Law Summary

1. Repeal of Previous Provisions

• Explanation: This section repeals Section Two of Act Numbered Four Hundred and Thirty and Section Two of Act Numbered Four Hundred and Ninety.
• Key Definitions:
  • "Insular Government": Refers to the government established in the Philippine Islands under the authority of the United States.
  • "City of Manila": The capital city of the Philippines, which is governed by the Insular Government.
• Important Requirements:
  • The repealed sections are replaced with a new provision concerning the disbursement of appropriations.
• Relevant Timeframes: None specified for the repeal itself.
• Consequences: The repeal updates the procedure for disbursing funds in local currency.

2. Disbursement of Local Currency Appropriations

• Explanation: The new provision dictates how appropriations are to be withdrawn and paid in local currency concerning obligations expressed in United States currency.
• Key Definitions:
  • "Local Currency": Currency that is issued and used within the Philippines.
  • "United States Currency": Currency used and recognized by the United States.
• Important Requirements:
  • Withdrawals must be made from the Treasury in local currency at the ratio authorized at the time of withdrawal.
  • Payments for obligations expressed in U.S. currency should also be made in local currency at the ratio in force at the time of payment.
  • Salaries must be paid at the ratio existing on the day before the last day of the month for which they are paid.
  • Should a deficiency arise concerning salary payments, additional appropriations are made to cover such deficiencies.
• Relevant Timeframes:
  • Salaries are tied to the exchange rate as of the day before the last day of the month for which they are paid.
• Consequences:
  • Ensures that salary payments are covered even if adjustments in currency valuation lead to deficiencies.

3. Expedited Passage

• Explanation: This section emphasizes the urgency for the enactment of the bill.
• Key Definitions: None specifically introduced.
• Important Requirements:
  • The passage of the Act is expedited in accordance with previously established legislative procedures.
• Relevant Timeframes: The Act is effective immediately upon its passage.
• Consequences:
  • The expedited procedure allows for faster implementation of the provisions of this Act.

4. Effective Date

• Explanation: States when the Act becomes effective.
• Key Definitions: None specifically introduced.
• Important Requirements:
  • The Act shall take effect upon its passage.
• Relevant Timeframes: Immediate effect upon passage.
• Consequences: The provisions will be enforceable without delay following enactment.

Key Takeaways

• Act No. 537 repeals specific sections of prior legislative acts and establishes a new framework for the disbursement of local currency for obligations expressed in U.S. currency.
• Key provisions include the requirement to use the current exchange rate for disbursements and the obligation to ensure salary payments are met despite potential currency valuation changes.
• The Act is expedited for immediate effect, reinforcing the urgency of the legislative changes.