FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
The Home Development Mutual Fund (HDMF), pursuant to Presidential Decree 
No. 1752, is mandated to generate savings through membership in an integrated 
nationwide savings system, and to mobilize the provident fund for housing purposes. 
The Pag-IBIG Fund, as it is more popularly known, continues to strive to become 
even more relevant to a greater number of Filipinos. From a mere savings Fund in 1981 
with a membership level of 1.54 million and a total asset of P132.20 million, the Pag- 
IBlG Fund has enormously grown through the years, both as savings and housing 
finance institution. As of 31 December 2007, its nationwide membership level has grown 
to 6.85 million and has generated a total asset of about P202.63 billion. It also released 
22.59 billion to finance housing loans in 2007, benefiting more than 46,000 members 
nationwide. As a testament to the Fund's significant role in the housing industry, it was 
noted that the Fund was responsible for almost 40% of all housing mortgages financed 
by various lending institutions in 2006. These reasons make it urgent to amend the 
Charter of the Pag-IBIG Fund to further strengthen its powers, give it more flexibility in 
undertaking its twin mandates of savings and housing for the Filipino workers, and spur 
national socio-economic take-off. 
The following amendments to the existing Charter are therefore being proposed: 
1. Membership to the Pag-BIG Fund should be expanded to include all 
employees, regardless of monthly income or any waiver from Fund 
coverage previously issued to employers. 
2. The Fund's tax-exempt status should be reinstated to ensure that it 
would have more funds to finance housing and short-term loans as 
well as investments in government securities. It must be stressed that 
as a provident fund, the income from these endeavors is distributed 
exclusively to the members in the form of dividends. It should therefore 
be treated equally like other provident funds in the country which1 are 
all tax exempt. 
3. The Board of Trustees should be given the authority to change the rate 
of contributions, subject to the approval of the President of the 
Philippines. 
4. The powers of the Board of Trustees should be further expanded to 
enable the Board to effectively set the directions on how the Fund will 
be managed and administered; 


5. The Fund should be granted with the power to determine its own 
compensation and position classification system to encourage its 
competent personnel to remain with the Fund and boost employee's 
morale 
6. The enforcement power of the Fund should be strengthened, to pursue 
and give appropriate sanctions to the delinquent employers, borrowers 
and debtors. 
With a fresh and strong mandate, Pag-IBIG Fund will be able to provide the 
growing needs of members and achieve the government's thrust of providing a home for 
every Filipino family. 
Hence, the immediate approval of this bill is hereby requested. 
2 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
1 
SENATE 
S. No. 2262 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
FURTHER STRENGTHENING THE HOME DEVELOPMENT MUTUAL FUND, 
PURPOSE PD 1752, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
TO BE KNOWN HEREON AS THE PAG-IBIG FUND, AMENDING FOR THE 
SECTION 1. Title. - This Act shall be known as the [Home Development Mutual 
Fund Law of 19801 "PAG-IBIG FUND LAW OF 2008". 
SEC. 2. DECLARATION OF Policy. - It is the policy of the [Republic of the 
Philippines to motivate the employed and other earning groups to better plan and 
provide for their housing needs by membership in an integrated, nationwide savings 
system established for the said purpose, with contributory support of the employers, in 
the spirit of social justice and the pursuit of national development.] STATE TO 
ESTABLISH, DEVELOP, PROMOTE, AND INTEGRATE A NATIONWIDE SOUND AND 
VIABLE TAX-EXEMPT MUTUAL PROVIDENT SAVJNGS SYSTEM SUITABLE: TO THE 
NEEDS OF THE EMPLOYED AND OTHER EARNING GROUPS, AND TO MbTIVATE 
THEM TO BETTER PLAN AND PROVIDE FOR THEIR HOUSING NEEDS, BY 
MEMBERSHIP IN THE PAG-BIG FUND, WITH MANDATORY CONTRI~UTORY 
SUPPORT OF THE EMPLOYERS IN THE SPIRIT OF SOCIAL JUSTICE AND THE 
PURSUIT OF NATIONAL DEVELOPMENT. 
SEC. 3. STATEMENT OF OBJECTIVES. -TOWARDS THIS END, THE STATE 
SHALL INTEGRATE ALL LAWS RELATING TO THE PAG-IBIG FUND TO 
EFFECTIVELY ACHIEVE THE FOLLOWING OBJECTIVES: 
(A) TO IMPROVE THE QUALITY OF LIFE OF ITS CITIZENS BY PROVIDING 
THEM WITH SUFFICIENT SHELTER; 
(B) TO PROVIDE FOR AN INTEGRATED NATIONWIDE PROVIDENT 
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SAVINGS SYSTEM: AND 


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(C) TO PROVIDE HOUSING THROUGH MOBILIZATION OF FUNDS FOR 
SHELTER FINANCE. 
SEC. 4. DEFINITION OF TERMS. -THE FOLLOWING TERMS SHALL MEAN: 
(A) "BOARD" - THE DULY CONSTITUTED BOARD OF TRUSTEES OF THE 
PAG-IBIG FUND; 
(6) "COMP€NSATION"- BASIC MONTHLY SALARY PLUS MANDATED COST 
OF LIVING ALLOWANCE; 
(C) "CONTRIBUTIONS" - THE AMOUNT PAYABLE TO THE FUND BY THE 
MEMBERS AND THEIR EMPLOYERS, IN ACCORDANCE WITH THIS ACT; 
(D) "DEPENDENTS" - REFER TO LEGAL DEPENDENTS OF A DECEASED 
MEMBER, AS DEFINED UNDER THE FAMILY CODE; 
(E) "EMPLOYEE"- ANY PERSON IN THE SERVICE OF AN EMPLOYER WHO 
RECEIVES COMPENSATION OF SUCH SERVICES; 
(F) "€MPLOY€R" - ANY PERSON, NATURAL OR JURIDICAL, DOMESTIC OR 
FOREIGN, WHO CARRIES ON IN THE PHILIPPINES, OR OUTSIDE OF THE 
PHILIPPINES, ANY TRADE, BUSINESS, INDUSTRY, UNDERTAKING OR ACTIVITY 
OF ANY KIND, AND USES THE SERVICES OF ANOTHER PERSON WHO IS UNDER 
HIS ORDER AS REGARDS SUCH SERVICES; THE GOVERNMENT, ITS NATIONAL 
AND LOCAL OFFICES, POLITICAL SUBDIVISIONS, BRANCHES, AGENCIES, OR 
INSTRUMENTALITIES, 
INCLUDING 
CORPORATIONS 
OWNED 
AND/OR 
CONTROLLED BY THE GOVERNMENT, AND THE LOCAL GOVERNMENT UNITS; 
(G) "€MPLOYM€NT"- ANY SERVICE PERFORMED BY AN EMPLOYEE FOR 
HIS/HER EMPLOYER WITHIN THE PHILIPPINES: PROVIDED, HOW€V€R, THAT 
ANY FOREIGN GOVERNMENT, INTERNATIONAL ORGANIZATION OR THEIR 
WHOLLY-OWNED 
INSTRUMENTALITY 
EMPLOYING 
WORKERS 
IN 
THE 
PHILIPPINES OR EMPLOYING FILIPINOS OUTSIDE OF THE PHILIPPINES, MAY 
ENTER INTO AN AGREEMENT WITH THE FUND FOR THE INCLUSION OF THEIR 
EMPLOYEES AS MEMBERS OF THE FUND: PROVIDED, FURTHER, THAT THE 
TERM OF SUCH AGREEMENT CONFORM WITH THE PROVISIONS OF THIS ACT. 
