Guarantee by the Government.
Section 8
SEC. 8. Guarantee by the Government.— The Republic of the Philippines hereby guarantees the payment by the Company, of both the principal and interest of all loans, 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 the event the Company fails to do so. In case the Company shall be unable to pay said principal and interest, the Secretary of Finance shall pay the amount thereof which is hereby appropriated, and there upon to the extent of the amount so paid, the Government of the Republic of the Philippines shall succeed to all the rights of the holders of such loans, bonds, debentures, collaterals, notes and other obligations, unless the sum so paid by the Republic of the Philippines shall be refunded by the Company.