AMENDING REPUBLIC ACT NO. 245 ENTITLED “AN ACT AUTHORIZING THE SECRETARY OF FINANCE TO BORROW TO MEET PUBLIC EXPENDITURES AUTHORIZED BY LAW AND FOR OTHER PURPOSES”

WHEREAS, Section 1 of Republic Act No. 245 provides that in
order to meet public expenditures authorized by law or to provide for
the purchase, redemption or refunding of any obligations, either direct
or guaranteed, of the Philippine Government, the Secretary of Finance,
with the approval of the President, after consultation with the Monetary
Board, is authorized to borrow from time to time on the credit of the
Republic of the Philippines such sum or sums as in his judgment may be
necessary, and to issue therefor evidences of indebtedness of the
Philippine Government;

WHEREAS, under subsection (a) through (c) of the same
section of the said Act, such evidences of indebtedness may be of the
following types:

“(a) Treasury bills issued on a discount basis and payable at
maturity without interest. Treasury bills may be offered for sale either
on a competitive basis or at a fixed rate of discount and may be made
payable at any date not later than one year from the date of issue.
“(b) interest-bearing certificates of indebtedness having
maturities not exceeding eighteen months from the date of issue.
“(c) Interest-bearing notes having maturities of not less than one
nor more than five years from the date of issue.”

WHEREAS, the Government has continuously relied upon the
borrowing authority vested in the Secretary of Finance under R.A. No.
245 in meeting the pressing demands upon the General Fund into the
National Treasury whenever there is a short-fall in the revenue receipts
of the Government;

WHEREAS, under the present provisions of R.A. No. 245, the
Secretary of Finance, with the approval of the President is vested with
the authority to borrow from time to time for the purposes enumerated
therein, is restricted from issuing other forms of government debt
instruments or evidences of indebtedness having longer maturities and
appropriate features because of the limitations prescribed in the
aforementioned subsection (a) through (c) of Section 1 of the above
mentioned Act; and

WHEREAS, there is now a need for other types of
government security issues designed in line with market requirements and
made sufficiently attractive to suit the needs of various investor
groups;

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, do hereby adopt and
make as part of the laws of the land certain amendments to the
provisions of Republic Act No. 245 entitled “An Act Authorizing the
Secretary of Finance to Borrow to Meet Public Expenditures Authorized by
law, and For Other Purposes” as follows:

SECTION 1. Section 1 of Republic Act Numbered Two
Hundred forty-five is hereby amended to read as follows:

“SECTION 1. In order to meet public expenditures
authorized by law or to provide for the purchase, redemption, or
refunding of any obligations, either direct or guaranteed of the
Philippine Government, the Secretary of Finance, with the approval of
the President of the Philippines, after consultation with the Monetary
Board, is authorized to borrow from time to time on the credit of the
Republic of the Philippines such sum or sums as in his judgment may be
necessary, and to issue therefor evidences of indebtedness of the
Philippine Government.”

“Such evidences of indebtedness may be of the following types:

“a. Treasury bills issued on a discount basis or at par and
payable at maturity without interest. Treasury bills may be offered for
sale either on a competitive basis or at a fixed rate of discount or at
par and may be made payable at any date not later than one year from
the date of issue;
“b. Certificate of indebtedness having maturities not exceeding
eighteen months from the date of issue; and
“c. Treasury bonds, notes, securities or other evidences of indebtedness
having maturities of one year or more but not exceeding twenty-five
years from the date of issue.”

“The Secretary of Finance, in consultation with the Monetary
Board, shall prescribe the form or forms, the interest and discount
rates, including whether such interest or discount is exempted from
taxation or not, the denominations, maturities, negotiability,
convertibility, call and redemption features, and all other terms and
conditions of issuance, placement, sale, servicing, .redemption, and
payment of all evidences of indebtedness issued under the authority of
this Act: Provided, however, That with respect to treasury
bills, certificates of indebtedness, and bonds, notes, securities and
other evidences’ of indebtedness, such terms and conditions shall be
within the limitations prescribed in Subsection (a) through (c) of the
preceding paragraph: And provided, further, That actual issue,
placement, servicing and redemption of such securities shall be done
through the Central Bank of the Philippines, as provided in Sections one
hundred twenty-two, one hundred and twenty-three and one hundred
twenty-four of the Central Bank Act.”

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

“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 specific securities, drawn by
lot, may be redeemed before maturity either at their face value or
above.”

SEC. 2. This Decree shall take effect immediately.

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