SECTION 47. Foreclosure of Real Estate Mortgage.

In the event of foreclosure, whether judicially or

extrajudicially, of any mortgage on real estate which is security for any loan or other credit
accommodation granted, the mortgagor or debtor whose real property has been sold for the full or partial
payment of his obligation shall have the right within one year after the sale of the real estate, to redeem
the property by paying the amount due under the mortgage deed, with interest thereon at the rate
specified in the mortgage, and all the costs and expenses incurred by the bank or institution from the sale
and custody of said property less the income derived therefrom. However, the purchaser at the auction
sale concerned whether in a judicial or extrajudicial foreclosure shall have the right to enter upon and take
possession of such property immediately after the date of the confirmation of the auction sale and
administer the same in accordance with law. Any petition in court to enjoin or restrain the conduct of
foreclosure proceedings instituted pursuant to this provision shall be given due course only upon the filing
by the petitioner of a bond in an amount fixed by the court conditioned that he will pay all the damages
which the bank may suffer by the enjoining or the restraint of the foreclosure proceeding.
Notwithstanding Act 3135, juridical persons whose property is being sold pursuant to an extrajudicial
foreclosure, shall have the right to redeem the property in accordance with this provision until, but not
after, the registration of the certificate of foreclosure sale with the applicable Register of Deeds which in
no case shall be more than three (3) months after foreclosure, whichever is earlier. Owners of property
that has been sold in a foreclosure sale prior to the effectivity of this Act shall retain their redemption
rights until their expiration. (78a)

Article XII
Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and
national parks. Agricultural lands of the public domain may be further classified by law according to the
uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural
lands. Private corporations or associations may not hold such alienable lands of the public domain except
by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and
not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant.
Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public
domain which may be acquired, developed, held, or leased and the conditions therefor.







MALACAANG
Manila

PRESIDENTIAL DECREE No. 471 May 24, 1974
FIXING A MAXIMUM PERIOD FOR THE DURATION OF LEASES OR PRIVATE LANDS TO ALIENS
WHEREAS, the Constitution bans the acquisition by aliens and alien-owned entities of public and private
lands;
WHEREAS, leases of unreasonably long duration would amount to a virtual transfer of ownership in
violation of the intent of the Constitutional prohibition;
WHEREAS, there is a compelling need to fix a reasonable maximum period for the duration of leases of
private lands to aliens and to enforce compliance thereof by punishing violations;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers
vested in me by the Constitution, do hereby order and degree:
Section 1. The maximum period allowable for the duration of leases of private lands to aliens or alien-
owned corporations, associations, or entities not qualified to acquire private lands in the Philippines shall
be twenty-five years, renewable for another period of twenty-five years upon mutual agreement of both
lessor and lessee.
Sec. 2. Any contract or agreement made or executed in violation of this degree shall be null and void ab
initio, and both parties to the agreement shall be punished by a fine of not less than five hundred nor
more than one thousand pesos, or by imprisonment of from six months to one year, or both in the
discretion of the court, Provided, that the president or managers and directors or trustees of corporations,
associations or partnerships violating this decree shall be criminally liable in lieu thereof.
Sec. 3. This decree shall take effect immediately.
Done in the City of Manila, this 24th day of May, in the year of Our Lord, nineteen hundred and seventy-
four.









Republic Act No. 7652
Investors' Lease Act
AN ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN INVESTORS


Section 1. Title. This Act shall be known as the "Investors' Lease Act."

Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to encourage foreign investments
consistent with the constitutional mandate to conserve and develop our own patrimony. Towards this end, the
State hereby adopts a flexible and dynamic policy of the granting of long-term lease on private lands to
foreign investors for the establishment of industrial estates, factories, assembly or processing plants, agro-
industrial enterprises, land development for industrial, or commercial use, tourism, and other similar priority
productive endeavors.