(H) "FUND" - THE FUND CREATED UNDER THIS ACT WHICH IS A 
GOVERNMENT FINANCIAL INSTITUTION INVOLVED IN MOBILIZING PROVIDENT 
FUNDS PRIMARILY FOR SHELTER FINANCE; 
(I) "GSIS" - THE GOVERNMENT SERVICE INSURANCE SYSTEM CREATED 
UNDER COMMONWEALTH ACT NO. 186, AS AMENDED; 
(J) "INVEST/BLE FUNDS" - SHALL MEAN FUNDS AVAILABLE AFTER 
DEDUCTING COST OF OPERATIONS AND EXPENSES, ADMINISTRATIVE AND 
GENERAL EXPENSES, RESERVES FOR BENEFIT CLAIMS, PROVISIONS FOR A 


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SINKING FUND FOR THE RETURN OF THE MEMBERS' EQUITY UPON MATURITY 
AND PROVISION FOR RESERVE FOR LOAN REPAYMENTS. 
(K) "MEMBER"- AN EMPLOYEE COVERABLE UNDER THIS ACT AND PAYS 
THE MANDATED CONTRIBUTIONS; 
(L) "MEMBERSHIP TERM" - A PERIOD OF TWENTY (20) YEARS 
COMMENCING FROM THE FIRST DAY OF THE MONTH TO WHICH THE 
MEMBERS INITIAL CONTRIBUTION TO THE FUND APPLIES: PROVIDED, THAT HE 
SHALL HAVE CONTRIBUTED A TOTAL OF TWO HUNDRED FORTY (240) 
MONTHLY CONTRIBUTIONS AT THE TIME OF MATURITY; 
(M) "NET FUND ASSET" - THE TOTAL ASSETS OF THE FUND LESS 
CURRENT LIABILITIES; 
(N) "PERMANENT TOTAL DISABILITY" - LOSS OR IMPAIRMENT OF A 
PHYSICAL AND MENTAL FUNCTION RESULTING FROM INJURY OR SICKNESS 
WHICH COMPLETELY INCAPACITATES A MEMBER TO PERFORM ANY WORK OR 
ENGAGE IN ANY BUSINESS OR OCCUPATION AS DETERMINED BY THE FUND; 
(0) "SSS" - THE SOCIAL SECURITY SYSTEM CREATED UNDER REPUBLIC 
ACT NO. 1161, AS AMENDED; 
SEC. [3] 5. Fund System. - To carry out the purposes of this Act, [there is hereby 
created the Home Development Mutual Fund of 1980, also referred to herein as the 
Fund, a provident savings system for employees, private and public, who shall be the 
members, supported by matching contributions of their respective employers, with 
housing as the primary investment. The system may cover self-employed and other 
working groups, as herein provided.] THE PAG-IBIG FUND IS HEREBY CREATED. 
THE FUND IS A MUTUAL PROVIDENT SAVINGS SYSTEM FOR PRIVATE AND 
GOVERNMENT EMPLOYEES AND OTHER EARNING GROUPS, SUPPORTED BY 
MATCHING MANDATORY CONTRIBUTIONS OF THEIR RESPECTIVE EMPLOYERS 
WITH HOUSING AS THE PRIMARY INVESTMENT. 
The Fund shall be a body corporate, with principal office in Metro Manila, and 
shall replace the Home Development Mutual Fund established under Presidential 
Decree No. 1752, as amended. 
SEC. [4] 6. Fund Coverage: - [Coverage of the Fund shall be mandatory upon 
all employees covered by the Social Security System and the Government Service 
Insurance System, and their respective employers: Provided, however, That coverage 
of the employees whose monthly compensation is less than Four thousand pesos 
(P4,OOO.OO) shall be voluntary: Provided, further, That upon membership with the Fund, 
their employers shall contribute an amount in accordance with Section 5 of this Act. 
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Such coverage may be extended to other working groups, with or without 
employer contributions, as may be determined by the Board of Trustees. (As amended 
by R. A. No. 7742). ] COVERAGE IN THE FUND SHALL BE MANDATORY UPON: (A) 
ALL EMPLOYEES COVERED BY THE SSS AND THE GSIS, AND THEIR 
RESPECTIVE EMPLOYERS, NOTWITHSTANDING ANY WAIVER OF COVERAGE 
PREVIOUSLY ISSUED, INCLUDING THE UNIFORMED MEMBERS OF THE ARMED 
FORCES OF THE PHILIPPINES, THE BUREAU OF FIRE PROTECTION, THE 
BUREAU OF JAIL MANAGEMENT AND PENOLOGY, AND THE PHILIPPINE 
NATIONAL POLICE; (B) FILIPINOS EMPLOYED BY FOREIGN-BASED EMPLOYERS; 
AND (C) SPOUSES WHO DEVOTE FULL TIME TO MANAGING THE HOUSEHOLD 
AND FAMILY AFFAIRS, UNLESS THEY ALSO ENGAGE IN ANOTHER VOCATION 
OR EMPLOYMENT WHICH IS SUBJECT TO MANDATORY COVERAGE, MAY BE 
COVERED BY THE FUND ON A VOLUNTARY BASIS ADOPTING AS A BASIS OF 
CONTRIBUTIONS ONE-HALF (1/2) OF THE MONTHLY COMPENSATION INCOME 
OF THE EMPLOYED SPOUSE. 
COVERAGE MAY ALSO BE EXTENDED TO OTHER WORKING GROUPS, 
WITH OR WITHOUT EMPLOYER CONTRIBUTIONS, AS MAY BE DETERMINED BY 
THE BOARD OF TRUSTEES. 
SEC. [5] 7. Fund GENERATION AND Contributions. - THE FUNDS OF THE 
FUND SHALL BE GENERATED BY THE PROVIDENT SAVINGS THAT THE 
COVERED EMPLOYEES SHALL CONTRIBUTE FOR THE PURPOSE EVERY 
MONTH, AND THE EQUAL AMOUNTS THAT THEIR RESPECTIVE EMPLOYERS 
SHALL MANDATORILY CONTRIBUTE. 
