WHEREAS, it
is the declared policy of the State to accelerate the growth and
development of the shipping industry;chanroblesvirtualawlibrary
WHEREAS, due to the heavy capital requirement for ship acquisition and
operation, the shipping industry has turned to financial institutions,
both local and foreign, for assistance;chanroblesvirtualawlibrary
WHEREAS, Philippine laws on ship mortgage have not been responsive to
the needs of vessel financing such that it has deterred the extensions
of needed loans to the industry;chanroblesvirtualawlibrary
WHEREAS, there is a recognized need for extending the benefits accorded
to overseas shipping under Presidential Decree No. 214 to domestic
shipping.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order the enactment of a ship mortgage law as follows: chanroblesvirtualawlibrary
Section 1. Title. — This Decree shall be known as
"The Ship Mortgage Decree of 1978."
Section 2. Who may Constitute a Ship Mortgage. — Any
citizen of the Philippines, or any association or corporation organized
under the laws of the Philippines, at least sixty per cent of the
capital of which is owned by citizens of the Philippines may, for the
purpose of financing the construction, acquisition, purchase of vessels
or initial operation of vessels, freely constitute a mortgage or any
other lien or encumbrance on his or its vessels and its equipment with
any bank or other financial institutions, domestic or foreign.
Section 3. Mortgage of Vessel of Domestic Ownership;
records. —
(a) No mortgage, which at the time such mortgage is
made includes a vessel of domestic ownership as this term is defined in
Presidential Decree No. 761, or any portion thereof, as the whole or
any part of the property mortgaged, shall be valid, in respect to such
vessel, against any person other than the mortgagor, his heir or
assign, and a person having actual notice thereof, until such mortgage
is recorded in the office of the Philippine Coast Guard of the port of
documentation of such vessel.
(b) The Coast Guard District or Station Commander
shall record mortgages delivered to him, in the order of their
reception, in books to be kept for that purpose and indexed to show —chanroblesvirtualawlibrary
(1) The name of the vessel;chanroblesvirtualawlibrary
(2) The names of the parties to the mortgage;chanroblesvirtualawlibrary
(3) The time and date of reception of the instrument;chanroblesvirtualawlibrary
(4) The interest in the vessel so mortgaged;chanroblesvirtualawlibrary
(5) The amount and date of maturity of the mortgage;chanroblesvirtualawlibrary
(6) Name, citizenship, nationality and residence of
owner, and
(7) Any material change of condition in respect to
any of the preceding items.
A copy of the instrument or mortgage shall be furnished the Central
Bank of the Philippines.
Section 4. Preferred Mortgages. —
(a) A valid mortgage which at the time it is made
includes the whole of any vessel of domestic ownership shall have, in
respect to such vessel and as of the date of recordation, the preferred
status given by the provisions of Section 17 hereof, if —chanroblesvirtualawlibrary
(1) The mortgage is recorded as provided in Section 3
hereof;chanroblesvirtualawlibrary
(2) An affidavit is filed with the record of such
mortgage to the effect that the mortgage is made in good faith and
without any design to hinder, delay, or defraud any existing or future
creditor of the mortgagor or any lien or of the mortgaged vessel;chanroblesvirtualawlibrary
(3) The mortgage does not stipulate that the
mortgagee waives the preferred status thereof.
(b) Any mortgage which complies with the above
conditions is hereafter called a "preferred mortgage". For purposes of
this Decree, a vessel holding a Provisional Certificate of Philippine
Registry is considered a vessel of domestic ownership such that it can
be subject of preferred mortgage. The Philippine Coast Guard is hereby
authorized to enter a vessel holding a Provisional Certificate of
Philippine Registry in the Registry of Vessels and to record any
mortgage executed thereon. Such mortgage shall have the preferred
status as of the date of recordation upon compliance with the above
conditions.
(c) There shall be endorsed upon the documents of a
vessel covered by a preferred mortgage —chanroblesvirtualawlibrary
(1) The names of the mortgagor and mortgagee;chanroblesvirtualawlibrary
(2) The time and date the endorsement is made;chanroblesvirtualawlibrary
(3) The amount and date of maturity of the mortgage;
and
(4) Any amount required to be endorsed by the
provisions of paragraphs (e) or (f) of this Section.
