REPUBLIC ACT No. 1286 - AN ACT AMENDING SECTION TWO (d) OF REPUBLIC ACT NUMBERED FOUR HUNDRED AND ONE, AS AMENDED, BY EXTENDING UP TO DECEMBER THIRTY-ONE, NINETEEN HUNDRED AND FIFTY-SIX, THE VOLUNTARY PAYMENT WITHOUT INTERESTS OF PREWAR OBLIGATION.

Be it enacted by the Senate and House of the Representative of the Philippines in Congress assembled:

SECTION 1. Section two ( d ) of Republic Act Numbered Four hundred and one, as amended by Republic Acts Numbered Six hundred seventy-one and Nine hundred nineteen, is hereby further amended read as follow:

“SEC. 2. ( d ) When the debtor was unable to pay an obligation which became due and demandable, or the interest which should have been paid during the said period because the assets of the creditor were under the control of the enemy and/or administered through the so-called Enemy Alien Property Custodian or other enemy instrumentality, and the debtor paid the interests to it in the belief that such payment was valid and effective payment to the creditor or because of fear that failure to comply with the demand would lead to replisals on his person or property.

“If the debtor, however, makes a voluntary payment of the entire prewar unpaid principal obligation on or before December thirty-one, nineteen hundred and fifty-six, the interest on such principal obligation corresponding from January one, nineteen hundred and forty-six to the date of payment are likewise hereby condoned.”

SEC. 2. This Act shall take effect upon its approval.

Approved, June 15, 1955.