Section 3
SEC. 3. As express condition for the extension of the franchise granted in this Act, the Bank of the Philippine Islands shall increase its paid-up capital on or before January first, nineteen hundred and thirty-one, up to the amount of its notes in circulation. Until this condition is complied with, the Bank of the Philippine Islands shall cover the entire excess of its circulation over its paid-up and unimpaired capital by depositing with the Insular Treasurer commercial paper, bonds of the United States, bonds or certificates of the Government of the Philippine Islands or the provinces, municipalities or cities thereof, railroad or mortgage bank stocks or bonds on which the Government of the Philippine Islands has guaranteed the interest and capital, or other securities acceptable to the Governor-General, who shall determine the value at which such bonds or securities may be accepted. And in case the paid-up capital is increased, the Insular Treasurer shall return to the bank the securities deposited with him to cover the notes in circulation in accordance with this section: Provided, That in case the Bank of the Philippine Islands fails to comply with the condition imposed in this section within the time prescribed, the term of its legal existence shall ipso facto expire.