Republic of Lithuania                                     
                                                                                
                               Law                                              
                                                                                
                                                                                
   On the Procedure  and Conditions of the Restoration of the                   
       Rights  of Ownership to the Existing Real Property                       
                                                                                
                                                                                
                            Chapter 1                                           
                                                                                
                        General Provisions                                      
                                                                                
                                                                                
     Article 1. The Objective of this Law                                       
                                                                                
     This law  shall legislate  the procedures  and conditions of               
the restoration  of the right of ownership to the citizens of the               
Republic of  Lithuania to  the property  which  was  nationalized               
under the  laws of  the  USSR  (Lithuanian  SSR),  or  which  was               
otherwise unlawfully  made public,  and  which,  on  the  day  of               
enactment of  this law,  is considered the property of the state,               
of the  public, of cooperative organizations (enterprises), or of               
collective farms.                                                               
     The right of real property ownership shall be restored:                    
     1) by  giving  over  either  the  actual  property,  or  the               
equivalent of such property; or                                                 
     2) in  the event  that it  is impossible to grant the actual               
property or  the equivalent  of such  property, or  if the former               
owner  does  not  desire  the  actual  property,  by  financially               
compensating the  persons specified  in Article  2 of  this  law,               
thereby enabling  them to purchase an appropriate amount of state               
(public) property subject to privatization.                                     
                                                                                
     Article 2. Citizens Entitled to Restored Ownership Rights                  
                                                                                
     The right  of ownership  to the existing real property shall               
be restored:                                                                    
     1) to  the former owner of the property, provided that he is               
a certified  citizen of  the  Republic  of  Lithuania  and  is  a               
permanent resident of the Republic of Lithuania;                                
     2) to the children (or adopted children), parents (or foster               
parents), or  spouse of the former owner, in the event that he is               
no longer  living. Upon  the death  of a child of a former owner,               
the right  of ownership  to his portion of existing real property               
shall be  restored to  his spouse and children, provided they are               
certified  citizens   of  the  Republic  of  Lithuania,  and  are               
permanent residents  of the  Republic  of  Lithuania.(Amended  14               
January,1992)                                                                   
                                                                                
     Article 3. Property to which the Right of Ownership shall                  
                be Restored                                                     
                                                                                
     Ownership rights  to the  following existing  real  property               
shall be restored to persons specified in Article 2 of this law:                
     1) land;                                                                   
     2) forests;                                                                
     3) structures  used for  economic  and  commercial  purposes               
together with their equipment;                                                  
     4) residential houses together with their equipment;                       
                                                                                
                                                                                
                            Chapter 2                                           
                                                                                
      Conditions and Procedures for the Restoration of the                      
                       Right of Ownership                                       
                                                                                
                                                                                
     Article 4. Conditions and Procedures for the Restoration of                
                the Right of Ownership to Land Used for                         
                Agricultural Purposes                                           
                                                                                
     The  right  of  ownership  to  land  used  for  agricultural               
purposes shall  be restored  to persons specified in Article 2 of               
this law,  provided that  they continue or resume farming on this               
land, according to the plans established for that territory.                    
                                                                                
