MALACAÑAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 49
PROMULGATING RULES AND REGULATIONS GOVERNING
CERTAIN
TRANSACTIONS OF BANKING
INSTITUTIONS DURING
THE ENEMY OCCUPATION
WHEREAS, the economic and financial condition of the Philippines
demands the promulgation of rules and regulations governing certain
transactions of banking institutions during the Japanese occupation;
NOW, THEREFORE, by virtue of the powers vested in me by the
Constitution and the laws of the Commonwealth of the Philippines,
particularly Commonwealth Act No. 671, I, SERGIO OSMEÑA, President of the
Philippines, do hereby ordain and promulgate the following:
SECTION 1. The term “banking institution” as used in this Executive
Order shall include banks, mortgage banks, savings banks, commercial banks
and trust companies.
SECTION 2. All deposits made with banking institutions during enemy
occupation and all deposit liabilities incurred by banking institutions
during the same period are hereby declared null and void, except as provided
in this section. All withdrawals made by a depositor, including liquidation
payments, during the enemy occupation from balances outstanding as of the
last date prior to enemy occupation shall stand as valid, and banking
institutions shall be liable only for the lowest minimum balance remaining
out of such balance to the credit of a depositor on the last date prior to
enemy occupation and without interest beyond December 31, 1941. The term
“lowest minimum balance” shall be understood to mean the lowest level
reached as of the close of any business day during the period of enemy
occupation by a deposit account or, if there be more than one deposit
account, by the consolidation of all deposit accounts carried under the name
of one depositor in the same bank.
SECTION 3. Any provision of existing law inconsistent with this
Executive Order is hereby repealed.
Done in the City of Manila, this 6th day of June, in the year of
Our Lord, nineteen hundred and forty-five, and of the Commonwealth of the
Philippines, the tenth.
(Sgd.) SERGIO OSMEÑA
President of the Philippines
By the President:
(Sgd.) JOSE S. REYES
Secretary to the
President