SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Sessiou 
) 
SENATE 
S.B.No. 1652 
Introduced by Senator Maria Lourdes Nancy S. Binay 
EXPLANATORY NOTE 
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'13 
SEP 11 P6 :33 
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 AM. No. 99-10-05-0 adopting rules 
with respect to extra-:iudicial 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 provision 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 tbis 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, 
encourages 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 foreclosLU·e proceedings involving real estate mortgage, 
whether extra-judicial or judicial, may not be restrained or enjoined without 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. 
CYS.BINAY 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
ll1}U,;r llf tq? :irnvtsr~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 11 
P6 :33 
SENATE 
S.B. No. 1652 
REC'EI\'!:L' Hy;"r-
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 
1 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
2 
assembled: 
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SECTION 1. Short Title. This Act shall be known as the "Real Estate Mortgage Foreclosure 
5 
Proceedings Act of 2013," 
6 
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SECTION 2. Declaration 0/ Policy. The state recognizes the indispensable role of the 
8 
private sector, encourages private enterprise, and shall provide incentives to investments, To 
9 
this end, the state shall promote and protect legitimate commercial interests to encourage 
10 
economic development 
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l12 
SECTION 3. No Restraining Order or Preliminary Injunction. No court in the Philippines 
13 
shall have jurisdiction to issue any temporary restraining order, preliminary injunction, or 
14 
preliminary mandatory injunction against the extrajudicial foreclosure of real estate mortgage 
15 
in the following instances: 
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17 
L An allegation that the loan secured by the mortgage has been paid or is not 
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delinquent, unless the application for the restraining order andlor preliminary 
19 
injunction or preliminary mandatory injunction is verified and duly supported by 
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evidence of payment of the loan; and 
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2, An allegation that the interest on the loan is usurious or unconscionable, unless the 
23 
debtor pays the mortgagee at least twelve percent per annum interest on the principal 
24 
obligation as stated in the application for foreclosure sale, which shall be updated 
25 
monthly while the case is pending. In case of failure by the debtor to update payment 
26 
of the twelve percent per annum, interest, the preliminary injunction or preliminary 
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mandatory injunction may be lifted, 
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SECTION 4. Speedy Disposition of Cases. Where a writ of preliminary injunction or 
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preliminary mandatory injunction has been issued against a foreclosure of mortgage, the 
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disposition ofthe case shall be speedily resolved, 
32 


1 
SECTION 5. Separability Clause. If any portion or provision of this Act is declared void and 
2. unconstitutional, the remaining portions or provisions hereof shall not be affected by such 
3 
declaration. 
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SECTION 6. Repealing Clause. All laws, decrees, orders, rules and regulations, other 
6 
issuances, or parts thereof inconsistent with the provisions of this Act are hereby repealed or 
7 
modified accordingly. 
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SECTION 7. E.ffectivity. This Act shall take effect fifteen (15) days after its complete 
10 
publication in at least two (2) newspapers of general circulation. 
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• 
, 12 
Approved,