The six sections of Article 12

There is really no reason to become emotional over who is right or who is wrong on the fate of Article 12 of our Constitution. All you need to do is read the six sections of the Article and have a better understanding of what message each Section conveys. Keep in mind when you read this letter, Article 12 pertains only to privately owned land. Article 12 has nothing to do with public land or homestead land. If you are now a landowner, I strongly urge you to read Article 12 and understand how it will affect your future and the future generations of your family.

I have come to conclude that a great many of you have not taken the time to read the six sections of Article 12. The Citizens for Change of Article 12 (C-Cart-12), which makes up the core volunteer group, has spent countless hours over the past three years reading, understanding, and analyzing the effect and consequences of Sections of Article 12. Again, I fervently ask everyone to read the six sections of Article 12.

For the convenience of readers, I have taken the liberty in including all six Sections of Article 12 in this letter. I have also added my personal comments after each Section.

Section 1: Alienation of Land. The acquisition of permanent and long term interest in real property within the Commonwealth shall be restricted to persons of Northern Marianas descent.

– My comment: Only persons who are Northern Marians descent may acquire real property (land) on a permanent basis, or have long term interest.

Section 2: Acquisition. The term acquisition used in Section 1 includes acquisition by sale, lease, gift, inheritance, or other means. A transfer to a spouse by inheritance is not an acquisition under this section if the owner dies without issue or with issue not eligible to own land in the Northern Mariana Islands. A transfer to a mortgagee by means of foreclosure on a mortgage is not an acquisition under this section if the mortgagee is a full service bank, federal agency, or governmental entity of the Commonwealth and does not hold the permanent or long-term interest in real property for more than 10 years beyond the term of the mortgage.

– My comment-2.1: Section 2 above explains what it means by acquisition. If you already own land and transfer that land to your spouse as inheritance, and if you die without issue (no children involved), then the inheritance is valid. If, however, there is issue (with children) the inheritance is invalid or not permitted.

– My Comment-2.2: This Section also explains that, in the event of foreclosure by a full service bank, federal agency, or an entity of the CNMI government, it may acquire the mortgaged property provided any of these agencies does not hold on to the mortgaged property for more than 10 years beyond the term of the mortgage. For instance if a borrower defaults on his or her mortgage loan 10 years after the loan was made and the term of the loan was say, 20 years, the lending institution or mortgagee may hold on to the mortgaged land for a full term of the loan plus 10 additional years.

– My Comment-2.3: This will enable the lending institution or mortgagee ample time to dispose or sell the mortgaged property to eligible prospective landowner and recover its losses.

Section 3: Permanent and Long-Term Interests in Real Property. The term permanent and long-term interest in real property used in Section 1 includes freehold interests and leasehold interests of more than fifty-five years including renewal rights, except an interest acquired above the first floor of a condominium building. Any interests acquired above the first floor of a condominium building is restricted to private lands. Any land transaction in violation of this provision shall be void. This amendment does not apply to existing leasehold agreements.

– My Comment-3.1: My understanding of this Section merely means that the term permanent and long-term interest includes “freehold interest” and “leasehold interests” and shall only be leased for a term of no more than 55 years including renewal rights. Simply put, all privately owned property can only be leased for a maximum of 55 years including renewal rights.

– My Comment-3.2: Any lease involving condominium above the first/ground floor is restricted to private lands. Violation of Section 3 as provided shall be void. Any leasehold agreement consummated prior to the enactment of Section 3 is considered binding.

Section 4: Person of Northern Marianas Descent. A person of Northern Marianas descent is a person who is a citizen or national of the United States and who is of at least one-quarter Northern Marianas Chamorro or Northern Marianas Carolinian blood or a combination thereof or an adopted child of a person of Northern Marianas descent if adopted while under the age of eighteen years. For purposes of determining Northern Marianas descent, a person shall be considered to be a full-blooded Northern Marianas Chamorro or Northern Marianas Carolinian if that person was born or domiciled in the Northern Mariana Islands by 1950 and was a citizen of the Trust Territory of the Pacific Islands before the termination of the Trusteeship with respect to the Commonwealth.

– My Comment-4.1: This section of Article 12 is the “deciding factor” in determining who is an NMD and who is not. If you are a citizen or national of the United States and have at least one-quarter (1/4) NMI Chamorro or Carolinian blood, or a combination thereof, then you are a Northern Marianas descent.

