AMENDING SECTION 1 OF PRESIDENTIAL DECREE NO. 121, DATED JANUARY 29, 1973, ENTITLED “AMENDING SECTION 1988 OF ACT NO. 2711 AS AMENDED OTHERWISE KNOWN AS THE ADMINISTRATIVE CODE.”

WHEREAS, Section 1 of Presidential Decree No. 121 provides,
among other things, that within three years from date of effectivity of said
Decree, all operations of the Philippine Postal Savings Bank shall be completely
discontinued and its remaining assets and liabilities shall be transferred to
the Philippine National Bank or to any other appropriate existing government
bank;

WHEREAS, since its creation, the Philippine Postal Savings
Bank has been considered a division of the Bureau of Posts and its operation
under the guidance and supervision of the Postmaster General;

WHEREAS, in order to minimize administrative and operational
expenses of the Philippine Postal Savings Bank, the services of Bureau of Posts
personnel, like Postmasters, who attend to the acceptance and withdrawal of
deposits, and Postal Inspectors, who attend to the investigation of
irregularities committed against its interests, have been extended to the said
bank;

WHEREAS, if the said services are fully paid for by the
Philippine Postal Savings Bank, not to mention the exemption it enjoys from the
payment of postage stamps and telegraph charges, its profits will considerably
be reduced;

WHEREAS, it is undeniable that any net accumulated surplus
of the Philippine Postal Savings Bank is the product of its joint efforts with
the Bureau of Posts; and

WHEREAS, the Bureau of Posts is in dire need of funds for
much needed improvement and expansion of the Postal Service;

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, and in order to effect the desired changes and
reforms in the social, economic, and political structure of our society, do
hereby order and decree the amendment of Section 1 of Presidential Decree No.
121 to read as follows:

SECTION 1. Section one thousand nine hundred eighty-eight of
the Administrative Code is hereby amended to read as follows:

“SEC. 1988. Location of the bank. — The central
office of the Philippine Postal Savings Bank shall be in Manila and the Director
of Posts shall establish, maintain and discontinue postal savings bank and
branches thereof in such places as he shall deem proper: Provided, That
postal savings bank and branches thereof, shall not be established or maintained
in places where banking services are already available: Provided,
further, That within three years from the date of effectivity of the
Decree, all operations of the bank shall be completely discontinued and its
remaining assets and liabilities shall be transferred to the Philippine National
Bank or to any other appropriate existing government bank: And
provided, furthermore, That in addition to the buildings,
lands, furniture, supplies and equipment now owned or accruing to the Philippine
Postal Savings Bank which shall be retained by the Bureau of Posts for postal
improvement, said Philippine National Bank or any other appropriate existing
government bank shall remit to the Bureau of Posts, 50% of the net accumulated
surplus as may be determined as of the time of the complete transfer of the
assets and liabilities to such bank: And provided, finally, That any
unexpended amount covering the estimated pre-war liabilities of the bank as of
the date of transfer to the Philippine National Bank shall likewise be remitted
by the Postal Savings Bank to the Bureau of Posts which shall be used for the
expansion and improvement of the postal service, subject to the approval of the
Office of the President.

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 9th day of July, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary