Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

6773

HOUSE BILL NO. —

Introduced by HON. JESUS “BONG” C. SUNTAY, LORENZ R. DEFENSOR,
MANUEL DG. CABOCHAN III, CYRILLE F. ABUEG-ZALDIVAR,
FRANCISCO B. BENITEZ, and STELLA LUZ A. QUIMBO

EXPLANATORY NOTE

‘The scourge of Covid-19 has caused unprecedented number of deaths,
unemployment and economic loss in more than 100 countries of the world unseen in
the last 100 years. The Philippines is no exception. Despite the early response of our
President, our country has continued to experience growing number of Filipinos those
afflicted by the coronavirus, with more than 10,463 total COVID-positive cases as of
May 8, 2020. While the inherent right to life and to public health are paramount and
thus take precedence over the enjoyment of certain specific rights, the adverse impact
of the pandemic and our communities’ decision to hunker down in order to save lives
and humanity have also resulted in the inability of everyone to earn livelihood, among
others.

President Rodrigo Roa Duterte declared a Public Health Emergency throughout
the country last March 16, and consequently placed the Philippines in a State of
Calamity. Most parts of the country have also been placed under Enhanced Community
Quarantine (ECQ) to contain the spread of coronavirus. With the imposition of the ECQ,
a lot of Filipinos, especially those falling under the so called “No Work, No Pay” workers
have been restrained from working and earning a living, While our government was
quick to provide most of them some reliefs in the form of food packages and amelioration
funds, they need respite and other form of reliefs and assistance to cope up with the
need to pay utilities, rents, credit cards and other loans during this period.


With the economic misery brought by the coronavirus to this country and the
unforeseen loss of households’ monthly income, the settlement of these accumulated
payables may be very difficult to many Filipinos. This bill seeks to address this concern
by way of providing some grace period on the loan, credit card, and rental payment
system freed of interests, penalties and other charges. This will also allow the people,
ample time to settle their payables without compromising the interests of financial
institutions and property owners.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

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ATTY. JESUS “BONG” C. SUNTAY CYRILLE afi ntonvan

4% District, Quezon City 24 District, Palawan
LORENZ R, DEFENSOR © prawctsco B. BENITEZ
3" District, Notlo 3" District, Negros Occidental
MANUEL DG. CABOCHAN II STELLA LUZ A. QUIMBO

MAGDALO Party List 2-4 District, Marikina City


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

7173

HOUSE BILL NO.

—_——
Introduced by HON. JESUS “BONG” C. SUNTAY, LORENZ R. DEFENSOR,
MANUEL DG. CABOCHAN II, CYRILLE F. ABUEG-ZALDIVAR,
FRANCISCO B. BENITEZ, and STELLA LUZ A. QUIMBO

AN ACT
PROVIDING FOR THE PAYMENT SYSTEM OF ALL LOANS, CREDIT CARDS,
RENTALS, UTILITIES, MOBILE, CABLE AND INTERNET SERVICES IN THE
COUNTRY AFFECTED BY THE
COVID-19 PANDEMIC

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

SECTION 1. Short Title. - This act shall be known as the “Post-COVID-19 Payment
System Act.”

SECTION 2. Declaration of Policy. - The current national and global public
health situation caused by the Coronavirus (Covid-19) pandemic has greatly
affected the Philippines, both politically and economically. While the purpose of
the non-impairment clause of the Constitution is to safeguard the integrity of
contracts against unwarranted interference by the State, the police power
legislation adopted by the State to promote the health, morals, peace, education,
good order, safety, and the general welfare of the people prevail not only over
future contracts but even over those already in existence, for all private contracts
must yield to the superior and legitimate measures taken by the State to promote
public welfare.

