REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                                                                                
                                                                                
                           LAND REFORM                                          
                                                                                
                                                                                
                            Chapter 1                                           
                                                                                
                        GENERAL PROVISIONS                                      
                                                                                
                                                                                
     Article 1. Objectives of the Law                                           
                                                                                
     This Law  shall regulate  land ownership  relations and  the               
procedure of land reform.                                                       
                                                                                
     Article 2. The Goal of Land Reform                                         
                                                                                
     The goal  of land  reform  is  to  implement  the  right  of               
Lithuanian  citizens   to  land   ownership  by   returning   the               
expropriated land  in accordance  with the  procedures and  terms               
established by  law, and  by buying  land, as  well as  to create               
legal,  organizational,   and  economic   preconditions  for  the               
development of  agricultural production by freely chosen forms of               
farming.                                                                        
                                                                                
     Article 3. Objects of Land Reform                                          
                                                                                
     The objects  of land  reform shall  be the  Land Fund of the               
Republic of Lithuania.                                                          
                                                                                
     Article 4. Conditions for Implementing Land Reform                         
                                                                                
     1. Land  reform shall  be implemented  according to the land               
reform plans  for the  organization of  land exploitation, and in               
pursuance  of  this  law  and  other  laws  which  regulate  land               
relations. The interests of natural and legal persons who wish to               
acquire land,  and the  recommendations of  the  agrarian  reform               
agencies shall be taken into consideration.                                     
     The plans  shall be  prepared according  to  the  principles               
approved by the Government of the Republic of Lithuania.                        
     2. The process of land reform shall embrace legal, economic,               
and ecological  substantiation, preparatory works of the land use               
planning, and  preparation, coordination  and  approval  of  land               
reform schemes,  legal registering  of land  ownership,  or  land               
lease.                                                                          
     3. The  implementation of  land reform  shall be financed by               
the State, as well as by natural and legal persons.                             
     4.  During  the  privatization  of  land,  land  reclamation               
facilities built  with State funds shall be left in the ownership               
of the  State. The  maintenance and protection of such facilities               
shall be regulated by the Law on Land and by other legal acts.                  
                                                                                
     Article 5. Forms of Land Ownership                                         
                                                                                
     In the Republic of Lithuania, land shall be either privately               
or State owned.                                                                 
     During the  implementation of land reform, private and State               
ownership land-use  systems shall be formed. On the basis of such               
land-use systems,  the land  may  be  jointly  owned  by  several               
natural persons, or by natural and legal persons.                               
                                                                                
                                                                                
                            Chapter 2                                           
                                                                                
                                                                                
                          Private Land                                          
                                                                                
                                                                                
     Article 6. The Privatization of Land                                       
                                                                                
     1. Persons  who are  citizens of Lithuania under the laws of               
the Republic  of  Lithuania,  who  have  documentation  of  their               
citizenship, and  who are  permanent residents of the Republic of               
Lithuania, shall have the right to private ownership of land.                   
     2. In  the implementation  of land  reform,  land  shall  be               
acquired by  either restoring  the  right  to  ownership,  or  by               
purchasing the land.                                                            
     The grandchildren of the former owners of land shall receive               
land without  payment if, on the day of enforcement of the Law of               
the Republic of Lithuania on the Procedure and Conditions for the               
Restoration  of   Ownership  Rights   of  Citizens  to  Surviving               
Immovable Property,  the child  who would  have had the ownership               
right restored is dead, and if the grandchildren, pursuant to the               
provisions of  Article 4  of that  Law, are  tilling the  land or               
return to farm the land.(Repealed 16 January 1992)                              
     Persons who  have been  awarded the  Order of  Vytis, or, if               
they have  been killed  (are dead),  the spouses of such persons,               
or, in  the absence  of spouses, their parents or children, shall               
be, at their request, allotted land without payment.                            
     3. Land  may be  acquired for  private  ownership  with  the               
intent of  establishing a  private farm,  an individual (private)               
enterprise, a  private  housing  estate,  a  gardening  plot  for               
members of  gardener societies,  or  developing  agricultural  or               
other activities which are not prohibited by law.                               
                                                                                
