WHEREAS, the provisions of Section 121 of Commonwealth Act No. 141, as amended by Commonwealth Act No. 615, limit the right of corporations, partnerships or associations to acquire or have any right to lands originally granted under the free patent, homestead or individual sale provisions of the said Act, only for educational, charitable, religious or right of way purposes;

WHEREAS, such restriction has been an obstacle to the efforts of the private sector to accelerate economic development;

WHEREAS, it is necessary in the national interest to remove the restriction imposed by Commonwealth Act Mo. 615 on the right of juridical entities to acquire such lands for commercial or industrial purposes.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution of the Philippines, do hereby decree as follows:

SECTION 1. Section 121 of Commonwealth Act No. 141, as amended, is hereby further amended to read as follows:

"SEC. 121. Except with the consent of the grantee and the approval of the Secretary of Natural Resources, and solely for commercial, industrial, educational, religious or charitable purposes or for a right of way, no corporation, association, or partnership may acquire or have any right, title, interest, or property right whatsoever to any land granted under the free patent, homestead, or individual sale provisions of this Act or to any permanent improvement on such land.

"The provisions of Section 124 of this Act to the contrary notwithstanding, any acquisition of such land, rights thereto or improvements thereon by a corporation, association, or partnership prior to the promulgation of this Decree for the purposes herein stated is deemed valid and binding; Provided, That no final decision of reversion of such land to the State has been rendered by a court; And Provided, further, That such acquisition is approved by the Secretary of Natural Resources within six (6) months from the effectivity of this Decree.'

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 6th day of August, in the year of Our Lord, nineteen hundred and seventy-five.