Covered employees and employers shall contribute to the Fund based on the 
Monthly Compensation of covered employees as follows: 
“Employees earning not more than One thousand five hundred pesos 
(P1,500.00) per month - one percent (1%). 
“Employees earning more than One thousand five hundred pesos (PI ,500.00) 
”All employers - two percent (2%) of the monthly compensation of all covered 
per month -two percent (2%). 
employees. 
[For purposes of this Section, “monthly compensation” shall mean the basic 
monthly salary plus cost-of-living allowance (COLA): Provided, however, That the 
maximum monthly compensation to be used in computing employee and employer 
contributions shall not be more than Five thousand pesos (P5,OOO.OO). The employer 
shall not be entitled to deduct from the wages or renumeration of, or otherwise to 
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recover from, the employee the employer’s contribution. (As amended by R. A. No. 
7742). ] 
THE MAXIMUM MONTHLY COMPENSATION TO BE USED IN COMPUTING 
EMPLOYEE AND EMPLOYER CONTRIBUTIONS SHALL NOT BE MORE THAN FIVE 
THOUSAND PESOS (P5,OOO.OO); PROVIDED, THAT THIS MAXIMUM MAY BE FIXED 
FROM TIME TO TIME BY THE BOARD OF TRUSTEES THROUGH RULES AND 
REGULATIONS ADOPTED BY IT, TAKING INTO CONSIDERATION ACTUARIAL 
CALCULATIONS AND RATES OF BENEFITS SUBJECT TO THE APPROVAL OF THE 
PRESIDENT OF THE PHILIPPINES 
NOTWITHSTANDING ANY CONTRACT TO THE CONTRARY, AN EMPLOYER 
SHALL NOT DEDUCT, DIRECTLY OR INDIRECTLY, FROM THE COMPENSATION 
OF ITS EMPLOYEES COVERED BY THE FUND, OR OTHERWISE RECOVER FROM 
THEM, 
THE 
EMPLOYER’S 
CONTRIBUTION WITH 
RESPECT TO 
SUCH 
EMPLOYEES. 
SEC. [6] 8. Membership Term. - Membership in the Fund shall be for a period of 
twenty (20) years [except when earlier terminated by reason of retirement, disability, 
insanity, death, departure from the country or other causes as may be provided for by 
the Board of Trustees: Provided, That those who become members of the Fund after 
the effectivity of this Act may withdraw the total accumulated value of their contributions 
to the Fund after the tenth or the fifteenth year of continuous membership: Provided, 
further, That said members have no outstanding housing loans with the Fund: Provided, 
finally, That this option may be exercised only once and shall not prejudice the 
member’s continuing membership in the Fund.] PROVIDED, THAT THE MEMBER 
SHALL HAVE CONTRIBUTED A TOTAL OF TWO HUNDRED FORTY (240) 
MONTHLY CONTRIBUTIONS AT THE TIME OF MATURITY, EXCEPT WHEN 
EARLIER TERMINATED BY REASON OF RETIREMENT, DISABILITY, SEPARATION 
FROM THE SERVICE DUE TO 
HEALTH REASONS, INSANITY, DEATH, 
DEPARTURE FROM THE COUNTRY OR OTHER CAUSES AS MAY BE PROVIDED 
FOR BY THE BOARD OF TRUSTEES. 
Resignation, lay-off or suspension from employment may not necessarily 
constitute a ground for membership termination, except for suspension of contributions. 
SEC. [7] 9. Waiver or Suspension of Coverage. - Coverage of the Fund and/or 
the payment of monthly contribution to the same may, by rules or resolutions of the 
Board of Trustees, be waived or suspended by reasons of nature of employment, 
condition of business, ability to make contributions and other reasonable considerations. 
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SEC. [8] 10. Provident Characfer. - The Fund shall be private in character, 
owned wholly by the members, administered in trust and applied exclusively for their 
benefit. All the personal and employer contributions shall be fully credited to each 
member, accounted for individually and transferable in case of change of employment. 
They shall earn dividends as may be provided for in the implementing rules. The said 
amounts shall constitute the provident fund of each member, to be paid to him, his 
estate or beneficiaries upon termination of membership, or from which peripheral 
benefits for the member may be drawn. 
SEC. [9] 11. Housing Features. - A member of good standing shall be eligible to 
apply for housing, under such terms AND CONDITIONS as may be authorized by the 
Board of Trustees, taking into account ability to pay. The Board of Trustees shall 
institute policies to ensure that lower-income members obtain such housing loans. THE 
BOARD MAY, UPON RECOMMENDATION OF THE CHIEF EXECUTIVE OFFICER, 
DEPUTIZE ANY MEMBER OF THE FUND'S LEGAL STAFF TO ACT AS SPECIAL 
SHERIFF IN FORECLOSURE CASES, IN THE SALE OR ATTACHMENT OF THE 
DEBTOR'S PROPERTIES, AND IN THE ENFORCEMENT OF COURT WRITS AND 
PROCESSES IN CASES INVOLVING THE FUND. THE SPECIAL SHERIFF OF THE 
FUND SHALL MAKE A REPORT TO THE PROPER COURT AFTER ANY ACTION 
TAKEN BY HIM, WHICH SHALL TREAT SUCH ACTION AS IF IT WERE AN ACT OF 
ITS OWN SHERIFFS IN ALL RESPECTS. 
SEC. 12. IMfLEMENTING BODY. - THE PAG-IBIG FUND CREATED UNDER 
THIS ACT, SHALL IMPLEMENT THE PROVISIONS HEREOF. 
SEC. [IO] 13. [Corporate Powers] POWERS AND FUNCTIONS OF THE FUND. 
