October 7, 2020Bayanihan to Recover as One Act (Republic Act No. 11494) Frequently Asked Questions for Consumer Loan Borrowers We hope you and your family remain safe and well. In response to the challenging times and in compliance with the Bayanihan to Recover as One Act (Republic Act No. 11494) and its Implementing Rules and Regulations (IRR) of Section 4(uu), Bank of Commerce has implemented the non-extendible mandatory one-time sixty (60)-day grace period to all loans that are existing, current and outstanding falling due, or any part thereof, on or before 31 December 2020. Here is a list of frequently asked questions to guide you: 1. How will the “Bayanihan to Recover as One Act” affect my loan? All Bangko Sentral ng Pilipinas (BSP)–Supervised Financial Institutions (BSFIs), including banks, are immediately required to comply with Section 4(uu) of R.A. 11494 or the “Bayanihan to Recover As One Act” (BARO Act), which took effect last 15 September 2020. Section 4(uu) of R.A. 11494 requires banks to implement a non-extendible mandatory one-time sixty (60)-day grace period to all loans of individuals and entities that are existing, current and outstanding falling due, or any part thereof, on or before 31 December 2020. The mandatory one-time sixty (60)-day grace period shall likewise apply to each loan of individuals and entities with multiple loans. If your existing, current and outstanding loan, covered by a Promissory Note, has an amortization due or a maturity date on or before 31 December 2020, the due date of this Promissory Note will be moved by sixty (60) days. Each Promissory Note that will be covered by this law will be granted the one-time mandatory grace period. However, the borrowers are not precluded from choosing not to avail of the said grace period, and pay their obligations as they fall due. To know more about the Bayanihan to Recover as One Act (or BARO Act) and its IRR, please click here. 2. Does the “Bayanihan to Recover as One Act” apply to past due loans? NO. The non-extendible mandatory one-time sixty (60)-day grace period is not applicable to past due loans falling between 15 September 2020 and 31 December 2020. It is only applicable to all loans that are existing, current and outstanding falling due, or any part thereof, on or before 31 December 2020. 3. What consumer loan products are covered by the mandatory one-time sixty (60)-day grace period? All Bank of Commerce Auto, Housing and/or Salary Loans that are existing, current and outstanding falling due, or any part thereof, falling between 15 September 2020 and 31 December 2020 are covered. All Auto, Housing and/or Salary Loans approved on 15 September 2020 and thereafter are not covered under BARO Act. 4. When will the mandatory one-time sixty (60)-day grace period commence? How will this affect the amortization due dates of my loan? Also, how will this affect the maturity of my loan? In accordance with Section 4(uu) of R.A. 11494, the non-extendible mandatory one-time sixty (60)-day grace period for qualified loans shall commence from the payment due dates that fall within the period of 15 September 2020 until 31 December 2020. In this regard, the application of the mandatory sixty (60)-day grace period under the BARO Act effectively moves the payment due dates of your entire loan. For example: If you opted to apply the grace period on your loan amortization due date falling on 21 October 2020, the movement of the payment due dates are as follows: FROM TO Due Dates based on the Original Schedule New Due Dates 21 September 2020 21 November 2020 21 October 2020 21 December 2020 21 November 2020* 21 January 2021 *Note: The succeeding due dates based on the original schedule will also move by sixty (60) days. Regarding the effect on the maturity of the loan, the implementation of the non-extendible mandatory one-time sixty (60)-day grace period will also effectively extend the maturity of the loan. Considering that your current loan payment schedule will move by sixty (60) days, this will cause your loan maturity date to also move by sixty (60) days. For example: FROM TO Loan Maturity Due Date based on the Original Schedule or New Loan Maturity Due Date based on “Bayanihan to Heal as One Act” (Bayanihan Act) New Loan Maturity Due Date based on BARO 21 March 2027 21 May 2027 5. Can I opt to apply the mandatory one-time sixty (60)-day grace period to any of my amortizations falling due on or before 31 December 2020? YES. If qualified, you may opt to apply the mandatory one-time sixty (60)-day grace period to any of your amortizations falling due on or before 31 December 2020. 6. During the mandatory sixty (60)-day grace period, will my loan incur interest on interest, penalties, fees, and charges? NO INTEREST ON INTEREST and NO PENALTIES, FEES OR OTHER CHARGES will be imposed during the mandatory one-time sixty (60)-day grace period, nor applied to the amortizations or payments deferred because of the mandatory grace period. 7. Will interest continue to accrue during the mandatory one-time sixty (60)-day grace period? If yes, what are my payment options? YES. INTEREST WILL CONTINUE TO ACCRUE during the one-time sixty (60)-day grace period. The interest that will accrue during the said mandatory grace period shall refer to interest that is due on the outstanding principal obligation but not yet paid since the last loan payment made. The accrued interest may be paid either: • one (1) time on your next due date; or • on a staggered basis until 31 December 2020. To request for the actual amount of your accrued interest and your updated loan schedule based on the BARO Act, kindly send an email to Bank of Commerce Customer Care at customerservice@bankcom.com.ph and BayanihanConsumer2@bankcom.com.ph with the subject: BARO Act <<Name of Borrower>> – Request for SOA. 8. During the mandatory sixty (60)-day grace period, what will happen to my issued Post-Dated Checks (PDCs)? How about if I am enrolled under Auto Debit Arrangement (ADA)? If qualified under BARO Act, and you advise us on time of your intention to avail of the mandatory sixty (60)-day grace period, the Bank will not deposit for payment your Post Dated Checks (PDCs) or debit your account under Auto Debit Arrangement. For this purpose, please download the CONFIRMATION FORM, indicate your preferred option and sign it to signify your conformity. Please return one original to us at the soonest time possible at 7th Floor San Miguel Properties Centre, No. 7 Saint Francis Street, Mandaluyong City or any Bank of Commerce branch near you. For the meantime, kindly email and send the scanned Confirmation Form to BayanihanConsumer2@bankcom.com.ph with the subject: BARO <<Name of Borrower>> – Confirmation Form. If you fail to return the CONFIRMATION FORM on or before 31 October 2020, we will proceed to process your loan payment pursuant to your Auto Debit Arrangement (ADA) and/or Post Dated Checks (PDCs) arrangement. 9. 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 of the mandatory sixty (60)-day grace period, please download the CONFIRMATION FORM, indicate your preferred option and sign it to signify your conformity. Please return one original copy to us the soonest time possible at 7th Floor San Miguel Properties Centre, No. 7 Saint Francis Street, Mandaluyong City or any Bank of Commerce branch near you. For the meantime, kindly email and send the scanned CONFIRMATION FORM to BayanihanConsumer2@bankcom.com.ph with the subject: BARO <<Name of Borrower>> – Confirmation Form. 10. 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 Care at customerservice@bankcom.com.ph and BayahihanConsumer2@bankcom.com.ph with the subject: BARO Act <<Name of Borrower>> – Query.