Section 3
SECTION 3. Section three of the same Act is hereby amended to read as follows: "SEC. 3. The President of the Philippines is further authorized, in behalf of the Republic of the Philippines, to guarantee such loans, credits or indebtedness as may be necessary and upon such terms and conditions, not inconsistent with this Act, as may be agreed upon with the governments of foreign countries with which the Philippines has diplomatic or trade relations or which are members of the United Nations, their agencies, instrumentalities or financial institutions or with reputable non-governmental national or international institutions, loans, credits or indebtedness extended directly to, or bonds, debentures, securities or other evidences of indebtedness for sale in international markets issued by: "(A) Corporations owned or controlled by the government of the Philippines: Provided, that the proceeds of such loans, credits or indebtedness or the proceeds of bonds, debentures, securities or other evidences of indebtedness floated or issued, shall be used to undertake industrial, agricultural, or other economic development projects which are authorized by law and/or by their respective charters and which are in accordance with the list of such projects as are enumerated in Annex "A" (including Lists 1, 2, 3, and 4). "(B) Government-owned or controlled financial institutions for relending to single cooperatives or private corporations or associations, whose capital stocks, if not fully subscribed, is open to subscription by the general public for projects authorized by the charters of such financial institutions or by law, subject to the same terms, conditions and criteria prescribed in paragraph "C" of Section one of this Act. Seventy-five per centum of the total amount authorized to be guaranteed under this section shall be incurred for projects under paragraph "B" hereof; and that of the total amount of guarantees no single cooperative, private corporation or association except development finance corporations using funds supplied by International Bank for Reconstruction and Development, the Asian Development and other similar international financial institutions shall be allowed to borrow more than fifteen per centum of the total amount of loans, credits or indebtedness guaranteed hereunder: Provided, further, that the total foreign exchange requirement for servicing the loans, credits or indebtedness guaranteed under this Act shall be included in the certification required of the Central Bank under Section two hereof. "The total amount of loans, credits or indebtedness incurred, and the proceeds of bonds, securities or other evidences of indebtedness floated or issued, which may be guaranteed by the President under this section shall not be more than five hundred million United States dollars or its equivalent in other foreign currencies at the exchange rate prevailing at the time the guarantee is made excluding interest and other normal banking charges imposed or charged by the International Bank for Reconstruction and Development or other similar international financial institutions: Provided, that whenever necessary part of the proceeds of such loans, credits, or indebtedness shall be used for environmental management control: Provided, further, that no portion of the proceeds of such loans, credits or indebtedness or of bonds, debentures, securities or other evidences of indebtedness sold in international markets, shall be channelled to, or utilized by or for subsidiaries of such financial institutions, which have not been created by an Act of Congress: Provided, finally, that all loans made shall, within three days after the same have been approved pending final confirmation by the governing board of the financial institution concerned, be published in two newspapers of general circulation in the Philippines, indicating therein among others, the name and address of the borrower, including the names and addresses of the officers and members of the cooperative, corporation or association, the amount of loan, credit or indebtedness contracted and the project to be financed."