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REPUBLIKA NG PILIPINAS PASEGURUHAN NG MGA NAGLILINGKOD SA PAMAHALAAN

(GOVERNMENT SERVICE INSURANCE SYSTEM) G S 1 S Financial Center, Roxas Boulevard, Pasay City 1308

BOARD OF TRUSTEES

In the Matter of the Petitions for Invalidation of Cancellation of Deeds of Conditional Sale and Sale of the Properties to the General Public,

TERESITA R. BABELONIA, ROLANDO B. BELANO & NORMITA D. PASCUAL,

Petitioners/

GSIS CASE Nos. 024-07, 025-07 & 026-07

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RESOLUTION

NATURE OF THE CASE

These cases stem from the Petitions which Petitioners Teresita

R. Babelonia (Babelonia), Rolando B. Belano (Belano), and Normita P.

Pascual (Pascual) separately filed in December 2007.

Due to the similar nature of the Petitions, the Hearing Officer at

that time presented to the GSIS Board of Trustees, on 26 August

2008, a draft consolidated decision for the three (3) cases. Since then,

the cases have been deemed consolidated.

FACTS OF THE CASE

Petitioners are all government employees. Individually, they

entered into Deeds of Conditional Sale (DCSs) with PhilVille

·. GSIS Case Nos. 024-07, 025-07 and 026-07 Babelonla, Belano and Pascual, Petltloners

Page 2 o[8

Development and Housing Corporation (PDHC) for houses and lots

located at Las Villas de Sto. Nino at Iba, Meycauayan, Bulacan. 1 To

finance the acquisition of their individual houses and lots, Petitioners

applied for and were granted housing loans under the Graduated

Payment Scheme (GPS) by the Government Service Insurance System

(GSIS) on 30 October 1989 for Babelonia, 31 October 1990 for Belano,

and 30 November 1989 for Pascual. 2

The proceeds of Petitioners' housing loans with GSIS were

directly remitted by the latter to PDHC representing full payment for

Petitioners' respective houses and lots. 3 Petitioners' loan tenns based

on their respective DCS are as follows:

Loan Tenns TERESITA R. ROLANDO B. NORMITA P. BABELONIA BELANO PASCUAL

Property Lot No. 2, Block Lot No. 12, Lot No. 3, Block No. 28, Lot Block No. 45, No. 30, Lot Area-120 sq.m. Lot Area-120 Area-120 sq.m. Housing Unit sq.m. Housing Housing Unit-Duplex C, Las Unit-Core 36, Core 36, Las Villas de Sto. Las Villas de Villas de Sto. Nino Sto. Nino Nino Subdivision, Subdivision, Subdivision, Meycauyab, Meycauyan, Meycauyan, Bulacan Bulacan Bulacan

Loan Amount Php 117,000.00 Php 199,200.00 Php_ 124,200.00 First Due Date November 1989 November 1990 November 1989 (FDD) Tenn 180 months 180 months 180 months Monthly Php1,046.00 Php1,934.00 Php1,094.27 Amortization Interest Rate 6% p.a. for the 6% p.a. for the 6% p.a. for the

Php30,000.00 Php30,000.00 Php30,000.00

9% p.a. for the 9% p.a. for the 9% p.a. for the Php40,000.00 Php40,000.00 Php40,000.00

1 DCS dated Sept. 8, 1989 between Babelonia & PhiiVille; DCS dated July. 18, 1990 between Belano & PhiiVille; and DCS dated August 22, 1989 between Pascual & Phi!Ville. 2 See Petition; GSIS Memorandum dated January 22, 2008,; GSIS Memorandum dated January 23, 2008, & GSIS Memorandum dated January 24, 2008. 3 Id.

. ; . • I . '

12%p.a. in excess thereof compounded monthly

GSIS Case Nos. 024-07, 025-07 and 026-07 Babe/on/a, Belano and Pascual, Petitioners

Page3of8

12%p.a. in 12%p.a. in excess thereof excess thereof compounded compounded monthly monthly4

Under the Graduated Payment Scheme, the fifteen year payment

period is divided into 3 five year periods. Amortization rates increase

for the second (6th -1Oth year) and third (11th -15th year) five year

periods, with which Petitioners failed to comply. Petitioners started

paying their monthly amortizations to GSIS on 28 February 1990

(Babelonia), April 1991 (Belano), and December 1989 (Pascual).

