GENERAL BANKING LAW

Section 47. Foreclosure of Real Estate Mortgage. - In the event of foreclosure, whether
judicially or extra-judicially, 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 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 extra-judicial
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.
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; lawphi1.net
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.
Section 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.
Section 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
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.chanrobles
virtual law library
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.chanrobles virtual law library
(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.chanrobles virtual law library
(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.cralaw
(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.chanrobles virtual law library
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.
1987 CONSTITUTION
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