     Article 7. Restoration of Land Ownership Rights                            
                                                                                
     The procedure for restoring private land ownership rights in               
towns and  rural localities,  as well  as the  size and terms for               
returning land  and forest plots, shall be established by the Law               
of the  Republic of Lithuania on the Procedure and Conditions for               
the  Restoration  of  Ownership  Rights  of  Surviving  Immovable               
Property to Citizens.                                                           
                                                                                
     Article 8. The Sale of Land to Citizens                                    
                                                                                
     1. Citizens  who are establishing a private farm, who do not               
have private  land ownership  rights, or  who have  received land               
under the  Law on  Farmer's Holding  in excess  of the  amount to               
which they  were  entitled  by  the  right  of  ownership,  shall               
purchase land  over a  period  of  25  years,  according  to  the               
procedure established  by  the  Government  of  the  Republic  of               
Lithuania.                                                                      
     In all  other cases, citizens shall acquire land for private               
ownership by  way of  a lump-sum  payment  or  repayment  in  due               
course.                                                                         
     2. Land  shall be  sold to  persons who are prepared to farm               
for the establishment of a private farm.                                        
     A  person's  preparation  to  engage  in  farming  shall  be               
assessed by  the Agrarian  Reform Agency  in accordance  with the               
procedure established by the Ministry of Agriculture.                           
     3. The  price of  State land  and forests, and the procedure               
for purchase  and payment, shall be established by the Government               
of the Republic of Lithuania. (Amended 16 January 1992)                         
                                                                                
     Article 9. The Size of Land Plots Sold to Citizens                         
                                                                                
     1. Taking  local conditions  and the  area of the land to be               
returned into  consideration, the  total area  of land  in a farm               
holding that  may be  sold to  citizens who  are  establishing  a               
private farm may not exceed 80 hectares, including 25 hectares of               
forest land.                                                                    
     Upon taking  local conditions and the principles of land use               
planning  into  consideration,  and  upon  the  decision  of  the               
regional privatization  commission, the above specified areas may               
be increased by up to 10 percent.                                               
     2. Taking  local conditions  into account, land plots of the               
size specified  in Paragraph  1 hereof may be sold to one family,               
if citizens  are buying land for joint agricultural activities in               
accordance with  forms of  economic activity  provided for in the               
Law of the Republic of Lithuania on Enterprise.                                 
     3. The  size of  land plots  required by  private (personal)               
enterprises which  manufacture non-agricultural products shall be               
determined as follows:                                                          
     for functioning enterprises -- on the basis of the                         
     area of land actually required for their activities;                       
     for newly-established enterprises -- on the basis of the                   
     well-grounded plans of their founding.                                     
     4. Land  which contains  farm buildings,  trees, shrubs, and               
other plants  of the farm, as well as the area of yards and plots               
within the  territory of  the farm  which is  constantly used for               
vegetable growing,  shall  be  sold  as  a  separate  farm  (farm               
holding).                                                                       
     5. In  towns, plots  that are the actual size of the holding               
shall be  sold for  private house  holdings, but not in excess of               
0.2 hectares in the towns of Vilnius, Kaunas, Klaipeda, Siauliai,               
Alytus,  Marijampole,   Druskininkai,   Palanga,   Neringa,   and               
Birstonas,  and  0.3  hectares  in  other  towns  and  urban-type               
settlements.                                                                    
     The size  of land  plots sold  for the  construction of  new               
private houses,  and the  procedure of  such  a  sale,  shall  be               
established by the Government of the Republic of Lithuania.                     
     6. The  size of land plots for members of gardener societies               
and for  persons wishing to set up gardens shall be determined by               
the lay-out of the garden, but shall not exceed 0.12 hectares.                  
                                                                                