- The Fund shall have the powers and functions specified in this Act and the usual 
corporate powers: 
(a) To make policies and guidelines, as well as adopt, amend and rescind such 
rules and regulations as may be necessary to carry out the provisions and purposes of 
this Act; 
(B) TO ADOPT OR APPROVE THE ANNUAL AND SUPPLEMENTAL BUDGET 
OF RECEIPTS AND EXPENDITURES INCLUDING SALARIES AND ALLOWANCES 
OF THE FUND PERSONNEL; TO AUTHORIZE SUCH CAPITAL AND OPERATING 
EXPENDITURES AND DISBURSEMENTS OF THE FUND AS MAY BE NECESSARY 
AND PROPER FOR THE EFFECTIVE MANAGEMENT AND OPERATION OF THE 
FUND; 
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[b] (C) To submit annually to the President of the Philippines not later than March 
15, a report of its activities and the state of the Fund during the preceding year, 
including information and recommendations for the development and improvement 
thereof; [and to furnish each member of the Fund a Statement of His Accumulated Fund 
Value at least once a year;] 
[c] (D) To invest [not less than seventy percent (70%) of its investible fund to 
[d] (E) To acquire, utilize, or dispose of, in any manner recognized by law, real or 
[e] (F) To set up its own accounting and computer systems; to conduct 
continuing actuarial and statistical studies and valuations to determine the financial 
viability of the Fund and its project; to require reports, compilations and analysis of 
statistical and economic data, as well as make such other studies and surveys as may 
be needed for the proper administration and development of the Fund; 
housing,] ITS FUNDS in accordance with this Act; 
personal properties to carry out the purposes of this Act; 
[fl (G) To have the power of succession; to sue and be sued; to adopt and use a 
[separate] CORPORATE seal; 
[g] (H) To enter into and carry out contracts of every kind and description with 
any person, firm or association or corporations, domestic or foreign; 
[h] (I) To borrow funds from any source, private or government, foreign or 
[i] (J) To invest, own or otherwise participate in equity in any establishment, firm 
or entity; to form, organize, invest in or establish and maintain a subsidiary or 
subsidiaries in relation to any of its purposes; 
domestic; 
(K) TO APPROVE APPOINTMENTS IN THE FUND EXCEPT APPOINTMENTS 
TO POSITIONS WHICH ARE POLICY DETERMINING, PRIMARILY CONFIDENTIAL 
OR HIGHLY TECHNICAL IN NATURE ACCORDING TO THE CIVIL SERVICE RULES 
AND REGULATIONS; PROVIDED, THAT ALL POSITIONS IN THE FUND SHALL BE 
GOVERNED BY A COMPENSATION AND POSITION CLASSIFICATION SYSTEM 
QUALIFICATION STANDARDS RECOMMENDED BY THE FUND’S BOARD OF 
TRUSTEES AND APPROVED BY THE PRESIDENT OF THE PHILIPPINES BASED 
ON A COMPREHENSIVE JOB ANALYSIS, WAGE COMPENSATION STUDY AND 
AUDIT OF ACTUAL DUTIES AND RESPONSIBILITIES; PROVIDED, FURTHER, THAT 
THE COMPENSATION PLAN SHALL BE COMPARABLE WITH PREVAILING 
COMPENSATION PLANS IN THE PRIVATE SECTOR AND SHALL BE SUBJECT TO 
THE PERIODIC REVIEW OF THE BOARD NO MORE THAN ONCE EVERY FOUR (4) 
YEARS WITHOUT PREJUDICE TO YEARLY MERIT REVIEWS OR INCREASES 
BASED ON PRODUCTIVITY AND PROFITABILITY; 
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(L) TO MAINTAIN A PROVIDENT FUND, WHICH SHALL CONSISTS OF 
CONTRIBUTIONS MADE BY BOTH THE FUND AND ITS OFFICERS AND 
EMPLOYEES AND THEIR EARNINGS, FOR THE PAYMENT OF BENEFITS TO 
SUCH OFFICIALS AND EMPLOYEES OR THEIR HEIRS UNDER SUCH TERMS AND 
CONDITIONS AS IT MAY PRESCRIBE; 
(M) TO DESIGN AND ADOPT AN EARLY RETIREMENT INCENTIVE PLAN 
(ERIP) FOR ITS OWN PERSONNEL: 
EXERCISE ITS POWERS IN THESE PLACES; 
(N) TO ESTABLISH FIELD OFFICES AND TO CONDUCT ITS BUSINESS AND 
(0) TO APPROVE RESTRUCTURING PROPOSAL FOR THE PAYMENT OF 
DUE BUT UNREMITTED CONTRIBUTIONS AND UNPAID LOAN AMORTIZATIONS 
UNDER SUCH TERMS AND CONDITIONS AS THE BOARD OF TRUSTEES MAY 
PRESCRIBE; 
(P) TO DETERMINE, FIX AND IMPOSE INTEREST AND PENALTIES UPON 
UNPAID CONTRIBUTIONS DUE FROM EMPLOYERS AND EMPLOYEES; 
(Q) 
TO 
ENSURE THE 
COLLECTION AND 
RECOVERY 
OF 
ALL 
INDEBTEDNESS, LIABILITIES AND/OR ACCOUNTABILITES, INCLUDING UNPAID 
CONTRIBUTIONS IN FAVOR OF THE FUND ARISING FROM ANY CAUSE OR 
SOURCE OR WHATSOEVER, DUE FROM ALL OBLIGORS, WHETHER PUBLIC OR 
PRIVATE; TO DEMAND PAYMENT OF THE OBLIGATIONS 
REFERRED TO 
HEREIN, AND IN THE EVENT OF FAILURE OR REFUSAL OF THE OBLIGOR OR 
DEBTOR TO COMPLY WITH THE DEMAND, TO INITIATE OR INSTITUTE THE 
NECESSARY 
OR 
PROPER 
ACTIONS 
OR 
SUITS, 
CRIMINAL, 
CIVIL, 
ADMINISTRATIVE, OR OTHERWISE, BEFORE THE COURTS, TRIBUNALS, 
COMMISSIONS, BOARDS OR BODIES OF PROPER JURISDICTION, WITHIN 
THIRTY (30) DAYS RECKONED FROM THE EXPIRY DATE OF PERIOD FIXED IN 
THE DEMAND WITHIN WHICH TO PAY OR SETTLE THE ACCOUNT: PROVIDED, 
HOWEVER, THAT THE FUND MAY COMPROMISE OR RELEASE, IN WHOLE OR IN 
PART, ANY INTEREST, PENALTY OR CIVIL LIABILITY TO THE FUND IN 
CONNECTION WITH THE COLLECTION OF CONTRIBUTIONS AND THE LENDING 
OPERATIONS OF THE FUND, UNDER SUCH TERMS AND CONDITIONS AS 
PRESCRIBED BY THE BOARD OF TRUSTEES; 
(R) TO DESIGN AND IMPLEMENT OTHER PROGRAMS THAT WILL 
FURTHER PROMOTE AND MOBILIZE SAVINGS AND PROVIDE ADDITIONAL 
RESOURCES FOR 
THE 
MUTUAL 
BENEFIT 
OF 
THE 
MEMBERS WITH 
APPROPRIATE RETURNS ON THE SAVINGSIINVESTMENTS. THE PROGRAM 
SHALL BE SO DESIGNED AS TO SPUR SOCIO-ECONOMIC TAKE-OFF AND 
MAINTAIN CONTINUED GROWTH: 
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(S) TO CONDUCT CONTINUING ACTUARIAL AND STATISTICAL STUDIES 
AND VALUATIONS TO DETERMINE THE FINANCIAL CONDITION OF THE FUND 
AND TAKING INTO CONSIDERATION SUCH STUDIES AND VALUATIONS AND THE 
LIMITATIONS HEREIN PROVIDED, READJUST THE BENEFITS, CONTRIBUTIONS, 
INTEREST RATES OR THE ALLOCATION OR REALLOCATION OF THE FUNDS TO 
THE CONTINGENCIES COVERED ; AND 
n] (T) To exercise such powers and perform such acts as may be necessary, 
useful, incidental or auxiliary to carry out the provisions of this Act. 
