Land Title and Deeds: Chapter 2 — Who May Acquire Lands

 Chapter II

Who May Acquire Lands 

• Unlike most jurisdictions, the Philippines imposes several restrictions on the capacity of a person (either natural or juridical) to acquire land in the Philippines which may be encapsulated in Section 7, Article XII of the 1987 Constitution: save in cases of hereditary succession, no private lands shall b e transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. 
• Thus, both natural and juridical persons may acquire land in the Philippines subject to qualifications.

Natural Persons

• Are all natural persons qualified to own property in the Philippines? 
• NO. 
• This is due to several considerations that have to be taken into account for a proper determination of the rights of a natural person to acquire land in the Philippines. 
• These consist of:
1. Citizenship;
2. Age; 
3. Allowable land area.

1. Citizenship

• General rule 
• The Constitution requires that an individual must be a Citizen of the Philippines at the time of the acquisition of the land.
• Alexander Krivenko vs. The Register of Deeds of the Qty of Manila, G.R. No. L-630, November 15, 1947:
• One of the fundamental principles underlying the provision of Article XIII of the Constitution and which was embodied in the report of the Committee on Nationalization and Preservation of Lands and other Natural Resources of the Constitutional Convention, is "that lands, minerals, forests, and other natural resources constitute the exclusive heritage of the Filipino nation. They should, therefore, be preserved for those under the sovereign authority of that nation and for their posterity." 
• Delegate Ledesma, Chairman of the Committee on Agricultural Development of the Constitutional Convention, in a speech delivered in connection with the national policy on agricultural lands, said: "The exclusion of aliens from the privilege of acquiring public agricultural lands and of owning real estate is a necessary part of the Public Land Laws of the Philippines to keep pace with the idea of preserving the Philippines for the Filipinos." 
• And, of the same tenor was the speech of Delegate Montilla who said: "With the complete nationalization of our lands and natural resources it is to be understood that our God-given birthright should be one hundred per cent in Filipino hands . . .. Lands and natural resources are immovables and as such can be compared to the vital organs of a person's body, the lack of possession of which may cause instant death or the shortening of life. If we do not completely nationalize these two of our most important belongings, I am afraid that the time will come when we shall be sorry for the time we were born. Our independence will be just a mockery, for what kind of independence are we going to have if a part of our country is not in our hands but in those of foreigners?" 
• Professor Aruego says that since the opening days of the Constitutional Convention one of its fixed and dominating objectives was the conservation and nationalization of the natural resources of the country. 
• This is ratified by the members of the Constitutional Convention who are now members of this Court, namely, Mr. Justice Perfecto, Mr. Justice Briones, and Mr. Justice Hontiveros. And, indeed, if under Article XIV, section 8, of the Constitution, an alien may not even operate a small jitney for hire, it is certainly not hard to understand that neither is he allowed to own a piece of land.
• It is undeniable that the naturalization and conservation of our national resources was one of the dominating objectives of the Convention and in drafting the present Article XII of the Constitution, the delegates were goaded by the desire 
1. To insure their conservation for Filipino posterity; 
2. To serve as an instrument of national defense, helping prevent the extension into the country of foreign control through peaceful economic penetration; and
3. To prevent making the Philippines a source of international conflicts with the consequent danger to its internal security and independence.

