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This page features the full text of
Republic Act No. 7652
Investors'
Lease Act
AN
ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN INVESTORS
REPUBLIC
ACT NO. 7652AN
ACT ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN INVESTORS
Section
1. Title. — This Act shall be
known as the "Investors' Lease Act."
chanrobles virtuallaw libraryred
Sec.
2. Declaration of Policy. — It
is hereby declared the policy of the State to encourage foreign
investments
consistent with the constitutional mandate to conserve and develop our
own patrimony. Towards this
end, the State hereby adopts a flexible and dynamic policy of the
granting
of long-term lease on private lands to foreign investors for the
establishment
of industrial estates, factories, assembly or processing plants,
agro-industrial
enterprises, land development for industrial, or commercial use,
tourism,
and other similar priority productive endeavors.
Sec.
3. Definitions. — For purposes
of this Act, unless the context indicates otherwise, the term:
(1) "Investing
in the Philippines" shall mean making an equity investment in the
Philippines
through actual remittance of foreign exchange or transfer of assets,
whether
in the form of capital goods, patents, formulas, or other technological
rights or processes, upon registration with the Securities and Exchange
Commission; andchanrobles virtuallaw libraryred(2) "Withdrawal
of approved investment" shall mean either: (a) the failure to operate
the
investment project for any three (3) consecutive years; or (b) outright
abandonment of the investment project at any time during the approved
lease
period: Provided, That failure to pay lease rental for three (3)
consecutive
months coupled with the failure to operate the investment project for
the
same period shall be deemed as outright abandonment of the
project.chanrobles virtual law library
Sec.
4. Coverage. — Any foreign investor
investing in the Philippines shall be allowed to lease private lands in
accordance with the laws of the Republic of the Philippines subject to
the following conditions:chanrobles virtuallaw libraryred
(1) No
lease contract shall be for a period exceeding fifty (50) years,
renewable
once for a period of not more than twenty- five (25) years; chanrobles virtuallaw libraryred(2) The
leased area shall be used solely for the purpose of the investment upon
the mutual agreement of the parties;
(3) The
leased premises shall comprise such area as may reasonably be required
for the purpose of the investment subject however to the Comprehensive
Agrarian Reform Law and the Local Government Code.
The
leasehold right acquired under long-term lease contracts entered into
pursuant
to this Act may be sold, transferred, or assigned: Provided, That when
the buyer, transferee, or assignee is a foreigner or a foreign-owned
enterprise,
the conditions and limitations in respect to the use of the leased
property
as provided for under this Act shall continue to apply.
Sec.
5. Limitations. — (1) Foreign
individuals, corporations, associations, or partnerships not otherwise
investing in the Philippines as defined herein shall continue to be
covered
by Presidential Decree No. 471 and other existing laws in lease of
lands
to foreigners.chanrobles virtual law library
chanrobles virtuallaw libraryred
(2) Withdrawal
of the approved investment in the Philippines within the period of the
lease agreement entered into under this Act, or use of the leased area
for the purpose other than that authorized, shall warrant the ipso
facto
termination of the lease agreement without prejudice to the right of
the
lessor to be compensated for the damages he may have suffered
thereby.chanrobles virtual law library
(3) Any
lease agreement under this Act which is renewable at the option of the
lessee subject to the same terms and conditions of the original
contract
shall be interpreted to mean as renewable upon the mutual agreement of
the parties.
(4) In
addition to the conditions for the renewal of a lease agreement after
the
period of fifty (50) years as provided herein, the foreign lease shall
show that it has made social and economic contributions to the
country.cralaw:red
(5) In
the case of tourism projects, lease of private lands by foreign
investors
qualified herein shall be limited to projects with an investment of not
less than five million (5M) US dollars, seventy percent (70%) of which
shall be infused in said project within three years from the signing of
the lease contract. chanrobles virtuallaw libraryred
Sec.
6. Termination of Lease Contract.
— The Secretary of Trade and Industry shall terminate any lease
contract
entered into under the provisions of this Act, if the investment
project
is not initiated within three (3) years from the signing of the lease
contract.
Sec.
7. Penal Provision. — Any contract
or agreement made or executed in violation of any of the following
prohibited
acts shall be null and void ab initio and both contracting parties
shall
be punished by a fine of not less than One Hundred thousand pesos
(P100,000)
nor more than One million pesos (P1,000,000), or imprisonment of six
(6)
months to (6) years, or both, at the discretion of the court:
(1) Any
provision in the lease agreement stipulating a lease period in excess
of
that provided in paragraph (1) Section 4; chanrobles virtuallaw libraryred(2) Use
of the leased premises for the purpose contrary to existing laws of the
land, public order, public policy, morals, or good customs;
(3) Any
agreement or agreements resulting is the lease of land in excess of the
area approved by the DTI: Provided, That, where the excess of the
totality
of the area leased is due to the acts of the lessee, the lessee shall
be
held solely liable therefor: Provided, further, That, in the case of
corporations,
associations, or partnerships, the president, manager, director,
trustee,
or officers responsible for the violation hereof shall bear the
criminal
liability.
Sec.
8. Separability Clause. — In
case any provision of this Act or the application of such provision is
deemed unconstitutional, the remaining provisions of this Act or the
application
of such provisions shall not be affected thereby.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
9. Repealing Clause. — All acts,
rules and regulations contrary to or inconsistent with this Act are
hereby
repealed or modified accordingly. chanrobles virtuallaw libraryred
Sec.
10. Effectivity Clause. — this
Act shall take effect immediately upon its approval.
Approved:
June
4, 1993
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