October 22, 1973

PRESIDENTIAL DECREE NO. 315

PROVIDING THAT LAND TRANSFER CERTIFICATES ISSUED PURSUANT TO PRESIDENTIAL DECREE NO. 27 SHALL BE ACCEPTED BY FINANCING INSTITUTIONS AS COLLATERAL FOR LOANS

WHEREAS, under Presidential Decree No. 27 Land Transfer Certificates are issued to tenant-farmers in agricultural lands primarily devoted to the production of rice and corn found qualified to acquire the land tilled by them;

WHEREAS, under the Presidential Decree No. 266 these Land Transfer Certificates are registrable as valid evidences of ownership;

WHEREAS, these tenant-farmers need financial assistance and one measure of providing them assistance is to provide that Land Transfer Certificates shall be accepted by financing Institutions as collateral for loans;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby order and decree:

SECTION 1.           All financing institutions shall hereafter accept as collateral for loans and duly registered Land Transfer Certificate issued by the Government, through the Department of Agrarian Reform to tenant-farmers in an amount not less than sixty percent (60%) of the value of the farmholding as determined under Presidential Decree No. 27; Provided, That such loans shall be guaranteed by the Guarantee Fund established by the Samahang Nayon (Barrio Association) in which a tenant-farmer is a full-pledged member; Provided, Further, That the loans obtained shall be used in the improvement or development of the farmholding of the tenant- farmer or the establishment of facilities that will enhance production or marketing of agricultural products or increase farm income therefrom.

SECTION 2.           All laws, decrees, executive order, rules and regulations, or part thereof, inconsistent with this Decree are hereby repealed, amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of October, in the year of Our Lord, nineteen hundred and seventy-three.