FURTHER AMENDING REPUBLIC ACT ONE THOUSAND ENTITLED "AN ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES TO ISSUE BONDS TO FINANCE PUBLIC WORKS AND PROJECTS FOR ECONOMIC DEVELOPMENT, AUTHORIZED BY LAW AND FOR OTHER PURPOSES," AS AMENDED.

• Number: Presidential Decree No. 1387
• Sections: 2

Preamble

WHEREAS, under Section 1 of R.A. 1000, as amended, the

President of the Philippines, upon recomendation of the Secretary of Finance,

the Monetary Board and the National Economic and Development Authority, is

authorized to issue, preferably in the Philippines or abroad if necessary, in

the name and in behalf of the Republic of the Philippines Bonds, including

lottery bonds, in an amount not exceeding two billion pesos for socio-economic

development;

WHEREAS, the present economic and social development plans

entail massive financing not only for foreign sources but also from domestic

borrowings to meet the peso counterpart funds required to sustain the various

foreign-assisted projects of the Government designed to enhance economic

growth;

WHEREAS, the balance out of the ceiling of two billion pesos

fixed for domestic borrowings under the present law is considered insufficient

to continuously support the Government's overall development plans;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

order and decree further amendment to paragraph 1, Section 1 of R.A. 1000, as

amended to read as follows:

Section 1

SECTION 1. Upon the recomendation of the Secretary of

Finance, the Monetary Board, and the National Economic and Development

Authority, the President of the Philippines is authorized to issue, preferably

in the Philippines, or abroad if necessary, in the name and in behalf of the

Republic of the Philippines bonds, including lottery bonds, in an amount not

exceeding five billion pesos to finance public worlds and projects for economic

and social development which have high economic or social rates of returns and

which are authorized by law, including expropriation of lands for subdivision

and resale to individuals, or to repay or service bonded obligations of the

Government incurred for such projects: Provided however, That

invesments in such projects by provinces, cities, and municipalities shall be

limited by the paying capacity of the province, city or municipality to be

certified by the Secretary of Finance and that the probable income from such

projects shall be taken into consideration: And provided, further, That

no issue shall be made if eighty percentum of the immediately

preceeding issue of the same type has not been sold: Provided finally,

That no more than five percentum of this bond issue shall be used to

pay government obligations, loans and advances, whether secured or unsecured,

guaranteed by the National Government, made by government-owned or controlled

financial institutions other than the Central Bank, to government political

subdivisions, offices and instrumentalities and/or loans commited by

government-owned and/or controlled financial institutions other than the Central

Bank, guaranteed by the Government, that cannot be met on maturity."

DONE in the City of Manila, this 25th day of May in the year of Our Lord,

nineteen hundred and seventy-eight.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JACOBO C. CLAVE

Presidential Executive

Assistant