FURTHER AMENDING SECTION 1 (C) OF REPUBLIC ACT NUMBERED FORTY-EIGHT HUNDRED SIXTY, AS AMENDED BY PRESIDENTIAL DECREE NO. 150 (RE: FOREIGN BORROWING ACT)

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 order and
decree as part of the law of the land, that:

SECTION 1. Subsection “(C)”, Section 1 of Republic Act
Numbered Forty-eight hundred sixty, as amended by Presidential Decree
No. 150, is hereby further amended to read as follows:

“(C) Lend the proceeds of such loans, credits or indebtedness to
the Development Bank of the Philippines and/or the Land Bank of the
Philippines which shall administer said proceeds in accordance with the
agreement with the foreign creditor for relending to individuals,
partnerships, cooperatives, associations or private corporations, whose
capital stock, if not fully subscribed, is open to subscription by the
general public, as well as to government-owned or-controlled
corporations, and to local governments, to meet the direct and indirect
foreign exchange requirements including peso costs for such industrial,
agricultural and other economic development projects, subject to the
provisions of the charter, rules and regulations of said bank and to the
terms and conditions agreed upon by the Government and the institution
providing financing for the projects: Provided, That the
Development Bank of the Philippines and/or the Land Bank of the
Philippines shall pay the Republic of the Philippines at least for the
principal, interests and other charges on such loans, credits or
indebtedness turned over to it: Provided, further, That the
total authorized borrowing for relending to the private sector shall be
allocated by the National Economic and Development Authority such that a
proper balance of allocation is attained among the industrial, public
utility, and agricultural projects: Provided, finally, That
industrial and public utility projects shall, respectively, be approved
by the Board of Investments and the pertinent specialized regulatory
Boards and that agricultural projects shall be recommended by the
Department of Agriculture and Natural Resources and shall be duly
approved by the National Economic and Development Authority.

“The proceeds of the loans, credits or indebtedness under this
paragraph shall not be re-loaned to any individual, partnership,
cooperative, association or private corporation, or to government-owned
or controlled corporations or to local governments, the account of which
with the Development Bank of the Philippines or with any government
financial institution, is in arrears for three or more installments for
causes other than force majeure or those beyond its control,
nor shall said proceeds or portions thereof be used for any purpose
other than that for which the loan, credit or indebtedness has been
granted. The failure of any debtor to meet three amortization payments
of its loan when due, for causes other than force majeure or
those beyond its control, will render the entire obligation on any
balance thereof due and demandable, and the debtor shall pay a special
penalty of two per centum of the total amount due.

“The authority of the President of the Philippines, as hereby
provided in this Section, shall include the power to issue, for the
purposes stated, bonds, debentures, securities or other evidences of
indebtedness for sale in the international market the income from which
shall be fully tax exempt in the Philippines.”

SEC. 2. Any provision of law, decree, rules or regulations,
inconsistent herewith arc hereby repealed, amended or modified
accordingly.

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of December, in the
year of Our Lord, nineteen hundred and seventy-three.