An Act Authorizing Cities and Municipalities to Contract Loans for the Purpose of Purchasing or Expropriating Homesites and Subdividing Them for Resale at Cost

REPUBLIC ACT No. 267

An Act Authorizing Cities and Municipalities to Contract Loans for the Purpose of Purchasing or Expropriating Homesites and Subdividing Them for Resale at Cost

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Cities and municipalities are authorized to contract loans from the Reconstruction Finance Corporation, the Philippine National Bank, and/or any other entity or person at a rate of interest not exceeding eight per cent per annum for the purpose of purchasing or expropriating homesites within their respective territorial jurisdiction and reselling them at cost to residents of the said cities and municipalities.

Section 2. The homesites so acquired shall be subdivided into lots not exceeding five hundred square meters each and sold on a ten-year installment plan, at the same rate of interest paid by the city or municipality for the loan used in acquiring the said homesites, preference being given to Filipino bona fide occupants and to Filipino veterans, their widows, and their children.

No such lot shall be sold to any person who already owns a residential lot, and any sale made to such person shall be void.

Before full payment of the homesite lot has been made, title therein shall remain vested in the city or municipality concerned: Provided, That no such lot, before full payment thereof, shall be transferred, encumbered, or otherwise disposed of by the purchaser thereof without the consent of the Mayor.

Section 3. The Secretary of Finance shall, with the approval of the President of the Philippines, make such rules and regulations as may be necessary to carry out the purposes of this Act.

Section 4. This Act shall take effect upon its approval.

Approved: June 15, 1948.