Sec. 1. There .is appropriated, out of any funds in the Philippine Treasury not otherwise appropriated, the sum of five hundred thousand pesos or so much thereof as may be necessary, to be advanced to municipalities and municipal districts, upon recommendation of the Secretary of Public Instruction and with-the approval of the President of the Philippines, for use in connection with the operation and maintenance of their public intermediate classes during the fiscal year nineteen hundred and forty, the amounts thus advanced to be repaid by the municipalities and municipal districts .concerned to the National Government as soon as collections accruing to their respective school funds become available. Any municipality or municipal district that receives an advance from this appropriation shall not establish any new intermediate class until it shall have repaid in-full the amount of said advance.
No municipality or municipal district shall, without the previous authority of the President of the Philippines, be entitled to receive any advance from the appropriation herein authorized unless it has transferred from its general fund to,its school fund during the fiscal year nineteen hundred and forty at least an amount.equal to that it had transferred-from its general fund to its school fund during the fiscal year.nineteen hundred and thirty-eight: Provided, That in case of a decrease in the,income for the general fund during the fiscal year nineteen hundred and forty a proportional reduction in the amount to be transferred to the school fund maybe made.