WHEREAS, it is the policy of the State as mandated by the Constitution to protect the rights of indigenous cultural communities and indigenous peoples to their ancestral lands and to ensure their economic well-being;

WHEREAS, Republic Act No. 8371 (Indigenous People's Rights Act), recognizes the rights of indigenous peoples to their ancestral domains and provides for the issuance of Certificates of Ancestral Domain Titles (CADTs) to indigenous peoples;

WHEREAS, CADTs are titles formally recognizing the rights of indigenous peoples over their ancestral domains and are registered with the Register of Deeds where the property is situated;

WHEREAS, Presidential Decree No. 1529 (Property Registration Decree), provides that registered owners shall contribute to the Assurance Fund, which is one-fourth of one percent of the assessed value of the real estate on the basis of the last assessment for taxation purposes and which is used to answer for claims of persons who, without negligence on his part, sustains loss or damage, or is deprived of land or any estate or interest therein as a consequence of bringing the land under the operation of the Torrens system;

WHEREAS, CADTs are not titled under the Torrens System of land registration, hence, these are not within the ambit of the Property Registration Decree on mandatory contribution to the Assurance Fund.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Land Registration Authority is hereby directed not to impose contributions to the Assurance Fund from CADT applicants.

SECTION 2. All issuances, rules and regulations, or parts thereof that are inconsistent with this Memorandum Order are hereby repealed, amended or modified accordingly.

SECTION 3. This Memorandum Order shall take effect immediately.

Adopted: 5 July 2005

(SGD.) GLORIA MACAPAGAL ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary