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PRESIDENTIAL DECREE NO. 150
PRESIDENTIAL DECREE NO. 150 -
AMENDING REPUBLIC ACT NUMBERED FOUR THOUSAND EIGHT HUNDRED SIXTY, AS
AMENDED (RE FOREIGN BORROWING ACT)
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WHEREAS,
there are indications from international financial organizations about
future changes in their lending policiesmed at increasing the financing
of local costs of certain projects;chanroblesvirtualawlibrary
WHEREAS, experience has shown the need for flexibility in tapping
foreign sources of funding;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in- Chief of all the
Armed Forces of the Philippines, pursuant to Proclamation No. 1104
dated January 17, 1973, and General Order No. 1, as amended, dated
September 22, 1972 and in order to assure a sustained and accelerated
implementation of our development program, do hereby order to amend
further certain sections of Republic Act Numbered Four Thousand eight
hundred sixty, as amended, and not to adopt this decree as part of the
law of the land. chanroblesvirtualawlibrary
Section 1. Section one of Republic Act Numbered Four
Thousand eight hundred sixty, as amended, is further amended to read as
follows:cralaw:red
"Sec. 1. The President of the Philippines is hereby
authorized, in behalf of the Republic of the Philippines, to contract
such loans, credits, including supplier's credit, deferred payment
arrangements, and to enter into and conclude bilateral agreements
involving other forms of official assistance such as grants and
commodity credit arrangements or indebtedness as may be necessary and
upon such terms and conditions as may be agreed upon, not inconsistent
with this Act, with Governments of foreign countries with whom the
Philippines has diplomatic or trade relations or which are members of
the United Nations, their agencies, instrumentalities or financial
institutions or with reputable international lending institutions or
firms extending supplier's credit or deferred payment arrangements to
enable the government of the Republic of the Philippines to:cralaw:red
"(A) Undertake, through any government, office,
agency or instrumentality, or government-owned/or controlled
corporation, industrial, agricultural or other economic and social
development projects and feasibility studies, which are authorized by
law including but not limited to those enumerated in Annex "A"
including lists 1, 2, 3, and 4 hereof, which are made integral parts of
the Act and such projects which may from time to time recommended by
the National Economic and Development Authority and approved by the
President of the Philippines; Provided, That at least seventy-five per
cent of the loans, credits or indebtedness authorized to be obtained
under this paragraph shall be spent for projects which are
income-generating. Such foreign loans, credits or indebtedness shall be
used to meet the direct and indirect foreign exchange requirements and
peso costs of the project including studies, technical surveys,
equipment, machineries, supplies, construction, installation and
related technical services: Provided, further, That whenever necessary,
part of the proceeds of such loans, credits or indebtedness shall be
used for environmental, health and ecological management and control;chanroblesvirtualawlibrary
"(B) Lend the proceeds of such loans, credits or
indebtedness to government-owned or controlled corporations to finance
development projects which are authorized by the charters of such
corporations or by law: Provided, That the proceeds of said loans,
credits or indebtedness shall likewise be used to meet the direct and
indirect foreign exchange requirements and peso costs of the projects
including students, technical surveys, equipment, machineries,
supplies, construction installation and related technical
services; chanroblesvirtualawlibrary
"(C) Lend the proceeds of such loans, credits or
indebtedness to the Development 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
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 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, the account of which
with the Development Bank of the Philippines or with any government
financial institutions, is in-arrears for three or more installments
for causes other than force majeure or those beyond its control, nor
shall paid 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 payments 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 amount due. chanroblesvirtualawlibrary
"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. A new section to be known as Section 4-A
is hereby inserted into the same Act to read as follows:cralaw:red
"Sec. 4-A. Upon the recommendation of the Secretary
of Finance, in consultation with the National Economic and Development
Authority and approval of the President of the Philippines, loan
agreements, as well as contracts involving the availment of or
utilization of the proceeds of loans, credits or indebtedness obtained
under the provisions of this Act, may provide for the exemption from
taxes, charges, or other levies."
Section 3. Any provision of Republic Act Numbered
Four thousand eight hundred sixty, as amended, and other pertinent laws
which are inconsistent with this Decree are hereby modified or repealed
accordingly.
Section 4. This Decree shall take effect immediately.
Done in the City of Manila,
this 13th day of March, in the year of Our Lord, nineteen hundred and
seventy-three.
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