– My Comment-4.2: A person is determined to be NMD if that person is “full blooded” Chamorro or Carolinian, was born or domiciled (established long term resident), physically present in the NMI by 1950 and was a citizen of the Trust Territory of the Pacific Islands before the termination of the Trusteeship Agreement. While it is subject to verification, it is believed that the Trusteeship Agreement (between U.N., and U.S., as the Administering Authority) was terminated on Nov. 3, 1986. This is also the starting date when eligible U.S. citizens of the CNMI were able to obtain U.S. passports.

– My Comment-4.3: If a child under 18 years of age who is not a Northern Marianas descent (non-NMD), were adopted by a person who is NMD, that child is 100 percent Northern Marianas descent and has every right to own land when he/she becomes an adult.

– My Comment-4.4: A person with less than 25 percent NMD blood can no longer own real property in the CNMI. A fact of the matter is that many persons now living in the CNMI are at the verge of losing their right to own land because their bloodline have or will soon reach below the 25 percent threshold.

– My Comment-4.5: Since 1951 I have seen intermarriages between Non-NMD with NMDs. In the past three decades, I have seen many university graduates returning to the CNMI from the U.S., with their spouses. The years that they remained and studied abroad, their lifestyle have somewhat changed. The children of these couples will no doubt be reduced to 50 percent if they are married to Non-NMD. It is unrealistic to assume that every NMD Chamorro or Carolinian or combination thereof will have to marry an NMD just to retain ownership to real property.

Section 5: Corporation. A corporation shall be considered to be a person of Northern Marianas descent so long as it is incorporated in the Commonwealth, has its principal place of business in the Commonwealth, has directors one hundred percent of whom are persons of Northern Marianas descent and has a voting shares (i.e. common or preferred) one hundred percent of which are actually owned by persons of Northern Marianas descent as defined in Section 4. Minors, as defined by applicable laws of the Commonwealth, may not be eligible to become directors of a corporation. No trusts or voting by proxy by persons not of Northern Marianas descent may be permitted. Beneficial title shall not be severed from legal title.

– My Comment-5.1: For the purpose of this section, in dealing with privately owned land, a Corporation shall be considered to be a person NMD, if such Corporation is-

a) incorporated under the laws of the CNMI;

b) has it principal place of business in the CNMI;

c) all its officers and directors are 100 percent NMD; and

d) voting shares (common or preferred) are owned 100 percent by NMD as defined in Section 4.

– My Comment-5.2: Minors are not eligible to become directors of a corporation. No one who is not NMD may be permitted as trustee or voting by proxy.

Section 6: Enforcement. Any transaction made in violation of Section 1 shall be void ab initio. Whenever a corporation ceases to be qualified under Section 5, a permanent or long-term interest in land in the Commonwealth acquired by the Corporation after the effective date of this amendment shall be immediately forfeited without right of redemption to the government of the Commonwealth of the Northern Mariana Islands. The registrar of corporation shall issue regulations to ensure compliance and the legislature may enact enforcement laws and procedures.

– My Comment-6.1: Any private land transaction in violation of Section 1 of Article 12 is automatically void as if it were never transacted. The Latin words “ab initio” means “from the beginning.” Whenever a corporation is not in full compliance with the requirement under Section 5, after the effective date of this amendment, the corporation shall immediately forfeit its right of redemption to the CNMI government.

– My Comments-6.2: Section 6 requires the Legislature to enact enforcement laws and procedures to handle and to protect government’s right of redemption. The registrar of corporations shall also issue regulations to ensure compliance to Section 6.

Let us assume that Article 12 is abolished or repealed: You as the owner of your private land will still own that land and you can do anything you want to do with your land. If you want to pass it on to your children you can still do it. If you want to lease it to someone, you can also do it. If you want to give it away to someone in your family, you can do that too. In other words, you have the ultimate say-so on your private land because it is your and no one can tell you what to do. Your next-door neighbor, a private landowner, might want to sell part of the land he owns. That is okay too since the ultimate decision is his to make.

The repeal of Article 12 gives each and every landowner his/her unilateral freedom and right to decide what to do with his/her land. You are free to decide what to do with your land.

Unfortunately if Article 12 is not repealed, a large number of privately owned real property in the CNMI will in due course be lost. The land you are reserving to give to your children and your children’s children will someday be lost if the bloodline is reduced to less than 25 percent NMD.

In closing, I would caution our elected leaders and officials of the CNMI government. Please do not mislead your constituents on Article 12. You have an obligation to know about Article 12. One of the Cabinet members of the Administration is urging the public to keep Article 12. Obviously he is ill-informed.

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