Implementing Rules

7/25/2019 Implementing Rules

1/22

IMPLEMENTING RULES AND REGULATIONSOF REPUBLIC ACT NO. 9679

Home Development Mutual Fund Law of 2009, otherwise

known as Pa!"#"$ %Patutulunan sa kina&ukasan' "kaw,#anko, "ndustri(a at $o&(erno) Fund*


2/22

RULE I

PRELIMINARY PROVISIONS

Section . Tit!e.+hese ules shall &e referred toas the ules and eulations "mplementinepu&li- .-t /o 919 or the Home DevelopmentMutual Fund Law of 2009, otherwise known asPa!"#"$ %Patutulunan sa 3ina&ukasan' "kaw,#anko, "ndustri(a at $o&(erno) Fund*

Section ". Con#t$%ction..n( dou&t in theinterpretation of these ules shall &e resolved infavor of the mem&ers


3/22

RULE II

DECLARATION OF STATE POLICY AND STATEMENTOF T&E FUND'S OB(ECTIVES

Section . Dec!)$)tion o* St)te Po!ic+."t is thepoli-( of the 4tate to esta&lish, develop, promote, andinterate a nationwide sound and via&le ta5!e5emptmutual provident savins s(stem suita&le to the needsof the emplo(ed and other earnin roups, and tomotivate them to &etter plan and provide for their

housin needs, &( mem&ership in the HomeDevelopment Mutual Fund, with mandator(-ontri&utor( support of the emplo(ers in the spirit ofso-ial 6usti-e and the pursuit of national development


4/22

Section ". St)te,ent o* F%n-'# O/ecti0e#. "n eneral, theo&6e-tives of the Fund are'

"mprove the 7ualit( of life of its mem&ers &( developin andpromotin an interated nationwide, sound, and 0i)!e t)12e1e,3t ,%t%)! 3$o0i-ent #)0in4# s(stem suita&le to theneeds of the emplo(ed and other earnin roups8

"mprove the 7ualit( of life of its mem&ers &( promotin 5o,eone$#5i3 t5$o%45 t5e e1ten#ion o* )o$-)!e 5o%#in4!o)n#8

4timulate and )##i#t t5e #5e!te$ in-%#t$+ throuh the e5tensionof developmental and institutional nan-in8

"nvest the provident savins of its mem&ers takin into-onsideration 3$ot)i!it+ )n- #)*et+ o* t5e *%n-# as a means

of providin them provident &enets upon termination oftheir mem&ership in the Fund8

Provide #,)!! )n- #5o$t te$, !o)n#: ot5e$ enet# )n-)##i#t)nce 3$o4$),#to its mem&ers, -onsistent with the Fund:sprovident -hara-ter8 and

Desin and implement other prorams that shall further promoteand ,oi!i;e #)0in4# )n- 3$o0i-e )--ition)! $e#o%$ce# *o$t5e ,%t%)! enet of its mem&ers with appropriate returns onthe savins and investments


5/22

;L< """

DEFINITION OF TERMS

Section . Denition o* Te$,#.For purposes of

these ules and eulations, the followin termsshall, unless the -onte5t indi-ates otherwise, havethe followin meanins'

I. F%n-.+he Home Development Mutual Fund, otherwise

known as Pa!"#"$ %Patutulunan sa kina&ukasan' "kaw,

#anko, "ndustri(a at $o&(erno) Fund, -reated under . 919,whi-h is a overnment nan-ial institution involved in

mo&ili=in provident funds primaril( for shelter nan-e "t

repla-es the Home Development Mutual Fund esta&lished

under Presidential De-ree /o >?2


6/22

N. Me,e$2Bo$$oe$. . mem&er who has anoutstandin a--ount under an( of the Fund:s loanprorams

O. Me,e$2S)0e$. . mem&er who has nooutstandin a--ount under an( of the Fund:s loan

prorams P. Me,e$#5i3 Te$,. . period of twent( %20)

(ears -ommen-in from the rst da( of the monthto whi-h the mem&er:s initial -ontri&ution to theFund applies' Provided, that the mem&er shall have

