Section 4Sec./Art. 4

Definition of Terms. The following terms shall mean:

(a) Board - the duly constituted Board of Trustees of the Home Development Mutual Fund.

(b) Compensation - basic monthly salary plus mandated cost of living allowance.

(c) Contributions - the amount payable to the Fund by the members and their employers, in accordance with this Act.

(d) Dependents - refers to legal dependents of a deceased member, as defined under the Family Code.

(e) Employee - any person in the service of an employer who receives compensation of such services.

(f) Employer - any person, natural or juridical, domestic or foreign, who carries on in the Philippines, or outside of the Philippines, any trade, business, industry, undertaking or activity of any kind, and uses the services of another person who is under his order as regards such services; the government, its national and local offices, political subdivisions, branches, agencies, or instrumentalities, including corporations owned and/or controlled by the government, and the local government units.

(g) Employment - any service performed by an employee for his/her employer within the Philippines: Provided, however, That any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Fund for the inclusion of their employees as members of the Fund: Provided, further, That the term of such agreement conform with the provisions of this Act.

(h) Fund - the fund created under this Act which is a government financial institution involved in mobilizing provident funds primarily for shelter finance;

(i) GSIS - the Government Service Insurance System created under Commonwealth Act No: 186, as amended.

(j) Investible Funds - shall mean funds available after deducting cost of operations and expenses, administrative and general expenses, reserves for benefit claims, provisions for a sinking fund for the return of the members equity upon maturity and provision for reserve for loan repayments.

(k) Member - an employee coverable under this Act and pays the mandated contributions.

(l) Membership Term - a period of twenty (20) years commencing from the first day of the month to which the members initial contribution to the Fund applies: Provided, That he shall have contributed a total of two hundred forty (240) monthly contributions at the time of maturity.

(m) Net Fund Asset - the total assets of the Fund less current liabilities.

(n) Permanent Total Disability - loss or impairment of a physical and mental function resulting from injury or sickness which completely incapacitates a member to perform any work or engage in any business or occupation as determined by the Fund.

(o) SSS - the Social Security System created under Republic Act No. 1161, as amended.