Issuance of Bonds.
Section 15
SECTION 15. Issuance of Bonds. — In addition to any other power herein granted to the Corporation, whenever the Board deems it necessary for the Corporation to issue bonds, whether denominated in Philippine currency or any convertible foreign currency, it may do so by resolution which shall declare and state the purpose for which the proposed bond issue is to be incurred. In order that any such bond issue may be valid, however, it shall be approved by the President of the Philippines, upon the recommendation of the Secretary of Finance. The Secretary of Finance, in consultation with the Monetary Board of the Central Bank of the Philippines shall prescribe the form, the rates of interest, the denomination, maturities, negotiability, convertibility, call and redemption features, and all other terms and conditions of issuance, placement, sale, servicing, redemption, and payment of all bonds issued under the authority of this Decree. The bonds so issued shall be exempt from the payment of all taxes imposed by the Republic of the Philippines, or by any authority, branch, division or political subdivision thereon, which fact shall be stated upon their faces; and by virtue of this Decree are hereby made securities in all public offices, political subdivisions, commercial banks, insurance companies, savings banks and savings institutions, including savings and loan associations; executors, administrators, guardians, trustees and fiduciaries in the Philippines may properly and legally invest in such bonds their own funds within their control, and the same shall be receivable as collateral in any transaction with the government, its agencies and instrumentalities, including government-owned or controlled corporations and government banking and financial institutions in which such collateral is required. The Republic of the Philippines hereby guarantees the payment by the Corporation of both the principal and the interest on the bonds so issued, and shall pay such principal and interest in case the Corporation fails to do so, and in order to make the payments so guaranteed, such items as may be necessary are hereby appropriated out of any funds in the National Treasury not otherwise appropriated. Investment by banking institutions in such bonds shall be deemed investment in agricultural credit, in compliance with the provisions of Presidential Decree No. 717, and its implementing rules and regulations.