FIXING A MAXIMUM PERIOD FOR THE DURATION OF LEASES OF PRIVATE LANDS TO ALIENS

WHEREAS, leases of unreasonably long duration would amount
to a virtual transfer of ownership in violation of 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 decree:

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 decree 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.