Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled the authority of the same:

SECTION 1. The municipal councils shall have authority to establish municipal warehouses for the storage of products belonging to planters, and to regulate their use and operation subject to the provisions of Act Numbered Twenty-one hundred and thirty-seven, known as the Warehouse Receipts Act.

SEC. 2. Municipal warehouses established under this Law shall be exempt from complying with the requirements of Act Numbered Thirty-eight hundred and ninety-three.

SEC. 3. The municipal councils shall fix the rates of fees to be collected for the storage of products in the municipal warehouses, and the fees so collected shall constitute a special fund to be known as the Municipal Warehouse Fund, which shall be expended in the same manner as other municipal funds, for the payment of the expenses incident to the operation of said warehouses, the construction of new warehouses and the purchase of equipment necessary for the efficient and economical operation of said warehouses.

SEC. 4. Persons in charge of municipal warehouses established under this Act shall be bonded for an amount to be fixed by municipal councils, but such bond shall not answer for any destruction, loss, or injury to the products deposited in said municipal warehouses, where such destruction, loss or injury is due to fire, inundation, or similar causes which could not be foreseen, or which could not have been avoided by the exercise of due care.

SEC. 5. This Act shall take effect upon its approval.

Approved, November 28, 1932.