1994

LBP EXECUTIVE ORDER NO. 011-94

GUIDELINES ON THE RELEASE OF SEVENTY PERCENT (70%) OF THE TOTAL PROCEEDS OF LANDOWNER'S EO 229/RA 6657 CLAIMS PENDING COMPLETION AND ISSUANCE OF THE FINAL LAND SURVEY OF THE DENR

I.          Coverage

        It has been observed that while under DAR Administrative Order No. 01 (AO 1), Series of 1993, claim folders received by LBP for valuation and compensation shall contain all the necessary documents, including the DENR-approved subdivision/segregation survey of the land, there are a number of claim folders transmitted by DAR purporting to cover under CARP the entire area of the property. However upon ocular inspection  by LBP field personnel, it was determined that only a portion or portions thereof were covered under CARP, thus necessitating a DENR-approved subdivision/segregation survey. In many instances, the landowners of those lands have already accepted the LBP computed value but the proceeds could not be released in view of the absence of the DENR-approved subdivision/segregation survey delineating the acquired from the unacquired portion/s of the land.

        These guidelines shall cover claims already with the LBP as of the date of effectivity of this Executive Order, where LBP valuation is accepted by the landowner, but the proceeds of the claim could not be released pending the completion and submission of the DENR-approved subdivision/segregation survey of the property.

II.         General Guidelines

1.         Release of claim proceeds shall not exceed 70% of the amount of the approved and accepted value of the property. It is understood that the landowner (LO) shall allow LBP to withhold the remaining 30% of the claim proceeds to cover any decrease in value arising from the results of the DENR-approved subdivision/segregation survey.

2.         The amount to be released to the LO shall be the remaining balance of the amount defined in Item No. II.1 above after deducting realty tax obligations/delinquencies and existing mortgages or encumbrances.

            No amount shall be released to the LO if the total proceeds in Item No. II.1 would not be sufficient to fully cover/settle the LO's existing obligations/encumbrances.

3.         The amount to be released shall be sourced first from available cash proceeds (principal cash portion, accrued interest on principal cash portion, matured bond portion and interest thereon) provided that any release of cash to LO shall be net of taxes/encumbrances. The balance to complete the approved amount established in Item No. II.1, shall be sourced from the bond portion, provided further that any release of bond/s or its equivalent cash to LO shall be net of taxes/encumbrances (see attached Illustrative Examples).

            If the mortgagee bank/institution is reluctant to or does not accept LBP bonds or is accepting them at a very low price, the Land Bank — Landowners Assistance Department (LBP-LAD), through an express authority from the LO, shall facilitate the sale/trading of LO's withdrawn bonds at current bond market prices, and the proceeds thereof shall be used in the settlement of the outstanding obligations of the LO with the mortgagee bank/institution.

4.         The release of the claim proceeds determined in Item No. II.1 shall be allowed only after a Deed of Transfer (DOT) covering an unsegregated portion of land has been executed and duly registered with the concerned Register of Deeds.

5.         The requirements for the release of claim proceeds shall be as follows:

a.         execution of the following:

Documents                                                     Reference

º        Landowner's Letter-Application
         Warranties and Authorization                                        Annex A

º        Deed of Transfer of Unsegregated
         Portion of Land                                                            Annex B

b.         compliance with all requirements per approved CVPF except the following:

º           Owner's copy of Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines.

º           Approved subdivision/segregation survey

6.         The procedures for withdrawal of cash portion per E.O. #008, Series of 1992, shall likewise be observed in the partial release of claim proceeds as allowed under these guidelines.

III.       Approving Authorities

        The Head of the implementing Department/Unit concerned, i.e., LVLCOs (I-XII), LCD I, LCD II, shall be authorized to sign the Deed of Transfer for and in behalf of LANDBANK.

IV.       Release of Claim Proceeds

        Releases of claim proceeds shall at all times be covered by a PRF duly approved in accordance with LBP-CASA.

V.        Effectivity

        These guidelines shall take effect immediately. All previous issuances not consistent herewith shall remain in force.

(SGD.) JESLI A. LAPUZ

President