January 13, 2000

DAR OPINION NO. 04-00

Mr. Federico B. Florendo, Jr.

Manager

Acquired Assets Department

Traders Royal Bank

TRB Tower, Roxas Boulevard

Pasay City, Metro Manila

Dear Mr. Florendo:

This refers to your request for assistance regarding the two (2) parcels of land located at Maramag, Bukidnon which were foreclosed in 1992 by Traders Royal Bank (TRB) from mortgagors Francisco Sotto and Venancio Durelag.

As gleaned from your letter, said parcels of land under OCT No. AO-714 (CLOA No. 00037133) and OCT No. AO-1672 (CLOA No. 00037647) issued in the name of Francisco Sotto and Venancio Durelag, respectively, were foreclosed by TRB when the mortgagors failed to pay the loan and complied with the mortgage agreement; that both titles bear the annotation of encumbrances at the back thereof; that on 30 July 1997, your external Legal Counsel, Atty. Amable S. Pangonzaga sought relief from PARO Norberto Amora of Malaybalay, Bukidnon requesting him to issue a certification to the effect that the titles issued in the name of the mortgagors be cancelled and transferred in favor of TRB; that PARO Amora denied said request in view of Section 27 of R.A. No. 6657 which prohibits the sale, transfer or conveyance of lands covered by R.A. No. 6657 for a period of ten (10) years, except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries.

We carefully studied the matter and found the denial of PARO Amora to be well-taken. We cannot depart from the rationale of the statutory prohibition, that is, to encourage the ARBs to cultivate the land, preserve it for agriculture and make it productive over a long term within the context of agrarian reform.

With regret, therefore, we are constrained to deny the relief requested.

Very truly yours,

(SGD.) FEDERICO A. POBLETE

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Benjamin De Vera

OIC-Director

DAR Region X

Mancanhan, Carmen

Cagayan de Oro City

PARO Norberto Amora

DAR Provincial Office

Casisang, Malaybalay

Bukidnon

The Municipal Agrarian Reform Officer

DAR Municipal Office

Maramag, Bukidnon