FURTHER REVISING THE CHARTER OF THE NATIONAL DEVELOPMENT COMPANY

WHEREAS, the National Development Company, a major corporate
vehicle of the National Government, was created to pursue commercial,
industrial, agricultural and mining ventures necessary to give impetus to
national economic development;

WHEREAS, the National Development Company is authorized by
its Revised Charter to contract loans and other obligations and to guarantee
domestic and foreign loans and other indebtedness;

WHEREAS, there is an immediate and compelling need to extend
the guarantee of the National Government to secure obligations incurred by the
National Development Company in pursuit of its objectives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the power vested in me by the Constitution, do hereby
order and decree as part of the law of the land, the following:

SECTION 1. Section 12 of Presidential Decree No. 1648, as
amended by Presidential Decree No. 1787, is hereby amended to read as
follows:

“SEC. 12. Foreign Loans; Republic
Guarantee.—

1. The Company is hereby authorized to contract loans; credits, and other
   indebtedness from time to time, in any convertible foreign currency or capital
   goods, from foreign governments, or any international financial institutions or
   fund sources or any other entities, on such terms and conditions it shall deem
   appropriate for the accomplishment of its purposes and to enter into and execute
   agreements and other documents specifying- such terms and conditions. The loans,
   credits and indebtedness contracted by the Company under this paragraph (a) and
   all payments, whether of principal, interest, other charges or otherwise, due in
   connection therewith, shall be exempt from all direct and indirect taxes,
   including withholding taxes on payments of interest, and from all fees, imposts,
   other charges and restrictions presently imposed or to be imposed by the
   Republic of the Philippines or any of its agencies and political subdivisions.
2. The payment of all loans, credits and other indebtedness contracted by the
   Company pursuant to the preceding paragraph (a) shall be and are hereby fully
   and unconditionally guaranteed by the Republic of the Philippines. The
   obligations of the Republic of the Philippines as guarantor hereunder shall be
   absolute and unconditional, and shall not be contingent or conditioned upon the
   pursuit of any right or remedy against the Company or its assets or against any
   other person or against any collateral security for or other guarantee of the
   obligations of the Company. With respect to such obligations, the Republic of
   the Philippines hereby waives for itself and its property immunity from suit,
   jurisdiction of any court, legal proceedings, attachment prior to judgment,
   attachment in aid of execution, other attachment and execution of judgment, on
   the ground of sovereignty. The Minister of finance is hereby directed and
   authorized to pay all such loans, credits and other indebtedness, including
   interest accrued thereon and all other amounts payable in connection therewith,
   in case the Company fails to do so, and there are hereby appropriated, out of
   the general funds in the National Treasury, the sums necessary to make the
   payments guaranteed by this Decree.
3. The President of the Philippines, or his duly authorized representative, is
   authorized to issue guarantees on behalf of the Republic of the Philippines to
   secure, absolutely and unconditionally, the performance of guarantee obligations
   undertaken by the Company pursuant to Section 4, paragraph (11) hereof. Such
   guarantees shall contain such terms and conditions as the President of the
   Philippines or his duly authorized representative may deem appropriate,
   including without limitation the terms and conditions set forth in the preceding
   paragraph (b), and shall not be subject, as to the amount thereof, to the
   limitations prescribed under Republic Act No. 6142, as amended.”

SEC. 3. All laws, decrees, rules and orders inconsistent
with the provisions of this Decree are hereby, repealed, amended or modified
accordingly.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 26th day of June in the year of Our Lord,
Nineteen Hundred and Eighty-Two.

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