Section 1
SECTION 1. A new section to be known as Section 2-A thereof is hereby provided to read as follows: "SEC. 2-A. Capital Stock of the System. — The System is hereby authorized a capital stock of one billion pesos divided into ten million shares at a par value of one hundred pesos each, which shares shall not be transferred, negotiated, pledged, mortgaged, or otherwise given as security for the payment of any obligation. The shares shall be subscribed and paid for by the Government of the Philippines as follows: "(a) The sum of four hundred thirty-eight million nine hundred eighty-six thousand seven hundred pesos, more or less, representing bonded indebtedness on local bonds, including arrearages on amortization, net of sinking fund investment and interest payable, and eleven million six hundred seventy thousand pesos as organizational loan under Republic Act Numbered Sixty-two Hundred Thirty-four shall be converted into subscribed and paid-in capital stocks by the Government of the Philippines equivalent to approximately four million five hundred six thousand five hundred sixty-seven shares of stock at a par value of one hundred pesos; "(b) The sum of six million two hundred thirty-five thousand four hundred pesos, more or less, representing outstanding cost and interest of reparations goods procured by the System and its predecessor in interest pursuant to the provisions of Republic Act Numbered Seventeen Hundred Eighty-nine shall be additional paid-in subscription of the Government of the Philippines equivalent to approximately sixty-two thousand three hundred fifty-four shares of stock with the same par value of one hundred pesos each; and "(c) The balance of said subscription shall be paid by the conversion into equity capital of outstanding interest payments on bonded indebtedness, cost of reparations funds that may be allocated to the System in the future and surplus of the System, bond issues upon request of the System or through any capital contribution from any source as may be duly approved from time to time by the President of the Philippines."