covered by the cancelled Agrrian Reform title was already reallocated to another beneficiary, the DAR, through the PARPO shall, as far as equitable, award another land to the disqualified ARB.

Section 20. Support Services from the DAR.- The DAR shall provide support services to allARBs that include, among others, the following: a) Agri-Technology/Agri-Extension Services (AES); b) Business Development Services (BDS); c) Common Service Facilities (CSF); d) Credit and Micro finance; e) Agri-Insurance (crops and livestock); f) Rural Infrastructure (RI); and g) Land Tenure Improvement Stability.

Section 21. Mandatory Inclusion of the ARBs in the Registry System for Basic Sectors in Agricultural (RSBSA) of the DA.- The DA shall undertake the mandatory inclusion of all ARBs in the RSBSA as provided in Section 5 of the NAEA, thereby rendering them entitled to support services from the DA. The DA support services under the RSBSA may include, among others, agriculture assistance in the form of cash or farm inputs like seeds and fertilizer, farm machineries, fuel vouchers, and other farm insurance.

For this purpose, the UFOO shall provide the DA with the list of all ARBs who are entitled to avail of the benefits of R.A. No. 11953 and these Rules.

Section 22. ARBs with Completed Payment.- ARBs who have completed the payment of amortization schedule and the payment of interest charges under Section 26 of R.A. No. 6657, as amended, Section 6 of E.O. No. 228 of 1987, and other Agrarian Reform laws shall be given preference in the provision of credit facilities and support services under R.A. No. 11953 and in these Rules, and in Section 37 of R.A. No. 6657, as amended, and in relevant programs and projects implemented by the DAR and the DA and other government financial institutions.

Section 23. Estate Tax Exemption.- The value of the land awarded to the deceased ARB shall not be included in the computation of his/her gross estate for purposes of determining the taxable estate provided that the said ARB is qualified to avail of the benefits under R.A. No. 11953 and these Rules.

The DAR and the President Agrarian Reform Council (PARC) Secretariat shall coordinate with the Bureau of Internal Revenue (BIR) and the Department of Finance (DOF) to ensure the issuance of appropriate Revenue Regulation to implement Section 7 of R.A. No. 11953 and these Rules.

Section 24. Local and Other Transfer Taxes.- The DAR, through the Support Services Office (SSO), shall coordinate with the Department of the Interior and Local Government (DILG), and the DOF, through the Bureau of Local Government Finance (BGLF), in order to encourage local government units (LGUs) to enact local tax amnesty on real property taxes and other transfer taxes of qualified ARBs under R.A. No. 11953 and these Rules.

Section 25. Issuance of Agrarian Reform Titles.- The concerned ROD shall register the EP, CLOA, or any other agrarian titles already submitted and registered in the EPEB or PEB pursuant to the applicable Agrarian Reform law within sixty (60) days from the issuance thereof in the name of the ARB. It shall likewise register and annotate the Certificate of Condonation on all affected EPs, CLOAs, CCLOAs, or any other agrarian titles issied pursuant to the applicable Agrarian Reform laws within the period of sixty (60) days from the issuance by the DAR.

Section 26. Proper Observance of the Prescribed Periods.- The RD and concerned PARPO shall ensure that the ROD shall comply with the prescribed periods as provided in the preceding, section for the registration of EP, CLOA, CCLOA, or any other title issued pursuant to the applicable Agrarian Reform law and annotation of the COCROM on the said affected Agrarian Reform titles.

Section 27. Funding Requirement.- The DAR through the UFOO in coordination with the Office of the Undersecretary for Finance, Management and Administration (FMAO), shall determine the funding requirements needed for the assumption by the government of the ARBs' outstanding loan balance to be paid to the concerned landowners under R.A. No. 11953 and these Rules.

Section 28. Process Flow Charts.- The Process Flow Charts hereto attached as Annexes "A", "B" and "C" shall be integral to and form part of these Rules.

Section 29. Agency Support.- All other Government Offices and Agencies shall render such prompt and necessary assistance to the DAR pursuant to the mandate of R.A. No. 11953 to help ensure the full implementation of the said law and these Rules subject to existing and applicable laws, rules and regulations.

Section 30. Suspension of Rules.- The DAR Secretary, upon concurrence of the PARC, may suspend the application of these Rules in order to serve and protect the interest of agrarian reform beneficiaries.

Section 31. Repealing Clause.- All orders, rules and regulations, and issuances or portion thereof that are inconsistent herewith are hereby repealed, amended or modified accordingly.

Section 32. Separability Clause.- Any judicial pronouncement declaring as unconstitutional any provision of these Rules shall have no effect on the validity of the other provisions not affected thereby.

Section 33. Effectivity Clause.- These Rules shall take effect ten (1) days after its publication in two (2) newspapers of general circulation, and registration with the Office of the National Administrative Register (ONAR).

Diliman, Quezon City, 06 September 2023.
 
   
 

(SGD.)ATTY. NAPOLEON U. GALIT

Chairperson

Undersecretary

DAR, Legal Affairs Office

   
 

(SGD.)ENGR. ALEX LORAYES

Vice-Chairperson

Executive Vice President

Land Bank of the Philippines

 
   
   
 

(SGD.)ATTY. MARILYN B. BARUA-YAP	(SGD.)ATTY. MARIFE LYNN O. PASCUA
Member	Member
Undersecretary	Vice-President
DAR, Special Concerns/Executive Affairs and Communications Operations Office	Land Bank of the Philippines

   
   
 

(SGD.)ATTY. GERARDO P. SIRIOS	(SGD.)ENGR. EDUARDO EDDIE G. GUILLEN
Member	Member
Administrator	Acting Administrator
Land Registration Authority	National Irrigation Authority

   
 

(SGD.)ATTY. LUIS MEINRADO C. PANGULAYAN, MNSA, CESO I

Member

Undersecretary

DAR, Policy, Planning and Research Office

 

   

ATTESTED:

(SGD.)CONRADO ESTRELLA III

Secretary

Department of Agrarian Reform