§ 1393. — Supplementary sinking fund for bond payments; purchase of bonds by United States; creation of special trust account.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC1393]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 15--THE REPUBLIC OF THE PHILIPPINES
SUBCHAPTER VI--MISCELLANEOUS PROVISIONS
Sec. 1393. Supplementary sinking fund for bond payments;
purchase of bonds by United States; creation of special trust
account
(a) to (f). Repealed. Apr. 30, 1946, ch. 244, title V, Sec. 511(2),
60 Stat. 158.
(g)(1) The Philippine Government shall pay to the Secretary of the
Treasury of the United States, at the end of each calendar quarter, all
of the moneys received during such quarter from export taxes (less
refunds), imposed and collected in accordance with the provisions of
this section, and said moneys shall be deposited in an account with the
Treasurer of the United States and shall constitute a supplementary
sinking fund for the payment of bonds of the Philippines, its Provinces,
cities, and municipalities, issued prior to May 1, 1934, under authority
of Acts of Congress: Provided, however, That moneys received from any
export tax imposed on any article which is shipped from the Philippines
to the United States prior to July 4, 1946, and which is entered, or
withdrawn from warehouse for consumption, on or after July 4, 1946,
shall be refunded by the independent Government of the Philippines.
(2) The said Secretary of the Treasury is authorized to accept the
deposits of the proceeds of the export taxes referred to in subdivision
(1) of this subsection in accordance with section 1333 \1\ of this
title.
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\1\ See References in Text note below.
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(3) The Secretary of the Treasury of the United States, with the
approval of the Philippine Government, is authorized to purchase with
such supplementary sinking-fund bonds of the Philippines, its Provinces,
cities, and municipalities, issued prior to May 1, 1934, under authority
of Acts of Congress and to invest such fund in interest-bearing
obligations of the United States or in obligations guaranteed as to both
principal and interest by the United States. Whenever the Secretary of
the Treasurer \2\ finds that such fund is in excess of an amount
adequate to meet future interest and principal payments on all such
bonds, he may, with the approval of the Philippine Government, purchase
with such excess any other bonds of the Philippines, its Provinces,
cities, municipalities, and instrumentalities. For the purpose of this
subsection obligations may be acquired on original issue at par, or by
purchase of outstanding obligations at the market price. Any obligations
acquired by the fund may, with the approval of the Philippine
Government, be sold by the Secretary of the Treasury at the market price
and the proceeds of such sale and the proceeds of the payment upon
maturity or redemption of any obligations held in the supplementary
sinking fund, as well as all moneys in any manner earned by such fund or
on any obligations acquired by said fund, shall be paid into the said
fund.
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\2\ So in original. Probably should be ``Treasury''.
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(4) During the three months preceding July 4, 1946, the Philippine
Government and the Secretary of the Treasury of the United States shall
confer to ascertain that portion of the bonds of the Philippines, its
Provinces, cities, and municipalities, issued prior to May 1, 1934,
under authority of Acts of Congress, which will remain outstanding on
July 4, 1946; and the Philippine Government shall turn over to the
Secretary of the Treasury of the United States for destruction all such
bonds that are then held, canceled, or uncanceled, in any of the sinking
funds maintained for the payment of such bonds. After such outstanding
portion of this indebtedness is thus determined, and before July 4,
1946, (i) there shall be set up with the Treasurer of the United States
a special trust account in the name of the Secretary of the Treasury of
the United States to pay future interest and principal payments on such
bonds; (ii) the Philippine Government shall pay to the Secretary of the
Treasury of the United States for deposit in this special trust account
all of the sinking funds maintained for the payment of such bonds; and
(iii) the Secretary of the Treasury of the United States shall transfer
into this special trust account all of the proceeds of the supplementary
sinking fund referred to in subdivision (1) of this subsection. Any
portion of such special trust account found by the Secretary of the
Treasury of the United States on July 4, 1946, to be in excess of an
amount adequate to meet future interest and principal payments on all
such outstanding bonds shall be turned over to the Treasury of the
independent Government of the Philippines to be set up as an additional
sinking fund to be used for the purpose of liquidating and paying all
other obligations of the Philippines, its Provinces, cities,
municipalities, and instrumentalities. To the extent that such special
trust account is determined by the Secretary of the Treasury of the
United States to be insufficient to pay interest and principal on the
outstanding bonds of the Philippines, its Provinces, cities, and
municipalities, issued prior to May 1, 1934, under authority of Acts of
Congress, the Philippine Government shall, on or before July 3, 1946,
pay to the Secretary of the Treasury of the United States for deposit in
such special trust account an amount which said Secretary of the
Treasury determines is required to assure payment of principal and
interest on such bonds: Provided, however, That if the Secretary of the
Treasury of the United States finds that this requirement would impose
an undue hardship upon the Philippines, then the Philippine Government
shall continue to provide annually the necessary funds for the payment
of interest and principal on such bonds until such time as the Secretary
of the Treasury of the United States determines that the amount in the
special trust account is adequate to meet interest and principal
payments on such bonds.