SEC. [I 
1 .] 14. Board of Trustees. - The CORPORATE powers and functions of 
the Fund shall be VESTED IN AND exercised by a Board of Trustees [composed of the 
Minister of Human Settlements as Chairman, the Minister of Finance as Vice-chairman, 
the Minister of the Budget, the Minister of Labor, the Minister of Industry, the Chief 
Executive Officer of the Fund, two representatives of private employees, two 
representatives of private employers, and one representative of government employees 
as members. 
The four private sector representatives shall be appointed by the President of the 
Philippines for a term of two years: Provided, however, That of the first set to be 
appointed, one representative of the employees and one representative of the 
employers shall have a term of only one year. The representative of the government 
employees shall be appointed by the President of the Philippines for a term of two 
years. 
The members of the Board shall receive a per diem and reasonable 
transportation and representation allowance at par with other government financial 
institutions, as may be provided for by the Board of Trustees and approved by the 
President of the Philippines. 
Until the appointment of another person by the President of the Philippines upon 
the recommendation of the Board of Trustees, the President of the National Home 
Mortgage Finance Corporation shall be the Chief Executive Officer of the Fund.] 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES, COMPOSED OF THE 
FOLLOWING: 
(A) THE CHAIRPERSON OF THE HOUSING AND URBAN DEVELOPMENT 
AND COORDINATING COUNCIL, AS THE EX-OFFICIO CHAIRMAN; 
(8) THE SECRETARY OF THE DEPARTMENT OF FINANCE, AS THE EX- 
OFFICIO VICE CHAIRMAN; 
(C) 
THE 
SECRETARY 
OF 
THE 
DEPARTMENT 
OF 
LABOR AND 
EMPLOYMENT OR HIS/HER DULY DESIGNATED UNDERSECRETARY, AS EX- 
OFFlClO MEMBER: 
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(D) THE SECRETARY OF BUDGET AND MANAGEMENT OR HlSlHER DULY 
DESIGNATED UNDERSECRETARY, AS EX-OFFICIO MEMBER; 
(E) THE SECRETARY OF DEPARTMENT OF TRADE AND INDUSTRY, AS 
EX-OFFICIO MEMBER: 
(F) THE CHIEF EXECUTIVE OFFICER OF THE FUND, AS MEMBER; 
(G) FIVE (5) APPOINTIVE MEMBERS, TWO (2) REPRESENTATIVES OF 
PRIVATE EMPLOYEES, TWO REPRESENTATIVES OF PRIVATE EMPLOYERS AND 
ONE (1) REPRESENTATIVE OF GOVERNMENT EMPLOYEES. 
THE FOUR (4) PRIVATE SECTOR REPRESENTATIVES SHALL EACH BE 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES FOR A TERM OF TWO (2) 
YEARS, PROVIDED HOWEVER, THAT OF THE FIRST TO BE APPOINTED, ONE 
REPRESENTATIVE OF THE EMPLOYERS SHALL HAVE A TERM OF ONLY ONE (1) 
YEAR. THE REPRESENTATIVE OF THE GOVERNMENT EMPLOYEES SHALL BE 
APPOINTED BY THE PRESIDENT OF THE PHILIPPINES FOR A TERM OF TWO (2) 
YEARS. 
THE CHAIRMAN, VICE CHAIRMAN, AND MEMBERS OF THE BOARD SHALL 
BE ENTITLED TO PER DIEM FOR EACH MEETING ACTUALLY ATTENDED AT 
SUCH AMOUNTS AS MAY BE FIXED BY THE BOARD IN ACCORDANCE WITH 
EXISTING LAWS, RULES AND REGULATIONS. 
SEC. [12.] 15. 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 operations and administration of the Fund;] TO PROMULGATE 
SUCH RULES AND REGULATIONS AS MAY BE NECESSARY OR PROPER FOR 
THE EFFECTIVE EXERCISE OF THE POWERS AND FUNCTIONS, AS WELL AS 
THE DISCHARGE OF THE DUTIES AND RESPONSIBILITIES OF THE FUND, ITS 
OFFICERS AND EMPLOYEES; 
(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 approve [appointments of personnel; and] THE ANNUAL AND 
SUPPLEMENTAL BUDGET OF RECEIPTS AND EXPENDITURES INCLUDING 
SALARIES AND ALLOWANCES OF THE FUND PERSONNEL; TO AUTHORIZE 
SUCH CAPITAL AND OPERATING EXPENDITURES AND DISBURSEMENTS AS 
MAY BE NECESSARY AND PROPER FOR THE EFFECTIVE MANAGEMENT AND 
OPERATION OF THE FUND: 
(e) TO CONDONE, IN WHOLE OR IN PART, PENALTIES IMPOSED ON 
LOANS OF MEMBERSlBORROWERS WHO, 
FOR JUSTIFIABLE REASONS 
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PRESCRIBED BY THE BOARD, FAILED TO PAY ON TIME ANY OBLIGATION DUE 
TO THE FUND; PROVIDED, THAT 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; 
(F) TO RECOMMEND FOR APPROVAL BY 
THE PRESIDENT OF THE 
REPUBLIC OF THE 
PHILIPPINES THE 
FUND’S ORGANIZATIONAL AND 
ADMINISTRATIVE STRUCTURES AND STAFFING PATTERN, AND TO ESTABLISH, 
FIX, REVIEW, REVISE AND ADJUST THE APPROPRIATE COMPENSATION 
PACKAGE FOR THE OFFICERS AND 
EMPLOYEES OF THE 
FUND IN 
ACCORDANCE WITH SECTION 12 (K) HEREOF; AND 
[e] (G) To exercise such [other] powers as may be necessary to carry into effect 
the powers and accomplish the purposes for which the Fund is established. 