Rights of naturalized citizens to acquire lands in the Philippines

• Naturalization signifies the act of formally adopting a foreigner into the political body of a nation by clothing him or her with the privileges of a citizen. 
• Under current and existing laws, there are three ways by which an alien may be come a citizen by naturalization: 
1. administrative naturalization pursuant to R.A. No. 9139; 
2. judicial naturalization pursuant to C.A. No. 473, as amended; and
3. legislative naturalization in the form of a law enacted by Congress bestowing Philippine citizenship to an alien.
• Can a naturalized citizen be allowed to acquire land in the Philippines? YES
• Yap and Maravillas vs. Hon. Grageda, G.R. No. L-31606, March 28, 1983 (also affirmed in the case of Borromeo vs. Descallar, G.R. No. 159310, February 24, 2009)
• But the factual set-up has changed. The litigated property is now in the hands of a naturalized Filipino. It is no longer owned by a disqualified vendee. Respondent, as a naturalized citizen, was constitutionally qualified to own the subject property. There would be no more public policy to be served in allowing petitioner Epifania to recover the land as it is already in the hands of a qualified person. 
• Applying by analogy the ruling of this Court in Vasquez vs. Giap and Leng Seng Giap & Sons: ... if the ban on aliens from acquiring not only agricultural but also urban lands, as construed by this Court in the Krivenko case, is to preserve the nation's lands for future generations of Filipinos, that aim or purpose would not be thwarted but achieved by making lawful the acquisition of real estate by aliens who became Filipino citizens by naturalization. 
• As also justified in the case of Krivenko: We are satisfied, however, that aliens are not completely excluded by the Constitution from the use of lands for residential purposes. Since their residence in the Philippines is temporary, they may be granted temporary rights such as a lease contract which is not forbidden by the Constitution. Should they desire to remain here forever and share our fortunes and misfortunes, Filipino citizenship is not impossible to acquire.

When foreigners may acquire land in the Philippines 

• There are several instances whereby aliens may acquire lands in the Philippines: NSFC
1. Natural-born citizens who have lost their Philippine citizenship;  
2. Foreigners by hereditary succession;
3. Foreign sovereign; and 
4. Interest in condominium units.

When foreigners may acquire land in the Philippines; (a) Natural-born citizens who have lost their Philippine citizenship

• Section 8, Article XII of the 1987 Constitution:
• Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law. 
• The following limitations may be derived from the allowed transfer of land under Section 8: 
1. natural-born citizen of the Philippines who has lost his Philippine citizenship; and 
2. transferee of private lands. 
• It goes without saying that there is a clear distinction between a natural-born Filipino and a naturalized Filipino citizen. 
• Thus, if the naturalized Filipino loses his citizenship, he is not qualified under Section 8 herein to be a transferee of private lands.
• Republic of the Philippines vs. The Court of Appeals, G.R. No. 108998, August 24, 1994:
• Can a foreign national apply for registration of title over a parcel of land which he acquired while still a citizen of the Philippines?
• Plaintiffs seeking to have the property registered in their name were formerly citizens of the Philippines who have since moved to Canada and acquired citizenship. The properties involved were purchased during the time that they possessed both citizenry and residency in the Philippines. However, they were only able to have the property registered after they had moved to Canada and acquired citizenship. In its ruling, the Supreme Court decided:
• It is undisputed that private respondents, as vendees of a private land, were natural-born citizens of the Philippines. For the purpose of transfer and/or acquisition of a parcel of residential land, it is not significant whether private respondents are no longer Filipino citizens at the time they purchased or registered the parcels of land in question. What is important is that private respondents were formerly natural-born citizens of the Philippines, and as transferees of a private land, they could apply for registration in accordance with the mandate of Section 8, Article XII of the Constitution.
• If this rule were to be applied, it is important to remember that only private lands shall be subject to acquisition. 

• When foreigners may acquire lands in the Philippines; (a) Natural-born citizens who have lost their Philippine citizenship; The concept of private land(s)
• Republic of the Philippines vs. Manna Properties, Inc., G.R. No. 146527, January 31, 2005: 
• The governing law is Commonwealth Act No. 141 ("CA 141") otherwise known as the "Public Land Act." 
• Section 48(b) of the said law, as amended by Presidential Decree No. 1073, provides:
• (b) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive, and notorious possession and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition of ownership, since June 12, 1945 or earlier, immediately preceding the filing of the application for confirmation of title except when prevented by war or force majeure. These shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be entitled to a certificate of title under the provisions of this chapter.
• Lands that fall under Section 48 of CA 141 are effectively segregated from the public domain by virtue of acquisitive prescription. We have held that open, exclusive and undisputed possession of alienable public land for the period prescribed by CA 141 ipso jure converts such land into private land. Judicial confirmation in such cases is only a formality that merely confirms the earlier conversion of the land into private land, the conversion having occurred in law from the moment the required period of possession became complete.
• Key from this discussion is the mention of C.A. 141 (The Public Land Act) which provides for an ipso jure conversion of lands of the public domain to private lands upon compliance with the requirements of the law on judicial confirmation of incomplete or imperfect title and the required holding periods therefor. 
• However, this automatic conversion happens not just from the provisions of judicial confirmation but rather, from all modes of acquisition under CA 141. 
• These modes consist namely of the following: 
1. Sales Patent
2. Homestead Patent
3. Free Patent
4. (Judicial confirmation)
• Once a parcel of land is acquired via the Patent system, the land shall be considered alienable and disposable lands. 
• All of the following modes of acquisition of land are subject to the holding period of twenty five years — owing to the nature of a patent as a grant by the State. 
• Once the holding period is over, the parcel of land is automatically converted to private land. 

