The Department of Agrarian Reform has issued an administrative order on the creation of a document required to estimate the value of lands awarded to farmer-beneficiaries.
Secretary John Castriciones issued DAR Administrative Order 4 outlining the procedures in the generation of such requirement, land distribution and information schedule that form part of the prerequisites of the land valuation process.
The land distribution and information schedule reflects data for the computation of the amortization that agrarian reform beneficiaries should pay the government.
The new order sets clear definitions and procedures for filing, monitoring and reporting of this vital information.
Compensable lands awarded by the government shall be paid by the beneficiaries over a certain period of time as per Republic Act 6657 as amended, Presidential Decree 27, RA 3844, as amended by RA 6389.
Meanwhile, Section 26 of RA 6657 as amended provides that “lands awarded pursuant to this act shall be paid for by the beneficiaries to the LandBank of the Philippines in 30 annual amortization at 6 percent interest per annum.”
LandBank shall have a right to keep possession of the awarded lots until the debt is paid by way of mortgage on the land, Castriciones said.
The agency, however, warned that the mortgage shall be foreclosed by Land Bank for non-payment of an aggregate of three annual amortizations.