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

EIGHTEENTH CONGRESS
First Regular Session

6058
House Bill No.

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 several thousand 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.

Last year, the country was hit again by several typhoons and
struck by major earthquakes in several parts of Mindanao; ad
recently (on-going) the eruption and the imminent threat of
another hazardous eruption of Taal Volcano. These major events
has negatively impacted the lives and livelihood of our 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,
volcanic eruption 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 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 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 intends to address.

ew COW,

ERIC L. OLIVAREZ


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

EIGHTEENTH CONGRESS
First Regular Session

Pees EMIS, ee!

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT PROVIDING FOR FINANCIAL RELIEF TO
VICTIMS OF CALAMITIES.

Be it enacted by the Senate and House of representatives of the
Philippines Congress assembled:

Section 1. Short Title. - This Act shall be known as the
“Financial Relief in Times of Calamities Act”.

Section 2. Coverage. - This Act applies to a person in an
area declared under a state of calamity by the President of the
Philippines or the local government unit concerned through its
local Sanggunian, and who has outstanding utility charges, loan,
credit or any financial obligations from public or private utility
companies and financial institutions.

All the benefits under this Act shall also apply to distribution
utilities such as local water districts and electric cooperatives in
terms of outstanding balances on loan obligations to financial or
lending institutions.

Section 3. Definition of Terms. — As used in this Act:

(a) Forbearance refers to the act of refraining from proceeding
against a delinquent debtor and giving further time for
repayment of a debt or financial obligation;


(b) Grace Period refers to the period during which payment is
allowed to be received for a certain period of time after the
actual due date. During this period, no late fees are charged
and the late payment does not result in default or
cancellation of the loan;

(c) Moratorium refers to the period during which the person or
borrower is not required to pay outstanding or unpaid utility
bill, loan, credit accommodation or financial obligation;

(d)Person refers to a natural or juridical person residing or
operating any business in an area declared under a state of
calamity by the President of the Philippines or the local
government unit concerned through its local Sanggunian;

(e) State of Calamity refers to a condition involving mass
casualty and/or major damages to property, disruption of
means of livelihoods, roads and normal way of life of people
in the affected areas as a result of the occurrence of natural
or human- induced hazard;

(f) Utility refers to water, electricity, gas and telecommunications
including telephone, internet and cable, as well as other
similar services;

(g) Utility Service Provider refers to a business organizations,
subject to government regulation, that provides or distributes
an essential commodity or service such as water, electricity,
internet and cable, as well as other similar services;

Section 4. Moratorium Forbearance and Grace Period. —
All persons covered under this Act shall be granted a moratorium
of forbearance and be allowed a grace period of sixty (60) days from
the cessation of the disaster in areas declared under state of
calamity, to pay the utility bills which have fallen due during the
time the area has been declared under state of calamity.

A moratorium shall also be granted on the principal payments,
accrual and collection of interests, penalties and surcharges on all
loans, debts, and credit accommodations or financial obligations
of any kind from public or private financial institutions for a period
of (6) months from the time the area was declared under a state of


calamity by the President of the Philippines or the local
government unit concerned through its local Sanggunian;

Section 5. Violations and Penalties. - Any violation of this
Act shall subject the erring utility service provider, distribution
utility, financial institution or private lender to a fine equivalent to
five (5) times the interest, penalties and surcharges collected in
violation of the provisions of this Act for the first offense; ten (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.

Upon final conviction by the appropriate court, the fines imposed
under this Act shall be automatically applied to the principal loan
balance of the borrower.

Section 6. Implementing Rules and Regulations. - Within
sixty (60) days from the effectivity of this Act, the Department of
Energy (DOE) shall, in coordination with the Energy Regulatory
Commission (ERC), the National Telecommunication Commission
(NTC), the National Disaster Risk Reduction Management Council
(NDRRMC) and the Department of Interior and Local Government
with the various national leagues of local government units, issue
and promulgate the implementing rules and regulations to carry
out the provisions of this Act.

Section 7. Separability Clause. - If any provision of this Act
or any portion thereof is declared unconstitutional by a competent
court, the other provisions shall not be affected thereby and shall
remain valid and enforceable.

Section 8. Repealing Clause. - All laws. Decrees. Executive
orders, rules and regulations, or parts thereof which are
inconsistent with this Act are hereby repealed, amended or
modified accordingly.

Section 9. Effectivity. - This Act shall take effect fifteen (15)
days its publication in the Official Gazette or in a newspaper of
general circulation.

Approved.