• When foreigners may acquire lands in the Philippines; (b) Foreigners by hereditary succession 
• Another instance where a foreigner may own land in the Philippines is provided by Section 7, Article XII of the 1987 Constitution. 
• Under this provision, foreigners may b e able t o acquire lands(s) in the Philippines was intestate succession: 
• SEC. 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. 
• The requirements of Section 7 are clear: 
1. Only private lands may be acquired by aliens; and
2. Only through hereditary succession.
• The last paragraph of Section 7 also makes it clear that lands of the public domain are not susceptible to acquisition by non-Filipino citizens.
• Hereditary succession is meant such succession that will arise by virtue of the operation of the Civil Code when a person who is a hereditary relative of the decedent may acquire by virtue of succession.
• Testate Estate o f Ramirez v s. Vda. De Ramirez - G.R. No. L-27952, February 15, 1982:
• We are of the opinion that the constitutional provision which enables aliens to acquire private lands does not extend to testamentary succession for otherwise the prohibition will be for naught and meaningless. Any alien would be able to circumvent the prohibition by paying money to a Philippine landowner in exchange for a devise of a piece of land.

• When foreigners may acquire lands in the Philippines; (c) Foreign sovereign
• The third scenario which allows foreigners to acquire lands in the Philippines is whenever a foreign sovereign seeks to acquire land where the embassy or consular offices shall be established. 
• The Holy See vs. The Hon. Eriberto Rosario, G.R. No. 101949, December 1, 1994: 
• The right of a foreign sovereign to acquire property, real or personal, in a receiving state, necessary for the creation and maintenance of its diplomatic mission, is recognized in the 1961 Vienna Convention on Diplomatic Relations (Arts. 20-22). 
• This treaty was concurred in by the Philippine Senate and entered into force in the Philippines on November 15, 1965. 
• Thus, despite the contradictory nature of the treaty to the Constitution, the Philippines adheres to the Vienna Convention owing to the rule on pactum sunct servanda (treaty provisions shall be complied with in good faith). 
• Only private lands may be acquired by a foreign sovereign.

• When foreigners may acquire lands in the Philippines; (d) Interest in condominium units 
• A foreigner may acquire a condominium unit because a condominium must organize itself into a Condominium Corporation (for the purposes of transactions and/or administrative matters). 
• This fact holds the key to providing the foreigners with the wherewithal to acquire a condominium unit. 
• Hulst vs. PR Builders, Inc., G.R. No. 156364, September 25, 2008: 
• The law provides that no condominium unit can be sold without at the same time selling the corresponding amount of rights, shares or other interests in the condominium management body, the Condominium Corporation; and no one can buy shares in a Condominium Corporation without at the same time buying a condominium unit. 
• It expressly allows foreigners to acquire condominium units and shares in condominium corporations up to not more than 40% of the total and outstanding capital stock of a Filipino-owned or controlled corporation. Under this set up, the ownership of the land is legally separated from the unit itself. 
• The land is owned by a Condominium Corporation and the unit owner is simply a member in this Condominium Corporation.
• As long as 60% of the members of this Condominium Corporation are Filipino, the remaining members can be foreigners.

