MALACAANPALACEMANILA

BYTHEPRESIDENTOFTHEPHILIPPINES

EXECUTIVEORDERNO.355

CREATINGTHELANDSETTLEMENTANDDEVELOPMENTCORPORATIONANDDISSOLVINGTHE NATIONAL LAND SETTLEMENT ADMINISTRATION, AND THE RICE AND CORNPRODUCTIONADMINISRATIONAND THE MACHINERYAND EQUIPMENT DEPARTMENT OFTHENATIONALDEVELOPMENTCOMPANY.

Pursuant to thepowersvested inmebyRepublicActNumberedFourhundredand twentytwo, I,ElpidioQuirino,PresidentofthePhilippines,doherebyorder:

CREATION,POWERSANDFUNCTIONS

SECTION1.There isherebycreatedapubliccorporationunder thenameof theLandSettlementand Development Corporation which, in short, shall be known as the LASEDECO. ThisCorporationshallexistforaperiodoftwentyfiveyearsfromtheeffectivedateofthisOrder.ItshallhaveitsmainofficeintheCityofManila,andsuchbranchesandagenciesinotherplaces,withinandoutsideofthePhilippines,asmaybenecessaryfortheproperconductofitsbusiness.

SEC.2.TheLASEDECOshallhavethefollowingpowers,dutiesandfunctions:

(a)Tofacilitatetheacquisition,settlementandcultivationofagriculturallands

(b)Toaffordopportunitytoownfarmstotenantfarmersandsmallfarmersfromcongestedareas,tograduates of agricultural schools and colleges, to trainees who have completed the prescribedmilitarytraining,toveteransandmembersofguerrillaorganizations,andtootherpersonsasmaybedeterminedbytheBoardofDirectorswiththeapprovaloftheSecretaryofEconomicCoordination

(c) To encouragemigration to sparsely populated regions, and facilitate the amalgamation of thepeopleindifferentsectionsofthePhilippines

(d)ToacquirebygrantfromtheRepublicofthePhilippinesunrestrictedareasofpublicagricultural

lands in order to carry out its objectives to survey, subdivideand set aside lots or areasof suchlandsforfarming,townsites,roads,parks,governmentcenters,recreationalcentersandotherpublicandcivic improvementsandtodisposeoffarmlandsandtownsitelotstopersonsqualifiedandtotheextentofareasauthorizedundertheConstitutionandthePublicLandAct,subjecttosuchotherqualifications,andtoprices,termsandconditionsasmay.beprescribedbytheBoardofDirectors,with theapprovalof theSecretaryofEconomicCoordination, theproceeds fromdispositionof thesametoaccruetotheCorporationProvided,however,Thatwithinaperiodoftenyearsafterthefinalgrant, the farm lands and townsite lots aforementioned shall not, except by inheritance, beencumbered, alienatedor transferred, nor shall theybecome liable to the satisfactionof anydebtcontractedprior to theexpirationof thesaidperiodbut the improvementsorcropsonsuch landsand lotsmaybemortgagedorpledgedtocreditagenciesdulyauthorizedthereforbytheBoardofDirectors

(e)Toestablishandoperatecreditagencies,electriclightandwaterplants,watersupplies,irrigationsystems, cooperative to engage in the buying and selling of commodities, and other services orconveniencesforthewellbeingofthesettlers

(f)To encouragemechanized farming to operate tractor and agriculturalmachinery pools and tomaintaintrainingcentersfortheoperationandrepairofagriculturalmachinery,tractorsandthelike

(g)Toassistintheestablishmentofagriculturalandothervocationalschoolswithintheareasunderitsterritorialjurisdiction,andtoallocatedefiniteportionsoffarmlandsandtownsitelotswithaviewtoenabling students successfully finishing courses prescribed in said agricultural and vocationalschoolstoeventuallyacquiretitlethereto

(h)To do all such other things and to transact all such business directly or indirectly necessary,incidentalorconducivetotheirattainmentofthepurposesoftheCorporationand

(i)Generally,toexerciseallthepowersofacorporationundertheCorporationLawinsofarastheyarenotinconsistentwiththeprovisionsofthisOrder.

CAPITAL

SEC. 3. The LASEDECO shall have as its capital the net worth of theNational Land SettlementAdministration,andtheRiceandCornProductionAdministrationandtheMachineryandEquipment

this Order, including the appraised value to be determined by the Secretary of Agriculture andNaturalResourcesoflandscededtoitpursuanttosection14ofthisOrder,andsuchappropriationsasmaybeauthorizedbylaw.

