THE 1987 CONSTITUTION OF THE

REPUBLIC OF THE PHILIPPINES –

ARTICLE I
ARTICLE I

1. NATIONAL TERRITORY

The national territory comprises the Philippine archipelago, with all the islands and waters
embraced therein, and all other territories over which the Philippines has sovereignty or
jurisdiction, consisting of its terrestrial, fluvial and aerial domains, including its territorial
sea, the seabed, the subsoil, the insular shelves, and other submarine areas. The waters
around, between, and connecting the islands of the archipelago, regardless of their breadth
and dimensions, form part of the internal waters of the Philippines.

ARTICLE II

DECLARATION OF PRINCIPLES AND STATE POLICIES

PRINCIPLES

Section 1. The Philippines is a democratic and republican State. Sovereignty

resides in the people and all government authority emanates from them.

Section 2. The Philippines renounces war as an instrument of national policy,

adopts the generally accepted principles of international law as part of the law of
the land and adheres to the policy of peace, equality, justice, freedom,
cooperation, and amity with all nations.

Section 3. Civilian authority is, at all times, supreme over the military. The Armed
Forces of the Philippines is the protector of the people and the State. Its goal is to
secure the sovereignty of the State and the integrity of the national territory.

Section 4. The prime duty of the Government is to serve and protect the people.
The Government may call upon the people to defend the State and, in the
fulfillment thereof, all citizens may be required, under conditions provided by law,
to render personal, military or civil service.

Section 5. The maintenance of peace and order, the protection of life, liberty, and
property, and promotion of the general welfare are essential for the enjoyment by
all the people of the blessings of democracy.
Section 6. The separation of Church and State shall be inviolable.

STATE POLICIES

Section 7. The State shall pursue an independent foreign policy. In its relations
with other states, the paramount consideration shall be national sovereignty,
territorial integrity, national interest, and the right to self-determination.

Section 8. The Philippines, consistent with the national interest, adopts and
pursues a policy of freedom from nuclear weapons in its territory.

Section 9. The State shall promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.

Section 10. The State shall promote social justice in all phases of national
development.

Section 11. The State values the dignity of every human person and guarantees
full respect for human rights.

Section 12. The State recognizes the sanctity of family life and shall protect and
strengthen the family as a basic autonomous social institution. It shall equally
protect the life of the mother and the life of the unborn from conception. The
natural and primary right and duty of parents in the rearing of the youth for civic
efficiency and the development of moral character shall receive the support of the
Government.

Section 13. The State recognizes the vital role of the youth in nation-building and
shall promote and protect their physical, moral, spiritual, intellectual, and social
well-being. It shall inculcate in the youth patriotism and nationalism, and
encourage their involvement in public and civic affairs.

Section 14. The State recognizes the role of women in nation-building, and shall
ensure the fundamental equality before the law of women and men.

Section 15. The State shall protect and promote the right to health of the people
and instill health consciousness among them.

Section 16. The State shall protect and advance the right of the people to a
balanced and healthful ecology in accord with the rhythm and harmony of nature.

Section 17. The State shall give priority to education, science and technology,
arts, culture, and sports to foster patriotism and nationalism, accelerate social
progress, and promote total human liberation and development.
Section 18. The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.

Section 19. The State shall develop a self-reliant and independent national
economy effectively controlled by Filipinos.

Section 20. The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed investments.

Section 21. The State shall promote comprehensive rural development and
agrarian reform.

Section 22. The State recognizes and promotes the rights of indigenous cultural
communities within the framework of national unity and development.

Section 23. The State shall encourage non-governmental, community-based, or

sectoral organizations that promote the welfare of the nation.

Section 24. The State recognizes the vital role of communication and information
in nation-building.

Section 25. The State shall ensure the autonomy of local governments.

Section 26. The State shall guarantee equal access to opportunities for public
service, and prohibit political dynasties as may be defined by law.

Section 27. The State shall maintain honesty and integrity in the public service
and take positive and effective measures against graft and corruption.

Section 28. Subject to reasonable conditions prescribed by law, the State adopts
and implements a policy of full public disclosure of all its transactions involving
public interest.

2. AN ACT REVISING THE PENAL CODE AND OTHER PENAL LAWS

Preliminary Article - This law shall be known as "The Revised Penal Code."

BOOK ONE
GENERAL PROVISIONS REGARDING THE DATE OF ENFORCEMENT AND APPLICATION OF
THE PROVISIONS OF THIS CODE, AND REGARDING THE OFFENSES, THE PERSONS LIABLE
AND THE PENALTIES

Preliminary Title

DATE OF EFFECTIVENESS AND APPLICATION OF THE PROVISIONS OF THIS CODE

Article 1. Time when Act takes effect. - This Code shall take effect on the first day of January,
nineteen hundred and thirty-two.