(5) On and after July 4, 1946, the Secretary of the Treasury of the
United States is authorized, with the approval of the independent
Government of the Philippines, to purchase at the market price for the
special trust account bonds of the Philippines, its Provinces, cities,
and municipalities, issued prior to May 1, 1934, under authority of Acts
of Congress. The Secretary of the Treasury of the United States is also
authorized, with the approval of the independent Government of the
Philippines, to invest all or any part of such special trust account in
any interest-bearing obligations of the United States or in any
obligations guaranteed as to both principal and interest by the United
States. Such obligations may be acquired on original issue at the issue
price or by purchase of outstanding obligations at the market price, and
any obligations acquired by the special trust account may, with the
approval of the independent Government of the Philippines, be sold by
the Secretary of the Treasury at the market price, and the proceeds of
the payment upon maturity or redemption of such obligations shall be
held as a part of such special trust account. Whenever the special trust
account is determined by the Secretary of the Treasury of the United
States to be adequate to meet interest and principal payments on all
outstanding bonds of the Philippines, its Provinces, cities, and
municipalities, issued prior to May 1, 1934, under authority of Acts of
Congress, the Secretary of the Treasury is authorized to pay from such
trust account the principal of such outstanding bonds and to pay all
interest due and owing on such bonds. All such bonds and interest
coupons paid or purchased by the special trust account shall be canceled
and destroyed by the Secretary of the Treasury of the United States.
From time to time after July 4, 1946, any moneys in such special trust
account found by the Secretary of the Treasury of the United States to
be in excess of an amount adequate to meet interest and principal
payments on all such bonds shall be turned over to the treasurer of the
independent Government of the Philippines.
(Mar. 24, 1934, ch. 84, Sec. 6, 48 Stat. 459; Aug. 7, 1939, ch. 502,
Sec. 1, 53 Stat. 1226; Apr. 30, 1946, ch. 244, title V, Sec. 511(2), 60
Stat. 158; Pub. L. 86-346, title I, Sec. 104(1), Sept. 22, 1959, 73
Stat. 622.)
References in Text
Section 1333 of this title, referred to in subsec. (g)(2), was
omitted from the Code.
Prior Provisions
Similar provisions were contained in act Jan. 17, 1933, ch. 11,
Sec. 6, 47 Stat. 764.
Amendments
1959--Subsec. (g)(5). Pub. L. 86-346 substituted ``on original issue
at the issue price'' for ``on original issue at par''.
1946--Act Apr. 30, 1946, repealed opening par. and subsecs. (a) to
(f), (h) relating to relations with the United States pending complete
independence, and trade relations.
1939--Act Aug. 7, 1939, amended section generally.
Effective Date of 1946 Amendment
Amendment by act Apr. 30, 1946 effective May 1, 1946, see section
512 of act Apr. 30, 1946, set out as an Effective Date note under
section 1354 of this title.
Termination of Acceptance of Deposits of Export Taxes
Authority of Secretary of the Treasury to accept deposits of
proceeds of export taxes in accordance with section 1333 of this title
terminated on July 1, 1951, under the provisions of act Aug. 7, 1946,
ch. 809, Sec. 2, 60 Stat. 901.
Section Referred to in Other Sections
This section is referred to in section 1395 of this title.
