Section 3. Amendatory Clause. —

To ensure the continuity of this Act, the Home Development Mutual Fund (Pag-ibig Fund) which is a major financing institution of the National Shelter Program is hereby granted the power to condone. Section 12 of Presidential Decree No. 1752, as amended by Republic Act No. 7742, is hereby further amended to read as follows:

"SEC. 12. Powers of the Board. — The Board shall have the following powers:

"(a) To formulate policies, rules and regulations to carry out effectively the functions of the Fund under this Act;

"(b) To direct the operations and administration of the Fund;

"(c) To authorize expenditures of the Fund in the interest of effective administration and operations, to adopt from time to time the budgets for said purposes;

"(d) To condone, in whole or in part, penalties imposed on loans of members-borrowers of the fund who for justifiable reasons, failed to pay on time any obligation due to the Fund subject to the following requirements or conditions:

"(1) That a member-borrower may apply only once for the condonation of penalties on the entire loan amount.

"(2) That the loan amount must have been on arrears for a period of at least two (2) years.

"(3) That the annual total family income shall not be more than Three Hundred Thousand pesos (P300,000.00).

"Such exclusive power to condone shall likewise apply to penalties imposed on employers who justifiably fail to remit when due the required contributions of their employees;

"(e) To approve appointments of personnel; and

"(f) To exercise such powers as may be necessary to carry into effect the powers and accomplish the purposes for which the Fund is established."