Law Summary
Discharge of Obligations
- Obligations, whether incurred before or after the enactment of the law, shall be discharged upon payment in any legal tender coin or currency valid at the time of payment.
- For obligations incurred before the law and which required payment in foreign currency or particular coin, payment shall be made in Philippine currency at the prevailing exchange rate when the obligation was incurred.
- For loans made in foreign currency with stipulated payment in the same currency, the rate of exchange at the stipulated payment date applies.
Legal Tender Status of Philippine Coin and Currency
- All Philippine coin and currency issued or declared by the government, including Central Bank notes, are legal tender for all public and private debts.
Repeal of Inconsistent Laws
- All laws, parts of laws, or acts inconsistent with this Act are repealed, ensuring uniform application.
Effectivity
- The Act became effective immediately upon its approval on June 16, 1950.