     Such persons must either:                                                  
     have been permanent workers of state or collective farms;                  
     work and permanently reside in a rural area; or                            
     demonstrate an  intention to  engage in  farming  (i.e..  by               
settling in  a rural area, by acquiring agricultural machinery or               
livestock).                                                                     
     In the  event that such persons reside or work on an area of               
the farm  other than  that being restored, or if the plot of land               
cannot be  given back for reasons specified in Article 12 of this               
law, these  persons shall be allotted, upon their request, a plot               
of land  according to  their place  of residence,  provided  that               
there exists  vacant state-owned land. All plots of land situated               
in that  locality, which are not returned to persons specified in               
Article 2  of this  law, and which may be sold for private owner-               
ship under  the Land  Reform Law, shall be deemed a vacant lot of               
the state land fund.(Amended 14 January,1992)                                   
     Former owners  shall be  given plots  of land  equivalent in               
size to  their previous  property,  either  in  the  same  or  in               
different areas,  in accordance with the procedure established by               
the Government.  The restored  plot of agricultural land must not               
exceed 50  hectares. The  total area  of the property restored to               
one owner  (including forest  and water  bodies) cannot exceed 80               
hectares. (Amended 14 January,1992)                                             
     The  implementation   of  property   ownership  rights  (the               
allotment of  land) to  persons entitled  to this  right, may  be               
postponed for  a five  year period. In such cases, the land shall               
be allotted  from the  state land  fund without  payment, and, if               
possible, the land shall be returned to the former owner.                       
     The newly  returned  or  allotted  land  must  be  used  for               
agricultural  production   and  cannot   be  sold   or  otherwise               
transferred, mortgaged, or leased within the period of five years               
from the day it was returned or allotted.                                       
     Land may  be transferred  to an agricultural company only in               
the event  that the owner of the land is employed in this company               
or if  he is  a pensioner and falls under the category of persons               
specified in Article 2 of this law.                                             
     If land  is not  used for agricultural production within one               
year (in  spring or  autumn )  of  its  transferral,  or  if  the               
conditions defined  in Article  7 of  this law  are violated, the               
land shall be relocated to the land reform fund. The former owner               
shall be  financially compensated  in accordance  with the prices               
that were  in effect  at the  time of the original restoration of               
ownership, as  established by  the Government  of the Republic of               
Lithuania.                                                                      
                                                                                
     Article 5. Conditions and Procedures for the Restoration of                
                the Ownership Rights to Land Situated Within the                
                Limits of Towns and Urban Settlements                           
                                                                                
     The ownership  rights of land within the boundaries of towns               
or urban  settlements shall  be restored  to persons specified in               
Article 2 of this law as follows:                                               
     1) in  cases where the property was within the boundaries of               
a town  or urban  settlement, a plot of land shall be allotted in               
the same  vicinity for  the construction  of a private house. The               
property shall  be free  of charge,  and shall be assigned in the               
size and  manner established by the Government of the Republic of               
Lithuania;                                                                      
     2) in  cases where  the former  plot of land was ascribed to               
the territory of a town or urban settlement, a plot of land shall               
be allotted  in the  town or urban settlement of the territory to               
which the  land was  ascribed, for  the construction of a private               
house. The  property shall  be  free  of  charge,  and  shall  be               
assigned in  the size and manner established by the Government of               
the Republic of Lithuania;                                                      
     In cases  as defined  in paragraphs 1 and 2 of this Article,               
if persons  specified in  Article 2  of this  law possess private               
houses by  the right  of ownership,  they may  be given ownership               
rights to  the land  surrounding their  present residence  rather               
than being given their previous property, if they so desire;                    
     3) in  the case  that persons specified in Article 2 of this               
law own  a house  situated on land which they formerly had rights               
to, and if they actually utilize this land (according to the data               
of inventory  cases), the  property right  to that  plot shall be               
restored, but  not exceeding  0.2 hectares  in  Vilnius,  Kaunas,               
Klaipeda, Siauliai, Panevezys, Alytus, Marijampole, Druskininkai,               
Palanga, and  Birstonas and  not exceeding  0.3 hectares in other               
towns and  urban settlements,  not including the land occupied by               
buildings.                                                                      
                                                                                
     Article 6. The Conditions and Procedures for the                           
                Restoration of Ownership Rights to Forest Areas                 
                                                                                
     Property rights  of forest  areas not  exceeding 10 hectares               
shall be  restored to  persons specified in Article 2 of this law               
according to  land-planning projects  devised in  the established               
manner to carry out land reform.                                                
     The forest  area which  is returned to the former owner must               
be cared  for, utilized,  and reforested  according to the forest               
planning project.  Within five years from the day it was returned               
or  allotted   as  a  compensation,  the  area  cannot  be  sold,               
mortgaged, or  otherwise transferred  without the approval of the               
body authorized by the Government of the Republic of Lithuania.                 
     Violators of  the conditions  defined  in  part  2  of  this               
Article shall  be held responsible in accordance with the laws of               
the Republic of Lithuania.                                                      
                                                                                
