[ Act No. 3229, November 14, 1925 ]

AN ACT AUTHORIZING THE PROVINCE OF OCCIDENTAL NEGROS 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  Occidental Negros  is hereby authorized to negotiate  a loan  in the  sum  of eight  hundred thousand pesos, to be used  for  the construction  of the following permanent improvements:  a bridge  across the Hog River, in the municipality of Hog; a bridge across the Hinigaran River, in the municipality  of  Hinigaran; a bridge across the  Malogo River, between the municipalities of Saravia and Victorias; bathing establishment in the Mambucal Hot Springs; a provincial capitol and  a  high-school  building;  and  also for reimbursement to the  Insular Government of outstanding loans contracted for the construction of permanent improvements. At the request of the provincial board of Occidental Negros, 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 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 convey 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 conveyance with an authorized depository of the Government of  the  Philippine  Islands. The proceeds of  the conveyance 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 Occidental  Negros  with the Insular Government, and the balance  shall be credited  to the "Public Works  Bond Fund,  Province  of Occidental Negros" 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 four  hundred thousand  dollars, United  States  currency, for  a  term  of thirty years, secured  by the bonds of the Province of Occidental Negros herein authorized  and conveyed 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 the 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 Occidental Negros and conveyed and transferred a 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, ac- cording 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 four- teen  which governs 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 any 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 Occidental  Negros for the sums so disbursed  for the sinking fund, interest, and  expenses of the issue and sale of the bund-, within thirty clays after payment of said expenses by the  Insular  Government.  In case  the provincial board of Occidental Negros shall fail to make such reimbursements, the Collector of Internal Revenue and  the provincial treasurer of the Province of Occidental Negros 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 the 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, November  14,  1925.