     Article 10. The Priority Right of Land Purchase                            
                                                                                
     1. During  the implementation  of land reform, land shall be               
sold for  private ownership  according to  the following order of               
priorities:                                                                     
     1) persons  who have  worked for  a minimum of 5 years in an               
agricultural enterprise which is presently being reorganized.                   
     Deportees and  former  political  prisoners  who  possess  a               
private house  on the  said territory shall also have this right,               
regardless of their present or former place of employment;                      
     2)  other   persons  residing   on  the   territory  of  the               
agricultural enterprise which is being reorganized;                             
     3) farmers  who wish  to expand  their farm  holdings to the               
size prescribed by paragraph 1 of Article 9 of this law;                        
     4) grandchildren  of deceased farm owners, who return to the               
land with  the intention  to farm,  and  other  citizens  of  the               
Republic of Lithuania.                                                          
     2. If  there are  several prospective  buyers  who  wish  to               
establish a  private farm  on a single plot of land, and if these               
prospective buyers  have equal  priority rights  to purchase this               
plot, the land shall be sold by auction. In such cases, the buyer               
must pay, without delay, an amount exceeding the nominal price of               
the land.                                                                       
                                                                                
     Article 11. Restriction of the Disposition of Privatized                   
                Land                                                            
                                                                                
                                                                                
                                                                                
     1. The land (or forest) acquired for agricultural activities               
may not be sold, given away, or traded for a period of five years               
from the date of acquisition thereof.                                           
     Privately-owned forest  areas must be managed, utilized, and               
re-forested in accordance with the Forest Management Plan.                      
     If the  owner of  land becomes  unable to  work, or in other               
cases provided  for by the laws or the Government of the Republic               
of Lithuania, the land may be leased or sold.                                   
     2. Pursuant  to the  laws of the Republic of Lithuania, land               
which is privatized for agricultural activities (manufacturing of               
agricultural products) and which is not used for the said purpose               
for more  than one  year (in  spring  or  in  autumn),  shall  be               
assigned to  the State  Land  Fund  according  to  the  procedure               
established by the Government. The owner shall be compensated for               
the land  and for  expenses related to the increase of land value               
in installment payments.                                                        
                                                                                
     Article 12. The Privatization of Land whereon Economic                     
                Activities are Restricted                                       
                                                                                
     1. Upon  coordination with  the appropriate  State agencies,               
the land  of preserved  areas  whereon  economic  activities  are               
restricted may be privatized for restricted economic use.                       
     2. Upon  privatization of  land whereon  economic activities               
are restricted,  conditions for  the use  of such  land shall  be               
established for its owner.                                                      
     3. Owners  who disregard land-use restrictions shall be held               
materially  responsible   under  the  laws  of  the  Republic  of               
Lithuania. On these grounds, the plots of land in their ownership               
whereon economic activities are restricted may be appropriated to               
the State Land Fund by paying their owners the total value of the               
appropriated land.                                                              
                                                                                
