Sec. 2.    Notwithstanding the provisions of the Public Land Act, as amended, and Proclamation Numbered One hundred eighty-seven of the President of the Philippines, dated June seventeen, nineteen hundred fifty, the Director of Lands, under the direction of the Secretary of Agriculture and Natural Resources, is hereby authorized and directed to survey and subdivide immediately the lands in the district of Tondo, City of Manila, comprising what is known as the "Tondo Foreshore Land," which is bounded on the North by the Philippine Manufacturing Company compound up to Vitas (Government Tenement Houses); on the East by privately-owned parcels of land from the present Azcarraga Street extension to the Philippine Manufacturing Company compound at Bankusay Street extending to Vitas (Government Tenement Houses); on the South by the present Azcarraga Street extension; and on the West by that portion of land three hundred meters from the pier line to the East, with the exception of such areas as are reserved by the Government for port facilities, roads and other public uses, into lots in such a manner that every lessee of any lot in said land or bona fide occupant of any parcel thereof will not be deprived of any part of the same, should he decide to buy it under this Act. The Director of Lands is hereby further directed to complete such survey and subdivision within one year from the date of the approval of this Act, after which said Director shall turn over all the pertinent records or papers of said survey and subdivision to the Land Tenure Administration which is hereby authorized and directed to sell without delay and without the necessity of public bidding the lots as subdivided to their respective lessees and bona fide occupants if they are duly qualified to acquire public lands at the time of the approval of Republic Act Numbered Five hundred fifty-nine, or, in the case of vacant lots, to persons who are not disqualified to acquire public lands: Provided, That those lessees and bona fide occupants who will be deprived of their lots or parcels of land by reason of the opening or widening of streets and alleys by virtue of the subdivision herein provided, shall be given preference, in the order mentioned, in the award of sale of the vacant lots: Provided, further, That if said vacant lots are not enough to accommodate all such lessees and occupants, the award or sale thereof shall be by lot: Provided, further, That if there are lessees or bona fide occupants who, after going through the above procedures, still are unaccommodated, the same shall be given preference to acquire lots on the reclaimed area towards the East of Bankusay Street, in the district of Tondo, City of Manila, and/or occupy or buy houses in the housing projects of the People's Homesite Corporation to be established in the district of Tondo, City of Manila.cralaw

No person shall be entitled to purchase more than one lot in the Tondo Foreshore Land, and any person purchasing two or more lots therein shall lose his rights and interests in said lots and forfeit all amounts paid on account of the same.  

The selling price of each lot shall not be more than five pesos per square meter: Provided, That expenses for the opening or widening or repairs of the streets and alleys, the laying of sewerage system, and the costs of the survey and subdivision shall not be added to the selling price of each lot as herein fixed.cralaw

All streets and alleys existing on the date of the approval of this Act within the Tondo Foreshore Land shall not be changed either by the City Government of Manila or by the National Government, unless the public interests demand that they be changed.cralaw

Sec. 3.    The purchasers shall be allowed, with no down payment whatsoever, fifteen years from the date of purchase within which to pay the purchase price in one hundred eighty equal monthly installments, with an annual interest 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.  

Sec. 4.    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 within fifteen 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: Provided, however, That such lands may be mortgaged even before said period has expired.cralaw

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.cralaw

Sec. 5.    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.cralaw

Sec. 6.    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 fail or his successors in interest should fail to pay six consecutive or cumulative installments on the purchase price and the interest thereon or on any installment, when as the same mature, it shall be the duty of the Chairman of the Land Tenure Administration at once to bring suit for the recovery of such installments and interest due, or of the total amount of the purchase price unpaid, with interest thereon, and also 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 Pasay, 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. 

Sec. 7.    The Land Tenure Administration shall, upon proper consultation with the "Federation of Tondo Foreshore Land Tenants Association," implement and carry out the provisions of this Act. To this end, the Chairman of said Administration may promulgate such rules and regulations as may be necessary to carry out said provisions.

Sec. 8.    The sum of four hundred thousand pesos is appropriated, out of any funds in the National Treasury not otherwise appropriated, to carry out the purposes of this Act.cralaw

Sec. 9.    All laws or parts of laws inconsistent with this Act are repealed or modified accordingly.cralaw

Section 10.    This Act shall take effect upon its approval.cralaw

Approved: June 16, 1956