Section 2Sec./Art. 2

Condonation clause. - (a) All unpaid penalties on housing loans from any of the government institutions and agencies involved in the National Shelter Program of the Government, including but not limited to the Government Service Insurance System (GSIS), Social Security System (SSS), Home Development Mutual Fund (Pag-ibig Fund), National Home Mortgage Finance Corporation (NHMFC), and the National Housing Authority (NHA), are hereby condoned: Provided, That all due and demandable arrearages composed of the principal and interest are restructured and paid within the remaining period of the loan;

(b) In the event that a borrower is able to pay only part of his/her due and demandable arrearages, only the penalties corresponding to the portion paid shall be condoned;

(c) A borrower must not have availed of any previous condonation program from any government institution or agency involved in the National Shelter Program; and

(d) The corresponding penalties due to the funders of the NHMFC on all delinquent accounts under its management shall likewise be condoned up to the extent paid by individual borrowers.