Section 3
SEC. 3. A new provision is hereby inserted after Section 5 to be known as Section 6, as follows. "SEC. 6. Loans and Other Indebtedness. — the Commission and any of its affiliate corporations may borrow from local or foreign sources by contracting loans, other forms of credit accommodations, and floating bonds or debentures. "Local borrowings from private commercial banks shall be subject to the standard banking requirements. Loans, credits, and contracted from government financing institutions shall be exempt from any guarantee requirement from the National Government through the Secretary of Finance. "The Commission as well as any affiliate corporation, when specifically authorized by the President of the Philippines, is hereby authorized to contract loans, credits any convertible foreign currency or capital goods, and indebtedness from time to time from foreign governments, or any other entities on such terms and conditions it shall deem appropriate for the accomplishment of its purposes and to enter into a execute and other documents specifying such terms and conditions. "The Republic of the Philippines, through the President of the Philippines or his duly authorized representatives, may guarantee, absolutely and unconditionally, as primary obligor and not as surety merely, the payment of the loans, credits and indebtedness secured by the Commission or any of its affiliate corporations, as provided above, which may be over and above the amount which the President of the Philippines is authorized to guarantee under Republic Act Number Sixty One Hundred Forty-Two, as amended, as well as the performance of all or any of the obligations undertaken by the Commission or its affiliate corporations in the territory of the republic of the Philippines pursuant to loan agreements entered into with foreign governments or any international financial institutions or fund sources. "The loans, credits and indebtedness contracted under this subsection and the payment of the principal, interest and other charges thereon, as well as the importation of machinery, equipment materials, supplies and services, by the Commission or any of its affiliate corporations as defined herein, paid from the proceeds of any loan, credit or indebtedness incurred under this Act, shall also be exempt from all direct and indirect taxes, duties, fees, imposts an all other charges and restrictions, including import restrictions previously ad presently imposed,by the Republic of the Philippines, or any of its agencies and political subdivisions."