Demonetization of P100 Treasury and Bank Notes

Section 1 provides that any provision of law, rules, and regulations contrary to the Act is overridden.
Section 1 recognizes the Central Bank of the Philippines order to demonetize Treasury certificates and Central Bank notes of denominations over one hundred pesos, and to replace them with lower-denomination certificates and bank notes.

Section 2 requires surrender and replacement to carry out the purposes of the Act.
Section 2 mandates that surrendered notes and certificates be exchanged for their equivalent amount in Treasury certificates and Central Bank notes of smaller denominations.

Section 2 covers owners or holders of Treasury certificates and Central Bank notes of denominations over one hundred pesos.
Section 2 includes individual persons, associations, corporations, and institutions as persons and entities who may hold the covered instruments.
Section 2 requires surrender within six months from the approval of the Act.
Section 2 directs surrender to the Central Bank of the Philippines.

Section 3 requires the Central Bank through its Monetary Board to promulgate necessary rules and regulations to effect and facilitate surrendering and replacing the demonetized Treasury certificates and Central Bank notes.
Section 3 bars the Central Bank from asking questions about the origin of surrendered instruments.
Section 3 bars questions about whether taxes were collected on them in preceding years.
Section 3 provides tax treatment for holders who failed to include the instruments in their tax returns.

Section 3 provides that holders who failed to include the demonetized paper moneys in their corresponding tax returns must include them in their income tax returns and in other forms of taxes corresponding to the calendar year nineteen hundred and fifty-three.
Section 3 grants immunity from penalty for this inclusion process.

Section 4 requires the Central Bank to publish or cause publication of the serial numbers of demonetized Treasury certificates and Central Bank notes that have been surrendered under the Act.
Section 4 requires the Central Bank to publish or cause publication of the serial numbers of instruments that:
- have not been surrendered, or
- have been lost.
Section 4 directs that the Central Bank shall determine which serial numbers fall under these categories based on what has been surrendered and replaced.

Section 5 states that after six months from the approval of the Act, the demonetized instruments of denominations over one hundred pesos are to be considered condemned by the Central Bank of the Philippines.
Section 5 prohibits issuance of such denominations, except in an emergency, for at least one year from the date they are considered condemned.
Section 5 allows holders, during the six-month period after approval, to use the instruments for limited purposes.

Section 5 permits holders to use the demonetized instruments in buying government bonds and securities.
Section 5 permits buying industrial bonds and securities approved by the Securities and Exchange Commission.
Section 5 permits depositing the instruments in banks during the six-month period after approval.

Section 2 sets a six months surrender window counted from August 25, 1954.
Section 5 sets condemnation effective six months from the approval date and restricts issuance for at least one year from condemnation.