-ontri&uted a total of two hundred fort( %2@0)monthl( -ontri&utions at the time of maturit( U.Tot)! Acc%,%!)te- V)!%e+he sum of the

mem&er:s -ontri&utions and the emplo(er:sre7uired -ontri&utions, when appropriate, and the-orrespondin dividends -redited thereto


7/22

;L< "A

ORGANInon )# P)42IBIG ?P)4t%t%!%n4)n #) >in)%>)#)n@ I>):

B)n4>o: In-%#t$i+) )t Go+e$no F%n-.+he Home

Development Mutual Fund or the Pa!"#"$ Fund -reated under

. 919 is a overnment nan-ial institution involved in

mo&ili=in provident funds primaril( for shelter nan-e "t is a

nationwide ta5!e5empt mutual provident savins s(stem for

private and overnment emplo(ees and other earnin roups,

supported &( mat-hin mandator( -ontri&utions of their

respe-tive emplo(ers in the spirit of so-ial 6usti-e and the

pursuit of national development, with housin as the primar(

investment


8/22

Section. ". P$o0i-ent C5)$)cte$.+he Fundshall &e 3$i0)te in c5)$)cte$: one- 5o!!++ t5e ,e,e$#: )-,ini#te$e- in t$%#t )n-)33!ie- e1c!%#i0e!+ *o$ t5ei$ enet. .ll the

personal and emplo(er -ontri&utions shall &efull( -redited to ea-h mem&er, a--ounted forindividuall( and transfera&le in -ase of -hane

of emplo(ment +he( shall earn dividends asprovided for in these ules +he said amounts

shall -onstitute the provident fund of ea-hmem&er, to &e paid to him or her, his or her

estate or &ene-iaries upon termination ofmem&ership, or from whi-h peripheral &enetsfor the mem&er ma( &e drawn


9/22

Section . Poe$# )n- F%nction# o*t5e F%n-."n addition to the usual-orporate powers under e5istin laws,the Fund shall have the followin

spe-i- powers and fun-tions' +o formulate, adopt, amend andBor res-ind

su-h rules and reulations as ma( &ene-essar( to -arr( out the provisions and

purposes of . 919 & +o adopt or approvethe annual and supplemental &udet ofre-eipts and e5penditures in-ludin salariesand allowan-es of the Fund:s personnel8


10/22

+o su&mit annuall( to the President of thePhilippines not later than Mar-h >?, a reportof its a-tivities and the state of the Funddurin the pre-edin (ear, in-ludin

information and re-ommendations for thedevelopment and improvement thereof8

+o invest not less than sevent( per-ent%0C) of its investi&le funds to housin, ina--ordan-e with . 9198

+o a-7uire, utili=e, or dispose of, in an(manner re-oni=ed &( law, real or personalproperties to -arr( out the purposes of .9198


11/22

+o have the power of su--ession8 to sue and &e sued8

and to adopt and use a -orporate seal8

+o &orrow funds from an( sour-e, private or

overnment, forein or domesti-8

+o invest, own or otherwise parti-ipate in e7uit( inan( esta&lishment, rm or entit(8 to form, orani=e,

invest in or esta&lish and maintain a su&sidiar( or

su&sidiaries in relation to an( of its purposes8

+o maintain a provident fund, whi-h shall -onsists of

-ontri&utions made &( &oth the Fund and its o-ers

and emplo(ees and their earnins, for the pa(ment

of &enets to su-h o-ials and emplo(ees or their

heirs under su-h terms and -onditions as it ma(

pres-ri&e8


12/22

Section . Bo)$- o* T$%#tee#.+he -orporate powers and

fun-tions of the Fund shall &e vested in and e5er-ised &( the

#oard that shall &e -omposed of the followin'

