Section 2
SEC. 2. The guarantee referred to in the preceding section shall be granted under such conditions as the Secretary of Commerce and Communications may prescribe, including the following: (a) That the applicant shall be a citizen of the Philippine Islands or of the United States, and if it be a corporation that it be organized by Philippine or American citizens, or both, and in accordance with the laws of the Philippine Islands. (b) That the duration of the guarantee shall not exceed a term of three years which, in the discretion of the Secretary of Commerce and Communications, may be extended for another three: Provided, That as soon as the earnings of such person or corporation shall amount to a sum the average whereof shall be in excess of four per centum per annum, such person or corporation shall refund the excess to the Insular Government until all sums advanced by the same during the term of the guarantee shall be paid. (c) That the guarantee provided for by this Act shall only be paid commencing with the first day on which the factory shall be completely equipped and begin operation. (d) That the guarantee shall be granted only if the factory established shall, in the opinion of the Secretary of Commerce and Communications, be modern and adequate for the making of paper pulp and the manufacture of paper from raw materials of the Philippine Islands.