AMENDING FURTHER REPUBLIC ACT ONE THOUSAND ENTITLED “AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO ISSUE BONDS TO FINANCE PUBLIC WORKS AND PROJECTS FOR ECONOMIC DEVELOP…

WHEREAS, the National Government in order to expand the
productive base of the economy and accelerate the phase of economic
development of the Philippines is committed to provide basic social and
economic infrastructures and facilities;

WHEREAS, many of these infrastructures and facilities while
having high social and economic rate of return are not necessarily
self-liquidating in nature in the sense that it can generate revenue to
at least pay for its cost during a specified period of time;

WHEREAS, in the provision of these basic facilities, it is
imperative for the National Government to mobilize all possible sources
of revenue;

WHEREAS, one of the possible sources of revenues which can
be tapped are those that can be generated under Republic Act No. 1000,
as amended, but which cannot be availed of for purposes of funding many
of these projects because of the requirements that projects to be funded
from this source should be self-liquidating in nature; and

WHEREAS, the further amendment of Section 1 of R.A. No.
1000, as amended, is necessary not only to allow the flotation of bonds
to finance urgent projects of the National Government which have high
social and economic rates of return but also to enable it to tap all
possible idle savings in the economy by offering investors a more varied
type of bonds to choose from to suit their needs;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, as amended, in order that the
National Government can assure continuous financing of all the
requirements of its projects under its economic development plan, do
hereby order and decree to amend Section 1 of R.A. No. 1000, as amended,
to read as follows and be made as part of the laws of the land:

“SECTION 1. Upon the recommendation of the
Secretary of Finance, the Monetary Board, and the National Economic
Development Authority, the President of the Philippines is authorized 10
issue, preferably in the Philippines, or abroad if necessary, in the
name and in behalf of tin: Republic of the Philippines bonds, including
lottery bonus, in an amount not exceeding two billion pesos to finance
public works and projects for economic and social development which have
high economic or social rates of returns and which are authorized by
law, including expropriation of kinds for subdivision and resale to
individuals, or to repay or service bonded obligations of the Government
incurred for such projects: Provided, however, That
investments in such projects by provinces, cities, and municipalities
shall be limited by the paying capacity of the province, city or
municipality to be certified by the Secretary of Finance and that the
probable income from such projects shall be taken into consideration: And
provided, further, That no issue shall be made if eighty per
centum of the immediately preceding issue of the same type has not
been sold: Provided, finally, That not more than five per
centum of this bond issue shall be used to pay government
obligations, loans and advances, whether secured or unsecured guaranteed
by the National Government, made by government-owned or controlled
financial institutions other than the Central Bank, to government
political subdivisions, offices and instrumentalities and/or other loans
committed by government-owned and/or controlled financial institutions
other than the Central Bank, guaranteed by the Government, that cannot
be met on maturity.

“The bonds shall be issued in such amounts as will be needed at
any one time, with maturities of not less than five years taking into
account, among others, the rate at which said bonds may be absorbed by
the buying public and the fund requirements of projects ready for
execution.

“The Secretary of Finance, in consultation with the Monetary
Board, shall prescribe the form, the rate of interest, including whether
such interest is exempt from taxation or not, the denominations,
maturities, negotiability, convertibility, call and redemption features,
and all other terms and conditions of issuances, placement, sale,
servicing, redemption and payment of all bonds issued under the
authority of this Act.

“The bonds issued under the authority of this section may be
made payable both as to principal and interest, in Philippine currency
or any readily convertible foreign currency.

“Nothing in this section shall be interpreted to mean that the
Secretary of Finance is prevented from adopting a lottery bond scheme
whereby, as long as a subscriber holds on to his bonds, the same bonds
shall be eligible for drawing by lot at certain specified time as per
the conditions on issuances; and awards or prizes may be given to said
holders whose bonds are drawn, which awards or prizes may be given in
addition or in lieu of the interest that the bonds would have earned;
and likewise, nothing in this section shall be interpreted to mean that
the Secretary of Finance, in the redemption of securities, is prevented
from applying the lottery principle by which bonds, drawn by lot, may be
redeemed before maturity either at their face value or above.

“The bonds to be issued under this Act may be exempt from
taxation, including the tax on foreign exchange, by the Government of
the Republic of the Philippines or by any political or municipal
subdivision thereof, which fact shall be stated in their faces in
accordance with this Act under which the said bonds are issued and shall
likewise be exempt from attachment, execution or seizure.”

Done in the City of Manila, this 2nd day of March, in the year of
Our Lord, nineteen hundred and seventy-three.