June 4, 2020In compliance with the Bayanihan to Heal as One Act (Republic Act No. 11469) and the Implementing Rules and Regulations (IRR) of Section 4 (aa) of the Act, Bank of Commerce has implemented the application of the thirty (30) day mandatory grace period for your loans falling due within the period of the Enhanced Community Quarantine (ECQ), which was extended until 31 May 2020. With the lifting of the ECQ and MECQ measure in the country starting June 1, 2020, regular payment schedules and charges will take effect. Here is a list of frequently asked questions to guide you: 1. What is the Bayanihan to Heal as One Act (Republic Act 11469)? On 23 March 2020, President Rodrigo Duterte signed Republic Act 11469 or “Bayanihan to Heal as One Act” into law declaring a national health emergency throughout the Philippines as a result of the COVID-19 situation. The law authorized the President to adopt temporary emergency measures in order to respond to the crisis brought about by the pandemic. To know more about the Bayanihan to Heal as One Act (Bayanihan Act), please visit this link: https://www.officialgazette.gov.ph/downloads/2020/03mar/20200324-RA-11469-RRD.pdf. 2. How will the Bayanihan Act affect my loan account? Based on the Implementing Rules and Regulations (IRR) of Section 4 (aa) of the Bayanihan Act, all covered institutions shall implement a thirty (30) day grace period for all loans with principal and/or interest falling due within the Enhanced Community Quarantine (ECQ) period without incurring interest on interest, penalties, fees and other charges. The initial thirty (30) day grace period shall automatically be extended if the ECQ period is extended by the President pursuant to his emergency powers under the Act. To know more about the IRR of the Bayanihan Act, please visit this link https://www.covid19.gov.ph/wp-content/uploads/2020/04/DOF-IRR.pdf. 3. What is the effect of the extension of the ECQ on the initial thirty (30) day mandatory grace period provided under the Bayanihan Act? In accordance with IRR Section 4 (aa) of the Bayanihan Act, it provides that the initial thirty (30) day grace period shall automatically be extended if the ECQ period is extended by the President pursuant to his emergency powers under the Act. In this regard, from the INITIAL thirty (30) day grace period, there will be an ADDITIONAL thirty (30) day grace period for every due date within the ECQ period. For example: Due Date based on the Original Schedule : 28 March 2020 Initial 30-day grace period : 27 April 2020 Due to ECQ (16 March to 15 April 2020) Additional 30-day grace period : 27 May 2020 Due to extension of ECQ (16 April to 15 May 2020) Additional 30-day grace period : 26 June 2020 Due to MECQ (16 May to 31 May 2020) New Due Date : 26 June 2020 4. Would the mandatory grace period also affect the maturity of my loan? Yes. If your scheduled loan amortization due dates will fall due between 16 March and 31 May 2020, this will cause the extension of thirty (30) day grace period for every due date within the ECQ period. Thus, if three (3) of your scheduled loan amortization due dates fall between 16 March and 31 May 2020, your current loan payment schedule will slide by ninety (90) days and your loan maturity date will also move by ninety (90) days. For example: Loan Maturity Due Date based on the Original Schedule : 28 July 2027 New Loan Maturity Due Date : 26 October 2027 5. Until when is the mandatory grace period be applicable to my loan account? How will lifting of the ECQ and MECQ effective 1 June 2020 affect the application of the mandatory grace period provided under the Bayanihan Act? Based on Bangko Sentral ng Pilipinas (BSP) Memorandum No. M-2020-042, the mandatory grace period day pursuant to the Bayanihan Act shall only apply if there are still areas in the country under ECQ or Modified ECQ. Hence, the application of the mandatory grace period shall cease once the ECQ and Modified ECQ are lifted in the entire country. Considering that the ECQ and Modified ECQ were already lifted in the entire country and all regions are now under General Community Quarantine (GCQ) or modified GCQ based on the IATF Resolution No. 41, the application of the mandatory grace period under the Bayanihan Act shall no longer apply effective 1 June 2020. Therefore, all loan payments with principal and interest falling 1 June 2020 onwards shall be due and demandable. Based on Item No. 3, for example: Due Date based on the Original Schedule : 28 March 2020 Initial 30-days grace period : 27 April 2020 Due to ECQ (16 March to 15 April 2020) Additional 30-days grace period : 27 May 2020 Due to extension of ECQ (16 April to 15 May 2020) Additional 30-days grace period : 26 June 2020 Due to MECQ (16 May to 31 May 2020) GCQ or MGCQ (1 June to 15 June 2020) : Additional Mandatory Grace Period will not be anymore applicable New Due Date : 26 June 2020 However, any subsequent issuances of the Department of Finance and/or Bangko Sentral ng Pilipinas as well as laws passed by any governmental authority in relation to the Bayanihan Act shall apply accordingly, and may further modify the said payment arrangement. 