Pursuant to the powers vested in me by law, I, Diosdado Macapagal, President of the Philippines, do hereby order:

SECTION 1. The Board of Liquidators (BOL) is hereby authorized and directed to negotiate with the Philippine National Railways for the acquisition of the latter ™s real property covered by its abandoned rights of way and to purchase the same in the name of the Republic of the Philippines at reasonable appraised valuation, subject to existing liens and encumbrances in favor of third parties.

SEC. 2. The BOL shall administer and subdivide said real property into convenient-sized lots for disposition and resale at cost to qualified persons on installment or cash basis: Provided, however, That preference shall be given to bona fide occupants thereof who entered the land on or before September 28, 1964, and who have since continuously occupied, improved and maintained the same: Provided, further, That in case there are more qualified applicants than lots available for disposition, the same shall be raffled off among the qualified applicants.

SEC. 3. The BOL shall issue certificates of priority recognizing the bona fide occupants of said land and acknowledging their right to preference in the acquisition of a lot covered by this Executive Order, provided that such certificate of priority shall be non-transferable and any transfer thereof shall be null and void.

SEC 4. The proceeds derived from the disposition of the lots, after all expenses of administration are deducted, shall be credited in favor of the Philippine National Railways in payment of the agreed purchase price of said real property; and in accordance with such arrangements as shall be made with the mortgagee banks in whose favor there are existing liens and encumbrances on said land, the same shall be remitted to either the Philippine National Railways or said mortgagee banks, as the case may be.

SEC. 5. The lands acquired under the provisions of this executive order shall not be subject to encumbrance or alienation from the time of the award thereof until the date of issuance of the certificate of title, nor shall they become liable to the satisfaction of any debt contracted prior to the issuance of such title.

SEC. 6. Any applicant of land under this executive order who transfers whatever right he has acquired on said land in violation of the foregoing provisions shall not be entitled to apply for another piece of land and any such transfer shall be null and void.

SEC. 7. The BOL shall, after consultation with the Secretary of Agriculture and Natural Resources and with the approval of the President of the Philippines, promulgate rules and regulations for the administration and disposition of the lands subject of this executive order.

SEC. 8. The BOL is hereby authorized to make advances for expenses to be incurred in the administration and disposition of said lands, subject to reimbursement from the proceeds derived from the disposition thereof.

SEC. 9. All departments, bureaus and offices of the Government, its agencies and instrumentalities, including corporations owned or controlled by the Government, and the local governments shall extend at the request of the BOL, such assistance and facilities as the latter may need in the performance of its work.

SEC. 10. This executive order shall take effect upon its approval.

Done in the City of Manila, this 18th day of November, in the year of Our Lord, nineteen hundred and sixty-five.

(Sgd.) DIOSDADO MACAPAGAL
President of the Philippines

By the President:
(Sgd.) SALVADOR L. MARI O
Acting Executive Secretary