[ REPUBLIC ACT NO. 11953, July 07, 2023 ] Section 3.

Termination of Payment of Compensation

by ARBs Under Voluntary Land Transfer (VLT) and
AN ACT EMANCIPATING AGRARIAN Direct Payment Schemes (DPS). - All direct
REFORM BENEFICIARIES FROM payments of compensation by the 10,201 ARBs,
FINANCIAL BURDEN BY CONDONING ALL tilling 11,531.24 hectares of agrarian reform lands, to
PRINCIPAL LOANS, UNPAID landowners under VLT and DPS, amounting to
AMORTIZATIONS AND INTERESTS AND P206,247,776.41 are hereby terminated, and
EXEMPTING PAYMENT OF ESTATE TAX ON payments of the remaining balance of compensation
AGRICULTURAL LANDS AWARDED UNDER due the concerned landowners shall be paid by the
THE COMPREHENSIVE AGRARIAN Government through the LBP and charged against the
REFORM PROGRAM Agrarian Reform Fund: Provided, That they shall
have been indebted to the landowner as the effectivity
Be it enacted by the Senate and House of of this Act.
Representatives of the Philippines in Congress
assembled: Section 4. Coverage. - For purposes of this Act, the
term Agrarian Reform Beneficiaries (ARBs) shall
Section 1. Short Title. - This Act shall be known as refer to farmers or farmworkers who were granted
the "New Agrarian Emancipation Act". lands under Presidential Decree No. 27, Republic Act
No. 6657, as amended, and Republic Act No. 9700,
and who have outstanding loan balances payable to
Section 2. Condonation of the Agrarian Reform the LBP and to private landowners as of the
Debt. - This Act shall cover the condonation of effectivity of this Act.
P57.557 billion principal debt of 610,054 Agrarian
Reform Beneficiaries (ARBs), tilling a total of
1,173,101.57 hectares of agrarian reform lands. Section 5. Mandatory Inclusion of the ARBs in the
Registry System for Basic Sectors in Agriculture
(RSBSA) of the Department of Agriculture (DA). -
The principal loan of P14.5 billion, including The ARBs are Filipino farmers entitled to support
interests, penalties and surcharges, of the 263,622 from govenrment agencies, particularly from the DA.
ARBs, tilling 409,206.91 hectares of agrarian reform The DA is hereby mandated to include the ARBs
lands, whose names and other loan details were beneficiaries of this Act in the Registry System for
already submitted by the Land Bank of the Basic Sectors in Agriculture (RSBSA) and shall
Philippines (LBP) to Congress, shall be condoned provide to them all support services that are due our
outright under this Act. However, the inclusion of the farmers.
remaining P43.057 billion in this section shall take
effect only upon submission by the LBP and the
Department of Agrarian Reform (DAR) of details of Section 6. Preference to Credit Facilities and
the indebtedness to Government of the 346,432 Support Services for Beneficiaries with Paid
ARBs, tilling 763,894.66 hectares of agrarian reform Amortizations. - ARBs who have completed payment
lands, contained in a list, as provided for in the next of the amortization schedule and the payment of
paragraph of this section. interest charges under Section 26 of Republic Act
No. 6657, as amended, Section 6 of Executive Order
No. 228 of 1987, and other agrarian reform laws shall
Upon the effectivity of this Act, the individual loans be given preference in the provision of credit
of ARBs, including interests, penalties and facilities and support services as provided in this Act,
surcharges, secured under the Comprehensive in Section 37 of Republic Act No. 6657, as amended,
Agrarian Reform Program (CARP) or from other and in relevant programs and projects implemented
agrarian reform programs or laws, are hereby by the DA and govenrment financial institutions
condoned and written off by the Government, thereby concerned.
relieving them from the burden of payment
thereof: Provided, That these ARBs shall have been
indebted to Government as of the effectivity of this Section 7. Estate Tax Exemption. - The land awarded
Act: Provided, further, That the LBP and the DAR to ARBs shall be excluded from his/her gross estate
shall submit the detailed list of their actual loans for purposes of estate tax.
subject to condonation, under the collective
Certificate of Land Ownership Awards (CLOAs),
together with the pertinent information such as name
of ARBs; amount of loan plus penalties, interests, and The Department of the Interior and Local
surcharges; location; hectarage; and other relevant Government shall also encourage local government
information, to the concerned committees of the units to enact local tax amnesty on real property taxes
Senate and House of Representatives, within three and other transfer taxes of qualified ARBs under this
(3)-year period from the effectivity of this Act, which section.
shall then make the submission part of the
Congressional Records of this Section 8. Issuance of Agrarian Reform Title. - The
Act: Provided, furthermore, That the DAR shall appropriate Registry of Deeds shall register the EP,
thereafter issue, whenever necessary, a the CLOA, or any other title issued pursuant to the
applicable agrarian reform within sixty (60) days
Certificate of Condonation which shall be annotated from the issuance thereof in the name of the ARB. It
on the Emancipation Patent (EP), CLOA based on shall likewise annotate the Notice of Condonation on
applicable agrarian reform all the affected EPs, CLOAs, or any other title issued
law: Provided, finally, That condonation as provided pursuant to the applicable agrarian reform law within
herein shall lift all mortgage liens, attached to the sixty (60) days from issuance by the DAR.
land acquired, in favor of the National Government,
as represented by the LBP. Section 9. Restitution of the Agrarian Reform Award
Forfeited Solely Due to Non-Payment of Annual
Amortization and Interest. - Any pending
administrative case involving the forfeiture by the Act, the DAR, in coordination with the Executive
DAR of the agrarian reform award solely due to the Committee of the Presidential Agrarian Reform
failure of an ARB to pay the thirty (30)-year Council (PARC), with the technical assistance of the
amortization plus six percent (6%) annual interest LBP, shall issue rules and regulations for the
shall immediately be dismissed motu proprio by the effective implementation of this Act.
DAR.
Section 13. Agency Support. - All other government
Under this Act, the DAR shall move for the dismissal offices and agencies are directed to render such
of all actions pending with the courts relating to the prompt and necessary assistance, subject to
collection of unpaid principal and interests over applicable laws, rules and regulations, to fully
agricultural lands covered by agrarian reform laws. implement the provisions of this Act.

The execution of a final and executory administrative Section 14. Funding. - The amount necessary for the
case decision due to the failure of an ARB to pay implementation of this Act shall be charged against
thirty (30)-years amortization plus six percent (6%) the Agrarian Reform Fund, as certified by the Bureau
annual interest resulting in the disqualification of the of the Treasury, and the inclusion thereof in the
ARB, the cancellation of the agrarian reform title, the annual General Appropriations Act shall be subject to
extinguishment of the rights of possession and the existing budgeting process, rules and regulations,
ownership of the awarded land, as well as the and to such other funds as may subsequently be
removal of the person from the awarded land or the authorized by Congress.
dismantling of any improvements found therein, shall
be immediately terminated, the agrarian reform Section 15. Separability Clause. - If any provision of
award immediately restored, and the forfeiture this Act is declared unconstitutional, the remainder of
decision accordingly reversed. this Act or any provisions not affected thereby shall
remain in full force and effect.
Any agrarian reform title cancelled as a result of the
final and executory administrative case decision shall Section 16. Repealing Clause. - Section 21 of
immediately be reconstituted in favor of the ARB. In Republic Act No. 6657, as amended, is hereby
the event that the agricultural land has already been modified. All laws, executive orders, issuances or
awarded to another beneficiary, the DAR shall as far parts thereof inconsistent with the provisions of this
as equitable award another land to the disqualified Act are hereby amended, repealed or modified
ARB. accordingly.

Section 10. Disqualification of Agrarian Reform Section 17. Effectivity. - This Act shall take effect
Beneficiaries Due to Acts and Omissions fifteen (15) days after its publication in the Official
Constituting Violations of Agrarian Reform Gazette or in a newspaper of general circulation.
Laws. - Any person convicted by final judgment of
any of the prohibited acts and omissions under
Section 73 and meted any of the penalties under
Section 74 of Republic Act No. 6657, as amended, is
disqualified to avail of the benefits under this Act.

Disqualification shall likewise result as an outcome

of a determination by final judgment that the ARB, in
violation of Section 22 of Republic Act No. 6657, as
amended, willfully refused to make the awarded land
as productive as possible or 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, threats by other stakeholders or entities, lack
of facilities and support services, or situations or
conditions beyond the control of the ARBs not due to
their fault or actuations shall not be considered as
either neglect, abandonment, or grounds for
disqualification.

Pursuant thereto, the DAR shall thoroughly

investigate and revalidate allegations that will
constitute disqualification under this section, in a

ARBs.⌊aшΡhi⌊
manner that will be construed liberally in favor of the

Section 11. Right of the Landowner to Just

Compensation/Interpretation. - Nothing in this Act
shall diminish the right of landowners to just
compensation for their agricultural lands acquired
under the agrarian reform program, nor shall it be
interpreted to remove existing limitations on the
transfer, ownership, and agricultural use of land.

Section 12. Implementing Rules and Regulations. -

Within sixty (60) days from the effectivity of this