Question & AnswerQ&A (Republic Act No. 342)
The main purpose of Republic Act No. 342 is to provide for the lifting of the debt moratorium on prewar obligations subject to certain conditions, particularly to assist war sufferers by giving them a reasonable time to pay their prewar debts and thereby prevent victimization by creditors.
Section 1 declares that while the debt moratorium is lifted for prewar debts generally, it will be continued in a modified form for war sufferers to allow them reasonable time to rehabilitate and pay their prewar debts.
The debts covered are all debts and monetary obligations payable by private parties within the Philippines that were originally incurred or contracted before December 8, 1941, and remain unpaid.
The moratorium on prewar obligations is extended for a period of eight (8) years from and after the settlement of the war damage claim of the debtor by the United States Philippine War Damage Commission.
Yes, voluntary agreements for the settlement of said obligations may be entered into by the interested parties after the approval of the Act.
Republic Act No. 342 amends the debt moratorium provisions of Executive Order No. 25 by lifting the moratorium on prewar obligations except those covered by Section 2, which remain under moratorium under specified conditions.
If Section 2 is declared void or unenforceable, the original provisions of Title III, Debt Moratorium, Executive Order No. 25, as amended, shall continue to be in force and effect regarding those obligations until repealed or amended by further legislative enactment.
The Act took effect upon its approval on July 26, 1948.
Yes, it provides that the moratorium on prewar debts shall continue in a modified form specifically for war sufferers, granting them a reasonable period to pay their debts to aid their rehabilitation.
No, such debts shall not be due or demandable for eight years after the war damage claim settlement of the debtor, preventing creditors from demanding payment before such time.