FURTHER AMENDING SECTION TWENTY-SIX, PARAGRAPH (g), OF REPUBLIC ACT NUMBERED ELEVEN HUNDRED AND SIXTY-ONE, AS AMENDED, OTHERWISE KNOWN AS "THE SOCIAL SECURITY LAW"

• Number: Presidential Decree No. 65
• Sections: 3

Preamble

WHEREAS, on the 19th day of October, 1972,

Presidential Decree No. 24, amending certain Sections of Republic Act

No. 1161, as amended, otherwise known formerly as "The Social Security

Act of 1954" and now as "The Social Security Law";

WHEREAS, it was found necessary to further amend the

said Social Security Law, particularly Section Twenty-six, paragraph

(g) thereof, in order to establish a separate account in connection with

the operation of the Social Security System as an insurer of its

interest on the lives and/or properties of its mortgagors;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of

the Philippines, by virtue of the powers in me vested by the

Constitution as Commander-in-Chief of the Armed Forces of the

Philippines and pursuant to Proclamation No. 1081, dated September 21,

1972, and General Order No. 1, dated September 22, 1972, do hereby

further amend Section 26, paragraph (g) of the said Social Security Law,

to wit:

Section 1

SECTION 1. Section Twenty-six, paragraph (g), of Act

Numbered Eleven Hundred and Sixty-One, as amended, is further amended

to read as follows:

"(g) As part of its investment operations the Social Security

System (SSS) shall act as insurer of all or part of its interests on

properties mortgaged to the SSS or on the lives of mortgagors whose

properties are mortgaged to the SSS in accordance with such rules and

regulations prescribed by the Social Security Commission. For this

purpose, the SSS shall establish a separate account to be known as the

Mortgagors' Insurance Account. All amounts received by the SSS in

connection with the aforesaid insurance operations shall be placed in

the Mortgagors' Insurance Account. The assets and liabilities of the

Mortgagors' Insurance Account shall at all times be clearly identifiable

and distinguishable from the assets and liabilities in all other

accounts of the SSS. Notwithstanding any provision of law to the

contrary, the assets held in the Mortgagors' Insurance Account shall not

be chargeable with the liabilities arising out of any other business

the SSS may conduct but shall be held and applied exclusively for the

benefit of the owners or beneficiaries of the insurance contracts issued

by the SSS under this paragraph.

"The SSS may insure any of its interest or part thereof with any

private company or reinsurer.

"The Insurance Commission or its authorized representatives shall

make an examination into the financial condition and methods of

transacting business of the SSS at least once in two years and the

report of said examination shall be submitted to the Social Security

Commission and copy thereof shall be furnished the Congress and the

Office of the President of the Philippines within a reasonable time

after the close of the examination: Provided, That for each

examination the SSS shall pay to the Insurance Commission an amount

equal to the actual expenses of the Insurance Commission in the conduct

of the examination, including the salaries of the examiners and of the

actuary of the Insurance Commission who have been assigned to make such

examination for the actual time spent in said examination.

"The general law on insurance and rules and regulations promulgated

thereunder shall have suppletory application insofar as it is not in

conflict with the Social Security Law and its rules and regulations."

Section 2

SECTION 2. This Decree is hereby made part of the

laws of the land and shall take effect immediately.

Done in the City of Manila, this 20th day of November, in the year of

Our Lord, nineteen hundred and seventy-two.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary