ACT No. 536
AN ACT RELATIVE TO RECOGNIZANCES, STIPULATIONS, BONDS, AND UNDERTAKINGS, AND TO ALLOW CERTAIN CORPORATIONS TO BE ACCEPTED AS SURETY THEREON.
By authority of the United States, be it enacted by the Philippine Commission, that:
Section 1. Wherever any recognizance, stipulation, bond, or undertaking conditioned for the faithful performance of any duty or of any contract made with any public authority, Insular,1 provincial, municipal, or otherwise, or of any undertaking, or for doing or refraining from doing anything in such recognizance, stipulation, bond or undertaking specified, is, by the laws of the Philippine Islands or by the regulations or resolutions of any public authority therein, required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient when executed or guaranteed solely by a corporation incorporated under the laws of the United States or of any State thereof, or any corporation organized under the laws of the Philippine Islands, having...
Details
Amends
n/a
Amended by
n/a
Acts
An Act To Provide For Wholesome Food Supplies And To Prevent Cruelty To Animals In Transportation
Act No. 536
Summary of ACT No. 536
Recognizances, Stipulations, Bonds, and Undertakings
• Allows certain corporations to be accepted as surety for recognizances, stipulations, bonds, or undertakings required by Philippine laws or regulations. (Section 1)
• Corporations must be incorporated under U.S. or Philippine laws and have the power to guarantee fidelity, execute bonds, and agree to performance of contracts. (Section 1)
• Requires approval from the relevant head of department, court, judge, officer, board, or body. (Section 1)
• Prohibits requiring a specific guarantee company. (Section 1)
• Requires corporations to be authorized to do business in the Philippines and have a contract with the government to become a surety. (Section 1)
Appointment of Agent and Service of Process
• Requires corporations to appoint an agent in Manila for service of process. (Section 2)
• Allows service on the clerk of the Supreme Court if no agent is available. (Section 2)
• Provides for valid judgments after service of process. (Section 2)
Authorization and Regulation
• Requires corporations to deposit charter, articles of incorporation, and financial statements with the Attorney-General. (Section 3)
• Requires a minimum paid-up capital of 250,000 dollars (now pesos) for authorization. (Section 3)
• Requires quarterly financial statements to be filed with the Attorney-General. (Section 4)
• Allows the Attorney-General to revoke authorization if the corporation is insolvent or violates the Act. (Section 4)
• Allows the Attorney-General to require additional surety from principals. (Section 4)
Lawsuits and Enforcement
• Allows corporations to be sued in Philippine courts regarding recognizances, stipulations, bonds, or undertakings. (Section 5)
• Requires corporations to pay final judgments within 30 days or forfeit the right to do business under the Act. (Section 6)
• Estops corporations from denying their corporate power to execute or guarantee instruments. (Section 7)
• Imposes penalties of 500 to 5,000 dollars (now pesos) for failure to comply with the Act. (Section 8)
Other Provisions
• Clarifies that monetary amounts are in U.S. currency (now Philippine pesos). (Section 9)
• Expedites the enactment of the Act. (Section 10)
• Allows existing surety companies to continue executing bonds until February 1, 1903. (Section 11)
• Sets the effective date as February 1, 1903. (Section 12)
Recognizances, Stipulations, Bonds, and Undertakings
• Allows certain corporations to be accepted as surety for recognizances, stipulations, bonds, or undertakings required by Philippine laws or regulations. (Section 1)
• Corporations must be incorporated under U.S. or Philippine laws and have the power to guarantee fidelity, execute bonds, and agree to performance of contracts. (Section 1)
• Requires approval from the relevant head of department, court, judge, officer, board, or body. (Section 1)
• Prohibits requiring a specific guarantee company. (Section 1)
• Requires corporations to be authorized to do business in the Philippines and have a contract with the government to become a surety. (Section 1)
Appointment of Agent and Service of Process
• Requires corporations to appoint an agent in Manila for service of process. (Section 2)
• Allows service on the clerk of the Supreme Court if no agent is available. (Section 2)
• Provides for valid judgments after service of process. (Section 2)
Authorization and Regulation
• Requires corporations to deposit charter, articles of incorporation, and financial statements with the Attorney-General. (Section 3)
• Requires a minimum paid-up capital of 250,000 dollars (now pesos) for authorization. (Section 3)
• Requires quarterly financial statements to be filed with the Attorney-General. (Section 4)
• Allows the Attorney-General to revoke authorization if the corporation is insolvent or violates the Act. (Section 4)
• Allows the Attorney-General to require additional surety from principals. (Section 4)
Lawsuits and Enforcement
• Allows corporations to be sued in Philippine courts regarding recognizances, stipulations, bonds, or undertakings. (Section 5)
• Requires corporations to pay final judgments within 30 days or forfeit the right to do business under the Act. (Section 6)
• Estops corporations from denying their corporate power to execute or guarantee instruments. (Section 7)
• Imposes penalties of 500 to 5,000 dollars (now pesos) for failure to comply with the Act. (Section 8)
Other Provisions
• Clarifies that monetary amounts are in U.S. currency (now Philippine pesos). (Section 9)
• Expedites the enactment of the Act. (Section 10)
• Allows existing surety companies to continue executing bonds until February 1, 1903. (Section 11)
• Sets the effective date as February 1, 1903. (Section 12)