Provincial Advances.
Section 3
SEC. 3. Provincial Advances.—Upon recommendation of the Secretary of Finance, provincial, city and municipal governments may secure from the Central Bank of the Philippines and/or any other duly authorized government bank or depository provisional advances in amounts not exceeding, in their aggregate, fifteen per cent of the average annual income actually realized from regular sources by the borrowing local government unit for the last three fiscal years, the amount granted to be released to the provincial or city treasurer concerned. Provisional advances, including the interest accruals thereon, shall be payable within the first quarter of the fiscal year following the grant thereof. Provincial advances shall not be taken up as revenue available for appropriation by the local government and shall be spent and disbursed solely to finance expenditures covered by duly authorized appropriations in the approved budgets of the borrowing entity for the current fiscal year. In case of failure of the borrowing local government to settle in full said provisional advances within the prescribed time for payment, the Secretary of Finance is hereby authorized to order the withholding of the internal revenue allotments and/or specific tax allotments accruing to the local government concerned and the direct remittance of the amount involved to the lending bank or institution in settlement of the outstanding obligation.