Condonation of Penalties on SSS Housing Loans

Ask AI

EXECUTIVE ORDER NO. 149: Condonation of Penalties on SSS Housing Loans

What do you want to know about the law?
Ask AI quickly gives answers based only on the current context to avoid mistakes. Always verify with the original text.

New Chat Started

Ask AI

Title Source: Supreme Court: Condonation of Penalties on SSS Housing Loans

Law: Executive Order No. 149

Decision Date: Mar 15, 1987

An executive order is issued to condone penalties on delinquent housing loan accounts with the Social Security System in the Philippines, encouraging borrowers to update their accounts by waiving penalties but still requiring payment of principal and interest.

Law Summary

Key Provision: Condonation of Penalties

All unpaid penalties on delinquent SSS housing loan amortizations due and demandable as of April 1, 1987, are condoned.
"Condonation" means forgiveness or waiver of penalties.
The condonation applies only if the corresponding amortizations and all accrued interests are fully paid on or before September 30, 1987.

Partial Payment and Penalties

If a borrower pays only part of the past due amortizations by the deadline, penalties must be paid on the remaining balance only.

Effectivity

The executive order takes effect immediately from its signing date, March 15, 1987.

Legal and Policy Considerations

The condonation aims to encourage delinquent borrowers to update their accounts without unfairly prejudicing non-borrowing SSS members.
It reflects a policy choice balancing collection with social considerations for borrowers.

Definitions

Penalty: A 6% per annum interest on overdue housing loan amortizations.
Delinquent Account: A housing loan account with unpaid amortizations past due date.

Authority

Issued by the President of the Philippines, Corazon C. Aquino, under Executive Order No. 149.
Enforced through the Social Security System and its housing loan program administration.

END