Article 2. Application of its provisions. - Except as provided in the treaties and laws of
preferential application, the provisions of this Code shall be enforced not only within the
Philippine Archipelago, including its atmosphere, its interior waters and maritime zone, but
also outside of its jurisdiction, against those who:

1. Should commit an offense while on a Philippine ship or airship

2. Should forge or counterfeit any coin or currency note of the Philippine Islands or
obligations and securities issued by the Government of the Philippine Islands;

3. Should be liable for acts connected with the introduction into these islands of the
obligations and securities mentioned in the presiding number;

4. While being public officers or employees, should commit an offense in the exercise
of their functions; or

5. Should commit any of the crimes against national security and the law of nations,
defined in Title One of Book Two of this Code.

Title One

FELONIES AND CIRCUMSTANCES WHICH AFFECT CRIMINAL LIABILITY

Chapter One
FELONIES

Article 3. Definitions. - Acts and omissions punishable by law are felonies (delitos).

Felonies are committed not only be means of deceit (dolo) but also by means of fault (culpa).

There is deceit when the act is performed with deliberate intent and there is fault when the
wrongful act results from imprudence, negligence, lack of foresight, or lack of skill.

Article 4. Criminal liability. - Criminal liability shall be incurred:

1. By any person committing a felony (delito) although the wrongful act done be
different from that which he intended.

2. By any person performing an act which would be an offense against persons or

property, were it not for the inherent impossibility of its accomplishment or an
account of the employment of inadequate or ineffectual means.

3. PRESIDENTIAL DECREE NO. 1521 THE SHIP MORTGAGE DECREE OF 1978

WHEREAS, it is the declared policy of the state to accelerate the growth and development of the
shipping industry;
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;

WHEREAS, Philippine laws on ship mortgage have not been responsive to the needs of vessel
financing such that it has deterred the extension of needed loans to the industry;

WHEREAS, there is a recognized need for extending the benefits accorded to overseas shipping under
Presidential Decree No. 214 to domestic shipping.

NOW, THEREMAKE, 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:
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 percent 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.

4. article 573- 585

ARTICLE 573. Merchant vessels constitute property which may be acquired and transferred by
any of the means recognized by law. The acquisition of a vessel must appear in a written
instrument, which shall not produce any effect with respect to third persons if not inscribed in
the registry of vessels.

The ownership of a vessel shall likewise be acquired by possession in good faith, continued
for three years, with a just title duly recorded. In the absence of any of these requisites,
continuous possession for ten years shall be necessary in order to acquire ownership.

A captain may not acquire by prescription the vessel of which he is in command.

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[With respect to Article 573, read P.D. No. 474, Sections 3 & 12(h)

Presidential Decree No. 474

PROVIDING FOR THE REORGANIZATION OF MARITIME FUNCTIONS IN THE PHILIPPINES,

CREATING THE MARITIME INDUSTRY AUTHORITY, AND FOR OTHER PURPOSES

Section 3. Definition of Terms. The terms, as used, in this Decree, shall have the following
meaning, unless the context of the particular usage of the term indicates otherwise;
a. "Maritime Industry", briefly referred to as "industry" in the broadest concept of the term.
All enterprises engaged in the business of designing, constructing, manufacturing, acquiring,
operating, supplying, repairing and/or maintaining vessels, or component parts thereof; of
managing and/or operating shipping lines, stevedoring arrastre and customs brokerage
services, shipyards, drydocks, marine railways, marine repair shops, shipping and freight
forwarding agencies and similar enterprises.

b. "Vessels" or "Watercraft" Any barge, lighter, bulk carrier, passenger ship freighter, tanker,
container ship, fishing boats or other artificial contrivance utilizing any source of motive
power, designed, used or capable of being used as a means of water transportation operating
either as common contract carrier, including fishing vessels covered under Presidential
Decree No. 43, except (1) those owned and/or operated by the Armed Forces of the
Philippines and by foreign governments for military purposes, and (ii) bancas, sailboats and
other waterborne contrivance of less than three gross tons capacity and not motorized.

c. "Philippine national" A citizen of the Philippines; or a partnership or association wholly

owned by and composed of citizens of the Philippines; or a corporation organized under the
laws of the Philippines of which at least sixty per cent of the capital stock outstanding and
entitled to vote is owned and held by Philippine citizens; or a trustee of funds for pensions or
other employee retirement or separation benefits, where the trustee is a Philippine national
and at least sixty per cent of the funds will accrues to the benefit of the Philippine nationals:
Provided, That where a corporation and its non-Filipino stockholders own stock in an
enterprise, at least sixty percent of the members of the governing board of both corporations
must be Philippine nationals.

d. "Philippine flag vessel" A vessel or watercraft registered under Philippine laws.

e. "Foreign flag vessel" A vessel or watercraft registered under the laws of a country other
than the Philippines.

f. "Philippines shipping companies" Philippine nationals registered and licensed under the
laws of the Philippines to engage in the business of overseas and/or domestic water
transportation.