Sec. 3. Definitions. For purposes of this Act, unless the context indicates otherwise, the term:
(1) "Investing in the Philippines" shall mean making an equity investment in the Philippines through actual
remittance of foreign exchange or transfer of assets, whether in the form of capital goods, patents, formulas,
or other technological rights or processes, upon registration with the Securities and Exchange Commission;
and

(2) "Withdrawal of approved investment" shall mean either: (a) the failure to operate the investment project for
any three (3) consecutive years; or (b) outright abandonment of the investment project at any time during the
approved lease period: Provided, That failure to pay lease rental for three (3) consecutive months coupled
with the failure to operate the investment project for the same period shall be deemed as outright
abandonment of the project.

Sec. 4. Coverage. Any foreign investor investing in the Philippines shall be allowed to lease private lands
in accordance with the laws of the Republic of the Philippines subject to the following conditions:

(1) No lease contract shall be for a period exceeding fifty (50) years, renewable once for a period of not more
than twenty- five (25) years;
(2) The leased area shall be used solely for the purpose of the investment upon the mutual agreement of the
parties;
(3) The leased premises shall comprise such area as may reasonably be required for the purpose of the
investment subject however to the Comprehensive Agrarian Reform Law and the Local Government Code.

The leasehold right acquired under long-term lease contracts entered into pursuant to this Act may be sold,
transferred, or assigned: Provided, That when the buyer, transferee, or assignee is a foreigner or a foreign-
owned enterprise, the conditions and limitations in respect to the use of the leased property as provided for
under this Act shall continue to apply.

Sec. 5. Limitations. (1) Foreign individuals, corporations, associations, or partnerships not otherwise
investing in the Philippines as defined herein shall continue to be covered by Presidential Decree No. 471 and
other existing laws in lease of lands to foreigners.

(2) Withdrawal of the approved investment in the Philippines within the period of the lease agreement entered
into under this Act, or use of the leased area for the purpose other than that authorized, shall warrant the ipso
facto termination of the lease agreement without prejudice to the right of the lessor to be compensated for the
damages he may have suffered thereby.

(3) Any lease agreement under this Act which is renewable at the option of the lessee subject to the same
terms and conditions of the original contract shall be interpreted to mean as renewable upon the mutual
agreement of the parties.

(4) In addition to the conditions for the renewal of a lease agreement after the period of fifty (50) years as
provided herein, the foreign lease shall show that it has made social and economic contributions to the
country.

(5) In the case of tourism projects, lease of private lands by foreign investors qualified herein shall be limited
to projects with an investment of not less than five million (5M) US dollars, seventy percent (70%) of which
shall be infused in said project within three years from the signing of the lease contract.

Sec. 6. Termination of Lease Contract. The Secretary of Trade and Industry shall terminate any lease
contract entered into under the provisions of this Act, if the investment project is not initiated within three (3)
years from the signing of the lease contract.

Sec. 7. Penal Provision. Any contract or agreement made or executed in violation of any of the following
prohibited acts shall be null and void ab initio and both contracting parties shall be punished by a fine of not
less than One Hundred thousand pesos (P100,000) nor more than One million pesos (P1,000,000), or
imprisonment of six (6) months to (6) years, or both, at the discretion of the court:

(1) Any provision in the lease agreement stipulating a lease period in excess of that provided in paragraph (1)
Section 4;

(2) Use of the leased premises for the purpose contrary to existing laws of the land, public order, public policy,
morals, or good customs;

(3) Any agreement or agreements resulting is the lease of land in excess of the area approved by the DTI:
Provided, That, where the excess of the totality of the area leased is due to the acts of the lessee, the lessee
shall be held solely liable therefor: Provided, further, That, in the case of corporations, associations, or
partnerships, the president, manager, director, trustee, or officers responsible for the violation hereof shall
bear the criminal liability.

Sec. 8. Separability Clause. In case any provision of this Act or the application of such provision is
deemed unconstitutional, the remaining provisions of this Act or the application of such provisions shall not be
affected thereby.

Sec. 9. Repealing Clause. All acts, rules and regulations contrary to or inconsistent with this Act are
hereby repealed or modified accordingly.

Sec. 10. Effectivity Clause. This Act shall take effect immediately upon its approval.


Approved: June 4, 1993