AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED FOUR HUNDRED ONEGood Law
REPUBLIC ACT No. 1596
AN ACT AMENDING CERTAIN SECTION OF REPUBLIC ACT NUMBERED FOUR HUNDRED ONE, SO AS TO EXTEND THE PERIOD WITHIN WHICH VOLUNTARY PAYMENT WITHOUT INTERESTS OF PRE-WAR OBLIGATIONS MAY BE MADE AS WELL AS THE PERIOD WITHIN WHICH INTERESTS PAID SHALL BE APPLIED IN PAYMENT OF THE PRINCIPAL OBLIGATION
Section 1. Subsection (d), section two of Republic Act Numbered Four hundred one, as amended, is further amended to read as follows:
"(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 pre-war unpaid principal obligation on or before December thirty-one, nineteen hundred and fifty-seven, the interests on such principal obligation corresponding from January one, nineteen hundred and forty-six to the date of payment are likewise hereby condoned: Provided, however, That the debtor shall have paid at least ten per centum of the entire pre-war unpaid principal obligation within three months from the date of the approval of this Act: Provided, further, That in case any pre-war obligation is subject of any court litigation, then all interests thereon shall be condoned if the entire outstanding pre-war obligation shall be paid within sixty days from the finality of judgment against the doctor."
Section 2. Section three of the same Act, as amended, is further amended to read as follows:
"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 December thirty-one, nineteen hundred fifty-six."
Section 3. This Act shall take effect upon its approval.
Approved: June 16, 1956