Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond
DAR Administrative Order No. 01-16, issued on March 30, 2016, amends the 2002 Comprehensive Rules on Land Use Conversion by allowing private insurance and surety companies to act as sureties for bonds required in land use conversion applications. The amendments specify that applicants can post a surety bond, either from the Government Service Insurance System (GSIS) or a private insurer, to guarantee against premature conversion and ensure compliance with conversion conditions. Additionally, the order outlines the procedures for converting a bond into a performance bond and emphasizes the need for bond renewal to avoid application suspension or revocation. This order takes effect ten days after publication in national newspapers.
Quick Answers
- What is Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond about?
- DAR Administrative Order No. 01-16, issued on March 30, 2016, amends the 2002 Comprehensive Rules on Land Use Conversion by allowing private insurance and surety companies to act as sureties for bonds required in land use conversion applications. The amendments specify that applicants can post a surety bond, either from the Government Service Insurance System (GSIS) or a private insurer, to guarantee against premature conversion and ensure compliance with conversion conditions. Additionally, the order outlines the procedures for converting a bond into a performance bond and emphasizes the need for bond renewal to avoid application suspension or revocation. This order takes effect ten days after publication in national newspapers.
- What type of law is DAR Administrative Order No. 01-16?
- Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond (DAR Administrative Order No. 01-16) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond enacted?
- Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond (DAR Administrative Order No. 01-16) was enacted on Mar 30, 2016.
- What is the citation for Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond?
- Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond, DAR Administrative Order No. 01-16, Mar 30, 2016 (Philippines)
Law Information
- Reference Number
- DAR Administrative Order No. 01-16
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Agrarian Reform
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
March 30, 2016
DAR ADMINISTRATIVE ORDER NO. 01-16
| SUBJECT | : | Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond |
Recognizing the jurisdiction of the Insurance Commissioner to grant authority to private insurance and surety companies to act as sureties in government transactions by virtue of the Letter of the Office of the President dated 07 May 2014 and DOJ Opinion No. 93-2012 dated 05 December 2013, DAR Administrative Order (A.O.) No. 01 dated 28 February 2002, entitled "2002 Comprehensive Rules on Land Use Conversion" is hereby amended.
SECTION 1. Section 23, Article III of A.O. No. 01, Series of 2002 is hereby amended to read, as follows:
"Section 23. Bond. — To guarantee that the applicant shall not undertake premature conversion pending consideration of the application, and ensure faithful compliance with the condition of the Conversion Order by the applicant/developer, cash or surety bonds shall be required pursuant to Section 35, Chapter 6, Book IV of the Administrative Code of 1987.
23.1. Surety bond issued by the Government Service Insurance System (GSIS), in line with the Office of the President (OP) Administrative Order (AO) No. 33 [25 August 1987], as amended by OP-AO-141 [12 August 1994], "Prescribing Guidelines for the Insurance of All Properties, Contracts, Rights of Action and Other Insurance Risks of the Government, Including Those in Which the Government Has an Insurable Interest, with the General Insurance Fund of the Government Service Insurance System" or by a private insurance and surety company shall be allowed and accepted. CAIHTE
23.2. . . ."
SECTION 2. Section 24, Article III of A.O. No. 01, Series of 2002 is likewise amended to read as follows:
"Section 24. Bond to Guaranty against Premature Conversion. —
xxx xxx xxx
24.2. In lieu of cash bond, the applicant may post a surety bond issued by the GSIS or any private insurance or surety company, equivalent to at least fifteen percent (15%) of the total zonal value of the land per latest issuance of the Department of Finance, indicating the following conditions at the minimum that:
24.2.1. . . .
24.2.2. . . .
24.2.3. The validity of the bond shall be for a period of one (1) year, renewable by not more than (1) year when necessary. Failure of the applicant to renew the bond shall result in the suspension or dismissal of the application, or the revocation of the approved land use conversion, without prejudice.
xxx xxx xxx"
SECTION 3. Section 25, Article III of A.O. No. 01, Series of 2002 is further amended to read, as follows:
"Section 25. Convertibility of Bond. — An applicant who posted a "bond to guarantee against premature conversion" using a GSIS or private insurance or surety company surety bond may thereafter opt to convert said surety bond into a performance bond after securing the consent of the GSIS or private insurance and surety company, in line with Article 2079 of the Civil Code."
SECTION 4. Section 26, Article III of A.O. No. 01, Series of 2002 is further amended to read, as follows:
"Section 26. Performance Bond. — Within five (5) days from receipt of a copy of the Conversion Order, the applicant shall post a performance bond in the form of either of the following:
xxx xxx xxx
26.2. GSIS or private insurance and surety company surety bond equivalent to at least fifteen percent (15%) of the total zonal value of the land per latest issuance of the Department of Finance, indicating the following conditions at the minimum that:
xxx xxx xxx
26.2.4. The validity of the bond shall be equivalent to the prescribed period of development of the area under the Conversion Order. In the event that the bond expires even before the prescribed period of development, the same shall be consistently renewed; otherwise, the Conversion Order shall be revoked. DETACa
xxx xxx xxx."
SECTION 6. n This Administrative Order shall take effect within ten (10) days after publication in at least two (2) national newspapers of general circulation.
Diliman, Quezon City, March 30, 2016.
(SGD.) VIRGILIO R. DE LOS REYESSecretary
Footnotes
n Note from the Publisher: Copied verbatim from the official copy. Missing "Section 5".
Published in the Business Mirror and the Malaya Business Insight on April 4, 2016.
Cite This Law
Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond, DAR Administrative Order No. 01-16, Mar 30, 2016 (Philippines)
Amending DAR Administrative Order No. 01, Series of 2002, Entitled "2002 Comprehensive Rules on Land Use Conversion", by Allowing Private Insurance and Surety Companies to Post Bond, DAR Administrative Order No. 01-16 (Phil. 2016)
Related Laws
- Amending Memorandum Circular No. 2, Series of 2002, Titled Guidelines for the Processing of Land Use Conversion Applications Pursuant to Administrative Order No. 1, Series of 2002 Entitled "2002 Comprehensive Rules on Land Use Conversion"DAR Memorandum Circular No. 01-15 • Mar 6, 2015 • Other Rules and Procedures
- 2002 Comprehensive Rules on Land Use ConversionDAR Administrative Order No. 01-02 • Feb 28, 2002 • Other Rules and Procedures
- Clarifying Administrative Order (A.O.) No. 02, Series of 2002, Entitled Institutionalization of the Center for Land Use Policy, Planning and Implementation [CLUPPI] and Memorandum Circular (M.C.) No. 05, Series of 2015 Amending A.O. No. 02, Series of 2002DAR Memorandum Circular No. 01-16 • Mar 11, 2016 • Other Rules and Procedures
- Authority of the Insurance Commissioner to Grant Authority to Private Insurance Companies to Act as Sureties in Government TransactionsInsurance Circular Letter No. 024-14 • May 28, 2014 • Other Rules and Procedures
- Amending Administrative Order No. 02, Series of 2002 Titled Institutionalization of the Center for Land Use Policy, Planning and Implementation (CLUPPI)DAR Memorandum Circular No. 05-15 • Sep 18, 2015 • Other Rules and Procedures
- Amendment to Administrative Order No. 11, Series of 2014, Hastening the Acquisition and Distribution ProcessDAR Administrative Order No. 02-15 • Mar 4, 2015 • Other Rules and Procedures
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