Creation of Barangay New Alabang Village

The Act addresses the fact that, during Japanese invasion, the Japanese issued fiat pesos, commonly referred to as Japanese Military notes, and compelled their circulation at parity with legitimate Philippine currency.
The Act recognizes that these fiat pesos were used to pay obligations incurred or contracted prior to and during the invasion.
The Act proceeds from the premise that, upon liberation, Japanese Military notes were officially declared to have no value as monetary instruments and were not legal tender.
The Act mandates a definite determination of debtor-creditor problems arising from the issuance and circulation of these fiat pesos to restore sound economic conditions.

The “period of Japanese invasion” includes the period between (a) the date when Japanese military forces occupied and exercised authority over a certain territory in the Philippines and (b) the date when Philippine or American authorities retook and resumed authority over the same territory (Section 10(a)).
“Fiat peso (Japanese Military note)” includes all notes endorsed and issued by the Imperial Japanese Government and used in the Philippines (Section 10(b)).
“Philippine peso” includes Treasury certificates and other legal currencies of the Commonwealth of the Philippines (Section 10(c)).

Payments made on demand or tendered and accepted during the period of the Japanese invasion on obligations incurred or contracted prior to and during that period are valid.
Payments that satisfy obligations during the Japanese invasion operate as a fully discharged satisfaction of those obligations (Section 1).
Payments made during the Japanese invasion must be applied first to existing obligations incurred or contracted during the Japanese invasion unless the parties agreed otherwise (either) when such obligations were incurred or at the time of such payments (Section 2).

Any balance remaining unpaid on an obligation incurred or contracted prior to the period of the Japanese invasion remains valid, subsisting, and collectible in current legal tender currency.
Such unpaid balance is collectible without interest during the period of Japanese invasion (Section 3).

Any balance remaining unpaid on an obligation incurred or contracted during the period of the Japanese invasion must be liquidated using the value of the Japanese Military note in relation to the Philippine peso as of the date when and at the place where the obligation was incurred (Section 4).
The balance is liquidated under Section 4 unless the parties agreed on another value or another kind of money in which the obligation shall be discharged.
If the parties disagree on the relative value of the Japanese Military note on the date the obligation was incurred, the competent court decides the proper value (Section 4).
Contracts of sale with right of repurchase and other contracts of similar nature are expressly covered in the liquidation rule for balances of obligations incurred during the invasion (Section 4).

Withdrawals made during the Japanese invasion on account of deposits made before the Japanese invasion with banks or other institutions of credit (including mortgage banks, savings banks, commercial banks, and trust companies) or with private individuals are valid.
Obligations discharged by such withdrawals are considered fully settled (Section 5).
Remaining balances of deposits made before the Japanese invasion with the same institutions or private individuals are valid and collectible in legal tender currency after the liberation of the Philippines.
Remaining balances on deposits made before the Japanese invasion earn no interest during the period of Japanese invasion (Section 6).
Remaining balances of deposits made in Japanese Military notes, or in checks or other credit instruments drawn against or arising from deposits made in Japanese Military notes during the Japanese invasion, are non-collectible (Section 6).
For determining the balance of a depositor’s valid deposit in a bank, all deposit accounts in the same institution of that depositor in the same bank—including head office, branches, and agencies in the Philippines—are consolidated and treated as only one account (Section 6).

Payments made during the Japanese invasion are presumed to have been made in fiat pesos.
Obligations incurred during the Japanese invasion are presumed to have been payable in fiat pesos.
These presumptions do not apply when the obligation required payment in another currency (Section 7).

No person, corporation, or association found by final judgment of a competent court to have engaged in the buying and selling of war materials during the Japanese invasion may avail of the benefits of the Act (Section 11).

The Act does not waive any right of any person, company, or corporation to claim reparations for damages suffered as a result of the application of the Act (Section 9).

When relative value determinations of the Japanese Military note are disputed for an obligation incurred during the invasion, the matter is resolved by the competent court under Section 4.
The Act ties currency valuation and liquidation outcomes to the date and place where the obligation was incurred, subject to court determination when parties disagree (Section 4).

Any law or executive order inconsistent with Commonwealth Act No. 727 is repealed (Section 12).
If any section or provision is declared unconstitutional by a decision of a competent court, the decision affects only the unconstitutional section or provision and does not affect the other provisions (Section 8).
The Act takes effect upon its approval (Section 13).