PROVIDING THAT LAND TRANSFER CERTIFICATES ISSUED PURSUANT TO PRESIDENTIAL DECREE NO. 27 SHALL BE ACCEPTED BY FINANCING INSTITUTIONS AS COLLATERAL FOR LOANS

WHEREAS, under Presidential Decree No. 27 Land Transfer
Certificates are issued to tenant-farmers in agricultural lands
primarily devoted to the production of rice and corn found qualified to
acquire the land tilled by them;

WHEREAS, under Presidential Decree No. 266 these Land
Transfer Certificates are registerable as valid evidences of ownership;
and

WHEREAS, these tenant-farmers need financial assistance and
one measure of providing them assistance is to provide that Land
Transfer Certificates shall be accepted by financing institutions as
collateral for loans;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all 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 and
decree:

SECTION 1. All financing institutions shall hereafter accept
as collateral for loans any duly registered Land Transfer Certificate
issued by the Government, through the Department of Agrarian Reform, to
tenant-farmers in an amount not less than sixty percent (60%) of the
value of the farmholding as determined under Presidential Decree No. 27:
Provided, That such loans shall be guaranteed by the Guarantee
Fund established by the Samahang Nayon (Barrio Association) in which a
tenant-farmer is a full-fledged member: Provided, further, That
the loans obtained shall be used in the improvement or development of
the farmholding of the tenant-farmer or the establishment of facilities
that will enhance production or marketing of agricultural products or
increase farm income therefrom.

SEC. 2. All laws, decrees, executive orders, rules and
regulations, or part thereof, inconsistent with this Decree are hereby
repealed, amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of October, in the
year of Our Lord, nineteen hundred and seventy-three.