QuestionsQuestions (Commonwealth Act No. 727)
To govern how monetary obligations incurred or contracted prior to and during the Japanese invasion of the Philippines are paid and liquidated, specifically addressing payments involving Japanese Military notes (“fiat pesos”) and the restoration of sound economic conditions.
All payments made on demand or tendered and accepted during the Japanese invasion on such obligations are considered valid, and the obligations thereby satisfied during the invasion are fully discharged.
They must be applied first to existing obligations incurred or contracted during the Japanese invasion unless the parties agreed otherwise when the obligations were incurred or at the time of payment.
The unpaid balance remains valid, subsisting, and collectible in current legal tender currency, but without interest during the period of the Japanese invasion.
It must be liquidated according to the value of the Japanese Military note relative to the Philippine peso as of the date and place where the obligation was incurred, unless the parties agreed on another value or kind of money for discharge.
The competent court determines the proper value.
Yes. Withdrawals made during the Japanese invasion on account of deposits made before the invasion are valid, and obligations discharged by such withdrawals are considered fully settled.
They are valid and collectible in legal tender currency after liberation, but they earn no interest during the Japanese invasion.
They are declared non-collectible.
All deposit accounts in the same institution for the same depositor, including head office, branches, and agencies in the Philippines, must be consolidated and treated as only one account.
Payments made during the invasion are presumed to be in fiat pesos, and obligations incurred during the invasion are presumed payable in fiat pesos—unless the obligation required payment in another currency.
Only the unconstitutional section or provision is affected; the rest of the Act remains in force.
No. Section 9 expressly states it shall not be construed as a waiver of the right to claim reparations for damages suffered as a result of the Act.
Any person/corporation/association found by final judgment of a competent court to have engaged in buying and selling war materials during the Japanese invasion is not allowed to avail of the Act’s benefits.
The period between the date when Japanese military forces occupied and exercised authority over a territory in the Philippines and the date when Philippine or American authorities retook and resumed authority over the same territory.
Fiat peso includes notes endorsed and issued by the Imperial Japanese Government and used in the Philippines; Philippine peso includes Treasury certificates and other legal currencies of the Commonwealth of the Philippines.