(d) Such endorsement shall be made (1) by the Coast
Guard District or Station Commander of the port of documentation of the
mortgaged vessel, or (2) by the Coast Guard District or Station
Commander of any port in which the vessel is found, if such Coast Guard
District or Station Commander is directed to make the endorsement by
the Coast Guard District or Station Commander of the port of
documentation. The Coast Guard District or Station Commander of the
port of documentation shall give such direction by wire of letter at
the request of the mortgagee and upon the tender of the cost of
communication of such direction. Whenever any new document is issued
for the vessel, such endorsement shall be transferred to and endorsed
upon the new document by the Coast Guard District or Station Commander.
In the case of a vessel holding a provincial certificate of Philippine
Registry, the endorsement shall be made by the Philippine consul abroad
upon direction by wire or letter from the Maritime Industry Authority
at the request of the mortgagee and upon tender of the cost of
communication of such direction. A certificate of such endorsement,
giving the place, time and description of the endorsement, shall be
recorded with the records of registration to be maintained at the
Philippine Consulate.
(e) A mortgage which includes property other than a
vessel shall not be held a preferred mortgage unless the mortgage
provides for the separate discharge of such property by the payment of
a specified portion of the mortgage indebtedness. If a preferred
mortgage so provides for the separate discharge, the amount of the
portion of such payment shall be endorsed upon the documents of the
vessel.
(f) A preferred mortgage includes more than one
vessel and provides for the separate discharge of each vessel by the
payment of a portion of mortgage indebtedness, the amount of such
portion of such payment shall be endorsed upon the documents of the
vessel. In case such mortgage does not provide for the separate
discharge of a vessel and the vessel is to be sold upon the order of a
district court of the Philippines in a suit in rem in admiralty, the
court shall determine the portion of the mortgage indebtedness
increased by 20 per centum (1) which, in the opinion of the court, the
approximate value of all the vessels covered by the mortgage, and (2)
upon the payment of which the vessel shall be discharged from the
mortgage.
Section 5. Certified Copies of Mortgage; exhibition.
— The Coast Guard District or Station Commander upon the recording of a
preferred mortgage shall deliver two certified copies thereof to the
mortgagor who shall place, and use due diligence to retain, one copy on
board the mortgaged vessel notice of which shall be posted in a
conspicuous place thereat and cause such copy and the documents of the
vessel to be exhibited by the master to any person having business with
the vessel, which give rise to a maritime lien upon the vessel or to
the sale, conveyance, or mortgage thereof. The master of the vessel
shall upon the request of any such person, exhibit to him the documents
of the vessel placed on board thereof. The requirement of this Section
that a copy of a preferred mortgage be placed and retained on board the
mortgaged vessel shall not apply in the case of a mortgaged vessel
which is not self-propelled (including but not limited to, barges,
scores, lighters, and car floats).
If the master of the vessel willfully fails to exhibit the documents of
the vessel or the copy of any preferred mortgage thereof, the
Philippine Coast Guard may suspend or cancel the master's license.
Section 6. Prior and Subsequent Maritime Liens on
Mortgaged Vessel. — The mortgagor (1) shall, upon request of the
mortgagee, disclose in writing to him prior to the execution of any
preferred mortgage, the existence of any maritime lien, prior mortgage,
or other obligation or liability upon the vessel to be mortgaged, that
is known to the mortgagor, and (2) without the consent of the
mortgagee, shall not incur, after the execution of such mortgage and
before the mortgagee has had a reasonable time in which to record the
mortgage and have indorsements in respect thereto made upon the
documents of the vessel, any contractual obligation creating a lien
upon the vessel other than a lien for wages of stevedores when employed
directly by the owner, operator, master, ship's husband, or agent of
the vessel, for wages of the crew of the vessel, for general average,
or for salvage, including contract salvage, in respect to the vessel,
tonnage dues and all other charges (not to exceed P20,000) of the
Philippine Government in respect to the vessel. chanroblesvirtualawlibrary
A mortgagor, who, with intent to defraud, violates the above provision
and if the mortgagor is a corporation or association, the president or
other principal executive officer of the corporation or association,
shall be punished by a fine of not, more than P5,000 or imprisonment of
not more than two years, or both. The mortgage indebtedness shall
thereupon become immediately due and payable at the election of the
mortgagee.
