FURTHER AMENDING 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, under Section 1 of R.A. 1000, as amended, the
President of the Philippines, upon recomendation of the Secretary of Finance,
the Monetary Board and the National Economic and Development Authority, is
authorized to issue, preferably in the Philippines or abroad if necessary, in
the name and in behalf of the Republic of the Philippines Bonds, including
lottery bonds, in an amount not exceeding two billion pesos for socio-economic
development;

WHEREAS, the present economic and social development plans
entail massive financing not only for foreign sources but also from domestic
borrowings to meet the peso counterpart funds required to sustain the various
foreign-assisted projects of the Government designed to enhance economic
growth;

WHEREAS, the balance out of the ceiling of two billion pesos
fixed for domestic borrowings under the present law is considered insufficient
to continuously support the Government’s overall development plans;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree further amendment to paragraph 1, Section 1 of R.A. 1000, as
amended to read as follows:

SECTION 1. Upon the recomendation of the Secretary of
Finance, the Monetary Board, and the National Economic and Development
Authority, the President of the Philippines is authorized to issue, preferably
in the Philippines, or abroad if necessary, in the name and in behalf of the
Republic of the Philippines bonds, including lottery bonds, in an amount not
exceeding five billion pesos to finance public worlds 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 lands for subdivision
and resale to individuals, or to repay or service bonded obligations of the
Government incurred for such projects: Provided however, That
invesments 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 percentum of the immediately
preceeding issue of the same type has not been sold: Provided finally,
That no more than five percentum 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 loans commited by
government-owned and/or controlled financial institutions other than the Central
Bank, guaranteed by the Government, that cannot be met on maturity.”

DONE in the City of Manila, this 25th day of May in the year of Our Lord,
nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant