AMENDING PRESIDENTIAL DECREE NO. 27, DATED OCTOBER 21, 1972, ENTITLED “DECREEING THE EMANCIPATION OF TENANT FROM THE BONDAGE OF THE SOIL, TRANSFERRING TO THEM THE OWNERSHIP OF T…

I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972 and General Order
No. 1, dated September 22, 1972, as amended, do hereby order, decree and
make as part of the laws of the land the following measure:

SECTION 1. To further accelerate the attainment of
the objectives set forth in Presidential Decree No. 27, the following
provisions are hereby incorporated, to wit:

1. The landowner shall be exempt from the capital gains tax on the
   proceeds of the amortizations paid him by the tenant-purchaser and
   likewise from income tax due on the accruing interests paid as an
   addition to the total cost of the land.
2. The active participation of rural banks and all other
   financial institutions shall be required in order to provide immediate
   source of funds to augment loans/credits to be made available to the
   tenants and/or farmers cooperatives consistent with the asserted
   implementation of the supervised credit program,
3. The Agricultural Guarantee Fund constituted under Section
   twelve of Republic Act No. 6390 for all its intent and purpose include
   the guarantee coverage to the participating financial institutions under
   the same terms and conditions allowed and applied to the rural banking
   system.
4. The existing agricultural guarantee loan funds wholly or
   partly contributed and/or funded by government agencies shall be
   integrated into the Agricultural Guarantee Fund, and shall be governed
   by the rules and regulations promulgated by the Agricultural Guarantee
   Fund Board established under Section thirteen of the mentioned Act.

SEC. 2. All acts, orders, rules and regulations, or parts thereof,
inconsistent herewith are amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of November, in the year of
Our Lord, nineteen hundred and seventy-two.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO B. MELCHOR
		Executive Secretary