Section 7. Record of Notice of Claim of Lien on
Mortgaged Vessel; discharge of lien. —chanroblesvirtualawlibrary
(a) The Coast Guard District or Station Commander of
the port of documentation shall, upon the request of any person, record
notice of his claim of a lien upon a vessel covered by a preferred
mortgage, together with the nature, date of creation, and amount of the
lien, and the name and address of the person. Any person who has caused
notice of his claim of lien to be so recorded shall, upon a discharge
in whole or in part of the indebtedness, forthwith file with the Coast
Guard District or Station Commander a certificate of such discharge.
The Coast Guard District or Station Commander shall thereupon record
the certificate.
(b) The mortgagor upon a discharge in whole or in
part of the mortgage indebtedness, shall forthwith file with the Coast
Guard District or Station Commander for the port of documentation of
the vessel, a certificate of such discharge duly executed by the
mortgagee. Such Coast Guard District or Station Commander shall there
upon record the certificate. In case of a vessel covered by a preferred
mortgage, the Coast Guard District or Station Commander at the port of
documentation shall endorse upon the documents of the vessel, or direct
the Coast Guard District or Station Commander at any port in which the
vessel is found, to so endorse, the fact of such discharge.
A certificate of such endorsement, giving the time, place and
description of the endorsement, shall be recorded with the Philippine
Coast Guard. Where the endorsement is made by a person other than the
Coast Guard District or Station Commander such certificate shall be
promptly forwarded to the Philippine Coast Guard.
Section 8. Conditions Precedent to Record; interest
on Preferred Mortgage. —
(a) No mortgage shall be recorded unless it states
the interest of the mortgagor in the vessel, and the interest so
mortgaged.
(b) No mortgage, notice of claim of lien, or
certificate of discharge thereof, shall be recorded unless previously
acknowledged before the Coast Guard District or Station Commander of
the port of documentation or a notary public or other officer
authorized by a law of the Philippines to take acknowledgment of deeds
or before a Philippine consul or consular agent.
(c) In case of a change in the port of documentation
of a vessel of the Philippines, no mortgage shall be recorded at the
new port of documentation unless there is furnished to the Coast Guard
District or Station Commander of such port, together with the copy of
the mortgage to be recorded, a certified copy of the record of the
vessel at the former port of documentation furnished by the Coast Guard
District or Station Commander of such port. The Coast Guard District or
Station Commander at the new port of documentation is authorized and
directed to record such certified copy.
Section 9. Inspection of the Copies for Records;
fees. — Each Coast Guard District or Station Commander shall permit
records made under the provisions of this decree to be inspected during
office hours, under such reasonable regulation as the Philippine Coast
Guard may establish. Upon the request of any person the Coast Guard
District or Station Commander shall furnish him from the records of the
Coast Guard's office (1) a certificate setting forth the names of the
owners of any vessel, the interest held by each owner, and the material
facts as to any mortgage covering, or any lien or other encumbrance
upon, a specified vessel, (2) a certified copy of any mortgage, notice
of claim of lien, or certified copy discharge in respect to such
vessel, or (3) a certified copy as required by subsection (c) of
Section 8 hereof. The Philippine Coast Guard shall collect the fees as
provided for under existing laws and regulations for any mortgage
recorded, or any certificate or certified copy furnished by it.
Section 10. Lien of preferred Mortgage; foreclosure;
jurisdiction; procedure. — A preferred mortgage shall constitute a lien
upon the mortgaged vessel in the amount of the outstanding mortgage
indebtedness secured by such vessel. Upon the default of any term or
condition of the mortgage such lien may be enforced by the mortgagee by
suit in remaining admiralty, wherein the vessel itself may be made a
partly defendant and be arrested in the manner as provided in Section
11 hereof. Original jurisdiction of all such suits is granted to the
Court of First Instance of the Philippines exclusively. In addition to
any notice by publication, actual notice of commencement of any such
suit shall direct, to (1) the master, other ranking officer, or
caretaker of the vessel, and (2) any person who has recorded a notice
of claim of an undischarged lien upon the vessel, as provided in
Section 7 hereof, unless after search by the mortgage satisfactory to
the court, such mortgagor, master, other ranking officer, caretaker, or
claimant is not found within the Philippines. Failure to give notice to
any such person, as required by this Section, shall be liable to such
person for damages in the amount of his interest in the vessel
terminated by the suit.