TheGovernmentoftheRepublicofthePhilippinesshallnotbeliableforanydebt,liability,obligationordamagethatmightbecontracted,incurredorcausedbythecorporation,

MANAGEMENT

SEC.4.ThemanagementoftheLASEDECOshallbevestedinaBoardofDirectorsconsistingofachairmanandsixmembers, appointedby thePresidentof thePhilippineswith the consentof theCommissioninAppointments.ThesaidmembersshallserveasdesignatedbythePresidentintheirappointments for terms of one, two, and three years, respectively, from the date they qualify andassume office but their successors shall be appointed for terms of three years, execpt that anyperson chosen to fill a vacancy shall serve only for the unexpired term of thememberwhom hesucceeds.Foractualattendanceatmeetings,eachdirectorshall receiveaperdiemof twentyfivepesos.

SEC.5.TheBoardofDirectorsshallhavethefollowingpowersandduties:

(a)Toprescribe,amendandrepealwiththeapprovaloftheSecretaryofEconomicCoordination,bylaws,rulesandregulationsgoverningthemannerinwhichthegeneralbusinessoftheCorporationmaybeexercised, including provisions for the formation of such committee or committees as theBoardofDirectorsmaydeemnecessarytofacilitateitsbusiness,andtoexpeditethedispositionof,and the issuance of titles over, farm lands and townsite lots as contemplated in section 2 of thisOrder.

(b)To appoint and fix the compensation of the General Manager, subject to the approval of thePresident of the Philippines, and to appoint and fix the compensation of the other officers of theCorporation,withtheapprovaloftheSecretaryofEconomicCoordination.TheBoard,byamajorityvote of all themembers,may, for cause, suspend and, with the approval of the President of thePhilippines,removetheGeneralManager.

SEC.6.ThepowersanddutiesoftheGeneralManagershallbeasfollows:

(a) To direct andmanage the affairs and business of the Corporation, on behalf of the Board of

Directors,andsubjecttoitscontrolandsupervision

(b)TositinallmeetingsoftheBoardofDirectorsandparticipateinitsdeliberations,butwithouttherighttovote

(c)Tosubmitwithinsixtydaysafterthecloseofeachfiscalyearanannualreport,throughtheBoardofDirectors,totheSecretaryofEconomicCoordination

(d)Toappointandfixthenumberandsalaries,withtheapprovaloftheBoardofDirectors,ofsuchsubordinatepersonnelasmaybenecessaryfortheproperdischargeofthedutiesandfunctionsoftheCorporation,and,withtheapprovaloftheBoard,toremove,suspend,orotherwisediscipline,forcause,anysubordinateemployeeoftheCorporationand

(e)ToperformsuchotherdutiesasmaybeassignedtohimbytheBoardofDirectorsfromtimetotime.

SEC.7.NoofficeroremployeeoftheCorporationshallbepermittedtoacquire,directlyorindirectly,,anylandwithintheterritorialjurisdictionoftheCorporation.

SEC. 8. The Auditor General shall appoint a representative who shall be the Auditor of theLASEDECO, and the necessary personnel to assist said representative in the performanceof hisduties.ThenumberandsalariesoftheAuditorandsaidpersonnelshallbedeterminedbytheAuditorGeneral, subject to appropriation by the Board of Directors. In case of disagreement, themattershouldbesubmittedtothePresidentofthePhilippineswhosedecisionshallbefinal.SaidsalariesandallotherexpensesofmaintainingtheAuditorsofficeshallbepaidbytheLASEDECO.

SEC 9. The financial transactions of the LASEDECO shall be audited in accordance with law,administrative regulations, and the principles and procedures applicable to commercial corporatetransactions.Areportofauditforeachfiscalyearshallbesubmitted,withinsixtydaysafterthecloseof the fiscal year, by the representativeof theAuditorGeneral, through the latter, to theBoardofDirectorsoftheCorporation,andcopiesthereofshallbefurnishedthePresidentofthePhilippines,theSecretaryofEconomicCoordinationandthePresidingOfficersofthetwoHousesofCongress.Thereportshallsetforththescopeoftheauditandshallincludeastatementofassetsandliabilities,capitalandsurplusordeficitastatementofsurplusordeficitanalysisastatementof incomeandexpensesastatementofsourcesandapplicationoffundsandsuchcommentsandinformationas

including a report of any impairment of capital noted in the audit. The report shall also showspecificallyanyprogram,expenditures,orotherfinancialtransactionorundertakingobservedinthecourseofaudit,which,intheopinionoftheAuditor,hasbeencarriedonormadewithoutauthorityoflaw.

