Section 8
SEC. 8. Assets and liabilities of the Manila water and sewer system; their transfer to the District; sinking fund and Government guaranty.—The District Board is hereby authorized and directed to receive and assume on behalf of the Metropolitan Water District all assets and liabilities pertaining to the sewerage and waterworks system of the city of Manila, together with the sewerage and waterworks bonds sinking funds, and of all the indebtedness in general of the present sewer and water system of the City of Manila, and in turn to pledge such assets as security for the payment of the sewerage and waterworks bonded debt thus acquired. The Government of the Philippine Islands guarantees the payment by the Metropolitan Water District of both principal and interest on said bonds, and the District Board shall create for the same a sinking fund, in the same manner and subject to the same conditions as provided in section five of this Act for the bonds issued by the District Board, and the sums or part of the sums, appropriated by virtue of said section five shall be used for the payment thereof.