+he Ehairperson of the Housin and ;r&an Development

Eoordinatin Eoun-il, as the e5 o-io Ehairman 8

+he 4e-retar( of the Department of Finan-e, as the e5 o-io Ai-eEhairman

+he 4e-retar( of the Department of La&or and


13/22

+he four %@) private se-tor representatives shall ea-h

&e appointed &( the President of the Philippines for a

term of two %2) (ears Provided, however, that of the

rst to &e appointed, one %>) representative of the

emplo(ers shall have a term of onl( one %>) (ear

+he representative of the overnment emplo(ees

shall &e appointed &( the President of the Philippines

for a term of two %2) (ears

+he Ehairman, Ai-e Ehairman and mem&ers of the

#oard shall &e entitled to a reasona&le per diem forea-h meetin a-tuall( attended and other allowan-es

at su-h amounts as ma( &e 5ed &( the #oard, in

a--ordan-e with e5istin laws, rules and reulations


14/22

Section . Poe$# o* t5e Bo)$-.+he #oard shall have the

followin powers'

+o *o$,%!)te 3o!icie#: $%!e# )n- $e4%!)tion#to -arr( out

eGe-tivel( the fun-tions of the Fund under . 9198

+o 3$o,%!4)te #%c5 $%!e# )n- $e4%!)tion# )# ,)+ e

nece##)$+ or proper for the eGe-tive e5er-ise of the powers andfun-tions, as well as the dis-hare of the duties and

responsi&ilities of the Fund, its o-ers and emplo(ees8

+o )%t5o$i;e e13en-it%$e# o* t5e F%n- in t5e inte$e#t o*

eecti0e )-,ini#t$)tion and operations8 to adopt from time to

time the &udets for said purposes8

+o )33$o0e t5e )nn%)! )n- #%33!e,ent)! %-4et o* $ecei3t#

)n- e13en-it%$e# in-ludin salaries and allowan-es of the

Fund personnel8 to authori=e su-h -apital and operatin

e5penditures and dis&ursements as ma( &e ne-essar( and proper

for the eGe-tive manaement and operation of the Fund8


15/22

+o con-one: in 5o!e o$ in 3)$t: 3en)!tie# i,3o#e- on !o)n#

of mem&ers and &orrowers who, for 6ustia&le reasons pres-ri&ed

&( the #oard, failed to pa( on time an( o&liation due to the Fund8

Provided, that su-h e5-lusive power to -ondone shall likewise appl(

to penalties imposed on emplo(ers, who 6ustia&l( fail to remit

when due the re7uired -ontri&utions of their emplo(ees8+o )33$o0e t5e F%n-'# o$4)ni;)tion)! )n- )-,ini#t$)ti0e

#t$%ct%$e# and stan pattern, and to esta&lish, 5, review,

revise and ad6ust the appropriate -ompensation pa-kae for the

o-ers and emplo(ees of the Fund in a--ordan-e with 4e-tion ,

ule "A hereof8

+o )33$o0e o$ con$, )33oint,ent# o* oce$# and otherpersonnel of the Fund, as the -ase ma( &e8 and

+o e1e$ci#e #%c5 3oe$# )# ,)+ e nece##)$+ to c)$$+ into

eect the powers and a--omplish the purposes for whi-h the Fund

is esta&lished


16/22

Section 6. R%!e2M)>in4 Poe$.+he #oard shall

make and -hane needful rules and reulations,

whi-h shall &e pu&lished in a--ordan-e with law or at

least on-e in a newspaper of eneral -ir-ulation in the

Philippines, to provide for, &ut not limited to, thefollowin matters'

+he eGe-tive administration, -ustod(, development, utili=ation

and disposition of the Fund or parts thereof, in-ludin pa(ment of

amounts -redited to mem&ers or to their &ene-iaries or estates8

$rounds for and eGe-ts of termination of mem&ership other than

&( -ompletion of term8

Fund earnins and their distri&ution, investment andBor plowin

&a-k for the e5-lusive &enet of the mem&ers8


17/22

"nterim dis&ursements of a--umulated values to mem&ers of

ameliorative and similar purposes8

#enets, -ontri&utions in-ludin their rates, premium rates, and

interest rates8

Housin and other loan assistan-e prorams to mem&ers8

.d6udi-ation and settlement of -laims and disputes and thepro-edures for the same on an( matters involvin the interests of