     Article 7. Procedure for the Restoration of Ownership                      
                Rights to Structures Used for Economic and                      
                Commercial Purposes                                             
                                                                                
     The ownership  rights to  structures used  for economic  and               
commercial  purposes  together  with  their  equipment  shall  be               
restored to  persons specified  in  Article  2  of  this  law  by               
returning the  aforesaid buildings  as well as the plots of land,               
provided that it was private property, or by allotting securities               
(shares), in  accordance with  the procedure  established by  the               
Government of the Republic of Lithuania.                                        
                                                                                
     Article 8. Conditions and Procedures for the Restoration                   
                of Ownership Rights to Residential Houses                       
                                                                                
     The ownership  rights  to  residential  houses  (or  portion               
thereof) shall  be restored  to persons specified in Article 2 of               
this law  by returning  the actual houses (or a portion thereof),               
or by compensating their value.                                                 
     The  procedure  and  time  limits  for  the  restoration  of               
residential houses  (or portions thereof) which do not fall under               
the category  of houses  defined in Article 14 of this law, shall               
be established  by the  Government of  the Republic of Lithuania,               
                                                                                
pursuant to  the provision  that the  residential houses shall be               
returned in the case that:                                                      
     1) they  are reconstructed  into premises  unfit  for  human               
occupancy or if they are vacant;                                                
     2) tenants,  occupying houses subject to being returned, and               
which are occupied by more than one family, are familiar with all               
of the  laws guaranteeing  their rights, and with their option to               
move under  the conditions  proposed by  the local government and               
set forth  in Article  21 of  this law, or under other conditions               
guaranteed by the former owner of the house;                                    
     3) the residential house consists of a single dwelling unit;               
     4) the former owners reside in the house which is subject to               
being returned.                                                                 
     Persons specified  in Article 2 of this law may, rather than               
reclaiming their  former property,  acquire ownership  rights  of               
their present  dwelling (i.e.. if they are currently renting from               
the state or public housing fund), if they so desire.                           
     If  a   person  so  requests,  their  property  right  to  a               
residential house  may be  substituted with  the transferral of a               
dwelling  unit  other  than  their  current  residence  to  their               
ownership in  the manner  prescribed by  the  Government  of  the               
Republic of Lithuania if:                                                       
     1) the  floor area  of the  current state  or public housing               
unit does not exceed 15 square metres per occupant;                             
     2) they reside as subtenants in houses belonging to state or               
public housing  funds or  as tenants in houses belonging to house               
building cooperatives  or to  private housing  funds, and if they               
possess no other place of residence;                                            
     3) they  live in  hostels or  other office  premises fit for               
residential use;                                                                
     4) they live in houses which do not comply with sanitary and               
technical requirements;                                                         
     5) they  do not  possess  any  place  of  residence  in  the               
Republic  of   Lithuania  because   of  previous  deportation  or               
imprisonment as the result of resistance to occupational regimes.               
     Persons defined  in Article  2 of this law, along with their               
family members,  must vacate  dwelling units  rented by them from               
the state or public housing funds upon the return of their former               
residential  houses  or  upon  the  allotment  of  an  equivalent               
dwelling.                                                                       
     In the  event that a person, as defined in Article 2 of this               
law, is  given only  a portion  of the formerly owned residential               
house, or  if the dwelling unit transferred to their ownership in               
another house  does not  equal the  value of  the formerly  owned               
residential house,  their right  of ownership shall be supplanted               
by an  allocation from  the state,  if the  person so desires and               
consents. The  amount of  state allocation shall be determined by               
the commissions  of initial  privatization in accordance with the               
procedure established  by  the  Government  of  the  Republic  of               
Lithuania.                                                                      
     In such cases, the property right to the formerly owned plot               
of land shall be restored in the manner provided for in Article 5               
of this law.                                                                    
     The provisions  of this  Article shall  not apply to persons               
who, at  their own  will, moved  from residential houses formerly               
owned by  them to dwelling units owned by state or public housing               
fund.                                                                           
                                                                                
