Text of the provision

Art. 9. Determination of land value. For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (2-1/2) times the average harvest of three

(3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations. In case of default, the amortization due shall be paid by the farmers’ cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him. The government shall guarantee such amortizations with shares of stock in government-owned and government-controlled corporations.

Labor Code of the Philippines, Presidential Decree No. 442, as amended. Reproduced in full from the official enactment and verified against the LawPhil and ChanRobles renderings.

What this article means

The cost of land transferred to a tenant-farmer is set at two and one-half times the average harvest of three normal crop years before 21 October 1972. The total, plus six percent interest per year, is paid in fifteen equal annual amortizations; if the farmer defaults, his cooperative pays and may recover from him, with the government guaranteeing the amortizations through shares of stock in government corporations.

Related provisions

A note on article numbers. The articles of the Labor Code have been administratively renumbered, so the same provision is often cited under a different number. Supreme Court decisions write both, in the form “Article 297 [282]” — the new number first, the original in brackets. The text on this page is published under its original number, which is the numbering both source texts use. When citing, check which numbering your source follows.

Cases interpreting this article

Note. The text of the provision above is reproduced in full from the official enactment (Presidential Decree No. 442), verified against the LawPhil and ChanRobles renderings. The Labor Code has been amended many times; this page reproduces the text as those sources carry it. The annotation and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. How a provision applies to a particular situation depends on facts that only a lawyer reviewing your case can assess.