EXECUTIVE ORDER NO.

407 June 14, 1990

ACCELERATING THE ACQUISITION AND DISTRIBUTION OF
AGRICULTURAL LANDS, ASTURE LANDS, FISHONDS, AGRO!
FORESTR" LANDS AND OTHER LANDS OF THE UBLIC DO#AIN
SUITABLE FOR AGRICULTURE
WHEREAS, Proclamation No. 131, S. of 1987, has instituted the
om!rehensi"e A#rarian Reform Pro#ram to de"elo! the full !otential
of Phili!!ine a#riculture that $ill result in increased !roducti"it% and
&etter income for a#rarian reform &ene'ciaries, and E(ecuti"e )rder
No. **9, S. of 1987, has !ro"ided for the mechanisms for the
im!lementation thereof+
WHEREAS, Re!u&lic Act No. ,,-7 has declared it a !olic% of the State
to !ursue the om!rehensi"e A#rarian Reform Pro#ram in order that
the $elfare of landless farm$or.ers $ill recei"e hi#hest consideration
and that the nation can mo"e to$ards sound rural de"elo!ment and
industriali/ation+
WHEREAS, Section 7 of Re!u&lic Act No. ,,-7 mandates, amon#
others, that all lands foreclosed &% #o"ernment 'nancial institutions,
all lands ac0uired &% the Presidential ommission on 1ood
1o"ernment, and all other lands o$ned &% the #o"ernment de"oted to
or suita&le for a#riculture, shall &e ac0uired and distri&uted
immediatel% u!on the e2ecti"it% of the said Act and $ith
im!lementation to &e com!leted $ithin a !eriod of not more than four
345 %ears therefrom+
WHEREAS, the #o"ernment has in it in"entor% lands suita&le for
a#riculture $hich ma% &e immediatel% !laced under the
om!rehensi"e A#rarian Reform !ro#ram as the titles thereof ha"e
&een foreclosed and the !rescri!ti"e redem!tion !eriods ha"e alread%
la!sed+
WHEREAS, the 6e!artments of A#riculture, and En"ironment and
Natural Resources are authori/ed &% la$ to act on the dis!osition of
leases co"erin# lands of the !u&lic domain, i.e., a#ro7forestr% lease
a#reements, !asture lease a#reements and 'sh!ond lease
a#reements+
WHEREAS, E(ecuti"e )rder No. 3,8, S. of 1989, en9oins all #o"ernment
'nancial institutions and #o"ernment7o$ned or controlled cor!orations
to #rant the 6e!artment of A#rarian Reform the ri#ht of 'rst refusal in
the sale or dis!osition of all lands o$ned &% them $hich are suita&le
for a#riculture+
WHEREAS, the im!lementation of the om!rehensi"e A#rarian Reform
Pro#ram !articularl% its land ac0uisition and distri&ution to 0uali'ed
farmer7&ene'ciaries must &e accelerated so that its fruits could &e
en9o%ed &% its &ene'ciaries at the soonest !ossi&le time+
N)W, :HERE;)RE, <, )RA=)N . A>?<N), President of the
Phili!!ines, &% "irtue of the !o$ers "ested in me &% la$, do here&%
order@
Sec. 1. All 1o"ernment instrumentalities includin# &ut not limited to
#o"ernment a#encies, #o"ernment7o$ned and controlled cor!orations
or 'nancial institutions such as the 6e"elo!ment Aan. of the
Phili!!ines, Phili!!ine National Aan., Re!u&lic Planters Aan., Asset
Pri"ati/ation :rust, Presidential ommission on 1ood 1o"ernment,
6e!artment of A#riculture, State olle#es and ?ni"ersities,
6e!artment of National 6efense, shall immediatel% e(ecute 6eeds of
:ransfer in fa"or of the Re!u&lic of the Phili!!ines as re!resented &%
the 6e!artment of A#rarian Reform and surrender to the latter
de!artment all landholdin#s, suita&le for a#riculture includin# all
!ertinent o$nershi! documents in their custod%, such as the o$nerBs
du!licate co!% of the certi'cates of title, ta( declarations and other
documents necessar% to e2ect the transfer of o$nershi!. :his
E(ecuti"e )rder shall li.e$ise a!!l% to o$nershi! of the follo$in#
assets, as determined &% the 6e!artment of A#rarian Reform in close
coordination $ith the concerned #o"ernment a#enc%@
a. <m!ro"ements, e.#., irri#ation s%stems, roads and &rid#es+
&. A#riculture !rocessin# machineries, e.#., !ost7har"est facilities+
c. Auildin#s and other !h%sical structures, $arehouses, administration
&uildin#s, em!lo%eesB housin# facilities+
d. )thers, such as truc.s and tractors, tools and a#ricultural su!!lies.
