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

SECTION 1. Sections one, two, three, four, five and eight of Republic Act Numbered Eleven hundred sixty-two are hereby amended to read as follows:

"SECTION 1. The expropriation of landed estates or haciendas, or lands which formerly formed part thereof, in the City of Manila, which are and have been leased to tenants for at least ten years, is hereby authorized: Provided, That such lands shall have at least fifty houses of tenants erected thereon."

"SEC. 2. The Land Tenure Administration shall institute the proper expropriation proceedings of the lands herein authorized to be expropriated before the competent court of the City of Manila.

"SEC. 3. The landed estates or haciendas expropriated by virtue of this Act shall be subdivided into small lots, none of which shall exceed one hundred and fifty square meters in area, to be sold at cost to the tenants, or occupants, of said lots, and to other individuals, in the order mentioned: Provided, That if the tenant of any given lot is not able to purchase said lot, he shall be given a lease from month to month, of said lot until such, time that he is able to purchase the same: Provided, further, That in the event of lease, the rentals that may be charged by the Government shall not exceed eight per cent per annum of the assessed valuation of the property leased."

"SEC. 4. The lots of the landed estates or haciendas or lands expropriated by virtue of this Act shall be sold at cost, such cost to mean the price paid by the government to the landowner, plus six per cent interest per annum, payable under an amortization plan for twenty-five years; Provided, however, That in determining the cost of each lot, the price paid by the government for areas covered, by streets, plazas, alleys, and other lands for public use, as well as the cost of subdivision and survey, shall be excluded."

"SEC. 5. From the approval of this Act, and even before the 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 amounts due in favor of the owners of said landed estates or haciendas or lands, the amount legally due shall be liquidated 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 renounces 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. 8. The amount necessary to carry out the expropriation provided for in this Act, not exceeding the sum of fifteen million pesos, shall be taken from the amount provided for in Republic Act Numbered Fourteen hundred."

SEC. 2. This Act shall take effect upon its approval.

Enacted, without Executive approval, June 17, 1956.