SEC. [13.] 16. Rule-Making Power. - The Board of Trustees is hereby authorized 
to make and change needful rules and regulations, which shall be published in 
accordance with law or at least once in a newspaper of general circulation in the 
Philippines, to provide for, but not limited to, the following matters: 
(a) The effective administration, custody, development, utilization and disposition 
of the Fund or parts thereof, including payment of amounts credited to members or to 
their beneficiaries or estates; 
[(b) Extension of Fund coverage to other working groups, and waiver or 
[(c)] (B) Grounds for and effects or termination of membership other than by 
suspension of coverage or its enforcement for reasons herein stated;] 
completion of term; 
[(d)] (C) Fund earnings and their distribution, investment and/or plowing back for 
the exclusive benefit of the members; 
[(e)] (D) Interim disbursements of accumulated values to members of 
ameliorative and similar purposes; 
(E) BENEFITS, CONTRIBUTIONS INCLUDING THEIR RATES, PREMIUM 
RATES, AND INTEREST RATES SUBJECT TO THE APPROVAL OF THE 
PRESIDENT OF THE PHILIPPINES; 
(f) Housing and other loan assistance programs for members; 
(9) Adjudication and settlement of claims and disputes and the procedures for the 
same on any matters involving the interests of members in the Fund; 
(h) Optimize the effectiveness of the [initial coverage drive through phased 
implementation based on reasonable classifications of employer and/or employee 
groups] FUNDS COVERAGE; and 
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(i) Other matters that, by express or implied provisions of this Act, shall require 
implementation by appropriate policies, rules and regulations. 
SEC. [14.] 17. Powers and Duties of Chief Execufive Officer. - The Chief 
Executive Officer of the Fund shall execute and administer the policies and resolutions 
approved by the Board of Trustees, prepare its agenda and direct and supervise the 
operations and management of the Fund. [Subject to the approval of the Board, said 
officer shall appoint and assign the personnel of the Fund, remove, suspend or 
otherwise discipline them for cause and prescribe their duties and qualifications.] THE 
CHIEF EXECUTIVE OFFICER, SUBJECT TO THE APPROVAL OF THE BOARD IN 
CASE OF APPROVAL OF MANAGERIAL POSITIONS AND ABOVE, AND THE 
CONFIRMATION OF THE BOARD IN BELOW THAT OF MANAGER LEVEL, SHALL 
APPOINT THE PERSONNEL OF THE FUND, REMOVE, SUSPEND OR OTHERWISE 
DISCIPLINE THEM FOR CAUSE, AND PRESCRIBE THEIR DUTIES AND 
QUALIFICATIONS, IN ACCORDANCE WITH EXISTING CIVIL SERVICE LAWS, 
RULES AND REGULATIONS, TO THE END THAT ONLY COMPETENT PERSONNEL 
MAY BE EMPLOYED. 
SEC. [I51 18. Money Investmenfs. - All moneys of the Fund as are not needed 
to meet current administrative and operational requirements, shall be invested with due 
and prudent regard for its safety, growth and liquidity needs. 
SEC. [16.] 19. [Tax and Guarantee Benefits.] €X€MPTION FROM TAX, LEGAL 
PROCESS AND LIEN - [Notwithstanding any provisions of existing law, decree, 
executive or administrative order, rule or regulation to the contrary, the Fund and all its 
assets, collections, receivables and increments as well as all distributions therefrom, 
whether of contributions, ratable income of the Fund, or dividends paid or received by 
the members thereof, or their heirslbeneficiaries, shall be exempt from the payment of 
any and all forms of taxes, assessments and other charges. All such provident 
payments shall not be liable to attachment, garnishment, levy or seizure by or under any 
legal or equitable process whatsoever, either before or after receipt by the persons 
entitled thereto, except to pay any debt of the covered member to the Fund. In addition, 
the Government of the Republic of the Philippines hereby guarantees the payment of 
employees’ and employers’ contributions and dividends to the members when they are 
due.] ALL LAWS TO THE CONTRARY NOTWITHSTANDING, THE FUND AND ALL 
ITS ASSETS AND PROPERTIES, ALL CONTRIBUTIONS COLLECTED AND ALL 
ACCRUALS THERETO AND INCOME OR INVESTMENT EARNINGS THEREFROM, 
AS WELL AS ALL SUPPLIES, EQUIPMENT, PAPERS OR DOCUMENTS SHALL BE 
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EXEMPT FROM ANY TAX, ASSESSMENT, FEE, CHARGE, OR CUSTOMS OR 
IMPORT DUTY: AND ALL BENEFIT PAYMENTS MADE BY THE PAG-IBIG FUND 
SHALL LIKEWISE BE EXEMPT FROM ALL KINDS OF TAXES, FEES OR CHARGES, 
AND SHALL NOT BE LIABLE TO ATTACHMENTS, GARNISHMENTS, LEVY OR 
SEIZURE BY OR UNDER ANY LEGAL OR EQUITABLE PROCESS WHATSOEVER, 
EITHER BEFORE OR AFTER RECEIPT BY THE PERSON OR PERSONS ENTITLED 
THERETO, EXCEPT TO PAY ANY DEBT OF THE MEMBER TO THE FUND. NO TAX 
MEASURE OF WHATEVER NATURE ENACTED SHALL APPLY TO THE FUND, 
UNLESS IT EXPRESSLY REVOKES THE DECLARED POLICY OF THE STATE IN 
SECTION 2 HEREOF GRANTING TAX EXEMPTION TO THE FUND. ANY TAX 
ASSESSMENT AGAINST THE FUND SHALL BE NULL AND VOID. 
SEC. 20. GOV€RNM€NT GUARANTEE. - THE BENEFITS PRESCRIBED IN 
THIS ACT SHALL NOT BE DIMINISHED AND TO GUARANTEE SAID BENEFITS THE 
GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES ACCEPTS GENERAL 
RESPONSIBILITY FOR THE SOLVENCY OF THE FUND. 
SEC. [17.] 21. Administration Costs. - The Fund shall bear the costs of its 
administration and development, in such amounts and/or limits as the Board of Trustees 
may deem appropriate, but not exceeding two percent (2%) of the Net Fund Assets of 
the previous year, [Expenses for initial operation, however, may be provided for by the 
National Home Mortgage Finance Corporation, either as advances subject to 
reimbursement, with or without interest, or as subsidy for the development of housing 
finance.] excluding operating cost directly relating to the lending operations of the Fund. 
SEC. [18.] 22. Audit. - The Chairman of the Commission on Audit shall act as the 
ex-officio auditor of the Fund and, accordingly, is empowered to appoint a 
representative and other subordinate personnel to perform and report on such audit 
duties, responsible to and removable only by the Commission on Audit Chairman, 
without prejudice, however, to the power of the Board of Trustees to contract for another 
mode of independent audit service, in addition to that provided by the Commission on 
Audit AS PROVIDED FOR UNDER PD NO. 1445. 
[SEC. 19. Existing Provident/Housing Plans. - An employer and/or employee 
group who, at the time this Decree becomes effective, have their own provident and/or 
employee-housing plans, may register with the Fund, for any of the following purposes: 
(a) For annual certification of waiver or suspension from coverage or participation in the 
Fund, which shall be granted on the basis of verification that the waiver or suspension 
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does not contravene any effective collective bargaining agreement and that the features 
of the plan or plans are superior to the Fund or continue to be so; or 
(b) For integration with the Fund, either fully or partially. 
