Republic Act No. 408

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1

Paragraph F of section one of Republic Act Numbered Sixty-two is hereby amended to read as follows:

"F. Upon the expiration of the period for the presentation of proof of ownership, securities for which no claim of ownership has been filed, or the ownership of which has not been satisfactorily proved, shall be turned over to and held in trust by the Securities and Exchange Commission for a period of three years: Provided, However, That litigations pending in court concerning the ownership of any outstanding security shall not be affected thereby and may continue until the rendition of final judgment.

"The Securities and Exchange Commission shall entertain the claims of ownership to the securities held by it is trust in pursuance hereof and shall require the issuer corporation or association to issue new share certificates of bonds to such claimants as shall introduce satisfactory proof of ownership of securities, as prescribed in paragraph D of this section. Upon the expiration of the three-year period, the securities as to which satisfactory proof of ownership has not been presented or no claim has been filed, or the claim, if any, has been abandoned, and which are not subject of litigation, if any, shall be returned to the issuer and shall become part of its treasury stock.

"The subject matter of said litigation, if any, shall also become treasury stock, upon the rendition of final judgment of competent court, unless the same shall adjudicate the security or securities therein involved to any of the parties thereto."

Section 2

This Act shall take effect upon its approval.

Approved: June 18, 1949.