AN ACT TO DEMONETIZE
TREASURY
CERTIFICATES AND CENTRAL BANK NOTES OF OVER ONE HUNDRED PESO DENOMINATIONS
AND FOR OTHER PURPOSES
Section 1. Any provisions of law, rules and regulations
to the contrary notwithstanding, the Central Bank of the Philippines is
hereby ordered to demonetized Treasury certificates and
Central Bank notes
of the denominations of over one hundred pesos, and to replace them with
certificates and bank notes of lower denominations.
Sec. 2. To carry out the purposes of this Act, the
owners or holders of Treasury certificates and
Central Bank notes, either
individual persons, associations, corporations, or institutions, of the
denominations of over one hundred pesos, are required to surrender them to
the Central Bank of the Philippines within six months from the approval of
this Act, and in exchange to receive from the Bank their equivalent amount
in money in Treasury Certificates or
Central Bank notes of smaller
denominations.
Sec. 3. The Central Bank, through its monetary Board,
shall promulgate the necessary rules and regulations to effect and
facilitate the surrendering and replacing of said
Treasury certificates and
Central Bank notes to be demonetized, under the provisions of this Act.
There shall be no question asked from the owners or holders as to the origin
of said treasury certificates and bank notes and as to whether taxes were
collected on them or not in the preceding years. Said paper money shall, in
case where the owners or holders failed to include them in their
corresponding tax returns, be included in their income tax returns and in
other forms of taxes corresponding to the calendar year nineteen hundred and
fifty-three without incurring any penalty.
Sec. 4. The Central Bank shall publish or cause to be
published the serial numbers of the Treasury certificates and
Central Bank
notes that have been demonetized and surrendered under the provisions of
this Act, and, likewise, it shall publish or cause to be published, the
serial numbers of those which have not been surrendered or which must have
been lost, as shall be known by the Central Bank from the treasury
certificates and bank notes that have been surrendered and replaced.
Sec. 5. To all intents and purposes, the
Treasury
certificates and the Central Bank notes of the denominations of over one
hundred pesos, demonetized under this Act, shall be considered as condemned
by the Central Bank of the Philippines after six months from the approval of
this Act and no issuance of such denominations except in an emergency shall
be made for at least one year from the date such denominations are
considered condemned under the provisions of this section. Nothing in this
Act, however, shall prevent the owners or holders of said treasury
certificates and bank notes for using them in buying government bonds and
securities and such industrial bonds and securities as shall be approved by
the Securities and Exchange Commission or in depositing them in banks during
said period of six months after approval of this Act.
Sec. 6. This Act shall take effect upon its approval.
Approved: August 25, 1954