EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SENATE
s.B. NO. 1394
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Introduced by Senator Maria Lourdes Nancy S. Binay
AN ACT
PROHIBITING COURTS FROM ISSUING RESTRAINING ORDERS OR 
PRELIMINARY INJUNCTIONS IN CERTAIN CASES INVOLVING EXTRA­
JUDICIAL AND JUDICIAL FORECLOSURE OF REAL ESTATE MORTGAGES, 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
On February 20, 2007, the Supreme Court En Banc on the recommendation of 
the Committee on Revision of the Rules of Court issued a Resolution in A.M. No. 
99-10-05-0 adopting rules with respect to extra-judicial and judicial foreclosure 
of real estate mortgages. The Supreme Court Resolution provided that no 
restraining order or writ of preliminary injunction shall be granted in certain 
instances unless the applicant presents evidence in support of the application for 
the restraining order or the writ. The relevant provisions of the Supreme Court 
Resolution reads, thus:
1. No temporary restraining order or writ of preliminary injunction 
against the extrajudicial foreclosure of real estate mortgage shall be 
issued on the allegation that the loan secured by the mortgage has 
been paid or is not delinquent unless the application is verified and 
supported by evidence of payment.
2. No temporary restraining order or writ of preliminary injunction 
against the extrajudicial foreclosure of real estate mortgage shall be


issued on the allegation that the interest on the loan is 
unconscionable, unless the debtor pays the mortgagee at least twelve 
percent per annum interest on the principal obligation as stated in the 
application for foreclosure sale, which shall be updated monthly while 
the case is pending.
3. Where a writ of preliminary injunction has been issued against a 
foreclosure of mortgage, the disposition of the case shall be speedily 
resolved. To this end, the court concerned shall submit to the 
Supreme Court, through the Office of the Court Administrator, 
quarterly reports on the progress of the cases involving ten million 
pesos and above.
XXX
The intention of the Supreme Court Resolution intends to discourage party- 
litigants from delaying foreclosure proceedings by filing applications for 
restraining order or writ of preliminary injunction which are groundless and 
unjustified. However, despite the specific mandate of the Supreme Court, there 
are instances when courts grant the restraining order or writ notwithstanding the 
absence of evidence in support of the application. Thus, foreclosure proceedings 
are unduly delayed and, consequently, impair legitimate commercial interests.
Public policy dictates that legitimate commercial interests must be protected from 
unscrupulous litigants who abuse the judicial system. This is consistent with the 
policy of the state enshrined in Section 20, Article II of the 1987 Philippine 
Constitution which provides, thus:


Section 20. The State recognizes the indispensable role of the private 
sector, encourage private enterprise, and provides incentives to 
needed investments.
In view of the foregoing, it is therefore being proposed, consistent with the 
provisions of the Supreme Court Resolution, that foreclosure proceedings 
involving real estate mortgage, whether extra-judicial or judicial, may not be 
restrained or enjoined without the presentation of evidence in support of the 
application for the restraining order or writ of preliminary injunction.
In view of the foregoing, the timely passage of this bill is earnestly 
recommended.
L-
rT
MARIA LOURDES NANCY S. BINAY 
Senator


EIGHTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s.B. NO. 1394
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Introduced by Senator Maria Lourdes Nancy S. Binay
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AN ACT
PROHIBITING COURTS FROM ISSUING RESTRAINING ORDERS OR 
PRELIMINARY INJUNCTIONS IN CERTAIN CASES INVOLVING EXTRA­
JUDICIAL AND JUDICIAL FORECLOSURE OF REAL ESTATE MORTGAGES, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phi Up pines in 
Congress assembied:
Section 1. Short Tide. - This Act shall be known as the "Real Estate 
Mortgage Foreclosure Proceedings Act of 2020."
Sec. 2. Declaration of Policy. - The state recognizes the indispensable role 
of the private sector, encourages private enterprise, and shall provide incentives 
to investments. To this end, the state shall promote and protect legitimate 
commercial interests to encourage economic development.
Sec. 3. No Restraining Order or Preliminary Injunction. - No court in the 
Philippines shall have jurisdiction to issue any temporary restraining order, 
preliminary injunction, or preliminary mandatory injunction against extrajudicial 
foreclosure of real estate mortgage in the following instances:
1. An allegation that the loan secured by the mortgage has been 
paid or is not delinquent, unless the application for the 
restraining order and/or preliminary injunction or preliminary


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mandatory injunction is verified and duly supported by 
evidence of payment of the loan; and
2. An allegation that the interest on the loan is usurious or 
unconscionable, unless the debtor pays the mortgagee at least 
twelve percent per annum interest on the principal obligation 
as stated in the application for foreclosure sale, which shall be 
updated monthly while the case is pending. In case of failure 
by the debtor to update payment of the twelve percent per 
annum interest, the preliminary injunction or preliminary 
mandatory injunction may be lifted.
Sec. 4. Speedy Disposition of Cases. - Where a writ of preliminary 
injunction or preliminary mandatory injunction has been issued against a 
foreclosure of mortgage, the disposition of the case shall be speedily resolved.
Sec. 5. Separabiiity Ciause. - If any portion or provision of this Act is 
declared void and unconstitutional, the remaining portions or provisions hereof 
shall not be affected by such declaration.
Sec. 6. Repeaiing Ciause. - All laws, decrees, orders, rules and 
regulations, other issuances, or parts thereof inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly.
Sec. 7. Effectivity Ciause. - This Act shall take effect fifteen (15) days 
after its complete publication in at least two (2) newspapers of general 
circulation.
Approved,