Section 36. Non-transferability of Free and Prior Informed Consent. The consent of the ICCs/IPs for a particular proposal shall not be transferable except in cases of merger, reorganization, transfer of rights, acquisition by another entity, or joint venture, to any other party, and the same is provided in the MOA: Provided, however, That the transferee shall assume the obligations of the transferor, otherwise another FPIC will be required. The transferee may improve the terms and conditions of the MOA affording or providing greater benefits for the ICCs/IPs other than those stated in the MOA, or may propose other terms and conditions that would uphold the interest and welfare of the concerned IP community. Such change/improvement in the MOA shall bear the approval of the Commission pursuant to this Rule. In the circumstances mentioned in the immediately preceding paragraph, the transferee is required to execute a formal undertaking, with notice to the representatives of the ICCs/IPs concerned, that upon the effectivity of the new set-up or relation brought about by the foregoing circumstances, the transferee shall faithfully comply with the terms and conditions of the MOA and that they shall observe and assume all the obligations stipulated in the said MOA. In this connection, it shall be the responsibility of the transferor to inform transferee of the existence of MOA before the perfection of the new set-up or relation. Likewise it shall be the duty of the transferee to inform, in writing, the ICCs/IPs concerned and NCIP of the impending merger, reorganization, transfer, acquisition, or joint venture and shall be required to submit the necessary documents required under Section 7 of this Guidelines to ADO and to the representative of the ICCs/IPs concerned. The preceding paragraphs shall not apply when it is expressly provided in the MOA that a new FPIC is required in the event of merger, reorganization, transfer of rights, acquisition by another entity, or joint venture. Section 37. Complaints Related to the Memorandum of Agreement. Any complaint involving the interpretation and implementation of the MOA shall be resolved first in the community using their traditional conflict resolution process. If the complaint is not resolved using the customary system, the complaint shall be filed with the appropriate NCIP Regional Hearing Office (RHO) for disposition. The decision of the RHO may be appealed in accordance with the provisions of Administrative Circular No. 1, Series of 2003. Section 38. Applicability of Customary Laws and Imposition of Sanctions for Violation of the Terms of the MOA. Any person/party who willfully violates or fails to comply with his duty or obligation under the provisions of the MOA may be held liable in accordance with the customary laws and practices of the host or concerned ICC/IPs and sanctions may be imposed in accordance therewith: Provided, That the sanctions are not excessive, cruel and degrading, and without prejudice to the exhaustion of conciliation and mediation efforts by the NCIP, and the exercise of the latter’s visitorial and injunctive powers. This is without prejudice to any action that any person or the community may take before the proper courts for the enforcement of civil, criminal or administrative liability.(48) PART VI OTHER PROCESSES Section 39. Community-Solicited or Initiated Activities. Programs, projects and activities solicited or initiated by the concerned ICCs/IPs themselves where the activity is strictly for the delivery of basic services to be undertaken within or affecting the ancestral domain, do not require compliance with the FBI/FPIC requirement as provided in this Guidelines, however, they shall be subjected to a validation process where the following shall be determined: a. The ICC, in fact, voluntarily solicited or initiated the plan, program, project or activity to be undertaken; b. The plan, program, project or activity conforms with the community’s ADSDPP or in the absence of the ADSDPP, the concerned community considers the same to form part already of the ADSDPP that they will formulate in the future; c. The ICC knows the extent of the plan, program, project or activity and its socio-cultural/ environmental impact to the community; d. The parties acknowledge their obligations; or e. The plan, program, project or activity is for the delivery of basic services or livelihood projects involving community. Page 13 of 22 NCIP AO 3 s. 2012 (The Revised Guidelines on Free and Prior Informed Consent and Related Processes of 2012)