2. Age

• Under Article 234 of the Family Code, only a person within the age of majority can give consent to a contract. 
• The age of majority is attained upon reaching the age of eighteen years. 
• Thereafter, the person shall be qualified for all acts of civil life — as provided for under the Civil Code. 
• The attainment of the age of majority also gives rise to juridical capacity which is the fitness to be the subject of legal relations and is inherent in every natural person. 
• As the acquisition of a parcel of land may be done through the entry into ordinary contracts (say, a Contract of Sale or Deed of Donation); age thus becomes a barrier for acquisition of land. 
• Though true as a general rule (save for instances of agency), there are several recognized exceptions:
1. A minor may acquire a parcel of land through succession. 
• As defined under Article 777 of the Civil Code: succession is a mode of acquisition by virtue of which, the property, rights and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another or others either by his will or by operation of law". 
• Hence, upon the death of the decedent, a minor automatically acquires both personal and real property through succession.
2. Implied trust relationship considered a gift benefits the minor. 
• Under Article 1448 of the New Civil Code, a minor may acquire an immovable property by implied trust if the truster is the parent of the minor:
• Art. 1448. There is an implied trust when property is sold, and the legal estate is granted to one party but the price is paid by another for the purpose of having the beneficial interest of the property. The former is the trustee, while the latter is the beneficiary. However, if the person to whom the title is conveyed is a child, legitimate or illegitimate, of the one paying the price of the sale, no trust is implied by law, it being disputably presumed that there is a gift in favor of the child.
3. A minor who is a head of the family. 
• Under Section 22 of the Public Land Act, a minor who is the head of a family may acquire land under his own name. 
• Section 35 of the National Internal Revenue Code complements Section 22 by defining the head of a family:
• For purposes of this paragraph, the term ''head of family" means an unmarried or legally separated man or woman with one or both parents, or with one or more brothers or sisters, or with one or more legitimate, recognized natural or legally adopted children living with and dependent upon him for heir chief support, where such brothers or sisters or children are not more than twenty one (21) years of age, unmarried and not gainfully employed or where such children, brothers or sisters, regardless of age are incapable of self-support because of mental or physical defect. 

3. Allowable Land Area

• Finally, the allowable land area that a person may acquire also stands as a barrier to the acquisition of land because it must be remembered that: the Constitution provides a limit to the area of land that may be acquired. 
• The 1987 Constitution and the Public Land Act both require that the area of land allowed to be acquired be limited to not more than twelve (12) hectares thereof — by purchase, homestead or grant. 
• However, B.P. No. 185 provides for an area of land that may be acquired by a natural born Filipino who has lost his Filipino citizenship:
1. Residential lands 
• Maximum of 1,000 square meters for urban land
• Maximum of one (1) hectare for rural land
2. Commercial lands 
• Maximum of 5,000 square meters for urban land
• Maximum of three (3) hectares for rural land. 
• Should the parcel of land involved be private land, there is no limit to its acquisition (subject to provisions of CARP in instances where applicable).

Juridical Persons

• Similarly with natural persons, a juridical person may also be able to acquire a parcel of land subject to limitations that are provided by law.
• Under Article 44 of the Civil Code, the following are juridical persons: 
1. The State and its political subdivisions; 
2. Other corporations, institutions and entities for public interest or purpose, created by law; their personality begins as soon as they have been constituted according to law (Government owned and controlled corporations
3. Corporations, partnerships and associations for private interest or purpose to which the law grants a juridical personality, separate and distinct from that of each shareholder, partner or member.

