[ Act No. 3266, December 07, 1925 ]

AN ACT AUTHORIZING THE PROVINCE AND CERTAIN MUNICIPALITIES OF ILOCOS NORTE TO ISSUE BONDS FOR THE PURPOSE OF RAISING FUNDS FOR THE CONSTRUCTION OF PERMANENT IMPROVEMENTS, AND AUTHORIZING; ALSO AN INSULAR GOVERNMENT BOND ISSUE SECURED BY SAID PROVINCIAL AND MUNICIPAL 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 Ilocos Norte and certain municipalities thereof, hereinafter  named, are  hereby authorized to negotiate  a loan in the  sum  of five hundred  and forty-eight  thousand pesos, to  be used for the construction  of permanent improvements  and the payment to the Insular Government of outstanding  loans contracted for the construction of permanent improvements, as follows: Province of Ilocos Norte, for waterworks, a provincial high-school building, and for payment  of  the Insular loan, four hundred and forty-two thousand pesos; municipality of Bacarra, for waterworks, seven  thousand pesos;  municipality  of  Laoag,  for waterworks, eighty-nine  thousand pesos; and municipality  of Pasuquin, for waterworks,  ten thousand  pesos.  At  the request of the  Provincial Board  of  Ilocos Norte  and  the municipal councils  of the municipalities above-mentioned, 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 aforesaid province  and municipalities.   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  of Ilocos Norte  with the Insular  Government,  and the balance shall be credited to the  "Public Works Bond Issue Fund of the Province  and  three municipalities of Ilocos Norte," 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 two  hundred and  seventy-four  thousand  dollars,  United  States currency,  for a  term of thirty  years, secured by  the bonds of the Province and three municipalities of Ilocos Norte 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 and three municipalities of Ilocos Norte 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, provincial, and municipal 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 a 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 -a 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, provincial,  and municipal bonds authorized  by this  Act. The Insular Government shall be reimbursed by said Province and three municipalities of Ilocos  Norte in proportion to the indebtedness of  each, for  the sums so disbursed for the sinking fund, interest, and expenses of the issue  and v sale of the bonds,  within thirty days after payment of  said expenses by  the  Insular Government.  In  case the  provincial board  of Ilocos  Norte and the municipal councils of the municipalities concerned shall fail  to make such reimbursement, the Collector of Internal Revenue and the provincial treasurer of the Province of Ilocos Norte are hereby authorized and directed, any provisions  of existing law to the contrary notwithstanding, to  withhold from the revenues of said province  and municipalities that may come into their possession an amount sufficient to  make, said reimbursement or any other  reimbursement above provided am! 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.  Until  the bonds have been paid in full and until otherwise directed by the Legislature,  the administration, control, operation, maintenance,  and improvement  of  the waterworks established  with the  proceeds of the sale of the bonds authorized by this Act shall  be  vested  in  the Provincial Board of Ilocos Norte  and a waterworks  board of said province, composed of the provincial treasurer, who shall  be chairman of  the board,  and  the district  health officer and district engineer, who  shall  be members.  Said Provincial Board of Ilocos Norte  shall  exercise its powers and authority and the  waterworks board hereby created shall  perform its functions  in accordance with the regulations  made  or that may in future be made jointly by  the Chief of the Executive  Bureau and the Director of  Public Works, with the approval of the Secretary of the Interior and the Secretary of Commerce and Communications.  All income derived from the waterworks shall be credited to a special fund which may be used, with the approval  of  the Provincial Board  of Ilocos Norte only  for  the following purposes,  in the order stated: first, for  the payment of  the refunds mentioned in section seven of this Act; second, for the operation and maintenance  of the  waterworks;  third, for the improvement and extension of the system, providing the plans therefor have been approved by the Director of Public  Works; and, fourth, in case there is a surplus of the receipts not required for said purposes,  such surplus may be used for the general purposes of said  Province and three  municipalities of Ilocos Norte, the division to be made on the  basis of the total consumption  of water in each municipality during the year in which the surplus accrued.SEC. 10. This Act shall take effect on its approval.Approved, December  7, 1925.

Source: Supreme Court E-Library