AUTHORIZING THE PROVIDENT INSURANCE COMPANY OF THE PHILIPPINES TO BECOME A SURETY UPON OFFICIAL RECOGNIZANCES, STIPULATIONS, BONDS AND UNDERTAKINGS

WHEREAS, Section 1 of Act No. 536, as amended by Act No. 2206, provides that whenever any recognizance, stipulation, bond or undertaking conditioned for the faithful performance of any duty or of any contract made with any public authority, national, provincial, municipal, or otherwise, or of any undertaking, or for doing or refraining from doing anything in such recognizance, stipulation, bond or undertaking specified, is, by the laws of the Philippines or by the regulations or resolutions of any public authority therein, required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition there of shall be sufficient when executed or guaranteed solely by any corporation organized under the laws of the Philippines, having power to guarantee the fidelity of persons holding positions of public or private trusts, and to execute and guarantee bonds or undertakings in judicial proceedings and to agree to the faithful performance of any contract or undertaking made with any public authority;

WHEREAS, said section further provides that no head of department, court, judge, officer, board, or body executive, legislative or judicial shall approve or accept any corporation as surety on any recognizance, stipulation, bond, contract, or undertaking, unless such corporation has been authorized to do business in the Philippines in the manner provided by the provisions of said Act No. 536, as amended, nor unless such corporation has by contract, with the Government of the Commonwealth of the Philippines been authorized to become a surety upon official recognizances, stipulations, bonds, and undertakings; and

WHEREAS, the Provident Insurance Company of the Philippines is a domestic corporation organized and existing under the laws of the Commonwealth of the Philippines and fulfills the conditions prescribed by said Act No. 536, as amended;

NOW, THEREFORE, I, SERGIO OSMEÑA, President of the Philippines, by virtue of the powers in me vested, by law, hereby authorize the Provident Insurance Company of the Philippines to become a surety upon official recognizances, stipulations, bonds, and undertakings in such manner and under such conditions as are provided by law, except that the total amount of immigration bonds that it may issue shall not, at any time, exceed its admitted assets. Done at the City of Manila, this 10th day of September, in the year of Our Lord, Nineteen hundred and forty-five, and of the Commonwealth of the Philippines, the tenth.

By the President:
(Sgd.) JOSE S. REYES
Secretary to the President