FURTHER AMENDING REPUBLIC ACT FOUR THOUSAND EIGHT HUNDRED SIXTY, AS AMENDED (FOREIGN BORROWING ACT).

WHEREAS, some international financial institutions have
imposed additional conditions for the grant of concessional loans, one of which
is the guarantee by the Borrower that the assets of the Lender in the Borrower’s
territory shall not be subject to expropriation, nationalization or similar
action;

WHEREAS, it is necessary for the Philippines to be able to
procure foreign loans required for national development from as many sources as
possible so as to get the most advantageous terms;

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 that:

SECTION 1. A new section to be known as Section 4─B is
hereby inserted between Section 4-A and Section 5 of Republic Act Four Thousand
Eight Hundred Sixty, as amended, which shall read as follows:

“SECTION 4-B. The President may, upon recommendation of the
Minister of Finance in consultation with the National Economic and Development
Authority, agree to a provision in a loan agreement or contract for the
availment or utilization of the proceeds of foreign loans or credits concluded
with a foreign government or with an international lending institution owned by
a foreign government pursuant to the provisions of this Act, exempting the
assets of such foreign government or lending institution in the Philippines from
expropriation, sequestration, nationalization, seizure or similar
measures.”

SEC. 2. Any provision of existing law, decree, order, rule
or regulation inconsistent with the provisions of this Decree is hereby repealed
or modified accordingly.

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of January, in the year of Our
Lord, nineteen hundred and eighty-one.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS, JR.
		Deputy Presidential Executive Assistant

Vol. 25, Vital Documents, Presidential Decree 1980-1981