6. What loan products and payment due dates are covered by the mandatory grace period? All Bank of Commerce scheduled loan amortization of Auto, Housing and/or Salary Loan with payment due date between 16 March and 31 May 2020 will be deferred for a period of thirty (30) day grace period for every due date within the ECQ period. If the borrower has multiple loans, the mandatory grace period shall apply to each loan. 7. During the mandatory grace period, will my account incur interest on interest, penalties, fees, and charges? NO INTEREST ON INTEREST and NO PENALTIES, FEES AND CHARGES if you would not be able to pay the scheduled loan amortization from 16 March to 31 May 2020. 8. Will interest continue to accrue during the grace period? If yes, what are my payment options? Yes, INTEREST WILL CONTINUE TO ACCRUE during the mandatory grace period in accordance with Section 5.02 of the IRR of the Bayanihan Act. The interest that will accrue during the mandatory grace period will be computed based on your outstanding principal using the existing interest rate of your loan. The accrued interest may be paid either: • one (1) time on your next due date, or • may be spread out for the remaining term of the loan. To request for the actual amount of your accrued interest and your updated loan schedule, kindly send an email to Bank of Commerce Customer Service at customerservice@bankcom.com.ph and to Mr. Noah Rodriguez at nprodriguez@bankcom.com.ph. 9. Am I required to pay in June 2020 ALL LOAN PAYMENTS that were granted a grace period in March, April and May 2020? If not, effective 1 June 2020, how much will I pay on the next due date considering that ECQ has been lifted? How will it affect my scheduled loan amortization and loan maturity? No. Based on the Bayanihan Act, the thirty (30) day mandatory grace period under the law has the effect of moving the payment due date by thirty (30) days. As a result of the application of the mandatory grace period during the extended ECQ, all scheduled loan amortizations will be moved by sixty (60) or ninety (90) days depending on the period covered. Regarding the sample computation for the adjustment of monthly due date and loan maturity, please refer to Item nos. 3, 4 and 5. Thus, effective 1 June 2020, you will only pay ONE (1) loan amortization and will be billed the accrued interest on the loan on your next due date. The accrued interest may be paid either one (1) time on your next due date, or may be spread out for the remaining term of the loan. Regarding theaccrued interest, please refer to Item nos. 3, 4 and 5. 10. During the mandatory grace period, what will happen to my issued Post Dated Checks (PDCs)? How about if I am enrolled under Auto Debit Arrangement (ADA)? Bank of Commerce did not negotiate your Post Dated Checks (PDCs) or debit your account for Auto Debit Arrangement during the mandatory grace period. However, considering that ECQ was already lifted, please be informed that Bank of Commerce will already negotiate your Post Dated Checks (PDCs) or debit your account for Auto Debit Arrangement on your scheduled loan amortization falling after 31 May 2020. 11. What if I want to continue paying my loan amortization as originally scheduled so I do not have to pay accrued interest or extend my loan term? If you would like to continue paying your loan amortization as originally scheduled and choose not to avail for the mandatory grace period, you may send an email to Bank of Commerce Customer Service at customerservice@bankcom.com.ph and to Mr. Noah Rodriguez at nprodriguez@bankcom.com.ph. 12. I intend not to avail the mandatory grace period but since I do not have online banking account and/or due to restrictions on mobility, I am not able to settle my loan amortization as originally scheduled. Is there any other payment option? Due to said restrictions and the intention to pay the loan amortization as originally scheduled, please be informed that Bank of Commerce is allowing you to settle ALL UNPAID MONTHLY AMORTIZATIONS on or before your next due date without any accrued interest, penalty and other charges for late payment. However, if you fail to do so and/or choose to avail the benefits under Bayanihan Act, the accrued interest incurred during the ECQ period will be charged to your account but still without any penalty and other charges for late payment. 13. Who will I contact if I have inquiries and concerns regarding the Bayanihan Act? For any inquiries and concerns, you may send an email to Bank of Commerce Customer Service at customerservice@bankcom.com.ph and to bayanihanconsumer@bankcom.com.ph