In case of judicial foreclosure as provided herein, the provisions of
Rule 68 of the New Rules of Court, if not inconsistent herewith, shall
apply. chanroblesvirtualawlibrary
The lien of a preferred ship mortgage may also be enforced by a suit in
rem in admiralty or otherwise in any foreign country in which the
vessel may be found pursuant to the procedure of said country for the
enforcement of ship mortgages constituting maritime liens on vessels
documented under the laws of said country.
Section 11. Arrest of Vessels. — Upon the filing of
the petition for the judicial foreclosure of a Preferred Ship Mortgage,
or immediately thereafter, the applicant may apply ex-parte for an
order for the arrest of the mortgaged vessel or vessels and the judge
shall immediately issue the same, provided that it is made to appear by
affidavit of the applicant, or of some other person who personally
knows the facts that a default in the mortgage has occurred and that
applicant files a bond executed to the adverse party in an amount to be
fixed by the judge, not exceeding the applicant's claim, conditioned
that the latter will pay all the costs which may be adjudged to the
adverse party and all damages which he may sustain by reason of such
arrest, if the court shall finally adjudge that the applicant was not
entitled thereto.
Section 12. Discharge of Order of Arrest;
Counterbond. — At any time after an order of arrest has been granted,
the party whose vessel or vessels had been arrested, or the person
appearing in his behalf, may, upon reasonable notice to the applicant,
apply to the judge who granted the order, or to the judge of the court
in which the action is pending, for an order discharging the order of
arrest. That judge shall order the discharge of the arrest if a cash
deposit is made, or counterbond executed to the creditor is filed, on
behalf of the adverse party, with the clerk or judge of the court where
the application is made in an amount double the value of the claim to
secure the payment of any judgment that the creditor may recover in the
action. Upon the filing of such counterbond, copy thereof shall
forthwith be served on the creditor or his lawyer. Upon discharge of
the order of arrest, the property arrested or seized shall be delivered
to the party making the deposit or giving the counterbond, or the
person appearing in his behalf, the deposit or counterbond aforesaid
standing in place of the vessel or vessels released. Should such
deposit or counterbond for any reason be found to be, or become
insufficient, and the party furnishing the same fails to file an
additional co-counterbond, the attaching creditor may apply for a new
order of arrest or seizure.
Section 13. Discharge of Order of Arrest for Improper
or Irregular Issuance. — The party whose vessel/s has been arrested may
also, at any time either before or after the release of the arrested
vessel, or before any arrest or seizure has been effected, upon
reasonable notice to the creditor, apply to the judge who granted the
order, or to the judge of the court in which the action is pending, for
an order to discharge the order of arrest or seizure on the ground that
the same improperly or irregularly issued. After hearing, the judge
shall order the discharge of the order of arrest or seizure if it
appears that it was improperly or irregularly issued and the defect is
not cured forthwith.
Section 14. Extrajudicial Foreclosure. — The
provisions of the Chattel Mortgage Law on the remedy of extra-judicial
foreclosure of mortgages in so far as they are not inconsistent
herewith shall still apply. For the purpose of taking possession of the
vessel or vessels, the foreclosing creditor may secure from a judge of
the Court of First Instance of the province where the vessel may be
found or where the creditor or debtor resides an order for the arrest
or seizure of the vessel. Upon such order of seizure or arrest being
issued, the sheriff shall immediately take possession of the vessel or
vessels for the purpose of foreclosure and sale. The vessel may only be
released in accordance with the provisions of Section 13 of this Act,
or when the debtor pays the outstanding obligation.
Section 15. Foreign Ship Mortgages. — As used in
Sections 10 to 18 hereof, the term "preferred mortgage" shall include,
in addition to a preferred mortgage made pursuant to the provisions of
this Decree, any mortgage, hypothecation, or similar charge created as
security upon any documented foreign vessel if such mortgage,
hypothecation, or similar charge has been duly and validly executed in
accordance with the laws of the foreign nation under the laws of which
the vessel is documented and has been duly registered in accordance
with such laws in a public register either at the port of registry of
the vessel or at a central office; and the term "preferred mortgage
lien" shall also include the lien of such mortgage, hypothecation, or
similar charge: Provided, however, That such "preferred mortgage lien"
in the case of a foreign vessel shall be subordinate to maritime liens
for repairs, supplies, towage, use of drydock or marine railway, or
other necessaries, performed or supplied in the Philippines.
