Article 90Labor and Agrarian Laws and Social Legislation, p. 90

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

capital and operating expenditures and disbursements of

the Fund as may be necessary and proper for the

effective management and operation of the Fund;

(c) To submit annually to the President of the

Philippines not later than March 15, a report of its

activities and the state of the Fund during the preceding

year, including information and recommendations for the

development and improvement thereof;

(d) To invest not less than seventy percent (70%) of its

investible funds to housing, in accordance with this Act;

(e) To acquire, utilize, or dispose of, in any manner

recognized by law, real or personal properties to carry out

the purposes of this Act;

(f) To set up its own accounting and computer

systems; to conduct continuing actuarial and statistical

studies and valuations to determine the financial viability

of the Fund and its project; to require reports,

compilations and analysis of statistical and economic

data, as well as make such other studies and surveys as

may be needed for the proper administration and

development of the Fund;

(g) To have the power of succession; to sue and be

sued; to adopt and use a corporate seal;

(h) To enter into and carry out contracts of every kind

and description with any person, firm or association or

corporation, domestic or foreign;

(i) To borrow funds from any source, private or

government, foreign or domestic;

(j) To invest, own or otherwise participate in equity in

any establishment, firm or entity; to form, organize, invest

in or establish and maintain a subsidiary or subsidiaries in

relation to any of its purposes;

(k) To approve appointments in the Fund except

appointments to positions which are policy determining,

primarily confidential or highly technical in nature

according to the civil service rules and regulations:

Provided, That all positions in the Fund shall be governed

by a compensation and position classification system and

qualification standards approved by the Fund's Board of

Trustees based on a comprehensive job analysis, wage

compensation study and audit of actual duties and

responsibilities: Provided, further, That the compensation

plan shall be comparable with prevailing compensation

plans in the private sector and shall be subject to the

periodic review of the Board no more than once every

four (4) years without prejudice to yearly merit reviews or

increases based on productivity and profitability. The

Fund shall, therefore, be exempt from any laws, rules and

regulations on salaries and compensations;

(l) To maintain a provident fund, which shall consist of

contributions made by both the Fund and its officers and

employees and their earnings, for the payment of

benefits to such officials and employees or their heirs

under such terms and conditions as it may prescribe;

(m) To design and adopt an early retirement incentive

plan (ERIP) for its own personnel;

(n) To establish field offices and to conduct its

business and exercise its powers in these places;

(o) To approve restructuring proposal for the payment

of due but unremitted contributions and unpaid loan

amortizations under such terms and conditions as the

Board of Trustees may prescribe;

(p)

To

determine,

fix

and

impose

interest

and

penalties upon unpaid contributions due from employers

and employees;

(q)

To ensure the collection and recovery of all

indebtedness, liabilities and/or accountabilities, including

unpaid contributions in favor of the Fund arising from

any cause or source or whatsoever, due from all obligors,

whether public or private; to demand payment of the

obligations referred to herein, and in the event of failure

or refusal of the obligor or debtor to comply with the

demand, to initiate or institute the necessary or proper

actions

or

suits,

criminal,

civil,

administrative,

or

otherwise,

before

the courts, tribunals, commissions,

boards or bodies of proper jurisdiction: Provided, however,

That the Fund may compromise or release, in whole or in

part, any interest, penalty or civil liability to the Fund in

connection with the collection of contributions and the

lending operations of the Fund, under such terms and

conditions

as

prescribed

by

the

Board

of

Trustees:

Provided,

further,

That

the

Board

may,

upon

recommendation of the Chief Executive Officer, deputize

any member of the Fund's legal staff to act as special

sheriff in foreclosure cases, in the sale or attachment of

the debtor's properties, and in the enforcement of court

writs and processes in cases involving the Fund. The

special sheriff of the Fund shall make a report to the

proper court after any action taken by him, which shall

treat such action as if it were an act of its own sheriffs in

all respects;

(r) To design and implement other programs that will

further

promote

and

mobilize

savings

and

provide

additional

resources

for

the

mutual

benefit

of

the

members

with

appropriate

returns

on

the

savings/investments. The program shall be so designed

as

to

spur

socioeconomic

take-off

and

maintain

continued growth;

(s) To conduct continuing actuarial and statistical

studies

and

valuations

to

determine

the

financial

condition of the Fund and taking into consideration such

studies

and

valuations

and

the

limitations

herein

provided, readjust the benefits, contributions, interest

rates of the allocation or reallocation of the funds to the

contingencies covered; and

(t) To exercise such powers and perform such acts as

may be necessary, useful, incidental or auxiliary to carry

out the provisions of this Act.

SECTION 14. Board of Trustees. — The corporate

powers and functions of the Fund shall be vested in and

exercised by the Board of Trustees appointed by the

President of the Philippines, composed of the following:

(a)

The

Chairperson

of

the

Housing and Urban

Development and Coordinating Council, as the ex officio

Chairman;

(b) The Secretary of the Department of Finance, as

the ex officio Vice Chairman;

(c) The Secretary of the Department of Labor and

Employment or his/her duly designated undersecretary,

as ex officio member;

(d) The Secretary of the Department of Budget and

Management or his/her duly designated undersecretary,

as ex officio member;

(e) The Secretary of the Department of Trade and

Industry, or his/her duly designated undersecretary, as ex

officio member;

(f)

The

Chief

Executive

Officer

of

the

Fund, as

member; and

(g)

Five

(5)

appointive

members,

two

(2)

representatives

of

private

employees,

two

(2)

representatives

of

private

employers

and

one

(1)

representative of government employees.

The four (4) private sector representatives shall each

be appointed by the President of the Philippines for a

term of two (2) years: Provided, however, That of the first

to be appointed, one (1) representative of the employers

shall have a term of only one (1) year. The representative of

the government employees shall be appointed by the

President of the Philippines for a term of two (2) years.

The Chairman, Vice Chairman and members of the

Board shall be entitled to a reasonable per diem for each

meeting actually attended at such amounts as may be

fixed by the Board in accordance with existing laws, rules

and regulations.

SECTION 15. Powers of the Board. — The Board shall

have the following powers:

© Compiled By RGL

90 of 169