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

SECTION 1. Section one of Republic Act Numbered Eleven hundred and sixty-two, as amended, is further amended to read as follows:

"SECTION 1. The expropriation of landed estates or haciendas, or lands which formerly formed part thereof, or any piece of land in the City of Manila, Quezon City and suburbs, which have been and are actually being leased to tenants for at least ten years, is hereby authorized: Provided, That such lands shall have at least forty families of tenants thereon."

SEC. 2. Section five of the same Act as amended, is further amended to read as follows:

“SEC. 5. From the approval of this Act, and even before commencement of the expropriation herein provided, ejectment proceedings against any tenant or occupant of any landed estates or haciendas or lands herein authorized to be expropriated, shall be suspended for a period of two years, upon motion of the defendant, if he pays his current rentals, and such suspension shall continue upon the filing of expropriation proceedings until the final determination of the latter: Provided, however, That if any tenant or occupant is in arrears in the payment of rentals or any amount due in favor of the owners of said landed estates or haciendas or lands, the amount legally due shall be liquidated either in cash or by surety bond, and shall be payable in eighteen equal monthly installments from the time of liquidation, but this payment of rentals  in arrears shall not be a condition precedent to the suspension of ejectment proceedings: Provided, further, That the rentals being collected from the tenants of the landed estates or haciendas or lands herein authorized to be expropriated, shall not be increased above the amounts of rentals being charged as of December thirty-one, nineteen hundred and fifty-three, except in cases where there are existing rental contracts for a fixed period which expired on said date, in which case the court shall fix a reasonable rental not exceeding eight per centum of the  assessed value on December thirty-one, nineteen hundred and fifty-three, but, in any case, if after said date there has been an increase in assessment, the rental may also be increased by the  corresponding amount of  actual increase  in  the land tax: Provided, furthermore, That no lot or portion thereof actually occupied by a tenant or occupant shall be sold by the landowner to any other person than such tenant or occupant, unless the latter renounce in  a public instrument his rights under this Act: Provided, finally, That if there shall be tenants who have constructed bona fide improvements on the lots leased by them, the rights of these tenants should be recognized in the sale-or in the lease of the lots, the limitation as to area in Section three notwithstanding."

SEC. 3. Ejectment proceedings against any tenant or occupant of lands authorized to be expropriated under Republic Act Numbered Eleven hundred and sixty-two, as amended, wherein no complaint for expropriation has yet been filed in the competent court, shall continue to be suspended until the thirtieth of June, nineteen hundred sixty-six under the conditions set forth in Section five of said Act.

SEC. 4. In addition to the appropriation provided for under Republic Act Numbered Eleven hundred and sixty-two, as amended, the sum of twenty million pesos is hereby authorized to be appropriated, out of any funds in the National Treasury not otherwise appropriated, to be expended for the expropriation of landed estates in the Third Representative District of Manila as authorized in the said Act.

SEC. 5. This Act shall take effect upon its approval.

Approved, May 22, 1963.