Petitioners, however, failed to adjust/increase their monthly

amortizations in the 6th year -1 Qth year and 11th year -15th year of the

term of their loans which resulted in the accumulation of arrearages,

interest and penalties.

GSIS' demand that Petitioners pay said arrearages remained

unheeded, prompting GSIS to cancel Petitioners' respective DCS.5

Hence, this petition.

The resolution of the instant Petition was held in abeyance

pending the approval of the new policy on DCS and Graduated

Payment Scheme. 6

4 As provided under Sec. I of the· DCS. 5 GSIS Memorandum/Answer. 6 LOC Instruction during its meeting dated 17 June 201 I .

J •

' I . GSIS Case Nos. 024-07, 025-07 and 026-07 Babelonla, Be/ano and Pascual, Petitioners

Page 4 af8

On 23 May 2013, the Board of Trustees passed Board Resolution

No. 48, approving and confirming the Policy and Procedural

Guidelines (PPG) No. 232-13 on the Housing Loan Remedial and

Restructuring Program (HLRRP).

Under PPG No. 232-13, cancelled accounts are covered under

the HLLRP. 7 The Real Estate Asset Disposition and Management

Office informed Petitioners of the new Restructuring Program of the

GSIS.

Babelonia's Request to Withdraw Petition

During the clarificatory hearing held on 07 April 2014,

Babelonia set an appointment with the READMO for submission of

additional documents and re-computation of her loan.

On 20 June 2014, Babelonia agreed to avail of the new

restructuring program with the following details:

Restructured Balance Total Monthly Amortization First due date Term

P249,418.77 p 3,997.96 July 31, 2014 6 years and 3 months

During a clarificatory hearing held on even date, Babelonia,

through a formal letter, expressed her intention to withdraw the

instant Petition.

7 Under Item IV.A.(2) ofPPG 232-13, the coverage of the HLRRP includes "cancelled accounts under DCS where the subject properties have not yet been re-sold" .

. . ' . . . ..

Delano's Request to Withdraw Petition

GSJS Case Nos. 024-07, 025-07 and 026-07 Babelonla, Belano and Pascual, Petitioners

Page 5 of8

On 19 February 2014, Belano agreed to avail of the

HLRRP with the following details:

Restructured Balance Total Monthly Amortization First due date Tenn

Php222,649.22 Php2,670.72 March 31, 2014 9 years and 1 month

During the clarificatory hearing held on 07 April 2014, Belano,

on the other hand, confinned that he availed of the HLRRP and

expressed his intention to withdraw the instant Petition. Said

withdrawal was fonnalized through a letter dated 07 April 2014.

Pascual's Request to Withdraw Petition

On 20 February 2014, Pascual fully paid her outstanding loan

balance with GSIS, full payment being one of the options offered

under the HLRRP.

During the clarificatory hearing held on 07 April 2014, Pascual,

represented by her husband, Annando C. Pascual, confirmed that they

already made full payment to GSIS and expressed their intention to

withdraw the instant Petition.

. '

-

GS/S Case Nos. 024-07, 025-07 and 026-07 Babelonia, Belano and Pascual, Petitioners

Page 6 of8

On 10 April 2014, the Board received Pascual's letter expressing

her withdrawal of the instant Petition.

In view of the Petitioners' individual withdrawal of their

petitions, it is but proper under the circumstances obtaining to

dismiss the consolidated Petitions to finally close and terminate this

case.

IN VIEW OF THE FOREGOING, the requests to withdraw the

Petitions are GRANTED. The case is hereby declared closed and

terminated.

SO ORDERED.

Pasay City, __ 2_5_ SE_P_1_0_14 __

D L L. LACSON, JR.