                                                                                
                            Chapter 3                                           
                                                                                
                                                                                
                           State Land                                           
                                                                                
                                                                                
     Article 13. Land not Subject to Privatization                              
                                                                                
     Not liable  to be  sold to  citizens for  private  ownership               
shall be:                                                                       
     1)  land   under  roads,   airports,  and  ports  and  their               
facilities, as  well as land of State borders, and land necessary               
for national defence;                                                           
     2) land  which adjoins settlements and is used for the needs               
of residents;                                                                   
     3) land  needed  for  public  use,  recreation,  and  public               
construction  in   towns,  urban-type   and  rural   settlements,               
according to  the revised  decisions of  the  Government  of  the               
Republic of Lithuania;                                                          
     4) land  which, according  to the  established procedure, is               
allotted or  is planned to be allotted to institutions of science               
and learning  for conducting experiments and for other scientific               
needs;                                                                          
     5) land  which is  assigned by  the laws  of the Republic of               
Lithuania to  Group 1  forests, as  well as  the land  of  forest               
seedlings and seed-plant plantations;                                           
     Upon the  formation of rational land-use plans, forest areas               
of up to 25 hectares of State forest land of forest districts, or               
larger areas  which merge  with land  under cultivation,  may  be               
sold.                                                                           
     6) land  which contains mineral resources which are explored               
and identified in the prescribed manner;                                        
     7) land  of preserved  areas where  economic activities  are               
prohibited under law; and                                                       
     8) land  whereon State-owned  objects have been built or are               
planned to be built.                                                            
                                                                                
     Article 14. The State Land Fund                                            
                                                                                
     1. The State Land Fund shall be composed of land not subject               
to privatization, not liable to be returned for ownership or sold               
under  Article  13  of  this  Law,  as  well  as  land  which  is               
appropriated to  this fund  in cases  specified in paragraph 2 of               
Article 11, and paragraph 3 of Article 12 of this Law.                          
     2. Land  which, according  to the  land reform  plan for the               
organization of  land exploitation, is planned to be allotted for               
the establishment  of private  farms, and  whose return, upon the               
request of  the future  owner, has been postponed for a period of               
up to  5 years,  shall be  temporarily appropriated  to the State               
land fund.                                                                      
     3. The  State Land  Fund shall  be at the disposition of the               
Government of the Republic of Lithuania, and of local governments               
and other  bodies authorized by the State who may lease, sell, or               
use the land in any other manner.                                               
                                                                                
     Article 15. Allotment of State Land for Utilization                        
                                                                                
     1. During  the implementation  of land  reform, natural  and               
legal persons who wish to lease land shall submit applications to               
the local  agencies of  agrarian reform, stating therein the area               
of the  desired land, the type of economic activities, the period               
of lease,  the location  of the  plot,  and,  as  necessary,  the               
technical-economic motivation which makes the land necessary.                   
     2. Upon the request of natural and legal persons, taking the               
total area of the unprivatized land and the interests of the land               
users and  the State  into account,  the land reform plan for the               
organization  of   land  exploitation   shall  provide   for  the               
distribution of land for new users of land.                                     
     3. Upon  the establishment  of agricultural  partnerships or               
other enterprises,  the founders  must obtain the decision of the               
local agency  of agrarian reform concerning the plot of land that               
may be leased to the enterprise and its location.                               
     4. The  size of  land plots allotted to enterprises, as well               
as their arrangement, must guarantee their rational and efficient               
management.                                                                     
                                                                                
     Article 16. Private Farm Land of Citizens                                  
                                                                                
     1. Persons  residing  in  rural  localities  may,  on  their               
request, lease plots of State-owned land for their private farms.               
     2. Land  shall be  leased for  private farms  from the State               
Land Fund which is at the disposition of the local governments of               
a rural district (town).                                                        
     Taking the  area of  land assigned  to the  Land  Fund  into               
consideration, plots  of agricultural  land up to 3 hectares or 2               
hectares may be leased to a private farm ( the Supreme Council of               
the Republic  of Lithuania Resolution No. I-411 of 26 July 1990),               
not including  the area  of  land  occupied  by  a  private  farm               
(separate homestead).                                                           
                                                                                
                                                                                
                            Chapter 4                                           
                                                                                
                                                                                
                The Implementation of Land Reform                               
                                                                                
     Article 17. Bodies Implementing Land Reform                                
                                                                                
     1. Land  reform shall  be implemented by the agrarian reform               
agencies  of  rural  districts,  and  by  district  privatization               
commissions. Their activities shall be coordinated and controlled               
by the  Agrarian Reform  Commission under  the Government  of the               
Republic of Lithuania, and by the Ministry of Agriculture.                      
     The procedure for forming agrarian reform agencies and their               
functions shall  be established by the Government of the Republic               
of Lithuania.                                                                   
     2.  Land   reform  plans   for  the   organization  of  land               
exploitation shall  be prepared  by the  State Institute  of Land               
Exploitation Organization.                                                      
                                                                                
