Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO.  9886
Introduced by Hon. Felimon M. Espares 
COOP-NATCCO PARTY LIST 
AN ACT 
CONDONING THE PENALTIES ON THE LOANS SECURED BY THE NETWORK 
CONSOLIDATED COOPERATIVE BANK, FORMERLY THE COOPERATIVE BANK 
OF LEYTE, INC., FROM THE AGRICULTURAL CREDIT POLICY COUNCIL IN 
THE YEAR 1997 
EXPLANATORY NOTE 
This bill seeks to condone the penalties imposed on the loans secured by the 
Network Consolidated Cooperative Bank (NCCB) from the Agricultural Credit Policy 
Council (ACPC) in the year 1997. 
The NCCB was the first and largest consolidation of six (6) cooperative banks, 
including the Cooperative Bank of Leyte, Inc. (CBLI), under the Strengthening 
Program for Cooperative Banks of the Bangko Sentral ng Pilipinas. It was organized 
to establish a national cooperative bank with a more solid capital position, stronger 
management and a wider network to deepen its reach into the countryside and serve 
as a preferred banking window of choice for the network of cooperatives that provides 
necessary financial services to hundreds of cooperative organizations.  
In 1997, the CBLI secured two (2) loans from ACPC under the expanded 
Cooperative Bank Assistance Program, each loan amounting to One million pesos 
(P1,000,000.00). CBLI failed to pay the loans on time thus, they incurred interests and 
penalties. Upon the consolidation of the banks, NCCB assumed the loans and liabilities 
of CBLI, including the ACPC loan. The NCCB then requested the ACPC that it be 
allowed to pay only the principal and interests of the loans and asked for the 
condonation of the penalties amounting to Three million six hundred three thousand 
three hundred eighty-six pesos and ninety-nine centavos (P3,603,386.99) since it has 
not yet recovered from its losses. The ACPC allowed the condonation of the penalties 
subject to the payment of the principal and interests, which was accomplished by the 
NCCB in 2017. Thereafter, the NCCB applied for the condonation of the penalties to 
extinguish its remaining obligation on the two loans.   
Considering the payments made on the principals and interests of the loans, the 
February 6, 2024
2:30 pm


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ACPC recommended the approval of the request for condonation which the 
Commission on Audit (COA), in the exercise of its power to compromise or release any 
liability to the government, approved the same in its Decision No. 2022-300 dated 24 
January 2022. Thereafter, the COA endorsed the request for condonation to the Office 
of the President through the Executive Secretary. In a memorandum dated 07 June 
2023, the Office of the President recommended the approval of the condonation of 
penalties on the principal loans of NCCB, subject to the full payment of the principal 
and interests of the remaining loans and endorsed the request to Congress. This is 
pursuant to Section 36 of Presidential Decree 1445 and Section 20 (1), Chapter 4, 
Subtitle B, Title 1, Book V of the Administrative Code of 1987 which requires the 
approval of Congress, through the recommendation of the COA and the Office of the 
President, for the compromise or release of any liability to the government exceeding 
One hundred thousand pesos (P100,000.00).  
The condonation of the penalties will allow NCCB to continue its mission of 
developing communities through the delivery of innovative, accessible, and highly 
competitive banking products and services.  Further, it will also give a chance to NCCB 
to pursue its objective of being a financially safe and sound consolidated cooperative 
bank.  
In view of the foregoing, the approval of this bill is earnestly sought. 
FELIMON M. ESPARES 


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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Nineteenth Congress 
Second Regular Session 
HOUSE BILL NO.  9886
Introduced by Hon. Felimon M. Espares 
COOP-NATCCO PARTY LIST 
AN ACT 
1 
CONDONING THE PENALTIES ON THE LOANS SECURED BY THE NETWORK 
2 
CONSOLIDATED COOPERATIVE BANK, FORMERLY THE COOPERATIVE BANK 
3 
OF LEYTE, INC., FROM THE AGRICULTURAL CREDIT POLICY COUNCIL IN 
4 
THE YEAR 1997 
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Be it enacted by the Senate and House of Representatives of the Philippines in 
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Congress assembled: 
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SECTION 1.  Pursuant to Section 20 (1), Chapter 4, Subtitle B, Title 1, Book V 
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of Executive Order No. 292, otherwise known as the Administrative Code of 1987,  the 
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unpaid penalties in the total amount of Three million six hundred three thousand three 
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hundred eighty-six pesos and ninety-nine centavos (P3,603,386.99) that accrued on 
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the two loans secured by Network Consolidated Cooperative Bank, formerly the 
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Cooperative Bank of Leyte, Inc., from the Agricultural Credit Policy Council in 1997, 
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with a principal amount of P1,000,000.00 each, are hereby condoned. 
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SEC. 2.  This Act shall take effect fifteen (15) days after its publication in the 
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Official Gazette or in a newspaper of general circulation. 
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Approved, 
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