Section 1
SECTION 1. The Government of the City of Davao is authorized to negotiate a loan in the sum of three hundred fifty thousand pesos to be used for the construction of necessary sewer facilities and other permanent improvements in the said city. At the request of and as per ordinance duly approved by the city council of Davao, and on the recommendation of the Secretary of Finance, the necessary bonds for said loan shall be issued by the President of the Philippines, who is authorized to issue the same in the name and behalf of said city. The bonds so authorized shall be issued in convenient denominations, in registered form, and shall be registered and transferable and payable in the office of the Treasurer of the Philippines in Manila. They shall have the same date, bear interest at the same rate, and be payable at the same time as the bonds of the Commonwealth of the Philippines authorized to be issued in section three of this Act. The interest rate on said bonds shall not be in excess of five per centum per annum.