05/02/2020 E.O. No. 1035 Sec. 8. Conditions Precedent to Foreign Loan Negotiation. As a general rule, negotiations for foreign loans to finance specific construction projects and other projects requiring acquisition of private real property or rights thereon shall be undertaken only after the negotiation for such acquisition with the property owner/s have been completed or the expropriation proceedings have been initiated: Provided, That before the filing of expropriation proceedings, the financing institution must have already favorably appraised the project: Provided, further, That exceptions to the above rule may be allowed by the Investment Coordination Committee (ICC) on a case-to-case basis depending on the type, size and technology of the project involved. In such case, the ICC shall determine the extent/stage of property acquisition that may be required as a pre-condition for project approval or for negotiation of a foreign loan to finance the project. TITLE C PROCEDURE FOR PAYMENT AND REGISTRATION OF PROPERTY/ROW ACQUISITIONS Sec. 9. Assessment of Taxes Due. The Bureau of Internal Revenue and the respective Provincial/City/Municipal Treasurers shall assess the following taxes, where applicable, on the property being acquired: a) Capital gains tax due on the grains derived from the sale of the real property to the government; b) Estate tax due on the portion of the estate of a deceased owner to be acquired by the government; and c) Unpaid real estate taxes on the property up to the time the government took possession thereof. Such assessment shall be made and transmitted to the government implementing agency/instrumentality concerned within one (1) week from the submission of complete requirements. Sec. 10. Withholding Tax/Tax Clearance. Upon receipt of the assessment of the aforementioned taxes, the government implementing agency/instrumentality concerned shall issue a certification that upon payment to the landowner; it shall deduct the corresponding capital gains tax and any unpaid estate tax and real estate tax. On the basis of such certification, the BIR and the respective Provincial/City/Municipal Treasurers shall issue the tax clearances for the registration of the property in favor of the government implementing agency/instrumentality concerned. All taxes deducted shall be immediately remitted by the government implementing agency/instrumentality concerned to the BIR or the Provincial/City/Municipal Treasurer, as the case may be. Sec. 11. Payments for Improvements on the Property Acquired. Payment for the improvements or property acquired which are not included in the respective tax declaration of the owner, shall be based on the physical inventory report prepared and certified to by the representatives of the agency, the Commission on Audit, and the claimant. In addition thereto, claims for payment of improvements must be supported by an affidavit of the claimant and affidavit of two (2) adjoining landowners or barangay officials attesting to or substantiating the ownership of said improvements. Sec. 12. Indemnity Bond for Untitled Lands. In case where the property acquired is untitled, the government implementing agency/instrumentality concerned shall require the land owner to post an indemnity or property bond, the amount of which shall be fixed by the Provincial/City/Municipal Treasurer concerned on the basis of the market value as determined by the assessor and as appearing on the current tax declaration of the property. This requirement shall be dispensed with where the claim for payment does not exceed P50,000. Sec. 13. Period for Payment. The payment of property acquired shall be effected by the implementing government agency/instrumentality concerned within ninety (90) days upon approval by appropriate higher authorized of the negotiated sale and submission by the landowner of all required documents. In the case of property acquired through expropriation, payment shall be effected within ninety (90) days from the finality of the decision rendered by the court: Provided, That if at the time of finality of the decision the funds originally allotted to cover the cost of the property are no longer available due to expiration of the pertinent release instruments, payment shall be made upon the release of funds by the OBM which is hereby directed to effect the immediate release thereof, chargeable against available and applicable appropriations thereof. Sec. 14. Properties Covered by Operation Land Transfer. In case the land acquired is covered by the Operation Land Transfer of the Ministry of Agrarian Reform under P.D. No. 27, payment of the purchase price shall be made by the implementing agency/instrumentality concerned to the farmer-beneficiary owning such land by virtue of an emancipation patent issued by the Ministry of Agrarian Reform, free from all liens and encumbrances. If the land is not covered by an emancipation patent, or even if covered by an emancipation patent but the farmer-beneficiary is still amortizing the same with the Land Bank, payment shall be made by the government implementing agency/instrumentality to the landowner, or the Land Bank, as the case may be: Provided, That any amortization payments made by the farmer-beneficiary to the landowner, or the Land Bank, as the case may be, shall be deducted by the government implementing agency/instrumentality from the purchase price and shall be paid to the farmer-beneficiary: Provided, further, That the farmer-beneficiary shall be entitled to the financial assistance provided for under Section 18 hereof. Sec. 15. Approval of Survey Plans. The National Land Titles and Deeds Registration Administration and the Bureau of Lands shall give priority to the approval of all survey plans of parcels of land affected by government projects that have been filed under their respective jurisdiction. Sec. 16. Registration of Deed of Conveyance. The Register of Deeds shall register the deed of conveyance and issue the corresponding title in favor of the government within seven (7) days from the date of presentation of such deed together with the certification provided in Section 10 hereof. The Register of Deeds shall also register the ROM agreement executed by the landowner in favor of the government for the ROW easement acquired by the latter over his property. TITLE D ASSISTANCE TO DISPLACED TENANTS/OCCUPANTS Sec. 17. Relocation/Resettlement of Tenants/Occupants Affected by Property/ROW Acquisitions. In case where the land to be acquired for the project would involve displacement of tenants, farmers and other occupants, the Ministry of Human Settlements, Ministry of Agrarian Reform and other concerned agencies shall extend full cooperation and assistance to the implementing agency/instrumentality concerned in the relocation and resettlement of such displaced tenants and occupants. Sec. 18. Financial Assistance to Displaced Tenants/Occupants. The government implementing agencies/instrumentalities concerned shall extend financial assistance to the displaced tenants of agricultural lands, cultural minorities and settlers who are duly accredited by the Ministry of Agrarian Reform/Bureau of Forest Development/Office of Muslim Affairs and Cultural Communities. In the case of cultural minorities payment of such financial assistance shall be based on land occupancy certificates pursuant to the provision of P.D. 419. The amount of financial assistance to be given to tenants/farmers of agricultural lands which is to be determined by the implementing agency concerned in consultation with appropriate agencies, shall be equivalent to the value of the gross harvest for one year on the principal and secondary crops of the area acquired, based on the average annual gross harvest for the last three preceding crop years: Provided, That in no case shall the financial assistance be less than P15,000.00 per hectare. https://www.lawphil.net/executive/execord/eo1985/eo_1035_1985.html 2/3