Condonation of Penalties on SSS Housing Loans

Section 1 applies “any provision of law to the contrary notwithstanding”, thereby overriding conflicting legal provisions.
Section 1 condones all unpaid penalties on Social Security System (SSS) housing loan amortizations.
The penalties covered are those that are due and demandable as of April 1, 1987.
The condonation applies to unpaid penalties attached to delinquent housing loan amortizations under the SSS housing loan program.
The order conditions relief in relation to payment timing of the underlying amortizations and their interests.

The housing loan program imposes a penalty of six percent (6%) per annum on delinquent amortizations until fully paid.
The order is premised on the existence of about 74,000 housing loan accounts, with 72% reported as delinquent.
Executive Order No. 149 is intended to allow borrowers to update delinquent SSS housing loan accounts without being burdened by penalty payments.
The order is designed to encourage borrowers to update their loan accounts while maintaining that condonation will not prejudice non-borrowing members.

Section 1 requires that the amortizations and all interests thereon be paid on or before September 30, 1987 to fully avail of the penalty condonation.
If borrowers pay only a part of their past due accounts by September 30, 1987, only the remaining balance is subject to the payment of the penalty.
The condonation covers unpaid penalties corresponding to amortizations that are due and demandable as of April 1, 1987, subject to compliance with the payment conditions.
The conditional structure in Section 1 links penalty treatment to whether the underlying amortizations and all interests are paid by the deadline.

The penalty framework for delinquent SSS housing loan amortizations is six percent (6%) per annum.
The referenced penalty under the housing loan program remains imposed on delinquent amortizations until fully paid, forming the basis for the delinquency relief granted by Section 1.
Executive Order No. 149 condones unpaid penalties as of April 1, 1987, rather than changing the underlying rate for delinquent amounts beyond the covered condition period.

Section 1 maintains that if borrowers do not satisfy the payment condition by September 30, 1987, penalties are not fully relieved; instead, the remaining balance of past due accounts is subject to the payment of the penalty when only partial payment is made by the deadline.
The penalty payment obligation after September 30, 1987 operates only to the extent of the remaining balance when partial payment is made by the deadline.
Section 1 ties penalty exposure directly to the borrower’s ability to pay the past due amortizations and all interests by September 30, 1987.