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PRESIDENTIAL DECREE NO. 1195
PRESIDENTIAL DECREE NO. 1195 -
AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NUMBERED SEVEN
HUNDRED FIFTY TWO, OTHERWISE KNOWN AS THE DECREE ON CREDIT FINANCING
FOR LOCAL GOVERNMENTS
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WHEREAS,
under the provisions of Presidential Decree No. 752, local governments
have been provided access to other credit facilities in order that they
may raise additional funds for priority community projects; chanroblesvirtualawlibrary
WHEREAS, local governments have amply demonstrated the technical
capability to undertake self-liquidating and/or income producing
development projects;chanroblesvirtualawlibrary
WHEREAS, with the implementation of Presidential Decree No. 752, most
local governments have demonstrated the capacity to regularly and
promptly meet loan payments to various government lending institutions
such that in most cases, the mandatory provisions requiring the
guarantee of the National Government for domestic loans have not been
found to be necessary;chanroblesvirtualawlibrary
WHEREAS, to enable the local governments to meet the capital
requirements of development projects which may be funded from the
proceeds of bonds and other long-term securities, there is also an
immediate need to increase the ceiling of one-half of one percent of
the total assessed value of taxable properties prescribed under
Presidential Decree No. 752 which delimits the aggregate amount of such
bonds and securities that the local governments may issue at any one
time;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
decree and order: chanroblesvirtualawlibrary
Section 1. Section 4(a) of PD 752 is hereby amended
to read as follows:cralaw:red
"Sec. 4. Domestic Loans, Credits, and Other Forms of
Indebtedness. — (a) Provincial, city and municipal governments may upon
recommendation of the Secretary of Finance contract loans, credits, and
other forms of indebtedness with the Philippine National Bank, the
Development Bank of the Philippines, the Government Service Insurance
System, and or any other national lending institution to finance the
construction, installation, improvement, expansion, operation, or
maintenance of electric light and power plants, public markets and
slaughterhouses, waterworks and irrigation systems, telephone and radio
communications systems, government housing projects, the purchase of
rural and urban estates and other capital investment projects, subject
to such terms and conditions as may be prescribed by law and the
provisions of the respective characters of the aforesaid banks and
lending institutions: Provided, however, That whenever the said banks
and other lending institutions consider other guarantee or collaterals
offered by local governments as sufficient to cover the loan repayment,
the guarantee of the National Government may be dispensed with." chanroblesvirtualawlibrary
xxx
xxx
xxx
Section 2. Section 6(a) of PD 752 is also hereby
amended to read as follows:cralaw:red
"Sec. 6. Bonds and Other Long-Term Securities. — (a)
Provinces and cities are hereby authorized to issue bonds, debentures,
securities, collaterals, notes and other obligations to finance
self-liquidating and/or income-producing development projects pursuant
to the priorities established in the development program as certified
to by the National Economic and Development Authority, but in no case
to exceed at any time an aggregate amount equivalent to FIVE per cent
of the total assessed value of taxable real property within the
territorial jurisdiction of the local government unit..
xxx
xxx
xxx
Section 3. All laws or parts of laws contrary to, or
inconsistent with this Decree are hereby repealed, amended, or modified
accordingly.
Section 4. This Decree shall take effect upon
approval. chanroblesvirtualawlibrary
Done in the City of Manila,
this 8th day of September, in the year of Our Lord, Nineteen Hundred
and Seventy-Seven.
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