Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section seven hundred and sixty-eight of Act Numbered One hundred and ninety, known as the Code of Civil Procedure, is hereby amended to read as follows:

"SEC. 768. Effect of the order.—The natural parents, except when such child is adopted under the provisions of the second preceding section shall, by such order, be divested of all legal rights and obligations in respect to the child, and the child shall be free from all legal obligations of obedience and maintenance with respect to them. Such child shall be to all intents and purposes the child and legal heir of the person so adopting him or her, entitled to all the rights and privileges, and subject to all the obligations and duties of a child of such person begotten in lawful wedlock: Provided, nevertheless, That the child so adopted shall still remain the legal heir of his real father and mother, and in case of the death of the child without direct descendants, his father and mother and relatives by nature, and not by adoption, shall remain his legal heirs, except as to property inherited by the adopted child from either of his parents by adoption, which shall become the property of the legitimate relatives of the parents by adoption from whom it originally came, who shall participate in the order established by the Civil Code for intestate estates."

SEC. 2. All acts or parts of acts inconsistent with this Act are hereby repealed.

SEC. 3. This Act shall take effect on its approval.

Approved, December 3, 1932.