Law Summary

SECTION 1: Amendment of Section 1626

• Legal Principle/Provision: This section amends the previous provisions regarding the issuance of treasury certificates by the Treasurer of the Philippines.

• Key Definitions Introduced:

  • Treasury Certificates: Financial instruments issued by the National Treasury representing a claim to a sum of money deposited.
  • Treasury Certificate Fund: A specific fund within the National Treasury comprised of deposited silver coins and equivalent legal tender currency.

• Important Requirements or Procedures Outlined:

  • The Treasurer is authorized to accept deposits of silver pesos and coins in amounts of at least twenty pesos.
  • For every deposit, treasury certificates are to be issued in denominations ranging from one peso to five hundred pesos.
  • The coins received are to be retained and utilized solely for the payment of these certificates, forming a trust fund named the "Treasury Certificate Fund."

• Relevant Timeframes, Deadlines, or Expiration Details:

  • The Act takes effect upon its approval, which was on June 2, 1947.

• Consequences Mentioned:

  • The fund must always equal one hundred percent of all treasury certificates in circulation.
  • If there is an insufficient supply of silver coins, U.S. legal tender may temporarily substitute the silver coins in the fund until more silver bullion is purchased for coinage.

• Physical and Custodial Provisions:

  • The Treasury Certificate Fund must be physically segregated from all other funds in the National Treasury.
  • It will be held under the joint custody of the Reserve Vault Committee.

SECTION 2: Effectivity of the Act

• Legal Principle/Provision: This section indicates the effective date of the law.
• Important Requirements or Procedures Outlined:
  • The Act becomes effective immediately upon approval.

Key Takeaways

• Republic Act No. 108 amends the Revised Administrative Code concerning the issuance of treasury certificates.
• The Treasurer of the Philippines is empowered to manage a fund designated for treasury certificates that must be maintained at a one-to-one ratio with the certificates issued.
• U.S. legal tender may be used as a temporary measure in the fund if silver coin supply is inadequate.
• The Treasury Certificate Fund is to be maintained separately from other treasury funds and overseen by a designated committee.
• The Act is effective as of June 2, 1947, upon its approval.