Preamble
By authority of the United States, be it enacted by the Philippine Legislature, that: SECTION 1. Section twenty-seven of Act Numbered Twenty-five hundred and eight, is hereby amended to read as follows: "SEC. 27. The reserve fund shall consist of a sum set aside by the board of directors from the net profits at each annual balance prior to the distribution of any dividend, which sum shall not be less than twenty per centum of said net profits. As soon as the reserve fund shall be equal to fifty per centum of the paid-up capital stock, the accumulation of the sum set aside from the net profits may be suspended; but it shall be renewed as soon as it shall fall below said fifty per centum. "The reserve fund may be invested in securities or investments to be recommended by the Director of Agriculture and approved by the Secretary of Public Instruction and shall be expended only for covering the deficits of the association."