RTG. ~"ARA ice Chairman

ROMEO M. ALIP Trustee

Chairman

___....--~~ KARINA CONSTANTINO-DAVID

Trustee

t I • •

. \ . . \

ftJMW ELISEA 4·G ~M

Truste~ ~zr'

Trustee

GSIS Case Nos. 024-07, 025-07 and 026-07 Babelonla, Belano and Pascual, Petitioners

Page 7 of8

GERALDINE MAillE ~RABE-MARTINEZ Trustee

O!-J LEA\'E FRANCISCO T. DUQUE III*

Trustee

* (did not participate)

Copy furnished:

FROILAN M. BACUNGAN & JUAN M. DE SCALZO, JR. Bacungan and Descalzo Law Offices Counsel for Petitioners Rm.302, Phil. Social Science Center Commonwealth Avenue, Diliman, Quezon City

PROSECUTION AND QUASI JUDICIAL CASES DEPARTMENT, LEGAL SERVICES GROUP Government Service Insurance System Financial Center, Pasay City

.· . . . ' . . GSIS Case Nos. 024-07, 025-07 and 026-07 Babelonia, Belano and Pascual, Petitioners

Page 8 of 8

CERTIFICATION

I, BERNADETH R. BISOC, Attorney IV of the GSIS Legal Services Group, having been assigned (to draft a Resolution in GSIS Board of Trustees Consolidated Case Nos. 024-07, 025-07 and 026-07 entitled "In the Matter of the Petition For Invalidation of Disposition/Cancellation of the Sale of the Property to the Public,Teresita R. Babelonia, Rolando B. Belano & Nonnita P. Pascual, Petitioners" hereby certify that the statement of facts herein stated and being presented before this Board is based on the records of the case, the pleadings and other documents submitted by the parties.

This certification is issued in compliance with Board Resolution No.

198-A adopted on September 15, 2004.

Pasay City, September 9, 2014.

G S I S Government Service Insurance System Financial Center, Pasay City, Metro Manila 1308

OFFICE OF THE CORPORATE SECRETARY

EXACT COPY OF RES. NO. 1!J..Q ADOPTED BY THE GSIS BOARD OF TRUSTEES IN ITS MEETING NO. 17 HELD ON 25 SEPTEMBER 2014

Resolution in GSIS Case Nos. 024-07, 025-07 & 026-07, In the Matter of t he Petitions for Invalidation of

Cancellation of Deeds of Conditional Sale and Sale of the Properties to the General Public,

Teresita R. Babelonia, Rolando B. Belano & Normita D. Pascu a l, Petitioners

RESOLUTION NO. 140

WHEREAS, Ms. Teresita R. Babelonia, Mr. Rolando B. Belano, and Ms. Normita D. Pascual separately filed Petitions of a similar nature before the GSIS Board of Trustees, docketed as GSIS Case Nos. 024-07, 025-07, and 026-07, appealing the cancellation of their Deeds of Conditional Sale for houses and lots covered by housing loans with GSIS;

WHEREAS, pursuant to Section 30 of R.A. No. 8291, the GSIS has original and exclusive jurisdiction to settle any dispute arising from the application of the laws administered by the GSIS;

RESOLVED, to APPROVE and CONFIRM the Resolution in GSIS Case Nos. 024-07, 025-07 & 026-07, In the Matter of the Petitions for Invalidation of Cancellation of Deeds of Conditional Sale and Sale of the Properties to the General Public, Teresita R. Babelonia, Rolando B. Belano & Normita D. Pascual, Petitioners, the dispositive portion of which states:

BOARD MEETING NO. 17 25 SEPTEMBER 2014

Page 2 (Res. No. ~-2014)

"IN VIEW OF THE FOREGOING, the requests to withdraw the Petitions are GRANTED. The case is hereby declared closed and terminated.

"SO ORDERED."

A copy of the Resolution in GSIS Case Nos. 024-07, 025-07, and 026-07 is attached and made an integral part of this Resolution.

CONFIRMED:

RTG.V~ARA ~ce Chairman

G~T.{~ Trustee

CERTIFIED CORRECT:

ATTY. ~A ABESAMIS-RAAGAS Corporate Secretary

I EL L. LACSON, JR. Chair~

'"-v . \ '~ \ "'- ~ ~~~~~~·~~

KARINA CONSTANTINO-DAVID Trustee

..

Trul

BOARD MEETING NO. 17 25 SEPTEMBER 2014

Page 3 (Res. No. 14o -2014)

~~.·~ ELISEA I . N T ste

(on leave) FRANCISCO T. DUQUE III

Trustee