(1) The State and its political subdivisions 

• As the authority from which ownership of land in the Philippines may be derived from, it is incumbent upon the State to acquire land in the Philippines be it:
• through force 
• eminent domain as an exercise of police power) 
• or through negotiated sale. 
• However, the right of the State to acquire a parcel of land is to be differentiated from the rights of a political subdivision or local government unit and a government owned and controlled corporation. 
• Article 45 of the Civil Code provides that: juridical persons mentioned in Nos. 1 and 2 of the preceding article (meaning, the State and its political subdivisions and government-owned and controlled corporations) are governed by the laws creating or recognizing them. 
•  Thus, the acquisition of a parcel of land is limited by their charters.
•  Under Section 22 of the Local Government Code, every local government unit — as a corporation with its own charter — shall have the power to acquire and convey real or personal property.
• Notwithstanding any provision of law to the contrary and subject to private rights, if any, public lands actually occupied and used for public schools, municipal halls, public plazas or parks and other government institutions for public use or purpose may be issued special patents under the name of the national agency or LGU concerned: Provided, That all lands titled under this section shall not be disposed of unless sanctioned by Congress if owned by the national agency or sanctioned by the sanggunian concerned through an approved ordinance if owned by the LGU. (Sec. 4, R.A. No. 10023)
• Despite this grant by the Local Government Code, however, acquiring public lands is another matter. 
• Rural Bank of Anda, Inc. vs. Roman Catholic Archbishop of Lingayen-Dagupan, G.R. No. 155051, May 29, 2007: 
• Municipal corporations cannot appropriate to themselves public or government lands without prior grant from the government. 
• The reason for this pronouncement is sourced from the fact that lands of the public domain are owned by the State and a municipal corporation, while an integral part of the workings of government, are simply creations of law, and thus, need such grant from the State before appropriating public lands, lest they be considered as individuals or corporations appropriating public lands for themselves without the benefit of a grant.

2. Government-owned and Controlled Corporations 

• Number two of the enumeration under the Civil Code refers to what is commonly known as a Government Owned or Controlled Corporation. 
• Section 16, Article XII of the 1987 Constitution defines them as those that may be created or established by special charters in the interest of the common good and subject to the test of economic viability.
• Section 13 of the Revised Administrative Code refers to government-owned and controlled corporations as any agency organized as a stock or non-stock corporation,  vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government directly or through its instrumentalities either wholly, or, where applicable as in the case of stock corporations, to the extent of at least fifty-one (51) per cent of its capital stock: Provided, That government-owned or controlled corporations may be further categorized by the Department of the Budget and Management, the Civil Service Commission, and the Commission on Audit for purposes of the exercise and discharge of their respective powers, functions and responsibilities with respect to such corporations. 
• The capacity of a government-owned and controlled corporation to own and acquire property comes down to their special charters as they are governed by the laws creating or recognizing them (as provided by Article 45 of t he Civil Code). 
• Hence, while all GOCCs may acquire lands for necessary and usual business purposes, their capacity to acquire or own real property for other purposes shall be decided on a case-to-case basis.

(3) Corporations, partnerships and associations for private interest or purpose 

• According to Article 46 of the New Civil Code, juridical persons may acquire and possess property. 
• However, there are conflicting provisions in the 1987 Constitution which must be reconciled before proceeding further on the right of a private corporation to acquire lands. 

Reconciliation of the provisions of Sec. 3 and Sec. 7, Article XII of the 1987 Constitution 

• Before a discussion is made on the right of a juridical person to acquire land, a reconciliation of two provisions of the Constitution must be made, namely: Sections 3 and 7, both of Article XII:
• Section 3. Lands of the public domain are classified into agricultural, forest or timber, mineral lands and national parks. Agricultural lands of the public domain may be further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant.
• Section 7. Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. 
• Chavez vs. Public Estates Authority, G.R. No. 133250, July 9, 2002:
• The constitutional intent, under the 1973 and 1987 Constitutions, is to transfer ownership of only a limited area of alienable land of the public domain to a qualified individual. This is safeguarded by the provision prohibiting corporations from acquiring alienable lands of the public domain, since the vehicle to circumvent the constitutional intent is removed. The available alienable public lands are gradually decreasing in the face of an ever growing population. The most effective way to insure faithful adherence to this constitutional intent is to grant or sell alienable lands of the public domain only to individuals. This, it would seem, is the practical benefit arising from the constitutional ban.
• If this was the intent, why is it then that Section 7 of Article XII allows a private corporation to acquire lands in the Philippines? 
• A simple explanation can rationalize the direction of both provisions. 
• Section 3 uses the term alienable lands of the public domain in making the distinction as to which lands a private corporation cannot own.
• Section 7 uses the term private lands on the lands which private corporations can own. 
• There is a clear difference between alienable and disposable lands and private lands. 
• Hence, with the clear distinctions, the door is open for a corporation to acquire alienable and disposable land only once it has become private land.

