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A
collection of Philippine laws, statutes and codes
not
included or cited in the
main indices
of
the Chan Robles Virtual Law Library.
This page features the full text of
Republic Act No. 8501.
REPUBLIC
ACT NO. 8501
AN ACT
TO RESCUE THE
NATIONAL SHELTER PROGRAM OF THE GOVERNMENT BY CONDONING THE PENALTIES
ON
ALL OUTSTANDING/DELINQUENT HOUSING LOAN ACCOUNTS WITH ANY OF THE
GOVERNMENT
INSTITUTIONS AND AGENCIES INVOLVED IN THE NATIONAL SHELTER PROGRAM AND
BY AMENDING PRESIDENTIAL DECREE NO. 1752, AS AMENDED.
Section 1. Short title.
— This Act shall be known as the "Housing Loan Condonation Act of
1998."
Sec. 2. Condonation
clause. — (a) All unpaid penalties on housing loans from any of the
government institutions and agencies involved in the National Shelter
Program
of the Government, including but not limited to the Government Service
Insurance System (GSIS), Social Security System (SSS), Home Development
Mutual Fund (Pag-ibig Fund), National Home Mortgage Finance Corporation
(NHMFC), and the National Housing Authority (NHA), are hereby condoned:
Provided, That all due and demandable arrearages composed of the
principal
and interest are restructured and paid within the remaining period of
the
loan;
(b) In the event that a
borrower is able to pay only part of his/her due and demandable
arrearages,
only the penalties corresponding to the portion paid shall be condoned;
(c) A borrower must not
have availed of any previous condonation program from any government
institution
or agency involved in the National Shelter Program; and
(d) The corresponding
penalties
due to the funders of the NHMFC on all delinquent accounts under its
management
shall likewise be condoned up to the extent paid by individual
borrowers.
Sec. 3. Amendatory
clause. — To ensure the continuity of this Act, the Home
Development
Mutual Fund (Pag-ibig Fund) which is a major financing institution of
the
National Shelter Program is hereby granted the power to condone. Sec.
12 of Presidential Decree No. 1752, as amended by Republic Act No.
7742,
is hereby further amended to read as follows:
"SEC. 12. Powers
of
the
Board. — The Board shall have the following powers:
"(a) To formulate
policies,
rules and regulations to carry out effectively the functions of the
Fund
under this Act;
"(b) To direct the
operations
and administration of the Fund;
"(c) To authorize
expenditures
of the Fund in the interest of effective administration and operations,
to adopt from time to time the budgets for said purposes;
"(d) To condone, in
whole
or in part, penalties imposed on loans of members-borrowers of the fund
who for justifiable reasons, failed to pay on time any obligation due
to
the Fund subject to the following requirements or conditions:
"(1) That
a
member-borrower
may apply only once for the condonation of penalties on the entire loan
amount.
"(2) That the loan
amount
must have been on arrears for a period of at least two (2) years.
"(3) That the
annual
total
family income shall not be more than Three Hundred Thousand pesos
(P300,000.00).
"Such exclusive power
to
condone shall likewise apply to penalties imposed on employers who
justifiably
fail to remit when due the required contributions of their employees;
"(e) To approve
appointments
of personnel; and
"(f) To exercise such
powers
as may be necessary to carry into effect the powers and accomplish the
purposes for which the Fund is established."
Sec. 4. Applicability
on delinquent accounts due to defective housing units. — This Act
shall
likewise apply to borrowers who failed or refused to pay their monthly
amortizations due to structurally defective or substandard housing
units
and/or subdivisions lacking in basic amenities such as water, light,
drainage,
good roads and others and as required by law.
Sec. 5. Implementing
rules and regulations. — All government institutions and agencies
involved
in the national shelter program, including but not limited to those
mentioned
in Sec. 2, are hereby required to promulgate the implementing rules
and regulations within sixty (60) days after the effectivity of this
Act.
Sec. 6. Repealing
clause. — All laws, executive orders, rules or regulations, or any
part thereof, inconsistent with any provision of this Act are hereby
repealed
or modified accordingly.
Sec. 7. Effectivity
clause. — This Act shall take effect fifteen (15) days after its
complete
publication in the Official Gazette or in at least two (2) national
newspapers
of general circulation.
Approved:
February 13, 1998
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