SECTION 3. Definition of Terms. ~ For purposes of this Act, the terms below shall

mean as follows:


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a,

“Client” refers to a borrower, tenant, renter, lessee, debtor, credit card
holder, customer, subscriber or the like, whether it is an individual, party,
business, etc., to which a loan payment, credit card payment, rental
payment or payment for utilities, mobile, cable and internet services is
due;

“Rent Payment” shall mean any amount paid by the client to a lessor or
concessionaire for the use or occupancy of a residential or commercial
unit, parking slot or lot whether residential or commercial, including

payment for utilities, mobile, cable and internet services, regardless of the

mode and terms of payment;
“Creditors” refer to banks, quasi-banks, financing companies, lending
companies, cooperatives, savings and loan associations (SLA’s), provident
fund association other financial institutions, public and private, including
the Government Services Insurance System, Social Security System, and
Pag-Ibig Fund, that have entered to a loan agreement or a credit card
agreement, whichever is applicable, and financed the acquisition of money,
assets, property, goods or the like of a client;

“Concessionaires” refers to providers of mobile, cable, internet, water and
electric services;

“Enhanced Community Quarantine (ECQ)” refers to Presidential
Proclamation No. 929, s. 2020, completely restricting and prohibiting
mass gatherings and suspending all means of public transport, limiting
the movement of people in response to the growing pandemic of
coronavirus disease 2019 (COVID-19) in the country. The BCQ began on
the 12 midnight of March 16, 2020 until the 15 of May 2020, as declared
by President Rodrigo Duterte and may be extended as the exigencies
warrant. The ECQ as defined herein includes General Community
Quarantine and other variations of community quarantine;

“Lease Agreement” refers to the contract of rental between the lessor and
lessee, that allows the lessee rights to the use of a property owned or
managed by the lessor for a period of tim!

“Maturity Date” refers to the settlement date on which the payment is due
on a loan amortization, lease, rent, or other financial instrument/s and

that for mobile, cable, internet, water and electric services;


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h. “Moratorium Period” refers to: (i) the additional two (2) month period
following the maturity date of the client’s loans or billings; or (i) the
additional ninety (90) day period after the lifting of the community
quarantine, for credit card issuers by which clients should pay their

obligations or billings to their creditors or concessionaires.

SECTION 4. Coverage of this Act. — This Act shall cover all individual person’s
monetary obligations, whether contracted singly or jointly with his or her spouse,
such as but not limited to salary, personal, housing and motor vehicle loans,
residential rents, commercial leases, and credit card bills as well as those for his
mobile, internet, water and electric consumptions, the payment of the whole or
part of which including accrued interests, penalties, fees and other charges have
become due during the period of the Enhanced Community Quarantine. Loans
of juridical entities and business loans of individuals are not covered by this act.

However, nothing in this Act shall prevent the creditors, lessors and
Concessionaires from offering a more advantageous system of payment to its

clients.

SECTION 5. Loan Payment System — All creditors and concessionaires shall allow
their clients an additional two (2) month period following the maturity date of
their loans, to settle all amortization payments of the principal and interests,
penalties, fees other charges thereof that have become due within the period of
the enhanced or general community quarantine in the country without incurring
interests, penalties, fees, or other charges, Provided however, that these clients
shall resume paying the regular monthly amortization that shall become due on.
the month subsequent to the lifting of the enhanced community quarantine and
onwards.

SECTION 6. Credit Card Payment System. - All credit card issuers shall allow
their clients an additional ninety (90) day period after the lifting of the community
quarantine, to settle their credit card bills that have become due within the period
of the enhanced or general community quarantine in the country without
incurring interests, penalties, fees, or other charges, Provided however, that

rent monthly billings that shall

have become due on the month subsequent to the lifting of the enhanced

these clients shall resume the payment of the c!



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community quarantine and onwards.

SECTION 7, Rental Payment System. - All lcssors shall adjust the payment
system for their lessees on rents that have become due within the period of
enhanced or general community quarantine in this country, to wit:

a. Residential Rent - All clients of residential units such as but not limited
to bedspaces, rooms, dormitories, apartments, houses, buildings,
condominium units, parking slots and the like, shall be allowed an
additional two (2) month period following the maturity date of such lease
agreement, to pay the rents that have become due within the period of the
enhanced or general community quarantine in the country without
incurring interests, penalties, fees, or other charges, Provided however,
that these clients shall resume the payment of the regular monthly rents

on the month that have become due subsequent to the lifting of the

enhanced community quarantine and onwards.

b. Commercial Rent - All clients of commercial units such as but not limited
to land, offices, building, centers, shops, facilities, parking slots and the
like, shall be allowed an additional two (2) month period following the
maturity date of such lease agreement, to pay their rents that have become
due within the enhanced or general community quarantine in the country
without incurring interests, penalties, fees, or other charges, Provided
however, that these clients shall resume the payment of the regular
monthly rents on the month that have become due subsequent to the

lifting of the enhanced community quarantine and onwards.

