il 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
"04 
JUL -2 us2 :[I7 
First Regular Session 
1 
S E N A T E  
&\L<GE!h/E:U BY: /&@"-- 
S.No. 
1308 
Introduced by Senator Biazon 
, EXPLANATORY NOTE 
This bill seeks to amend certain provisions of Executive Order No. 209, 
otherwise known as the Family Code of the Philippines, as amended, specifically 
Articles 155 and 157 found on Title V, Chapter 2, entitled "the Family Home." 
Article 155 provides that the family home shall be exempt from execution, 
forced sale, or attachment, except in four (4) instances. Amendments are 
proposed to cover (2) of the four (4) exemptions, namely: for the nonpayment of 
taxes, and for debts incurred prior to the constitution of the family home. First, it 
is proposed that the words REAL ESTATE be added to qualify what type of tax is 
excepted. The purpose of this amendment is to avoid any misinterpretation as to 
the true intent of the law, as it is a basic tenet that provisions granting 
exemptions are strictly construed against the person invoking the exemption and 
those which impose tax obligations are liberally construed in favor of the taxing 
authority. 
Second, it is also proposed that the family home should remain exempt 
even for payment of debts incurred prior to the constitution of the family home. 
There is no compelling reason to hold otherwise, as it cannot be said that such 
debts redounded to the benefit of the beneficiaries of the family home. 
Another amendment introduced is that, in the event that an execution, 
forced sale or attachment on the home may be made, the family home remains 
to be exempt, if the proceeds of such sale is still insufficient to cover the entire 
judgment credit. The reason for this amendment is to prevent a situation wherein 
a family not only loses the family home but also is still in debt. 
Finally, considering the present purchasing power of the peso, the value of 
real property, and the high cost of constructing adequate shelter, the bill also 
proposes to increase the value attached to the family home to conform it with 
present day economic realities, if only to give full meaning to the spirit of the law. 
Upon these premises, approval of this bill is earnestly requested. 
RODOLFO G. B ~ O N  
Senator 


.,: 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
'04 ' J& -2 
AS4 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S.No. 
1 .wfi 
Introduced by Senator Biazon 
AN ACT 
AMENDING ARTICLES 155 AND 157 OF EXECUTIVE ORDER NO. 
209, AS AMENDED, OTHERWISE KNOWN AS THE FAMILY CODE 
OF THE PHILIPPINES, SO AS TO STRENGTHEN THE PROVISIONS 
OF THE LAW GOVERNING THE FAMILY HOME. 
Be if enacted by fhe Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Article 155 of Executive Order No. 209, as amended, is 
hereby amended to read as follows: 
Article 155. The family home shall be exempt from execution, forced sale 
or attachment except: 
(1) 
[(2) For nonpayment of debts incurred prior to the constitution of the 
For nonpayment of REAL ESTATE taxes; 
family home;] 
(2) 
[(3)] For debts secured by mortgages on the premises before or 
after such constitution; and 
(3) 
[(4)] For debts due to laborers, mechanics, architects, builders, 
material men and others who have rendered service or furnished material for the 
construction of the building 
HOWEVER, IN NO INSTANCE SHALL THE FAMILY HOME BE 
SUBJECT TO EXECUTION, FORCED SALE, OR ATTACHMENT, IF THE 
VALUE OBTAINABLE AFTER SUCH SALE IS NOT SUFFICIENT TO COVER 
THE ENTIRE JUDGMENT CREDIT: PROVIDED, THAT THE COURT SHALL 


BEFORE ISSUING THE ORDER, ENSURE THAT THE EXECUTION, FORCED 
SALE OR ATTACHMENT OF THE FAMILY HOME IS DONE AS A LAST 
RESOT, OR THAT THE DEBTOR HAS NO OTHER PROPERTIES AVAILABLE 
TO SATISFY THE JUDGMENT CREDIT. 
SEC. 2. Article 157 of Executive Order No. 209, as amended, is hereby 
amended to read as follows: 
Article 157. The actual value of the family home shall not exceed, at the 
time of its constitution, the amount of [three hundred thousand] ONE MILLION 
pesos in urban areas, and [two] FIVE hundred thousand pesos in rural areas, or 
such amounts as may hereafter be fixed by law. 
In any event, if the value of the currency changes after the adoption of this 
Code, the value most favorable for the constitution of a family home shall be the 
basis of evaluation. 
For the purposes of this Article, urban areas are deemed to include 
chartered cities and municipalities whose annual income at least equals that 
legally required for chartered cities. All others are deemed to be rural areas. 
SEC. 3. This Act shall be given retroactive effect insofar as it does not 
impair or prejudice vested or acquired rights. 
SEC. 4. All laws, presidential decrees, executive orders and issuances 
inconsistent with this Act are hereby modified or repealed accordingly. 
SEC. 5. This Act shall take effect fifteen (15) days after its publication in 
two (2) newspapers of general circulation. 
Approved,