[ Act No. 3265, December 07, 1925 ]

AN ACT AUTHORIZING THE PROVINCE OF LAGUNA TO ISSUE BONDS FOR THE PURPOSE OF RAISINGFUNDS FOR THE CONSTRUCTION OF PERMANENT IMPROVEMENTS, AND AUTHORIZING ALSO AN INSULAR GOVERNMENT BOND ISSUE SECURED BY SAID PROVINCIAL BONDS, AND FOR OTHER PURPOSES

Be it enacted by the Senate, and House of Representatives of the Philippines in Legislature  assembled and by the authority of the  same:SECTION 1. Pursuant to the provisions of  section eleven of the Act of  Congress approved  August  twenty-ninth, nineteen hundred and sixteen, entitled "An Act to declare the purpose of the people of the United States as to the future political status of the people of the Philippine Islands, and to provide a more autonomous government for those Islands," as amended by the Act of Congress  approved May thirty-first, nineteen hundred and twenty-two, the Province of Laguna is hereby authorized to negotiate a loan in the sum of one hundred and ninety-six thousand pesos, to be used for the construction of the following permanent improvements: a bridge over the Lumban River and a bridge over the Mag-ampon River, and  also for  the reimbursement to the Insular Government of! outstanding loans contracted for the construction  oi! permanent improvements.   At the request of the provincial board of Laguna, the necessary bonds for said loan shall be issued by the Governor-General of the Philippine Islands, who is hereby  authorized to issue the same in the name and behalf of the Province of  Laguna. The bonds so authorized shall be  issued in convenient denominations,  in registered form, and shall  be registered  and transferable and payable  in the office of the  Insular Treasurer  in  Manila.  They  shall  have  the same  date,  bear interest at the same rate, and be payable at the same time as the bonds of the Government of the Philippine Islands authorized to be issued in section three of this Act: Provided, however,  That the interest rate on said bonds shall not be in  excess  of five and one-half per  centum per annum.SEC. 2.  The  Governor-General is  further authorized to assign and transfer  said bonds to the Government of the Philippine Islands for a  consideration,  charging the  same to the net proceeds of the sale of the bonds of the Government of  the  Philippine  Islands  issued in  an  equivalent amount,  as provided in  section three of this Act, and to deposit the proceeds of said assignment  with an authorized depository  of the Government  of the  Philippine  Islands. The proceeds of the assignment to the Insular Government of said bonds shall be applied by the Insular Treasurer to the payment of the outstanding indebtedness of the province herein mentioned with the Insular Government, and the balance shall be credited to the "Public Works  Bond Issue Fund of "the Province of Laguna" and be withdrawn only for the purposes set forth in this Act, by order of the Secretary of Finance.SEC. 3. The  Secretary of War  is hereby  authorized to issue, in the name and behalf of the Government of the Philippine Islands, bonds  to  the  amount of ninety-eight thousand  dollars,  United  States  currency, for a  term of thirty years, secured by the bonds of the Province of Laguna  herein  authorized and assigned and transferred to the Insular Government, as provided in sections  one and two of this Act.  The  Secretary  of War  shall determine the form  of the Insular bonds, the date  of  issue thereof, and the rate and dates of payment of the interest thereon. which rate shall not be in excess  of five  and one-half per centum  per annum.  The  Insular bonds may be coupon bonds or registered bonds,  convertible, in the "discretion of the Secretary  of War, into either form, and shall be registered in  the  Treasury of the United States, where the principal and interest shall be payable in gold coin of the United States.The Secretary of War is further authorized  to  sell such Insular  bonds  upon such terms and conditions as  in his judgment are most favorable to the Government of  the Philippine  Islands, and he shall  deposit the proceeds of the sale thereof with an authorized depository or  depositories of the Government of the Philippine Islands  in the United States, to  the  credit of the Treasurer  of the Philippine Islands.SEC. 4. The  proceeds of the sale of the Insular bonds authorized to be issued by this Act are hereby appropriated for the  payment of the bonds issued by the Province of Laguna and assigned and  transferred as security for the Insular bonds above-mentioned, in  accordance with sections one and two of this Act.SEC. 5.  The Insular and  provincial bonds hereby authorized to  be issued  shall be exempt from taxation by the Government of the United States, by the Government of the Philippine  Islands or  any political or municipal subdivision thereof, or by any State or territory of the United States, or by any county, municipality,  or other municipal subdivision of any State or territory of the United States, or by the District  of Columbia, which fact shall be stated upon their face by virtue  of section one of  the Act of Congress  approved February  sixth, nineteen hundred and five, according  to which Act, as well as  in accordance with the Act  of Congress approved on  August  twenty-ninth, nineteen hundred and sixteen,  as amended, and in accordance with this Act, the said bonds  are issued.SEC. 6.  A sinking fund is hereby created for the  payment of the Insular bonds issued  under the provisions of this Act, in such manner that the total amount thereof at each annual due date of the bond issue shall be equal to  the total of an annuity  of nineteen  hundred and thirty-seven  pesos and thirteen centavos for each one hundred thousand pesos of bonds outstanding, accrued at the rate of interest of three and one-half per centum per  annum.   Said  fund shall be under the custody of the Treasurer of the Philippine Islands, who shall invest the same, in such  manner as the Secretary of Finance may approve, in accordance with the provisions of Act Numbered Three thousand and fourteen governing the investment  of sinking funds;  shall charge all the expenses of such investment to said sinking fund,  and shall credit to  the  same the interest on investments and other income belonging to it.SEC. 7. A standing annual appropriation is hereby made out of the general funds in  the Insular Treasury, of such sums as may  be necessary to provide for  the sinking fund created in section six and for the interest on  the Insular bonds issued by  virtue of this Act.  A further appropriation is hereby made out of the general funds in the Insular Treasury, not otherwise appropriated, of a sufficient sum to cover the expenses of the issue and sale of  the Insular and provincial bonds authorized by this Act.  The Insular Government shall be reimbursed by the Province of Laguna for the sums so disbursed for the sinking fund, interest, and expenses of the issue and sale of the bonds, within thirty days  after payment of said  expenses by  the Insular Government.  In case the provincial board of Laguna shall fail to make such reimbursement, the Collector of Internal Revenue and the provincial treasurer of Laguna are hereby authorized and  directed, any provisions of existing law to the contrary  notwithstanding, to  withhold  from the revenues of said  province that may come into their possession an  amount  sufficient  to  make said reimbursement or any other reimbursement  above provided and shall deposit said sum with the Treasurer of  the Philippine Islands, to the credit of the general  funds of the  Insular Government.SEC. 8. The Director of Public Works of the Philippine Islands shall have charge and exclusive control  of all work to be done and improvements to  be made  under the  provisions of this  Act, which work shall be begun  as soon as the Insular  Treasurer shall  certify that the funds herein provided for are available.SEC.  9. This Act shall take effect on its  approval.Approved, December  7, 1925.

Source: Supreme Court E-Library