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

SECTION 1. The expropriation of landed estates or haciendas in the City of Manila, which have been and are actually being leased to tenants, is hereby authorized.

SEC. 2. Immediately upon the availability of the necessary funds by the Congress of the Philippines for the payment of just compensation for the said landed estates or haciendas, the Solicitor General shall institute the necessary expropriation proceedings 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 twelve per cent per annum of the assessed valuation of the property leased.

SEC. 4. The sale of the lots of the landed estates or haciendas expropriated by virtue of this Act, shall be in installments for a period of not less than ten years.

SEC. 5. From the approval of this Act, and until the expropriation herein provided, no ejectment proceedings shall be instituted or prosecuted against any tenant or occupant of any landed estates or haciendas herein authorized to be expropriated if he pays his current rent Provided, however, That if any tenant or occupant is in arrears in the payment of rentals or any amounts due favor of the owners of the said landed estates or haciendas, the amount legally due shall be liquidated and shall be payable in eighteen equal monthly installments from th time of liquidation: Provided, further, That the rentals being collected from the tenants of the landed estates haciendas herein authorized to be expropriated, shall n be increased above the amounts of rentals being charged as of December thirty-one, nineteen hundred and fifty. three, except in cases where there were existing rental contracts for a fixed period which expired on said date: 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 should 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. 6. Any owner, manager, attorney, agent, or other representative of the owner of the landed estates or haciendas herein authorized to be expropriated who shall violate the provisions of section five hereof, shall be held liable for exemplary damages of treble the amount of actual damages suffered by the prejudiced tenant or occupant, and for attorney's fees and expenses of litigation.

SEC. 7. The property acquired by virtue of this Act may not be sold, transferred, mortgaged, or otherwise disposed of within a period of five years from the date full ownership has been vested in the purchaser without the consem of the Secretary of Agriculture and Natural Resources.

SEC. 8. The amount of fifteen million pesos is hereby authorized to be appropriated for the purposes of tw Act: Provided, however, That this shall be without prejudice to any other method of raising the necessary funds required for the expropriation herein provided, which the President of the Philippines may determine, including the use of proceeds of government bonds which may be authorized by law.

SEC. 9. This Act shall take effect upon its approval.

Approved, June 18, 1954.