[ Act No. 3268, December 09, 1925 ]

AN ACT AUTHORIZING THE PROVINCE OF MARINDUQUE 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 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 Marinduque,  is  hereby  authorized to negotiate  a loan in the sum of one hundred and  eleven thousand pesos, of which one hundred and two thousand pesos shall be used for the construction of the capitol and nine thousand pesos for the payment of the Insular loan; but if it shall for any reason not  be necessary to use the  entire sum of nine thousand pesos for the payment of said loan,  the balance shall be used for the construction  of  such permanent improvements as the provincial board  may designate.  At the request of the provincial board  of  Marinduque, 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 said province.  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 Marinduque with the Insular Government, and the balance shall  be credited to the  "Public Works Bond Issue Fund of the Province of Marinduque 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 fifty-five thousand five hundred  dollars,  United  States  currency, for  a term of thirty years, secured  by the bonds of the Province of Marinduque hereby 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 Marinduque 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  sub- division 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  Marinduque 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 Marinduque shall  fail to make such reimbursement, the Collector of Internal Revenue  and the provincial treasurer of the Province of  Marinduque 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 9, 1925.

Source: Supreme Court E-Library