Section 16. Receiver in Foreclosure; possession by
sheriff— In any suit in rem in admiralty for the enforcement of the
preferred mortgage lien, the court may appoint a receiver and, in its
discretion, authorize the receiver to operate the mortgaged vessel. The
sheriff may be authorized and directed by the court to take possession
of the mortgaged vessel notwithstanding the fact that the vessel is in
the possession or under the control of any person claiming a possessory
common law lien.
Section 17. Preferred Maritime Lien, Priorities,
Other Liens. — (a) Upon the sale of any mortgaged vessel in any
extra-judicial sale or by order of a district court of the Philippines
in any suit in rem in admiralty for the enforcement of a preferred
mortgage lien thereon, all pre-existing claims in the vessel, including
any possessory common-law lien of which a lienor is deprived under the
provisions of Section 16 of this Decree, shall be held terminated and
shall thereafter attach in like amount and in accordance with the
priorities established herein to the proceeds of the sale. The
preferred mortgage lien shall have priority over all claims against the
vessel, except the following claims in the order stated: (1) expenses
and fees allowed and costs taxed by the court and taxes due to the
Government; (2) crew's wages; (3) general average; (4) salvage;
including contract salvage; (5) maritime liens arising prior in time to
the recording of the preferred mortgage; (6) damages arising out of
tort; and (7) preferred mortgage registered prior in time.
(b) If the proceeds of the sale should not be
sufficient to pay all creditors included in one number or grade, the
residue shall be divided among them pro rata. All credits not paid,
whether fully or partially shall subsist as ordinary credits
enforceable by personal action against the debtor. The record of
judicial sale or sale by public auction shall be recorded in the Record
of Transfers and Encumbrances of Vessels in the port of documentation.
Section 18. Suit in Personam in Admiralty on Default.
—
(a) Upon the default of any term or condition of a
preferred mortgage upon a vessel, the mortgagee may, in addition to all
other remedies granted by this Decree, bring suit in personal in
admiralty in a district court of the Philippines, against the mortgagor
for the amount of the outstanding mortgage indebtedness secured by such
vessel or any deficiency in the full payment thereof.
(b) This Decree shall not be construed, in the case
of a mortgage covering, in addition to vessels, realty or personality
other than vessels, or both, to authorize the enforcement by suit in
rem in admiralty of the rights of the mortgage in respect to such
realty or personality other than vessels.
Section 19. Surrender of Documents; termination of
mortgagee's interest; sale of mortgaged vessel. —
(a) The documents of a vessel of the Philippines
covered by a preferred mortgaged may not be surrendered (except in the
case of the forfeiture of the vessel or its sale by the order of any
court of the Philippines or any foreign country) without the approval
of the Maritime Industry Authority. The Administrator shall not grant
such approval without the mortgagee's consent.
(b) The interest of the mortgage in a vessel of the
Philippines covered by a mortgage, shall not be terminated by the
forfeiture of the vessel for a violation of any law of the Philippines,
unless the mortgage authorized, consented, or conspired to effect the
illegal act, failure, or omission which constituted such violation.
Neither shall the chance by the shipowner in the use or character of
the vessel or in the business of the mortgagor, without the consent of
the mortgagee, nor the failure by the mortgagor to comply with the
provisions of Section 5 hereof affect the validity or preference of the
preferred ship mortgage as against third persons.
(c) Upon the sale of any vessel of the Philippines
covered by a preferred mortgage in any extrajudicial sale or by order
of a district court of the Philippines in any suit in rem in admiralty
for the enforcement of a maritime lien other than a preferred maritime
lien, the vessel shall be sold free from all pre-existing claims
thereon; but the court shall, upon the request of the mortgagee, the
plaintiff, or any intervenor, require the purchase at such sale to give
and the mortgagee to accept a new mortgage of the vessel for the
balance of the term of the original mortgage. The conditions of such
new mortgage shall be the same, so far as practicable, as those of the
original mortgage and shall be subject to the approval of the court. If
such new mortgage is given, the mortgagee shall not be paid from the
proceeds of the sale and the amount payable as the purchase price shall
be held diminished in the amount of the new mortgage indebtedness.
(d) No vessel of domestic ownership shall be
mortgaged, nor, any rights under said mortgage shall be assigned, to
any person not a citizen of the Philippines without the approval of the
Maritime Industry Authority. The penalties and sanctions provided for
under Commonwealth Act No. 606 shall apply in case of any violation
hereof.
(e) The foreclosure sale of vessels mortgaged under
the provisions of this Decree, whether judicially or extra- judicially,
shall not require the approval of the Maritime Industry Authority.
