Upon the recommendation of the Provincial Board of Davao and pursuant to the provisions of section 68 of the Revised Administrative Code, there is hereby created in the province of Davao a municipality to be known as the Municipality of Monkayo, which shall consist of that portion of the municipality of Compostela which is separated from said municipality by the following boundary line:

From M.B.M. No. 6 on the Saug-Compostela boundary line running southeasterly passing through M.B.M. No. 7 near Barrio Bankerohan to M.B.M. No. 8 on the junction of the Agusan River and Mapaca River somewhere south of the barrio of Pilan, and thence running northeasterly passing through M.B.M. Nos. 9 and 10 to M.B.M. No. 11 on the summit of Mt. Agtouganon on the Cateel-Compostela boundary line. (Description based on the Compostela Cadastre and map of the proposed municipality of Monkayo, scale 1:250,000, certified true and correct by Angel Sogueco, supervising surveyor, Bureau of Lands.)

The municipality of Monkayo contains the following barrios: Monkayo which shall be the seat of the municipal government, Mu oz, Bayle, Haguimitan, Banglasang, Camungangan, Mamunga, Babag, Pilan, Libasan, Bankerohan, and Linoan.

The municipality of Compostela shall have its present territory minus the portion thereof included in the municipality of Monkayo.

The municipality of Monkayo shall begin to exist upon the appointment and qualification of the mayor, vice-mayor and a majority of the councilors hereof and upon the certification by the Secretary of Finance that said municipality is financially capable of implementing the provisions of the Minimum Wage Law and providing for all statutory obligations and ordinary essential services of a regular municipality and that the mother municipality of Compostela, after the segregation therefrom of the territory comprised in the municipality of Monkayo, can still maintain creditably its municipal government, meet all its statutory and contractual obligations, and provide for essential municipal services.

Done in the City of Manila, this 14th day of Sept., in the year of Our Lord, nineteen hundred and fifty-four, and of the Independence of the Philippines, the ninth.

(Sgd.) RAMON MAGSAYSAY
President of the Philippines

By the President:
(Sgd.) FRED RUIZ CASTRO
Executive Secretary