SECTION 8. Mobile, Cable, Internet and Utilities Payment System. - All
Concessionaires shall allow their clients an additional ninety (90) day grace
period after the lifting of the community quarantine, to settle their bills that have
become due within the period of the enhanced or general community quarantine
in the country without incurring interests, penalties, fees, or other charges,
Provided however, that these clients shall resume the payment of the current
monthly billings that shall have become due on the month subsequent to the

lifting of the enhanced community quarantine and onwards.


SECTION 9, Non-Interruption of Service. Notwithstanding any stipulations in the
contract or agreement or any provisions of the law to the contrary. within the
period of the ECQ and during the period of moratorium referred to in Sections 5,
6, 7 and 8, no Creditor or concessionaire shall do any act that will result in any
service interruption or disconnection of, or imposition of penalties or similar
charges on the electric, water, telephone utility services, credit cards and other
loans of their clients, due to their latter's non-payment or delay in the payment
of their loans, bills and/or similar obligations that have become due within the
period of the ECQ or moratorium. Neither shall the lessors cause the eviction of
their tenants for non-payment or delay in the payment of the latter’s rentals
during the ECQ or the period of moratorium, notwithstanding any stipulations

in the Contract of Lease or any provisions of law to the contrary.

SECTION 10. Additional Period of Moratorium for Retrenched Workers. Should
the clients referred hereto have been retrenched or lost their jobs as a result of
any shutdown, closure or suspension of operations of their companies whether
locally or abroad, an additional one (1) month of grace period shall be afforded to
them Provided, the separated employee must present proof of his retrenchment
or separation from employment

SECTION 11. Immunity from Suit. The Client, who is unable to pay his loan,
billings, rentals or credit card obligations that have become due during the
periods of the ECQ or moratorium referred hereto, shall be immune from any
civil, criminal or administrative cases. In addition, said Client shall be freed from
any other investigations or suits insofar as they relate to his inability to pay his
loan, rentals, billings or credit card obligations during the ECQ and the
moratorium periods, notwithstanding any law or contract to the contrary.

SECTION 12. Exclusion:
herein above, shall not apply to commercial establishments, which continued to

‘The Immunity and the period of moratorium referred to

operate either fully or partially during the period of ECQ or moratorium.

SECTION 13. Penalties.
existing laws, refusal to comply shall be punishable with imprisonment of two

In addition to acts or omissions already penalized by


(2) months or a fine of not less than Ten Thousand Pesos (Php10,000.00) but not
more than One million pesos (Php1,000,000.00), or both, such imprisonment and
fine, at the discretion of the court.

Provided, however, That if the offender is a corporation, association,
partnership or any other juridical person, the penalty shall be imposed upon the
president, directors, trustees, managers, managing partners, as the case may be,
who participated in the commission of the offense or who shall have knowingly
permitted or failed to prevent the commission of the same. If the offender is an
alien, he shall, in addition to the penalties herein prescribed, be deported without
further proceedings: Provided, further, That if the offender is a public official or
employee, he shall, in addition to the penalties prescribed herein, suffer perpetual

or temporary absolute disqualification from office, as the case may be.

SECTION 14. Implementing Rules and Regulations. ~ The Department of Trade
and Industry, with the assistance of the Bangko Sentral ng Pilipinas, shall
promulgate the IRR, within fifteen (15) days upon the effectivity of this Act.

SECTION 15.Separability Clause. ~ If any provision or part of this Act is held
invalid or unconstitutional, the remaining parts or provisions not affected shall

remain in full force and effect.

SECTION 16. Repealing Clause. ~ All laws, executive orders, presidential decrees
or issuances, letter of instruction, administrative orders, rules, and regulations
as well as local ordinances contrary to or inconsistent with the provisions of this
Act are hereby repealed, amended, or modified accordingly.

SECTION 17. Effectivity Clause. - This Act shall take effect immediately after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,