Purposes, name and domicile.
SECTION 1. Purposes, name and domicile.—To provide credit facilities for the rehabilitation and development of agriculture, commerce and industry, the reconstruction of property damaged by war, and the broadening and diversification of the national economy, there is hereby created a body corporate to be known as the Rehabilitation Finance Corporation, which shall have its principal place of business in the City of Manila and shall exist for a period of fifty years.
Corporate powers.
SEC. 2. Corporate powers.—The Rehabilitation Finance Corporation shall have power:
(a) To grant loans for home building and for the rehabilitation, establishment or development of any agricultural, commercial or industrial enterprise, including public utilities;
(b) To grant loans to provincial, city and municipal governments for the rehabilitation, construction or reconstruction of public markets, waterworks, toll bridges, slaughterhouses, and other self-liquidating or income-producing services;
(c) To grant loans to agencies and corporations owned controlled by the Government of the Republic of the Philippines for the production and distribution of electrical power, for the purchase and subdivision of rural and urban estates, for housing projects, for irrigation and waterworks systems, and for other essential industrial and agricultural enterprises;
(d) To grant loans to cooperative associations to facilitate production, the marketing of crops, and the acquisition of essential commodities;
(e) To underwrite, purchase, own, sell, mortgage or otherwise dispose of stocks, bonds, debentures, securities and other evidences of indebtedness issued for or in connection with any project or enterprise referred to in the preceding paragraphs;
(f) To issue bonds, debentures, securities, collaterals, and other obligations with the approval of the President, but in no case to exceed at any one time an aggregate amount equivalent to one hundred per centum of its subscribed capital and surplus. These bonds and other obligations shall be redeemable at the option of the Corporation at or before maturity and in such manner as may be stipulated therein and shall bear such rate of interest as may be fixed by the Corporation. Such obligations shall be secured by the assets of the Corporation, including the stocks, bonds, debentures and other securities underwritten, purchased or held by it under the provisions of this Act. The Corporation shall provide for appropriate reserves for the redemption or retirement of said obligations. Such obligations may be issued and offered for sale at such price or prices as the Corporation may determine, and shall be exempt from taxation both as to principal and interest. The said obligations shall be and are hereby fully and unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines and such guaranty shall be expressed on the face thereof. In the event that the Corporation shall be unable to pay debentures, bonds, collaterals, notes or other such obligations issued by it, the Secretary of Finance shall pay the amount thereof, which is hereby appropriated out of any moneys in the National Treasury not otherwise appropriated; and thereupon, to the extent of the amounts so paid, the Government of the Republic of the Philippines shall succeed to all the rights of the holders of such bonds, notes, debentures, collaterals, or other obligations. Subject to the above provisions, the Corporation is also authorized to issue "Rehabilitation bonds" in denominations of not less than fifty pesos nor more than one thousand pesos redeemable by the Corporation on demand at the option of the holder of said bonds, which may be of the following types: (1) rehabilitation bonds at progressive staggered interest with cumulative face value; and (2) rehabilitation bonds bearing interest as follows: one per cent a year during the first year; two per cent a year during the second year; and three per cent a year during the third and succeeding years, said interest to become due and payable semi-annually and payment thereof to be annotated on the back of each bond certificate. Maturity of both types of bonds shall be fixed by the Board of Governors but in no case to exceed ten years. The Board of Governors shall have the power to prescribe rules and regulations for the registration of the bonds issued by the Corporation at the request of the holders of such bonds.
(g) To adopt, alter, and use a corporate seal which shall be judicially noticed; to make contracts; to borrow money; to lease or own real and personal property, and to sell, mortgage or otherwise dispose of the same; to sue and be sued; to employ such officers and personnel as may be necessary to carry out the business of the Corporation; and otherwise to do and perform any and all things that may be necessary or proper to carry out the purposes of the Corporation.
Capital stock.
SEC. 3. Capital stock.—The capital stock of the Corporation shall be three hundred million pesos divided into three hundred thousand shares having a par value of one thousand Pesos each. The said capital stock shall be fully subscribed by the Government of the Republic of the Philippines, and payment thereof shall be made by authority of the President from appropriations provided by law.