mem&ers in the Fund8

ptimi=e the eGe-tiveness of the Fund:s -overae8


18/22

Section 7. C5ie* E1ec%ti0e Oce$.+he Ehief


19/22

Section . O$4)ni;)tion)! )n- )-,ini#t$)ti0e #t$%ct%$e#

)n- #t)n4 3)tte$n.+he orani=ational and administrative

stru-tures and stan pattern of the Fund shall &e as

determined &( the #oard .ll positions in the Fund shall &e

overned &( a -ompensation and position -lassi-ation s(stem

and 7uali-ation standards approved &( the #oard &ased on a-omprehensive 6o& anal(sis, wae -ompensation stud( and

audit of a-tual duties and responsi&ilities8 Provided, that the

-ompensation plan shall &e -ompara&le with prevailin

-ompensation plans in the private se-tor and shall &e su&6e-t to

the periodi- review of the #oard no more than on-e ever( four

%@) (ears without pre6udi-e to (earl( merit reviews or in-reases

&ased on produ-tivit( and prota&ilit( +he Fund shall,

therefore, &e e5empt from an( laws, rules and reulations on

salaries and -ompensations


20/22

Section 9. A-,ini#t$)tion Co#t#.+he Fund shall &ear the -osts

of its administration and development, in su-h amounts andBor

limits as the #oard of +rustees ma( deem appropriate, &ut not

e5-eedin two %2C) per-ent of the /et Fund .ssets of the previous

(ear, e5-ludin operatin -ost dire-tl( relatin to the lendin

operations of the Fund

Section . A%-it.+he Ehairman of the Eommission on .udit

shall a-t as the e5!o-io auditor of the Fund and, a--ordinl(, is

empowered to appoint a representative and other su&ordinate

personnel to perform and report on su-h audit duties, responsi&le

to and remova&le onl( &( the Eommission on .udit Ehairman,

without pre6udi-e, however, to the power of the #oard of +rustees

to -ontra-t for another mode of independent audit servi-e, in

addition to that provided &( the Eommission on .udit as provided

for under Presidential De-ree /o >@@?, otherwise known as the

$overnment .uditin Eode of the Philippines


21/22

Section . E1e,3tion *$o, T)1: Le4)! P$oce## )n-

Lien. .ll laws to the -ontrar( notwithstandin, the Fund and all

its assets and properties, all -ontri&utions -olle-ted and all

a--ruals thereto and in-ome or investment earnins there from,

as well as all supplies, e7uipment, papers or do-uments shall &e

e5empt from an( ta5, assessment, fee, -hare, or -ustoms or

import dut(8 and all &enet pa(ments made &( the Pa!"#"$ Fund

shall likewise &e e5empt from all kinds of ta5es, fees or -hares,

and shall not &e lia&le to atta-hments, arnishments, lev( or

sei=ure &( or under an( leal or e7uita&le pro-ess whatsoever,

either &efore or after re-eipt &( the person or persons entitled

thereto, e5-ept to pa( an( de&t of the mem&er to the Fund /ota5 measure of whatever nature ena-ted shall appl( to the Fund,

unless it e5pressl( revokes the de-lared poli-( of the 4tate in

4e-tion 2 of . 919 rantin ta5 e5emption to the Fund .n(

ta5 assessment aainst the Fund shall &e null and void


22/22

Section ". Mone+ In0e#t,ent#. .ll mone(s of the Fund

not needed to meet -urrent administrative and operational

re7uirements, shall &e invested with due and prudent

reard for its safet(, rowth and li7uidit( needs Provided,

that at least sevent( per-ent %0C) of the Fund:s investi&le

funds shall &e invested in housin, in a--ordan-e with .

919

Section . Vi#ito$i)! )n- En*o$ce,ent Poe$#.

+he Fund or its dul( authori=ed representative is empowered to inspe-t

the premises, &ooks of a--ounts and re-ords of an( person or entit(

-overed &( . 9198 re7uire to su&mit its reports reularl(, and a-t

on violations of an( provision of . 919

Parti-ular aspe-ts of the Fund:s administration ma( &e su&6e-t to

supervision, visitation or veri-ation &( appropriate aen-ies of the

overnment as ma( &e desinated and authori=ed &( the President of

the Philippines

Documents

Implementing Rules