Rights of private corporations to acquire private lands

• Section 35 of R.A. 11232 (The Revised Corporation Code of the Philippines) gives a corporation the power to:(g) To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise deal with such real and personal property, including securities and bonds of other Page 18 of 73 corporations, as the transaction of the lawful business of the corporation may reasonably and necessarily require, subject to the limitations prescribed by law and the Constitution. While a corporation is expressly empowered by law to acquire or alienate real and / or personal properties, a limitation is imposed by Section 36 of the Corporation Code to the effect that it must be so acquired, held or conveyed "as the transaction of the lawful business of the mrporation may reasonably and necessarily require." Likewise, the Code further provides that it shall be subject to the limitations imposed by law and the Constitution. The aforementioned instance on the power of corporations merely to acquire private lands and not alienable and disposable lands of the public domain serving as the best example for the said limitations imposed by the Constitution. (Ruben Ladia, Corporation Code of the Philippines [Annotated], 2001 Edition). Therefore, aside from the discussions made above on the right of private corporations to acquire private lands, a corporation shall be limited in its right to acquire a parcel of land to what the lawful business of a corporation reasonably and necessarily requires. Thus, if a corporation is incorporated for the business of transportation, then the lawful business which may be the basis for the acquisition of land shall be limited only to its office(s) and the lands to be used for its terminals. Hence, the transportation corporation cannot acquire property for other purposes; i.e., housing of employees and real estate business.

Rights of partnerships to acquire lands A partnership is defined under Art. 1767 of the Civil Code as follows: A r t. 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common f und, with the intention of dividing the profits among themselves. Too or more persons may also form a partnership f or the exercise of a profession. (1665a) A partnership may acquire immovable property or an interest therein. But the title so acquired can be conveyed only in the partnership name. (Art. 1774, NCC) T h e title to property may be conveyed in the partnership name because it has a separate entity which is different f rom that of the partners personally. As an example, two persons form a partnership for t he practice of law, and one of the partners acquires real property in his name. If later on, he was sued by the local government for the payment of real property taxes, he cannot say that the property was acquired in the name of t he partnership because any property acquired for the partnership must be conveyed in the partnership name. f or the property to be considered owned by the partnership. Since in the example, the property was not conveyed In the law firm's name, then the levy of the property may not be prevented.

Rights of banks to acquire lands 

 A bank refers to an entity engaged in the lending of funds obtained in the form of deposits. (Sec. 3, General Banking I.aw of 200, R.A. No. 8791)  The relationship between a bank and its depositor is that of creditor and debtor. (Equitable PCI Bank vs. Ng Sheung Ngor, 541 SCRA 223 [2007]). The right to own or acquire real property of banks is provided by Sections 51 and 52 of the General Banking Law of 2000. Under Section 51, any bank may acquire real estate as shall be necessary for its own use in the conduct of its business: Provided, however, That the total investment in such real estate and improvements thereof, including bank equipment, shall not exceed fifty percent (50%) of combined capital accounts: Provided, further, That the equity investment of a bank in another corporation engaged primarily in real estate shall be considered as part of the bank's total investment in real estate, unless otherwise provided by the Monetary Board. Section 52 prescribes instances when the acquisition or conveyance of real property other than those that are necessary for its own use in the conduct of its business may be made by banks as follows: Sec. 52. Acquisition of Real Estate by Way of Satisfaction of Claims.-Notwith standing the limitations of the preceding Section, a bank may acquire, hold or convey r eal property under the following circumstances� 52.1. Such as shall be mortgaged to it in good faith by way of security for debts; 52.2. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or 52.3. Such as it shall purchase at sales under judgments, decrees, mortgages, or trust deeds held by it and such as it shall purchase to secure debts due it. Any real property acquired or held under the circumstances enumerated in the above paragraph shall be disposed of by the bank within a period of five (5) years or as may b e presaibed by the Monetary Board: Provided, however, That the bank may, aher said period, continue to hold property for its own use, subject to the limitations of the preceding section. (25a)