FO371-46252 — Page 106

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All withdrawals made by a depositor including payments made to a deposit- or in the course of liquidation and during the occupation from balances cutstanding as of the last day prior to enomy occupation (25/12/41) shall bc deemed valid and the banks shall be liable only for the lowest minimum balanco remaining out of such balance to the credit of a dopositor on the last date prior to enemy occupation (25/12/41) "Lowest minimum balance" means the lowest level reached as at the close of any business day during the period of onemy occupation by an account or if there be more than one account in the name of a depositor by the consolidation of all deposit accounts carried under the name of one depositor in the same bank.

economic war legislation affecting any property was nullified. Amongst these economic measuros were decrees of 18/9/1914, 17/2/1915, and 29/8/1916 which provided for

the compulsory liquidation of enemy orenemy controlled businesses (and specifically banks) in Belgium.

Tho suggested provisions of this Ordinance havo be on drafted with a view to their application to banking currency and financo only. The question is loft

for consideration whether or not it is advisable to doclare the invalidity of the liquidation of all businesses in the Colony by the Japanese Authorities.

For reasons already explained the liquidation and disposal of the assets of the Banks wore illegal being beyond the limits of what is regarded as permissible to the occupant and amounting to confiscation of private property including the securitics in the custody of or pledged to the bank.

withdrawals by depositors and paymonts mado to them by tho liquidator presumably on their demand but in any case accepted by them on account of their credit balances must be taken to be pro tanto in discharge of the banks' obligations to them. Many depositors withdrew money from the balance to their credit and used the proceeds in whatever currency it was paid cither for maintenance or as happened in numerous cases to pay to liquidators of other banks to redcom cargoes or securities hypothecated to the banks. obtained value and there was pro tanto an extinction of the debts due to thom.

They

This provision is identical with that of Executive Order 49 of the Philippine Commonwealth after the re-occupation of Manila.

(b)

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