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Memorandum Circular 2020-001

“Temporary Suspension of Payment for the Financial Assistance Extended to Current Beneficiaries of TAPI Programs.”

ANSWER: No, provided that they can be used for the next payments. For example, you originally issued PDCs dated, among others, 30 June 2020 and July 30 2020. Due to the suspension and rescheduling of the periodic payments, your next payments fall on 12 July 2020, 30 July 2020, and so on. Since, your June 30 check is still valid on 12 July 2020, you can still use the said check as your July 12 payment. Your July 30 check will serve as your payment for 30 July 2020. However, you need to issue new PDCs to ensure that all the remaining periodic payments will be paid.
Reference: Section 5. “In case the checks issued by a beneficiary becomes unusable due to the suspension of payments above or for any other reason, new Post-dated Checks (PDCs) shall be issued by the beneficiary within Ninety (90) calendar days from the lifting of the above-mentioned Proclamation in order to ensure payment of the remaining balance in accordance to immediately preceding paragraph; x x x”

ANSWER: Yes. First, all the checks that can still be deposited will be presented to the bank for payment the day immediately after the Period mentioned in the MC. Second, all the unpaid periods will be charged penalties from the time they originally become due and demandable until fully paid. 
Reference: Section 5. “x x x Provided that, non-compliance to this requirement shall result to disqualification of the beneficiary to avail of the privilege offered by this MC.”

ANSWER: Yes. The application of MC to the payments of your financial obligations results to the waiver of interests, penalties and/or surcharges, by TAPI for the duration of the “Period of Suspension” mentioned in the MC. The Ninety (90) calendar days after the lifting of Section 2 of the Proclamation even further allows you to recover from the losses you may have incurred due to the calamity.
Reference: Section 4. “Payment of ALL financial obligations falling due and demandable within the above-mentioned Period shall automatically be suspended and rescheduled along with the succeeding periodic payments, if any, without interest, penalty and/or surcharge, such that the next periodic payment shall be due on the day immediately after the end of the said Period and accordingly extending the original term; x x x”.