APPOINTMENTSANDPROMOTIONS

SEC. 10. In the appointment and promotion of officers and employees,merit and efficiency shallserve as bases, and no political test or qualification shall be prescribed and considered for suchappointmentsorpromotions.AnyappointeeoftheBoardoroftheGeneralManager,whoisfoundbytheSecretaryofEconomicCoordination tobeguiltyofviolating this requirementshallberemovedfromoffice.

SEC. 11.All officers and employees of the LASEDECOshall be subject to theCivil Service Law,rules and regulations, except those whose positionsmay, upon recommendation of the Board ofDirectors and the Secretary of Economic Coordination, be declared by the President of thePhilippinespolicydetermining,primarilyconfidentialortechnicalinnature.

TRANSITORYANDSPECIALPROVISIONS

SEC. 12. The National Land Settlement Administration, and the Rice and Corn ProductionAdministration and the Machinery and Equipment Department of the National DevelopmentCompanyareherebydissolved.AnyreferencetotheNationalLandSettlementAdministration,andtheRiceandCornProductionAdministrationandtheMachineryandEquipmentDepartmentof theNationalDevelopmentCompanyinanyexistinglaw,orinanyExecutiveOrder,AdministrativeOrder,or Proclamation of the President of the Philippines shall, with respect to any duty or functionassumed by the corporation created in this Order, be deemed hereafter to be reference to theLASEDECO.

SEC.13.Thepersonnel,records,properties,equipment,assets,rights,chosesinaction,obligations,liabilities, and contracts of the National Land Settlement Administration, and the Rice and CornProduction Administration and the Machinery and Equipment Department of the NationalDevelopmentCompanyareherebytransferredto,vestedin,andassumedbytheLASEDECO,andall their businesses and affairs shall be liquidated, assumed, and continued by theLASEDECO:Provided,Thataninventoryandvaluationoftheproperties,equipment,assets,rights,

choses inaction,obligations, liabilities,andcontractsofsaidentitiesshallbemadeby theAuditorGeneral, and during the inventory and valuation, the accountable officers of said entities shallcontinue to be fully accountable therefor, until actual physical transfer to, and acceptance by, thecorresopndingaccountableofficersoftheLASEDECO:Provided,further,Thatthepex^sonnelofsaidentitiesherebytransferredshallbereappointedintheLASEDECOandthosenotreappointedwithinsixtydaysfromtheeffectivedateofthisOrdershallbeconsideredseparatedfromtheservice:And,provided, finally, That the LASEDECO shall undertake, manage and continue the agriculturalactivitiesoftheRiceandCornProductionAdministrationonlywithintheareasnowundercultivationuntil thesameshallhavebeendisposedof inaccordancewithsection2hereof,but incase foraperiodlongerthanfiveyearsfromtheeffectivedateofthisOrder.

SEC.14.Allsurveyedportionsofthepublicagriculturallandsheretoforetransferredorreservedforthe use and operation of the National Land Settlement Administration and the Kice and CornProduction Administration of the National Development Company, and/or of those which mayhereafterbetransferredbythePresidentofthePhilippinestotheLASEDECO,shallbecededtotheLASEDECO, and the President of the Philippines shall from time to time cause the issuance ofpatentsorotherdeedstransferringtitletosuchlandstothesaidCorporationinaccordancewiththeprovisionsofthePublicLandActandsuchrulesandregulationsasmaybepromulgatedtofacilitatethetransferoftitletothesaidCorporation.

MISCELLANEOUSPROVISIONS

SEC.15.AllActsorpartsofActsandallExecutiveOrders,AdministrativeOrders,andProclamationsorpartsthereofinconsistentwithanyoftheprovisionsofthisOrderareherebyrepealedormodifiedaccordingly.

Sec.16.IfanyprovisionofthisOrdershouldbeheldinvalid,theotherprovisionsshallnottherebybeaffected.

Sec.17.ThisExecutiveOrdershalltakeeffectonOctobertwentythird,nineteenhundredandfifty.

DoneintheCityofManila,this23rddayofOctober,intheyearofOurLord,nineteenhundredandfifty,andoftheIndependenceofthePhilippines,thefifth.

ELPIDIOQUIRINO

BythePresident:TEODOROEVANGELISTAExecutiveSecretary