Acceptability of Certificate of Land Ownership Award (CLOA) and Emancipation Patent (EP) for Rediscounting

November 4, 2009 BSP MEMORANDUM NO. M-2009-041 TO : All Concerned Banks SUBJECT : Acceptability of Certificate of Land Ownership Award (CLOA) and Emancipation Patent (EP) for Rediscounting Promissory Notes secured by a mortgage on Certificate of Land Ownership Award or Emancipation Patent are not among the eligible papers acceptable for rediscounting with the Bangko Sentral ng Pilipinas in view of statutory prohibition on such land titles. Presidential Decree No. 27 provides that title to lands acquired pursuant to the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government. Further, Section 27 of Republic Act No. 6657 provides that lands acquired by the beneficiaries under the Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, the Land Bank of the Philippines, or other qualified beneficiaries for a period of ten (10) years. HTCIcE For guidance. (SGD.) ROSALINDA S. DUMALIANG Director