<n the case of lands suita&le to a#riculture $ith !endin# ad9udication on
their o$nershi! in court, the res!ecti"e #o"ernment instrumentalities
shall, $hen le#all% feasi&le, immediatel% transfer and cede the !h%sical
!ossession and control of the same to the 6e!artment of A#rarian
Reform for its su&se0uent transfer to the 0uali'ed &ene'ciaries.
Pendin# "aluation of the !ro!ert%, the 6e!artment of A#rarian Reform
shall immediatel% commence the necessar% acti"ities for distri&ution to
0uali'ed &ene'ciaries u!on recei!t of the documents aforementioned,
or issue the notice of allocation to 0uali'ed &ene'ciaries to #i"e them
usufructuar% control o"er the land in the e"ent o$nershi! can not as
%et &e transferred to them.
:hirt% 3385 da%s from the re#istration of the o$nershi! documents &%
the Re#ister of 6eeds in fa"or of the 6e!artment of A#rarian Reform,
the Cand Aan. of the Phili!!ines, !ursuant to the rules a!!ro"ed &% the
Presidential A#rarian Reform ouncil, shall !a% the #o"ernment
instrumentalit% the "alue of the land. <n the case of the lands under the
Asset Pri"ati/ation :rust, Presidential ommission on 1ood 1o"ernment
and other #o"ernment instrumentalities $hich ma% o!t for an
alternati"e !a%ment scheme, the 6e!artment of A#rarian Reform shall
cause the issuance of the redit Demo Ad"ise from the Aureau of
:reasur% for such sale.
:hirt% 3385 da%s after e2ecti"it% of this E(ecuti"e )rder, the
6e!artment of ;inance and the 6e!artment of Aud#et and
Dana#ement in consultation $ith the 6e!artment of A#rarian Reform
shall esta&lish #uidelines for the issuance of the redit Demo Ad"ice
S%stem. :his S%stem shall &e a!!lica&le as a !a%ment scheme to
#o"ernment instrumentalities $hich are mandated to turn o"er the
!roceeds from the sale of their a#ricultural lands to the A#rarian
Reform ;und !ursuant to Section ,3 of Re!u&lic Act No. ,,-7.
Si(t% 3,85 da%s after the e2ecti"it% of this E(ecuti"e )rder, the Cand
Re#istration Authorit% shall su&mit to the 6e!artment of A#rarian
Reform certi'ed co!ies of all the certi'cates of titles under the name of
the #o"ernment instrumentalit% and the a!!ro"ed sur"e% !lans
includin# the res!ecti"e technical descri!tions of each title.
Sec. *. :he 6e!artments of A#riculture, and En"ironment and Natural
Resources are here&% authori/ed and directed to cancel all lease
a#reements co"erin# 'sh!onds, !asture, a#ro7forestr% lands and other
lands of the !u&lic domain suita&le to a#riculture $hich ha"e remained
unde"elo!ed $ithin three 335 %ears from the date of the e2ecti"it% of
the lease contract and underutili/ed or a&andoned or in cases $here
the terms and conditions em&odied therein ha"e &een "iolated, ta.in#
into consideration the re0uirements of due !rocess.
Sec. 3. :he 6e!artments of A#riculture and En"ironment and Natural
Resources, in coordination $ith the 6e!artment of A#rarian Reform,
shall redistri&ute and a$ard 'sh!onds, !asture lands and other lands
of the !u&lic domain suita&le for a#riculture su&9ect of cancelled or
amended lease a#reement to 0uali'ed a#rarian reform &ene'ciaries
identi'ed &% the 6e!artment of A#rarian Reform !ursuant to Sections
1- and ** of Re!u&lic Act No. ,,-7.
Sec. 4. All concerned a#encies shall issue the necessar% directi"es and
#uidelines to all their national, re#ional, !ro"incial and munici!al
oEcials to ensure the im!lementation of this E(ecuti"e )rder.
Sec. -. :his E(ecuti"e )rder shall ta.e e2ect immediatel%.
6)NE in the it% of Danila this 14th da% of Fune, in the %ear of )ur
Cord, nineteen hundred and ninet%.