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99 Years Lease, RPPL 7-33 2007

SEVENTH OLBIIL ERA KELULAU
RPPL No. 7-33
Third Regular Session, July 2005
(Re: as Senate Bill No. 7-74, SD2)

AN ACT

To amend 39 PNC 302 to allow non-citizens and corporations to lease private land for a term of up to 50 years, and to lease government land for a term of up to 99 years, and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative findings. The Olbiil Era Kelulau finds that an extension of the maximum number of years that is allowable for non-citizens and corporations not fully owned by Palauan citizens to lease land is needed. As the Compact Road nears completion and with the growing opportunity for economic development throughout the Republic of Palau, extending the lease terms on government land to 99 years will allow foreigners to invest more money in Palau. Both individuals and corporations find that having a 50 year lease term is not a significant amount of time to develop an investment plan. 99 year lease terms will be more practical for investors, which will lead to greater development and economic growth in Palau. Greater development and economic growth will be beneficial for all Palauans, as it will allow for more jobs, more local revenue, and profits for landowners who lease land.

Section 2. Amendment. 39 PNC 302 is amended to read as follows:

"Section 302. Limitation of lease term.

(a) No lease agreement of real property to non-citizens or to corporations not wholly owned by citizens of Palau shall be entered into subsequent to the effective date of this section with respect to any government owned land within the territory of the Republic which shall be for a term to exceed 99 years, inclusive of any options for renewal. Any agreement entered into in violation of this section shall be void and of no legal effect in its entirety.

(b) No lease agreement of real property to non-citizens or to corporations not wholly owned by citizens of Palau shall be entered into subsequent to the effective date of this section with respect to any privately owned land within the territory of the Republic which shall be for a term to exceed 50 years, with an option to renew for up to an additional 49 years. Any agreement entered into in violation of this section shall be void and of no legal effect in its entirety."

Section 3. Effective date. This Act shall take effect upon its approval by the President, or upon its becoming law without such approval.

PASSED: July 17, 2007
Approved this 2 day of August , 2007

/s/
Tommy E. Remengesau, Jr.
President
Republic of Palau