Providing For the Condonation of Penalties on Delinquent Housing Loan Accounts With the Social Security System, Subject To Certain Conditions.

Case Overview and Summary

Condonation of Penalties on Delinquent Housing Loan Accounts with the Social Security System

- Condonation of Penalties:
• All unpaid penalties on Social Security System (SSS) housing loan amortizations due and demandable as of April 1, 1987 are condoned. (Sec. 1)
• The condonation is subject to the condition that the said amortizations and all interests thereon are paid on or before September 30, 1987. (Sec. 1)
• If the borrowers are able to pay only a part of their past due accounts by September 30, 1987, only the remaining balance shall be subject to the payment of the penalty. (Sec. 1)

- Rationale:
• An increasing number of SSS housing loan borrowers have expressed their desire to update their delinquent accounts but requested relief from paying the penalties. (Preamble)
• It has been determined that the condonation of penalties will not prejudice the non-borrowing members of the SSS and will encourage a great number of borrowers to update their loan accounts. (Preamble)

- Background:
• Under the SSS housing loan program, a penalty of 6% per annum is imposed on all delinquent amortizations until fully paid. (Preamble)
• As of the issuance of the Executive Order, there are about 74,000 housing loan accounts, 72% of which are delinquent. (Preamble)