Republic Act No. 559

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Notwithstanding the provisions of "The Public Land Act," as amended, the Director of Lands, under the direction of the Secretary of Agriculture and Natural Resources, is hereby authorized and directed to sell without delay and without the necessity of public bidding all the lots in the district of Tondo, City of Manila, known as the "Tondo Foreshore Land" except such portions thereof as may be reserved for port facilities, roads, and other public uses, to the lessees of said lots or to the bona fide occupants thereof at the time of the approval of this Act if duly qualified to acquire public land, or, in the case of vacant lots, to persons who are not disqualified to acquire public lands: Provided, That such lessees, occupants or persons do not own any residential lot in the cities of Manila, Quezon and Rizal or their suburbs.

No person shall be entitled to purchase more than one lot, and any person who purchases a lot in behalf of another who is not qualified as hereinabove provided to acquire a lot in the "Tondo Foreshore Land" shall lose his rights and interests in the land and forfeit all amounts paid on account of said land.

The selling price of each lot shall be fixed by a committee composed of the City Assessor, a representative of the Bureau of Lands, and a representative of the "Tondo Foreshore Land Tenants Association," but in no case shall such selling price be less than five pesos nor more than ten pesos per square meter.

Section 2

The purchasers shall be allowed ten years from the date of purchase within which to pay the purchase price in ten equal annual installments, with annual interests at the rate of four per centum on all installments due and payable. They may also pay the price in cash or more than one installment at one time.

Section 3

Lands acquired under this Act shall not, except in favor of the Government or any of its branches or institutions, or legally constituted banking corporations, be subject to encumbrance or alienation before five years after the date of the issuance of the transfer certificate of title to the purchaser, nor shall they become liable to the satisfaction of any debt contracted prior to the expiration of said period. Every conveyance shall be subject to repurchase by the original purchaser or his legal heirs within a period of five years from the date of the conveyance.

Section 4

Any contract or agreement made or executed in violation of this Act shall cause the reversion of the property and its improvements and the forfeiture of all payments made on account of the purchase price thereof to the Government.

Section 5

In the event of the death of a purchaser prior to the complete payment of the price of the lot purchased by him, his widow and children shall succeed in all his rights and obligations with respect to his lot. In the event said purchaser or his successors in interest should fail to pay two or more installments on the purchase price and the interest thereon or on any installment, when and as the same mature, it shall be the duty of the Director of Lands at once to bring suit for the recovery of such installments and interest due, or for the total amount of the purchase price unpaid, with interest thereon and as to enforce the lien of the Government against the lot by selling the same in the manner provided by law for the foreclosure of mortgages: Provided, That only persons who do not own any residential lot in the cities of Manila, Quezon, Rizal, or their suburbs and are qualified to acquire public lands, can take part in the sale by auction. In the event of such sale the purchaser at such sale shall acquire a good and indefeasible title.

Section 6

This Act shall take effect upon its approval.

Approved, June 17, 1950.