PHILIPPINE LAWS, STATUTES, CODES & ISSUANCES
PHILIPPINE LAWS, STATUTES AND CODES - CHAN ROBLES VIRTUAL LAW LIBRARY
REPUBLIC ACTS
REPUBLIC ACT NO. 671 - AN
ACT TO AMEND REPUBLIC ACT NUMBERED FOUR HUNDRED ONE ENTITLED "AN ACT TO
CONDONE ALL UNPAID INTEREST ACCRUING FROM JANUARY FIRST, NINETEEN
HUNDRED AND FORTY-TWO TO DECEMBER THIRTY-FIRST, NINETEEN HUNDRED AND
FORTY-FIVE ON ALL OBLIGATIONS OUTSTANDING ON DECEMBER EIGHT, NINETEEN
HUNDRED AND FORTY-ONE, AND TO APPLY PAYMENTS OF INTEREST PAID AFTER
FEBRUARY TWENTY-EIGHT, NINETEEN HUNDRED AND FORTY-FIVE, TO THE
PRINCIPAL OBLIGATION IF STILL OUTSTANDING IN CERTAIN CASES" |
Section 1.
Section one of Republic Act Numbered Four hundred one is hereby amended
to read as follows: "Section 1.
Declaration of policy. � Rehabilitation of those who have suffered the
ravages of war constitutes a prime concern of the Government. In order
to afford opportunities to debtors of the Government or Government
owned or controlled corporations to rehabilitate themselves and to
enable them to pay their prewar obligations under terms and conditions
fair and just to them, it is the declared policy of the State that the
condonation of interests contemplated herein be extended."
Sec. 2. Section two of the Republic Act Numbered Four hundred one is hereby amended to read as follows: "Sec. 2. All
unpaid interest in favor of the Government or Government owned or
controlled corporations accruing from the first day of January,
nineteen hundred and forty-two to thirty-first day of December,
nineteen hundred and forty-five, on all debts and obligations
outstanding on the eighth day of December, nineteen hundred and
forty-one, shall not be demandable and are hereby condoned in the
following cases:
Sec. 3. Section three of Republic Act Numbered
Four hundred one is hereby amended to read as follows: "(a) When the debtor was unable to pay an obligation which became due and demandable, or interest which should have been paid during the said period because of the refusal of the latter to accept payment or because of the failure of the creditors to open business during the said period. "(b) When the debtor was unable to pay on obligation which became due and demandable or interests which should have been paid, during the said period because he was prevented from doing so by reason of his activity in the resistance movement against the enemy or his imprisonment, arrest or detention by the said enemy resulting in his inability to freely pursue his normal work. "(c) When the debtor was unable to pay an obligation which became due and demandable or interest which should have been paid during the said period because of penury caused by the ravages of the war, financial restriction imposed by whatever authority in connection with the prosecution by the enemy of the war, or loss of his ordinary sources of income or control over them as a result thereof. "(d) When the debtor was unable to pay an obligation which became due and demandable, or the interest which should have been paid during the said period because the assets of the creditor were under the control of the enemy and/or administered through the so-called Enemy Alien Property Custodian or other enemy instrumentality, and the debtor paid the interests to it in the belief that such payment was valid and effective payment to the creditor or because of fear that failure to comply with the demand would lead to reprisals on his person or property. "If the debtor, however, makes voluntary payment of the entire pre-war unpaid principal obligation on or before December thirty-one, nineteen hundred and fifty-two, the interests on such principal obligation corresponding from January one, nineteen hundred and forty-six, to the date of payment are likewise hereby condoned." "Sec. 3. All
interests paid on debts or obligations outstanding on the eighth day of
December, nineteen hundred and forty-one corresponding to the period
from the first day of January, nineteen hundred and forty-two to the
thirty-first day of December, nineteen hundred and forty-five, by the
debtors mentioned in section one hereof shall be applied in payment of
the principal obligation if the same is still outstanding and if the
payment is made from or after February twenty-eight, nineteen hundred
and forty-five to the date of the effectivity of this Act."
Sec. 4. A new section, to be denominated as
section 3-A, is hereby inserted after section three of Republic Act
Numbered Four hundred one, to read as follows: "Sec. 3-A.
If any section of this Act, or part thereof, shall be held invalid, the
remainder of the section, or of this Act shall not be affected
thereby."
Sec. 5. This Act shall take effect fifteen days after its publication in the Official Gazette. Approved: June 16, 1951 |
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