     Article 9. Documents Confirming the Right of Ownership                     
                                                                                
     Excerpts  from   mortgage  books,  conveyance  deeds,  court               
decisions,  deeds   of  property   nationalization,  as  well  as               
certificates  issued   by  state  archives  and  other  documents               
established by  the  Government  of  the  Republic  of  Lithuania               
(Amended 14  January,1992) may  serve as documents confirming the               
right of ownership.                                                             
                                                                                
     Article 10. Procedure for Filing Petitions to Reclaim                      
                 Property                                                       
                                                                                
     Persons defined  in Article 2 of this law may file petitions               
to reclaim  the existing  real property,  or for the compensation               
thereof, with  the boards  of the  town or  district in which the               
existing  real   property  is   located,  prior   to  March   31,               
1992.(Amended 11 February 1992).                                                
     Citizens who  fail to  file a  petition within  this  period               
shall lose  their right  to reclaim  the property under this law,               
with the  exception of  persons  having  no  place  of  residence               
because of  deportation or imprisonment as a result of resistance               
to occupational regimes.                                                        
     The  statute   of  limitation   --  three   years  from  the               
enforcement of this law -- shall apply to claims for compensation               
for unreclaimed property.                                                       
     Citizenship documents,  as well  as documents confirming the               
ownership of  property,  must  be  presented  together  with  the               
petition. The  Government of the Republic of Lithuania may extend               
the period  for filing  documents  confirming  the  ownership  of               
property.                                                                       
                                                                                
     Article 11. Contents of Petitions                                          
                                                                                
     Petitions  to   reclaim  existing   property,  or   for  the               
compensation thereof,  shall contain  the following  information:               
the citizen's  full name  and place of residence, the type of the               
existing real  property, its  size, its location, the grounds for               
the entitlement  to the  ownership rights  of the  property,  the               
present owner  of the  property, as  well as the date and the way               
that the ownership right was lost.                                              
     The petitioner  shall state  in his  petition other  persons               
known to him who are entitled to reclaim this property under this               
law, and  whether the  petitioner wishes  to recover  the  actual               
property or to be compensated thereof.                                          
                                                                                
                                                                                
                           Chapter 3.                                           
                                                                                
         Conditions by which the Existing Real Property                         
                shall be Bought out by the State                                
                                                                                
                                                                                
     Article 12. The Buying out of Land                                         
                                                                                
     Land required for State needs as well as other land shall be               
bought out  from persons  defined in Article 2 of this law in the               
manner specified in Article 16 of this law if:                                  
     1) it  is occupied by roads, airports, military units, or is               
required for the protection of state borders.                                   
     The land  occupied by  underground  line  communications  or               
pipelines may be given over for limited use, if persons specified               
in Article 2 of this law give their consent;                                    
     2) it  is occupied  by bodies  of water  which were made and               
financed  by   the  state   budget,  by   gardens  of  gardeners'               
associations, or  by industrial gardens of state enterprises that               
are being established;                                                          
     3) it  is in  a rural  area, has  been allotted  to a farmer               
under the  enforced laws,  and is  occupied by  a personal  plot,               
house or  other structures  to which  the farmer has the right of               
ownership;                                                                      
     4) on  the day of enforcement of this law, it was within the               
limits of  a town, urban settlement, or township which, according               
to development  projects, is  planned to be expanded, or if it is               
                                                                                
determined by  the government  that this land is essential to the               
recreational needs of the people residing in the given area;                    
     5) it is allotted in the established manner to scientific or               
educational institutions  for carrying  out  experiments  or  for               
other scientific purposes;                                                      
     6) it  is in the territory of investigated mineral deposits,               
confirmed in the established manner;                                            
      Such  plots may be given back for limited use, provided the               
persons specified  in Article  2 of  this law  give their consent               
thereto;                                                                        
     7) it is located in a nature reserve.                                      
     The territory of existing nature reserves and national parks               
as well  as the  territory which  is  being  considered  as  such               
according to  the allaround  nature protection  scheme,  and  the               
preserved land of natural, cultural, and historical monuments may               
be  given  back  for  limited  use,  provided  that  the  persons               
specified in  Article 2 of this law, the Inspectorate of Cultural               
Heritage of  the Republic of Lithuania, and the Department of the               
Environmental Protection  of the Republic of Lithuania give their               
consent thereto.                                                                
     8) state-owned  facilities that  are built or are planned to               
be built thereon, as well as sites corresponding to the norms and               
standards of environmental quality wherein waste is planned to be               
stored ;                                                                        
     9) the  plot contains structures of agricultural enterprises               
and optimum land area necessary for their operation.                            
      In  the case  that only  a portion  of the  land subject to               
restoration is  occupied by  buildings or  other structures, this               
portion of  land may  be given  back as  well, provided  that the               
persons specified  in Article 2 of this law and the users of this               
land agree  on the  transference of  the right  of  ownership  of               
buildings and other structures.                                                 
                                                                                