The establishment of a separate provident and/or housing plan after the effectivity of 
this Decree shall not be a ground for waiver of coverage in the Fund; nor shall such 
coverage bar any employer and/or employee-group from establishing separate 
provident and/or housing plans. 
SEC. 20. Existing Coverage. - Membership under the Fund established under 
Presidential Decree No, 1530, together with amounts and benefits already accrued to 
the members, including employers’ counterparts, as well as covering records and 
documents, shall be transferred, continued and/or integrated into the new Fund hereby 
established, subject henceforth to policies and rules adopted thereunder. 
SEC. 21, Substitute Retirement P/an. - A private employer shall have the option 
to treat the coverage by the Fund as a retirement plan for the employee concerned, 
within the purview of the Revised Labor Code of the Philippines, subject, however, to 
any existing collective bargaining on the matter.] 
SEC. 1221 23. Remiffance of Contributions. - (a) It shall be the duty of every 
employer, PRIVATE OR PUBLIC, to set aside and remit the contributions required 
under this Act [through the Social Security System and] IN ACCORDANCE WITH A 
MECHANISM AS determined by the Board of Trustees AND as may be approved by the 
President of the Philippines. 
(B) Every employer required to set aside and remit such contributions as 
prescribed under this Act shall be liable for their payment, and non-payment shall 
further subject the employer to a penalty of three percent (3%) per month of the 
amounts payable from the date the contributions fall due until paid. 
[(b) Failure or refusal of the employer to pay or remit the contributions herein 
prescribed shall not prejudice the right of the covered employee to the benefits under 
this Act.] 
(C) IT SHALL BE MANDATORY AND COMPULSORY FOR ALL GOVERNMENT 
INSTRUMENTALITIES, AGENCIES, INCLUDING GOVERNMENT-OWNED AND 
CONTROLLED 
CORPORATIONS, 
TO 
PROVIDE 
THE 
PAYMENT 
OF 
CONTRIBUTIONS IN THEIR ANNUAL APPROPRIATIONS. PENAL SANCTIONS 
SHALL BE IMPOSED UPON THESE EMPLOYERS WHO FAIL TO INCLUDE THE 
PAYMENT OF CONTRIBUTIONS ON TIME, OR DELAY THE REMITTANCE OF, THE 
REQUIRED CONTRIBUTIONS TO THE FUNDS. THE HEADS OF OFFICES AND 
AGENCIES SHALL BE ADMINISTRATIVELY LIABLE FOR NON-REMITTANCE OF 
THE REQUIRED CONTRIBUTIONS TO THE FUND. 
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(D) FAILURE OR REFUSAL OF THE EMPLOYER TO PAY OR TO REMIT THE 
CONTRIBUTIONS HEREIN PRESCRIBED SHALL NOT PREJUDICE THE RIGHT OF 
THE COVERED EMPLOYEE TO THE BENEFITS UNDER THIS ACT. 
(E) THE CONTRIBUTIONS UNDER THIS ACT, IN CASES WHERE AN 
EMPLOYER REFUSES OR NEGLECTS TO PAY THE SAME, SHALL BE COLLECTED 
BY THE FUND IN THE SAME MANNER AS TAXES ARE MADE COLLECTIBLE 
UNDER THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED. 
THE RIGHT TO INSTITUTE THE NECESSARY ACTION AGAINST THE 
EMPLOYER MAY BE COMMENCED WITHIN TWENTY (20) YEARS FROM THE TIME 
DELINQUENCY IS KNOWN OR THE ASSESSMENT IS MADE BY THE FUND, OR 
FROM THE TIME THE BENEFIT ACCRUES, AS THE CASE MAY BE. 
SEC. 24. EMPLOYMENT RECORDS AND REPORTS. - (A) EACH EMPLOYER 
SHALL IMMEDIATELY REPORT TO THE FUND THE NAMES, AGES, CIVIL STATUS, 
OCCUPATIONS, SALARIES, AND DEPENDENTS OF ITS COVERED EMPLOYEES. 
(B) EVERY EMPLOYER SHALL KEEP TRUE AND ACCURATE WORK 
RECORDS FOR SUCH PERIOD AND CONTAINING SUCH INFORMATION AS THE 
FUND MAY PRESCRIBE, IN ADDITION TO THE ANNUAL REGISTER OF NEW AND 
SEPARATED EMPLOYEES WHJCH SHALL BE SECURED FROM THE FUND, WHEN 
THE EMPLOYEE SHALL ENTER ON THE FIRST DAY OF EMPLOYMENT OR ON 
THE EFFECTIVE DATE OF SEPARATION, THE NAMES OF THE PERSONS 
EMPLOYED OR SEPARATED FROM EMPLOYMENT AND SUCH OTHER DATA 
THAT THE FUND MAY REQUIRE AND SAID ANNUAL REGISTER SHALL BE 
SUBMITTED TO THE FUND IN THE MONTH OF JANUARY OF EACH YEAR. SUCH 
RECORD SHALL BE OPEN FOR INSPECTION BY THE FUND OR ITS AUTHORIZED 
REPRESENTATIVES QUARTERLY, OR AS OFTEN AS THE FUND MAY REQUIRE. 
SEC. [23.] 25. Penal Provisions. - Refusal or failure without lawful cause or with 
fraudulent intent to comply with the provisions of this [Decree] ACT, as well as the 
implementing rules and regulations adopted by the Board of Trustees, particularly with 
respect to registration of employees, collection and remittance of employee-savings as 
well as the employer counterparts, or the correct amount due, within the time set in the 
implementing rules and regulations or specific call or extension made by the Fund 
Management shall constitute an offense punishable by a fine of not less THAN, but not 
more than twice, the amount involved or imprisonment of not more than six (6) years, or 
both such fine and imprisonment, in the discretion of the Court, apart from the civil 
liabilities and/or obligations of the offender or delinquent. When the offender is a 
corporation, the penalty shall be imposed upon the members of the governing board 
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and the President or General Manager, without prejudice to the prosecution of related 
offenses under the Revised Penal Code and other laws, revocation and denial of 
operating rights and privileges in the Philippines, and deportation when the offender is a 
foreigner. IN CASE OF GOVERNMENT INSTRUMENTALITIES, AGENCIES OR 
CORPORATIONS, THE TREASURER, FINANCE OFFICER, CASHIER, DISBURSING 
OFFICER, BUDGET OFFICER OR OTHER OFFICIAL OR EMPLOYEE WHO FAILS 
TO INCLUDE IN THE ANNUAL BUDGET THE AMOUNT CORRESPONDING TO THE 
EMPLOYERS’ CONTRIBUTIONS, OR WHO FAILS OR REFUSES OR DELAYS BY 
MORE THAN THIRTY (30) DAYS FROM THE TIME SUCH AMOUNT BECOMES DUE 
AND DEMANDABLE OR TO DEDUCT THE MONTHLY CONTRIBUTIONS OF THE 
EMPLOYEE SHALL, UPON CONVICTION BY FINAL JUDGMENT, SUFFER THE 
PENALTIES OF IMPRISONMENT OF NOT MORE THAT SIX (6) YEARS, AND A FINE 
OF NOT LESS THAN. BUT NOT MORE THAN TWICE THE AMOUNT INVOLVED. 