Section 20. Who May Bid in the Foreclosure Sale. —
The following persons are qualified to bid in the foreclosure sale of
the mortgaged vessel:cralaw:red
(a) Citizens of the Philippines or corporations 60%
of the capital of which is owned by Filipino citizens.
(b) A foreign mortgagee or foreign national whose
country has diplomatic relations with the Philippines or whose country
grants reciprocal rights to Filipino citizens.
In case the purchaser is a foreign individual or entity, the Philippine
Coast Guard shall, upon presentation of the certificate of sale, cancel
the registration of the vessel and issue a certificate to that effect
upon request.
Section 21. Maritime Lien for Necessaries; persons
entitled to such lien. — Any person furnishing repairs, supplies,
towage, use of dry dock or marine railway, or other necessaries to any
vessel, whether foreign or domestic, upon the order of the owner of
such vessel, or of a person authorized by the owner, shall have a
maritime lien on the vessel, which may be enforced by suit in rem, and
it shall be necessary to allege or prove that credit was given to the
vessel.
Section 22. Persons Authorized to Procure Repairs,
Supplies, and Necessaries. — The following persons shall be presumed to
have authority from the owner to procure repairs, supplies, towage, use
of dry dock or marine railway, and other necessaries for the vessel:
The managing owner, ship's husband, master or any person to whom the
management of the vessel at the port of supply is entrusted. No person
tortiously or unlawfully in possession or charge of a vessel shall have
authority to bind the vessel.
Section 23. Notice to Person Furnishing Repairs,
Supplies, and Necessaries. — The officers and agents of a vessel
specified in Section 22 of this Decree shall be taken to include such
officers and agents when appointed by a character, by an owner pro hac
vice, or by an agreed purchaser in possession of the vessel; but
nothing in this Decree shall be construed to confer a lien when the
furnisher know, or by exercise of reasonable diligence could have
ascertained, that because of the terms of a charter party, agreement
for sale of the vessel, or for any other reason, the person ordering
the repairs, supplies, or other necessaries was without authority to
bind the vessel therefor.
Section 24. Waiver of Right to Lien. — Nothing in
this Decree shall be construed to prevent the furnisher of repairs,
supplies, towage, use of dry dock or marine railway, or other
necessaries, or the mortgagee, from waiving his right to a lien, or in
the case of a preferred mortgage lien, to the preferred status of such
lien, at any time by agreement or otherwise.
Section 25. Existing Mortgages Not Affected;
exception. — This Decree shall not apply (1) to any existing mortgage,
or (2) to any mortgage hereafter placed at any vessel under an existing
mortgage, so long as such existing mortgage remains undischarged. The
Decree shall, however, apply to mortgages executed pursuant to
Presidential Decree No. 214, provided, that no vested rights of third
parties are affected thereby.
Section 26. Rules and Regulations by Philippine Coast
Guard and the Maritime Industry Authority. — The Philippine Coast Guard
and the Maritime Industry Authority are hereby authorized to make such
rules and regulations within their respective spheres of jurisdiction,
as they may deem necessary for the efficient execution of the
provisions of this Decree.
Section 27. Port of Documentation. — Whenever in the
Ship Mortgage Decree of 1978 the words "port of documentation" are
used, they shall be deemed to mean the port of registry of the vessel.
Section 28. Instruments and Acts Validated. — All
mortgages of any vessel of any part thereof, and all documentations,
recordations, indorsements and indexing thereof, and proceedings
incidental thereto made or done, prior to the effectivity of this
Decree are declared valid to the extent they would have been valid if
the port or ports at which it should have been documented in accordance
with law; and this Section is declared retroactive so as to accomplish
such validations: Provided, That nothing herein contained shall be
construed to deprive any person of any vested right.
Section 29. Repealing Clause. — The provisions of the
New Civil Code, the Code of Commerce, the Chattel Mortgage Law, the
Revised Rules of Court and of such other laws, decrees, executive
orders, rules and regulations which are in conflict or inconsistent
with the provisions of this Decree are hereby repealed, amended or
modified accordingly. If for any reason, any section, subsection,
sentence, clauses or term of this Decree is held to be unconstitutional
such decision shall not affect the validity of the other provisions of
this Decree.
Section 30. Effectivity. — This Decree shall take a
effect upon its approval.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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