     Article 13. The Buying Out of Forests                                      
                                                                                
     Forests required  by the  State  shall  be  bought  out  (or               
compensated for)  from persons specified in Article 2 of this law               
in the  manner established  in Article  16 of  this law, provided               
that these forests are assigned to Group 1 forests under the laws               
of the Republic of Lithuania.                                                   
                                                                                
     Article 14. The Buying Out of Residential Houses                           
                                                                                
     Residential houses  shall be bought out (compensated for) by               
the State  from persons specified in Article 2 of this law in the               
procedure established  in Article  16 of  this law, provided they               
are required by the State or if:                                                
      1)  they have been expanded, rebuilt, or reconstructed into               
uninhabitable premises and have thereby been given to scientific,               
medical, cultural,  educational  institutions  or  communications               
companies;                                                                      
     2)  it   is  a  wooden  residential  house  which  has  been               
substantially improved,  or if  the  house  has  been  augmented,               
rebuilt, or  reconstructed, thereby  increasing the  gross  floor               
area by  more than  1/3, in a manner which makes it impossible to               
separate the additional gross floor area from the original one.                 
                                                                                
     Article 15. The Buying Out of Economic and Commercial                      
                Structures                                                      
                                                                                
     Structures of  economic and  commercial purposes  which have               
been substantially reconstructed shall be bought out by the State               
from persons  specified in  Article 2  of this  law in the manner               
established in Article 16 of this law.                                          
                                                                                
                                                                                
                            Chapter 4                                           
                                                                                
            The Buying out of Existing Real Property                            
                                                                                
                                                                                
     Article 16. The Methods of Buying out the Existing Real                    
                Property                                                        
                                                                                
     The State shall buy out the existing real property by:                     
     1) giving  the owner,  free of  charge, rights  to different               
property of the same type or value;                                             
     2) reimbursing the owner or by allotting shares;                           
     3) making  void financial  liabilities of  a citizen  to the               
state  which  were  incurred  after  the  appropriation  of  real               
property;                                                                       
     The method  of buying  out shall be chosen by the owner with               
the exception  of cases  specified in  Articles 7,8, 14 and 15 of               
this law.                                                                       
                                                                                
     Article 17. The Amount of Financial Reimbursement                          
                                                                                
     In  buying   out  existing  real  property,  the  amount  of               
financial reimbursement shall be based on the actual value of the               
property at  the time  of purchase,  less the  amount needed  for               
improvement. The  procedure for  the calculation  of payments, as               
well as  for  their  allocation,  shall  be  established  by  the               
Government of the Republic of Lithuania.                                        
                                                                                
                                                                                
                           Chapter 5.                                           
                                                                                
         Consideration of Petitions for the Restoration                         
                       of Ownership Rights                                      
                                                                                
                                                                                
     Article 18. Institutions Which Consider Petitions of                       
                 Citizens for the Restoration of Ownership Rights               
                                                                                