     Article 18. The Procedure for the Submittal and                            
                Consideration of Applications for the                           
                Acquisition of Land                                             
                                                                                
     1. Natural  and legal  persons who  wish to acquire land for               
economic or  other activities  shall submit  applications to  the               
agrarian reform  agency of the rural district wherein the plot of               
land is located.                                                                
     Applications concerning  the acquisition  of land  shall  be               
submitted in  the manner  and terms established by the Government               
of the Republic of Lithuania.                                                   
     2. The  agrarian reform  agency  of  a  rural  district,  in               
conjunction  with   the  State  Institute  of  Land  Exploitation               
Organization, shall  consider applications for the acquisition of               
land,  prepare  draft  decisions  for  the  fulfillment  of  such               
requests, and shall, in writing, notify the applicants thereof.                 
                                                                                
     Article 19. The Procedure for the Lodging and Consideration                
                of Appeals which Dispute Decisions of Agrarian                  
                Reform Agencies                                                 
                                                                                
     1. Natural  and legal  persons may  appeal to  the  district               
privatization commission  against decisions  adopted by  agrarian               
reform agencies  of rural districts concerning the acquisition of               
land within 15 days from the receipt thereof.                                   
      The  district privatization  commission shall  consider the               
appeal within the period of one month, and shall adopt a decision               
thereon. This  decision may  be appealed  within 15  days to  the               
Agrarian Reform  Commission under  the Government of the Republic               
of Lithuania, upon which the Commission shall consider the appeal               
with the period of one month and shall adopt the final decision.                
     2. Higher  level agrarian reform agencies shall not consider               
complaints which  have not yet been considered by the lower level               
agrarian reform agencies.                                                       
                                                                                
                                                                                
                            Chapter 5                                           
                                                                                
                                                                                
                 Land Exploitation Organization                                 
                                                                                
     Article 20. The Drafting of Land Reform Plans for the                      
                Organization of Land Exploitation                               
                                                                                
     1. Comprehensive  land reform  plans for the organization of               
land exploitation  shall be  drafted  for  the  territory  of  an               
agricultural enterprise or of a rural district.                                 
     2.  Land   reform  plans   for  the   organization  of  land               
exploitation shall  be drafted  with State funds. The schedule of               
their  preparation   shall  be   approved  by   the  Ministry  of               
Agriculture,  according   to   the   applications   of   district               
privatization commissions.                                                      
                                                                                
     Article 21. The Procedure for Considering, Coordinating, and               
                Approving the Land Reform Plans for the                         
                Organization of Land Exploitation                               
                                                                                
     1.  Land   reform  plans   for  the   organization  of  land               
exploitation shall  be considered  at the  meetings of natural or               
legal persons  who are applying for land with the agrarian reform               
agency  of   the  respective   rural  district  ,  and  shall  be               
coordinated with the State institutions concerned.                              
     2. The  coordinated comprehensive  land reform plans for the               
organization of  land  exploitation  shall  be  approved  by  the               
district board.                                                                 
                                                                                
     Article 22. The Marking of Land Plots and the Distribution                 
                of Land Ownership Documentation                                 
                                                                                
     In  coordination   with  the   land  reform  plans  for  the               
organization of  land exploitation,  the State  Institute of Land               
Exploitation Organization  shall mark  the boundaries of the land               
plots, and  shall prepare documentation of land ownership or land               
usage rights.                                                                   
     The forms  of these  documents, and  the procedure for their               
preparation  and   distribution  shall   be  established  by  the               
Government of the Republic of Lithuania.                                        
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
25 July 1991                                                                    
No. I-1607