Act No. 3544, approved on November 22, 1929, amends Section 68 of the Insolvency Law in the Philippines. The amendment specifies that no tax or assessment owed to the Insular, provincial, or municipal governments can be discharged through insolvency proceedings. Additionally, debts arising from fraud, embezzlement, or defalcation by the debtor remain non-dischargeable, although they can still be proven for dividend payments. The act also clarifies that a discharge does not relieve any co-debtors or guarantors of their obligations.
November 22, 1929
ACT NO. 3544
AN ACT TO AMEND SECTION SIXTY-EIGHT OF ACT NUMBERED NINETEEN HUNDRED AND FIFTY-SIX, COMMONLY KNOWN AS THE INSOLVENCY LAW
SECTION 1. Section sixty-eight of Act Numbered Nineteen hundred and fifty-six, commonly known as the Insolvency Law, is hereby amended to read as follows: DcaSIH
"SEC. 68. No tax or assessment due the Insular Government or any provincial or municipal government, whether proved or not as provided for in this Act, shall be discharged. Nor shall any debt created by the fraud or embezzlement of the debtor, or by his defalcation as a public officer or while acting in a fiduciary capacity, be discharged under this Act, but the debt may be proved, and the dividend thereon shall be a payment on account of said debt. No discharge granted under this Act shall release, discharge, or affect any person liable for the same debt, for or with the debtor, either as partner, joint contractor, indorser, surety, or otherwise."
SECTION 2. This Act shall take effect on its approval.
Approved: November 22, 1929