SEC. [24.] 26. Visitorial and Enforcement Powers. - (a) The Fund or its duly 
authorized representatives [may, at any time,] IS EMPOWERED TO inspect the 
premises, books of accounts and records of any person or entity covered by this Act; 
require it to submit its reports regularly; and act on violations of any provisions of this 
Act. 
(b) Particular aspects of the Fund’s administration may be subject to supervision, 
visitation or verification by appropriate agencies of the government as may be 
designated and authorized by the President of the Philippines. 
SEC. 27. BORROWERS’ lNSURANCE ACCOUNT. - (A) AS PART OF ITS 
INVESTMENT OPERATIONS, THE FUND MAY ACT AS INSURER OF ALL OR PART 
OF ITS INTEREST ON PROPERTIES MORTGAGED TO THE FUND, OR LIVES OF 
BORROWERS WHOSE LOANS ARE FINANCED BY THE FUND. FOR THIS 
PURPOSE, THE FUND MAY ESTABLISH A SEPARATE ACCOUNT TO BE KNOWN 
AS THE “BORROWERS’ INSURANCE ACCOUNT”. ALL AMOUNTS RECEIVED BY 
THE FUND IN CONNECTION WITH THE AFORESAID INSURANCE OPERATIONS 
SHALL BE PLACED IN THE BORROWERS’ INSURANCE ACCOUNT. THE ASSETS 
AND LIABILITIES OF THE BORROWERS’ INSURANCE ACCOUNT SHALL AT ALL 
TIMES BE CLEARLY IDENTIFIABLE AND DISTINGUISHABLE FROM THE ASSETS 
AND LIABILITIES IN ALL OTHER ACCOUNTS OF THE FUND. NOTWITHSTANDING 
ANY PROVISION OF LAW TO THE CONTRARY, THE ASSETS HELD IN THE 
BORROWERS’ INSURANCE ACCOUNT SHALL NOT BE CHARGEABLE WITH THE 
LIABILITIES ARISING OUT OF ANY OTHER BUSINESS THE FUND MAY CONDUCT 
BUT SHALL BE HELD AND APPLIED EXCLUSIVELY FOR THE BENEFIT OF THE 
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OWNERS OR BENEFICIARIES OF THE INSURANCE CONTRACTS ISSUED BY THE 
FUND UNDER THIS PARAGRAPH. 
(B) THE FUND MAY INSURE ANY OF ITS INTEREST OR PART THEREOF 
WITH ANY PRIVATE COMPANY OR REINSURER. THE INSURANCE COMMISSION 
OR ITS AUTHORIZED REPRESENTATIVES SHALL MAKE AN EXAMINATION INTO 
THE FINANCIAL CONDITION AND METHODS OF TRANSACTING BUSINESS OF 
THE FUND AT LEAST ONCE IN TWO (2) YEARS, BUT SUCH EXAMINATION SHALL 
BE LIMITED TO THE INSURANCE OPERATION OF THE FUND AS AUTHORIZED 
UNDER THIS 
PARAGRAPH AND 
SHALL 
NOT 
EMBRACE THE 
OTHER 
OPERATIONS OF THE FUND; AND THE REPORT OF SAID EXAMINATION SHALL 
BE SUBMITTED TO THE COMMISSION AND A COPY THEREOF SHALL BE 
FURNISHED THE OFFICE OF THE PRESIDENT OF THE PHILIPPINES WITHIN A 
REASONABLE TIME AFTER THE CLOSE OF THE EXAMINATION: PROVIDED, 
THAT FOR EACH EXAMINATION, THE FUND SHALL PAY TO THE INSURANCE 
COMMISSION AN AMOUNT EQUAL TO THE ACTUAL EXPENSES OF THE 
INSURANCE COMMISSION 
IN THE 
CONDUCT 
OF 
THE 
EXAMINATION: 
PROVIDED, FURTHER, THAT THE GENERAL LAW ON INSURANCE AND THE 
RULES AND REGULATIONS PROMULGATED THEREUNDER SHALL HAVE 
SUPPLETORY APPLICATION INSOFAR AS IT IS NOT IN CONFLICT WITH THIS ACT 
AND ITS RULES AND REGULATIONS. 
SEC. 28. 
IMPLEMENTING 
RULES 
AND 
REGULATIONS. - 
THE 
IMPLEMENTING RULES AND REGULATIONS TO EFFECTIVELY CARRY OUT THE 
PROVISIONS OF THIS ACT SHALL BE ADOPTED BY AND PROMULGATED BY THE 
BOARD OF TRUSTEES OF THE PAG-IBIG FUND NOT LATER THAN NINETY (90) 
DAYS AFTER THE APPROVAL OF THIS ACT WHICH SHALL BE PUBLISHED IN AT 
LEAST TWO (2) NATIONAL NEWSPAPERS OF GENERAL CIRCULATION. 
SEC. 29. SEPARABlLlTY CLAUSE. - IF FOR ANY REASON, ANY PROVISION 
OF THIS ACT, OR THE APPLICATION THEREOF 'TO ANY PERSON OR 
CIRCUMSTANCES, IS HELD INVALID OR UNCONSTITUTIONAL, THE REMAINING 
PROVISIONS NOT AFFECTED THEREBY SHALL CONTINUE TO BE IN FULL 
FORCE AND EFFECT. 
SEC. [25.] 30. Repealing Clause. - Any provisions of law, decree, executive 
order, rules or regulations as are in conflict or inconsistent with the provisions and/or 
purposes of this [decree] ACT are [accordingly] HEREBY repealed, amended or 
modified ACCORDINGLY. 
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NEWSPAPERS OF GENERAL CIRCULATION. 
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SEC. 126.1 31. Effectivity.- [This Decree shall take effect immediately.] THIS 
ACT SHALL TAKE EFFECT FIFTEEN (15) DAYS AFTER THE COMPLETION OF ITS 
PUBLICATION IN THE OFFlClAL GAZ€TT€ OR IN AT LEAST TWO (2) NATIONAL 
6 
APPROVED, 
18