Guarantee by the Government.
Section 14
SEC. 14. Guarantee by the Government.—The Republic of the Philippines hereby guarantees the payment by the Company of both the principal and the interest of the bonds, debentures, collaterals, notes or such other obligations issued by the Company by virtue of this Act, and shall pay such principal and interest in case the Company fails to do so. In the event that the Company shall be unable to pay the said principal and interest, the Secretary of Finance shall pay the amount thereupon which is hereby appropriated out of any funds in the National Treasury not otherwise appropriated, and thereupon, to the extent of the amounts so paid, the Government of the Republic of the Philippines shall succeed to all the rights of the holders of such bonds, debentures, collaterals, notes or other obligations, unless the sums so paid by the Republic of the Philippines shall be refunded by the Company within a reasonable period of time.