Amendment to R.A. No. 401 Re: Extension of Payment Without Interests of Prewar Obligations

June 15, 1955

REPUBLIC ACT NO. 1286

AN ACT AMENDING SECTION TWO (d) OF REPUBLIC ACT NUMBERED FOUR HUNDRED AND ONE, AS AMENDED, BY EXTENDING UP TO DECEMBER THIRTY-ONE, NINETEEN HUNDRED AND FIFTY-SIX, THE VOLUNTARY PAYMENT WITHOUT INTERESTS OF PREWAR OBLIGATIONS

SECTION 1. Section two (d) of Republic Act Numbered Four hundred and one, as amended by Republic Acts Numbered Six hundred seventy-one and Nine hundred nineteen, is hereby further amended to read as follows:

"Sec. 2. (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 a voluntary payment of the entire prewar unpaid principal obligation on or before December thirty-one, nineteen hundred and fifty-six, the interests on such principal obligation corresponding from January one, nineteen hundred and forty-six to the date of payment are likewise hereby condoned."

SECTION 2. This Act shall take effect upon its approval.

Approved: June 15, 1955

Published in the Official Gazette, Vol. 51, No. 7, p. 3357 in July 1955