Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 370

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

The Philippines is regularly hit by typhoons all year round.
According to PAGASA, an average of twenty (20) typhoons visits
the country. We are witnesses to the extent of devastation and
socio-economic dislocation these typhoons and other natural
calamities can cause our nation. Just a few years ago, typhoon
Yolanda (Haiyan) left several thousands of our fellow Filipinos
homeless and thousands dead. It took a considerable number of
months before the whole affected community to regain or to start
anew from the damages it brought to the people.

During a state of calamity, every Filipino family becomes
vulnerable to countless problems, e.g., water shortage,
brownouts, diseases, damage to properties and economic
dislocations. For areas severely damaged, each person needs to
start from scratch to get back a little of what they used to have,
aside from the trauma brought about by the experience.

It is therefore understandable for these affected people to
prioritize obligations and responsibilities one by one. The need to
eat and find shelter after a devastating typhoon, earthquake or
other form of calamity becomes the primary concern of the
affected people. Other responsibilities like financial obligations
such as loans and bills for electricity, water and
telecommunications, become secondary or the least of the
concerns of the affected people.


It can also be noted that during calamities, basic utility
services like electricity and water are disrupted and sometimes
severely damaged resulting to weeks or months of lack or
absence of services by the utility companies or providers. It
would be disadvantageous, if not unjust to charge or collect fees
from the affected people for interrupted or poor services by the
utility companies or providers,

The families and people in a calamity area need assistance
from government and other agencies or social institutions to cope
up with the effects brought by the a calamity, either natural or
man-made.

The economic dislocation and stagnation, aside from the
emotional stress and mental anguish cause extreme difficulties
on the part of the borrowers from financial institutions and other
private persons to meet payments falling due during this period
of calamity. Consequently, these loans and financial obligations
are subjected to harsh and onerous penalties and surcharges
including interests which accrue during period of commercial
inactivity and when all efforts are focused for relief operations,
rehabilitation and restoration of facilities, thereby resulting in
closure of business and/or foreclosures of collaterals.

It is the responsibility and duty of the State to provide relief
to the affected people and to provide adequate social services to
maintain and sustain a quality of life even during or after
calamities.

By providing financial relief to the affected people during
calamities in the form of forbearance or moratorium in the
collection of fees for utility services, payments for loans and
credits, and other financial obligations, can provide a breathing
space for them to recover from the effects of a typhoon or
calamity.

This measure proposes to impose a compulsory moratorium
on the accrual and collection of interest, penalties and
surcharges by financial institutions both public and private,
including natural and juridical persons, within six (6) months
from the time the areas are declared under a state of calamity by


the President of the Philippines and/or by the concern local
government unit through their Sanggunian.

Likewise, this measure also proposes that a moratorium or
forbearance in payment of bills for utility services be granted, and
a grace period of sixty (60) days in the areas declared under a
state of calamity.

The present measure has been deliberated and approved on
34 Reading by the House of Representatives in the 17 Congress
and was transmitted to the Senate of the Philippines but failed to
pass in the later chamber due to lack of material time.

It is the prayer of this representation that this measure be
approved in the shortest possible time because of the urgency of
the matter it intend to address.

Que OW,

ERIC L. OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

70
House Bill No. 370

Introduced by: REPRESENTATIVE ERIC L, OLIVAREZ

AN ACT IMPOSING A MANDATORY MORATORIUM ON

THE ACCRUAL AND COLLECTION OF PRINCIPAL INTERESTS,
PENALTIES AND SURCHARGES ON ALL LOANS FROM PUBLIC

AND PRIVATE FINANCIAL INSTITUTIONS PERSONS FOR A

PERIOD OF SIX MONTHS FROM THE TIME ANY AREA
WITHIN
THE TERRITORIAL JURISDICTION OF THE REPUBLIC OF
THE PHILIPPINES IS DECLARED A CALAMITY AREA BY THE
PRESIDENT OF THE PHILIPPINES AND FOR OTHER
PURPOSES.

Be it enacted by Congress in Session assembled:

Section 1. This act shall be otherwise known as the
Moratorium in “Calamity Act of 2013”,

Section 2. A moratorium is hereby imposed on the principal
payments, accrual and collection of interests, penalties and
surcharges on all loans, credit accommodations or financial
obligations of any kind from public or private financial
institutions for a period of six months from the time the area is
declared a calamity area by the President of the Philippines due
to natural calamities or disasters,


Section 3. However, payments for principal and interest
thereto may be made by the borrower during the six (6) month,
which voluntary intention shall be made in writing,

Section 4. Any violation of this act shall subject the erring
financial institution or private lender to a fine equivalent to five
(5) times the interests, penalties and surcharges collected in
violation of the provisions of this act for the first offense; then
(10) times the amounts in interests, penalties and surcharges
collected for the second offense and suspension of the license to
operate for the third and subsequent offense.

Section 5. The fines imposed under this Act will be
automatically applied/offset against the principal loan of the
borrower, upon final conviction by the appropriate court.

Section 6. The Banko Sentral ng Pilipinas is hereby
mandated to enforce the provisions of this act and to issue such
implementing rules and regulations as may be necessary to
enforce the provisions of this act.

Section 7. All existing laws, rules, regulations inconsistent
with this act are hereby deemed modified, amended,
supplemented or repealed.

Section 8. This act shall become effective after publication

once a week for two consecutive weeks in three newspapers of
general circulation.

Approved.