5 Article 15. When in the cases foreseen in the previous article it is imperative to transfer one or more indigenous communities, they will be given appropriate land of at least equal quality to the land they occupied, and they will be adequately compensated for the damage and detriment suffered due to the displacement, as well as for the value of the improvements made to the land. Article 22 of said Law 904, in turn, sets forth the procedure for settlement of indigenous communities on public lands, and Articles 24 and 25 lay out the procedures for settlement on private lands occupied by the indigenous peoples. Article 26 of the law states that: “in case of expropriation, the procedure and compensation will be in accordance with the provisions of the Constitution and the law, and the national budget will set aside the necessary funds.” 16. Law 43/89, which establishes a system to normalize the situation of indigenous communities’ settlements, provides in Article 4: “During the administrative and judicial proceedings set forth in Article 2, the Instituto Paraguayo del Indígena (INDI) and the Instituto de Bienestar Rural (IBR) must offer definitive solutions to the indigenous communities’ settlements, pursuant to Law 854/63 Estatuto Agrario and Law 904/81, Estatuto de las Comunidades Indígenas, proposing expropriation under Article 1 of Law 1372/88 when solutions are not attained by the other means foreseen.” 12 The provisions of both Law 904 and Law 43/89 establish, when there is no contractual agreement with the owner, expropriation as a way to normalize the situation of indigenous communities settled on private lands. These provisions are consistent with the Civil Code provisions according to which private domain or real estate is lost by: a) sale; b) judicial transmittal or statement; c) execution of a judgment; d) expropriation; and e) abandoning said domain by means of a public writ, duly registered in the Registro de Inmuebles, and in other cases set forth in the law (Article 1967). Article 1966, in turn, specifically lists the ways to acquire ownership of real estate: a) contract; b) accession; c) usucapion; and d) inheritance. 13 17. Article 94 of Law 1863/02, which abrogates Law 854/63, in turn specifies the rural real estate that may be expropriated: The following private domain rural landholdings are declared to be of social interest and subject to expropriation: a) landholdings that are not utilized rationally, that are appropriate for establishing agricultural settlements, and that are located in areas with social problems; b) those where there are stable settlements, well established for over ten years, under the terms and requirements of Law N° 622/60 on de facto urbanization and settlements; and, c) landholdings subject to Law N° 662/60, on proportional subdivision of large landholdings, in accordance with the procedure set forth in said law. 18. Regarding this point, we should note the clash between the constitutional provision and Article 64 of Law 1863/02; while the latter limits the possibility of 12 13 Law 854/63 was abrogated by Law 1863/02. Reply to the application, para.148.

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