I,
FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution as Commander-in-Chief of the
Armed Forces of the Philippines, and pursuant to Proclamation No. 1081,
dated September 21, 1972, and General Order No. 1, dated September 22,
1972, as amended, do hereby order and decree as part of the law of the
land that: chanroblesvirtualawlibrary
Section 1. Sub-section "(C)", Section 1 of Republic
Act Numbered Forty-eight hundred sixty, as amended by Presidential
Decree No. 150, is hereby further amended to read as follow:cralaw:red
"(C) Lend the proceeds of such loans, credits or
indebtedness to the Development Bank of the Philippines and/or the Land
Bank of the Philippines which shall administer said proceeds in
accordance with the agreement with the foreign creditor for relending
to individuals, partnerships, cooperatives, associations or private
corporations, whose capital stock, if not fully subscribed, is open to
subscription by the general public, as well as to government-owned or
controlled corporations, and to local governments to meet the direct
and indirect foreign exchange requirements including peso costs for
such industrial, agricultural and other economic development projects,
subject to the provisions of the charter, rules and regulations of said
bank and to the terms and conditions agreed upon by the government and
the institution providing financing for the projects: Provided, That
the Development Bank of the Philippines and/or the Land Bank of the
Philippines shall pay the Republic of the Philippines at least for the
principal, interests and other charges on such loans, credits or
indebtedness turned over to it: Provided, further, That the total
authorized borrowing for relending to the private sector shall be
allocated by the National Economic and Development Authority such that
a proper balance of allocation is attained among the industrial, public
utility and agricultural projects: Provided, finally, That industrial
and public utility projects shall respectively, be approved by the
Board of Investments and the pertinent specialized regulatory Boards
and that agricultural projects shall be recommended by the Department
of Agriculture and Natural Resources and shall be duly approved by the
National Economic and Development Authority.
"The proceeds of the loans, credits or indebtedness under this
paragraph shall not be re-loaned to any individual partnership,
cooperative, association or private corporation, or to government-owned
or controlled corporations or to local governments, the account of
which with the Development Bank of the Philippines or with any
government financial institution, is in arrears for three or more
installments for causes other than force majeure or those beyond its
control, nor shall said proceeds or portions thereof be used for any
purpose other than that for which the loan, credit or indebtedness has
been granted. The failure of any debtor to meet three amortization
payment of its loan when due, for causes other than force majeure or
those beyond its control, will render the entire obligation on any
balance thereof due and demandable, and the debtor shall pay a special
penalty of two per centum of the total amount due.
"The authority of the President of the Philippines, as hereby provided
in this Section shall include the power to issue, for the purposes
stated, bonds, debentures, securities or other evidences of
indebtedness for sale in the international market the income from which
shall be fully tax exempt in the Philippines."
Section 2. Any provision of law, decree, rules or
regulations, inconsistent herewith are hereby repealed, amended or
modified accordingly.
Section 3. This Decree shall take effect immediately.
DONE in the City of Manila,
this 22nd day of December, in the year of Our Lord, nineteen hundred
and seventy-three.
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