Amendment to Paragraph 2, Section 71 of Act No. 1956 (Insolvency Law)
Act No. 3616, enacted on December 4, 1929, amends Section 71 of the Insolvency Law in the Philippines. The amendment specifies that if an individual engages in deceptive practices related to business—such as obtaining goods on credit under false pretenses, pawning or selling goods at a loss, or incurring gambling losses that contribute to insolvency—these actions can affect the proceedings of their insolvency case. The law aims to protect creditors by preventing fraudulent behavior shortly before insolvency claims. This act became effective upon its approval on the same date.
Law Information
- Reference Number
- Act No. 3616
- Date Enacted
- Category
- Statutes
- Subcategory
- Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
December 4, 1929
ACT NO. 3616
AN ACT AMENDING PARAGRAPH TWO, SECTION SEVENTY-ONE OF ACT NUMBERED NINETEEN HUNDRED AND FIFTY-SIX, ENTITLED "THE INSOLVENCY LAW"
SECTION 1. Paragraph two of section seventy-one of Act Numbered Nineteen hundred and fifty-six, entitled "The Insolvency Law," is hereby amended so as to read as follows:
"2. If he shall, within three months before commencement of proceedings in insolvency, under the false pretense of carrying on business and dealing in the ordinary course of trade, obtain on credit from any person any goods or chattels or shall pawn, pledge, or dispose of, otherwise than by bona fide transactions in the ordinary course of his trade, any of his goods and chattels which have been obtained on credit and remain unpaid for, or shall have suffered loss in any kind of gaming when such loss is one of the causes determining the commencement of proceedings, in insolvency, or shall have sold at a loss or for less than the current price any goods bought on credit and still unpaid for, or shall have advanced payments to the prejudice of his creditors." cASTED
SECTION 2. This Act shall take effect on its approval.
Approved: December 4, 1929
Cite This Law
Amendment to Paragraph 2, Section 71 of Act No. 1956 (Insolvency Law), Act No. 3616, Dec 4, 1929 (Philippines)
Amendment to Paragraph 2, Section 71 of Act No. 1956 (Insolvency Law), Act No. 3616 (Phil. 1929)
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