Remittance of Interest on Obligations Contracted by Local Government Units

May 28, 1948

REPUBLIC ACT NO. 205

AN ACT TO REMIT THE INTEREST WHICH ACCRUED FROM JANUARY FIRST, NINETEEN HUNDRED AND FORTY-TWO, TO JUNE THIRTIETH, NINETEEN HUNDRED AND FORTY-SIX, ON ALL OBLIGATIONS CONTRACTED BY PROVINCIAL, CITY AND MUNICIPAL GOVERNMENTS IN FAVOR OF THE NATIONAL GOVERNMENT OR OF ANY OF THE GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS, AND TO EXTEND FOR A PERIOD OF FOUR YEARS AND SIX MONTHS THE PAYMENT OF SUCH OBLIGATIONS

SECTION 1. For the purpose of enabling the different provinces, cities and municipalities to stabilize their finances, all interests which accrued from January first, nineteen hundred and forty-two, to June thirtieth, nineteen hundred and forty-six, on all obligations contracted by provincial, city and municipal governments in favor of the National Government or of any of the government-owned or controlled corporations are remitted, and the period of payment of the amortization on the said obligations is hereby extended for a term of four years and six months counted from the due date of the respective obligations. casia

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

Approved: May 28, 1948

Published in the Official Gazette, Vol. 44, No. 7, p. 2172 in July 1948