Published — April 22, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
After this article about grace period on payment, read also: SUSPENSION OF THE PAYMENT OF RENT
-
The gracelperiod for the payment of rents shall be reckoned from the last due date or until such time that the community quarantine is lifted, whichever is longer
-
The gracelperiod for the payment of rents and utilities is a minimum of thirty (30) days
-
The payment within the grace period is without interests, penalties, and other charges
May the payment of utilities or rents be made at a later time during this time of Pandemic?
The Bayanihan to Recover as One Act provides a grace period for the payment utilities and rents among others. What is the grace period for the payment of utilities?
The law says:
All institutions providing electric, water, telecommunications, and other similar utilities are mandated to implement a thirty (30)-day grace period for the payment of utilities falling due within the period of Enhanced Community Quarantine (ECQ) or Modified Enhanced Community Quarantine (MECQ) without incurring interests, penalties, and other charges.
After the grace period, unpaid residential, Micro, Small, and Medium Enterprises (MSMEs) and cooperatives’ utility bills may be settled on a staggered basis payable in not less than three (3) monthly installments, subject to the procedural requirements of the concerned regulatory agencies in the imposition of procedural requirements of the concerned regulatory agencies in the imposition of such installment plan without interests, penalties, and other charges. The concerned institutions may offer less onerous payment terms, with the consent of their clients subject to the approval of their respective regulators.
Please take note that in the case of electric power sector, the minimum of thirty (30)-day grace period and staggered payment without interests, penalties and other charges shall apply to all payments within the period of the Community Quarantine (CQ) in the entire electric power value chain to include generation companies, the transmission utility, and distribution utilities.
What is the grace period for the payment of rents?
The law says:
Like in the case of grace period provided for the payment of utilities, the payment of rent has also a minimum of thirty (30)–day grace period on residential rents and commercial rents of lessees not permitted to work, and MSMEs and cooperatives ordered to temporarily cease operation, falling due within the period of the CQ, without incurring interests, penalties, fees and other charges which shall be reckoned from the date of the lifting of ECQ or MECQ. Take note that during the period of CQ, there shall be no increase in rent.
Also, under the latest Omnibus Guidelines on the Implementation of Community Quarantine in the Philippines, the grace period shall be reckoned from the last due date or until such time that the community quarantine (including areas under the General Community Quarantine) is lifted, whichever is longer, without incurring interests, penalties, fees, or other charges.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.
SUBSCRIBE NOW FOR MORE LEGAL UPDATES!
[email-subscribers-form id=”4″]