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

SECTION 1. The provisions of section sixty-one of Commonwealth Act Numbered One hundred and forty-one to the contrary notwithstanding, marshy lands, and lands under water bordering on shores or banks of navigable lakes or rivers which are covered by subsisting leases or leases which may hereafter be duly granted under the provisions of the said Act and are already improved and have been utilized for farming, fishpond, or similar purposes for at least five years from the date of the contract of lease, may be sold to the lessees thereof under the provisions of Chapter Five of the said Act as soon as the President, upon recommendation of the Secretary of Agriculture and Natural Resources, shall declare that the same are not necessary for the public service.

SEC. 2. Section sixty-five of Commonwealth Act Numbered One hundred forty-one is hereby amended to read as follows:

"SEC. 65. The sale of the lands comprised in classes (c) and (d) of section fifty-nine shall, among others, comprise the following conditions:

"(a) The purchaser shall make improvements of a permanent character appropriate for the purpose for which the land is purchased, shall commence work thereon within six months from the receipt of the order of award, and shall complete the construction of said improvements within eighteen months from the date of such award; otherwise the Secretary of Agriculture and Natural Resources may rescind the contract.
"(b) The purchase price shall be paid in cash or in equal annual installments, not to exceed ten.

"The contract of sale may contain other conditions not inconsistent with the provisions of this Act."

SEC. 3. This Act shall take effect upon its approval.

Approved, June 16, 1948.