Section 12(h). Approve the sale, lease or transfer of management of vessels owned by
Philippine Nationals to foreign owned or controlled enterprises.

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ARTICLE 574. Builders of vessels may employ the materials and follow, with respect to their
construction and rigging, the systems most suitable to their interests. Ship owners and
seamen shall be subject to what the laws and regulations of the public administration on
navigation, customs, health, safety of vessels, and other similar matters.

ARTICLE 575. Co-owners of vessels shall have the right of repurchase and redemption in sales
made to strangers, but they may exercise the same only within the nine days following the
inscription of the sale in the registry, and by depositing the price at the same time.

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[With respect to Article 575, read Article 1620 of Civil Code]

Article 1620. A co-owner of a thing may exercise the right of redemption in case the shares of
all the other co-owners or of any of them, are sold to a third person. If the price of the
alienation is grossly excessive, the redemptioner shall pay only a reasonable one. Should two
or more co-owners desire to exercise the right of redemption, they may only do so in
proportion to the share they may respectively have in the thing owned in common. (1522a)

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ARTICLE 576. In the sale of a vessel it shall always be understood as included the rigging,
masts, stores and engine of a streamer appurtenant thereto, which at the time belongs to the
vendor. The arms, munitions of war, provisions and fuel shall not be considered as included
in the sale.

The vendor shall be under the obligation to deliver to the purchaser a certified copy of the
record sheet of the vessel in the registry up to the date of the sale.

ARTICLE 577. If the alienation of the vessel should be made while it is on a voyage, the
freightage which it earns from the time it receives its last cargo shall pertain entirely to the
purchaser, and the payment of the crew and other persons who make up its complement for
the same voyage shall be for his account.

If the sale is made after the vessel has arrived at the port of its destination, the freightage
shall pertain to the vendor, and the payment of the crew and other individuals who make up
its complement shall be for his account, unless the contrary is stipulated in either case.

ARTICLE 578. If the vessel being on a voyage or in a foreign port, its owner or owners should
voluntarily alienate it, either to Filipinos or to foreigners domiciled in the capital or in a port
of another country, the bill of sale shall be executed before the consul of the Republic of the
Philippines at the port where it terminates its voyage and said instrument shall produce no
effect with respect to third persons if it is not inscribed in the registry of the consulate. The
consul shall immediately forward a true copy of the instrument of purchase and sale of the
vessel to the registry of vessels of the port where said vessel is inscribed and registered.

In every case the alienation of the vessel must be made to appear with a statement of
whether the vendor receives its price in whole or in part, or whether he preserves in whole or
in part any claim on said vessel. In case the sale is made to a Filipino, this fact shall be stated
in the certificate of navigation.

When a vessel, being on a voyage, shall be rendered useless for navigation, the captain shall
apply to the competent judge on court of the port of arrival, should it be in the Philippines;
and should it be in a foreign country, to the consul of the Republic of the Philippines, should
there be one, or, where there is none, to the judge or court or to the local authority; and the
consul, or the judge or court, shall order an examination of the vessel to be made.

If the consignee or the insurer should reside at said port, or should have representatives
there, they must be cited in order that they may take part in the proceedings on behalf of
whoever may be concerned.

ARTICLE 579. After the damage to the vessel and the impossibility of her being repaired, in
order to continue the voyage had been shown, its sale at public auction shall be ordered,
subject to the following rules:

1.The hull of the vessel, its rigging, engines, stores, and other articles shall be appraised, after
making an inventory, said proceedings to be brought to the notice of the persons who may
wish to take part in the auction.

2.The order or decree ordering the auction to be held shall be posted in the usual places, an
announcement thereof to be inserted in the Official Gazette and in two of the newspapers of
the largest circulation of the port where the auction is to be held, should there be any. The
period which may be fixed for the auction shall not be less than twenty days.

3. These announcements shall be repeated every ten days, and their publication shall be
made to appear in the records.

4. The auction shall be held on the day fixed, with the formalities prescribed in the common
law for judicial sales.

5. If the sale should take place while the vessel is in a foreign country, the special provisions
governing such cases shall be observed.

ARTICLE 585. For all purposes of law not modified or restricted by the provisions of this Code,
vessels shall continue to be considered as personal property.

ARTICLE 589.If two or more persons should be part owners of a merchant vessel, a
partnership shall be presumed as established by the co- owners. This partnership shall be
governed by the resolutions of the majority of the members.

If the part owners should not be more than two, the disagreement of views, if any, shall be
decided by the vote of the member having the largest interest. If the interests are equal, it
should be decided by lot. The person having the smallest share in the ownership shall have
one vote; and proportionately the other part owners as many votes as they have parts equal
to the smallest one.