Title
Redemption of Illegally Issued PNB Notes
Law
Republic Act No. 831
Decision Date
Aug 14, 1952
Republic Act No. 831 allows for the redemption of illegally issued Philippine National Bank notes, with the Treasurer of the Philippines exchanging them for treasury certificates, while imposing limitations on payments and disregarding transfers to third parties.

Limitations on Redemption Amounts and Registrants

  • Redemption limited to actual registered and deposited notes only.
  • Maximum payment capped at one thousand pesos per individual or corporation, regardless of total face value of notes registered under their name.
  • The Treasurer shall disregard any transfers of note ownership made after initial registration and deposit.
  • Payments shall be made exclusively to the original registrants to prevent abuse.

Cancellation and Destruction of Unredeemed Notes

  • Any balance remaining after payments to original registrants shall be cancelled and destroyed immediately.
  • Purpose is to prevent fraudulent recirculation of the illegally issued notes.

Authority to Issue Implementing Rules and Regulations

  • The Treasurer of the Philippines, with the Secretary of Finance's approval, is authorized to promulgate necessary implementing rules.
  • These rules are crucial for enforcing and giving effect to the Act's provisions.

Requirements for Master Record and Anti-Fraud Measures

  • Redemption is prohibited until a comprehensive master record of all registrants nationwide is completed.
  • The record must show aggregated amounts registered by any individual, including spouses, relatives, employees, agents, and by corporations inclusive of their officers and employees.
  • Strict measures are mandated to prevent fraudulent claims and use of "dummies" to circumvent redemption limits.

Allocation of Remaining Funds to Guerrilla Emergency Notes

  • Any remaining funds after the redemption process shall be allocated for payment of guerrilla emergency notes under Republic Act No. 369.

Repeal of Inconsistent Acts

  • All previous laws, acts, or parts thereof inconsistent with this Act's provisions are repealed or declared invalid.

Penalties for Violation of Redemption Regulations

  • Violations of redemption limits and registration requirements are punishable by:
    • Imprisonment from six months to one year, or
    • A fine ranging from five thousand to ten thousand pesos.

Effectivity of the Act

  • The Act takes effect immediately upon approval on August 14, 1952.

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