Section 18
SEC. 18. Guaranty of the Republic of the Philippines. -(a) The Republic of the Philippines hereby fully and unconditionally guaranties to payment by the Corporation both of the principal sums and interest of the bonds, debentures, collateral, notes, or other such obligations of the Corporation, issued or incurred by virtue of this Act and shall pay such principal sums and interest in the event that the Corporation fails to do so: Provided, That such guaranty shall be expressed on the face of the certificate of indebtedness: Provided, further, That the aggregate amount of such bonds, debentures, collateral, notes or other such obligations of the Corporation does not exceed at any time, the limit prescribed under Section 5 (f) of this Act. (b) The Republic of the Philippines hereby fully and unconditionally guaranties the guaranty obligations of the Corporation incurred in accordance with this Act both as to principal, and as to interest up to eleven percent (11%) for socialized housing, ten percent (10%) for low-cost housing, nine and one-half percent (9.5%) for medium-cost housing, and eight and one-half percent (8.5%) for open housing: Provided, That such guaranty shall be expressed on the face of the debenture bonds: Provided, further, That the aggregate amount of the outstanding obligations shall not, at any time, exceed twenty (20) times the capital and surplus of the Corporation. The Republic of the Philippines shall succeed to all the rights of the holders of such bonds, debentures, collateral, notes or other instruments to the extent of the payments made, unless the sums so paid by the Republic of the Philippines shall be refunded by the Corporation within a reasonable time.