     Petitions to  reclaim land used for agricultural purposes or               
to reclaim  forest area  shall  be  considered  by  the  ministry               
authorized by the Government of the Republic of Lithuania, taking               
into consideration  the recommendations  of the  town  (district)               
board of the territory in question .                                            
     Petitions  to   reclaim  residential  houses,  economic  and               
commercial structures,  as well  as equipment  therein, shall  be               
reviewed by the town (district ) board which has control over the               
structure  in   question,  in   accordance  with   the  procedure               
established by the Government of the Republic of Lithuania.                     
     Petitions  to   reclaim  economic   structures,   commercial               
structures, or  houses occupied by scientific, medical, cultural,               
or educational institutions, or by communication companies, shall               
be considered  by the  ministry or  agency which has jurisdiction               
over the area in which the object in question is located.                       
     Institutions considering  petitions for  the restoration  of               
ownership rights,  in the  cases provided  for in this law, shall               
determine the  amount of  compensation  on  the  basis  of  rates               
established by the Government of the Republic of Lithuania.                     
                                                                                
     Article 19. Adoption of Decisions on the Restoration of                    
                 Ownership Rights                                               
                                                                                
     Institutions specified  in  Article  18  of  this  law  must               
consider petitions  of citizens,  and adopt  decisions concerning               
the restoration  of ownership  rights within  three months of the               
day that  the documents  confirming the  right of  ownership  are               
submitted.                                                                      
     In the  event of  a dispute  between citizens  regarding the               
method of restoration of ownership rights, the decision shall not               
be adopted.  Upon  the  receipt  of  citizen  applications,  such               
disputes shall be considered in court.                                          
                                                                                
     Article 20. The Procedure to Appeal Decisions                              
                                                                                
     Decisions adopted  by the  institutions set forth in Article               
18 of this law concerning the restoration of ownership rights, or               
compensation for these rights, may be appealed in court within 20               
days.                                                                           
     In such cases the parties shall be exempt from state duties.               
                                                                                
     Article 21. Guaranties for Tenants Who Reside in Houses                    
                 Subject to Restoration                                         
                                                                                
     Tenants residing in houses which were returned to the former               
owner shall  pay rent  according  to  an  agreement  between  the               
parties but  which does not exceed the maximum amount established               
by the Government of the Republic of Lithuania.                                 
     In addition  to rent, tenants shall pay for public utilities               
according to rates approved in the established manner.                          
     Deadlines for  the payment  of rent and utitilities shall be               
determined by an agreement between the parties in question.                     
     In the  cases provided  for in subparagraph 3 of paragraph 2               
of Article  8 of this law, the owner shall be prohibited to evict               
the  tenants  of  the  house  for  ten  years  from  the  day  of               
restoration of ownership.                                                       
     Persons who  reside in  a residential  house which  has been               
returned to the owner shall be provided with a place of residence               
by the  local government  of the  respective  town  or  district,               
pursuant to  the  programme  prepared  and  carried  out  by  the               
Government of the Republic of Lithuania.                                        
     Tenants residing in houses which have been returned to their               
former owners shall be entitled to obtain, free of charge, a plot               
of land  for the  construction of  a house,  to  join  a  housing               
construction cooperative,  and to  get credit  on easy  terms for               
these purposes.                                                                 
     In the  event that  a house  is being  sold by  the original               
owner, the  tenants of  this house  shall have  priority  in  the               
purchase of  it. The  restrictions prescribed  by paragraph  4 of               
this Article shall apply to the purchaser of the house.                         
     Any actions  intended to compel tenants to move from a newly               
returned house,  without safeguarding  guarantees defined in this               
Article, shall  be prohibited,  and the violator(s) shall be held               
responsible by laws.                                                            
                                                                                
                                                                                
                            Chapter 6                                           
                                                                                
                        Final Provisions                                        
                                                                                
                                                                                
     Article 22. Guarantees to Persons whose Property is Bought                 
                 Out by the State                                               
                                                                                
     Payments of  allocations or  of securities  for the property               
bought out by the State must be made no later than 3 months after               
the decision  to buy  out the  property has  been adopted. On the               
decision of the Government of the Republic of Lithuania this time               
limit may be extended.                                                          
                                                                                
     Article 23. The Prohibition to Use Budgetary Resources                     
                                                                                
     It shall  be  prohibited  to  use  budgetary  resources  for               
payments of property bought out by the State.                                   
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
Vilnius                                                                         
June 18 1991                                                                    
No. I-1454