Amendments to Sections 1622 and 1624 of the Administrative Code

November 14, 1945

COMMONWEALTH ACT NO. 724

AN ACT AMENDING SECTIONS ONE THOUSAND SIX HUNDRED AND TWENTY-TWO AND ONE THOUSAND SIX HUNDRED AND TWENTY-FOUR OF THE ADMINISTRATIVE CODE, AS AMENDED

SECTION 1. The first sentence of section one thousand six hundred and twenty-two of the Administrative Code, as amended, is hereby further amended to read as follows: ICAcTa

"SEC. 1622. How constituted. — There is hereby constituted in the Insular Treasury a separate and trust fund, designated as the 'Exchange Standard Fund,' which shall at all times be maintained in a sum not less than fifteen per centum of the money of the Government of the Philippines in circulation and available for circulation, including both coin and treasury certificates, but in determining the amount of treasury certificates for which the reserve provided herein is required, there shall be deducted the total sum of such treasury certificates as are covered by one hundred per centum dollar deposits in the United States constituting the Treasury Certificate Fund."

SECTION 2. The last paragraph of section one thousand six hundred and twenty-four of the Administrative Code, as amended, is hereby further amended to read as follows:

"The 'Exchange Standard Fund' shall be increased in amount through the additions provided for in section sixteen hundred and twenty-two of this Act until the amount of the said fund shall be equal to twenty-five per centum of the money of the Philippines in circulation and available for circulation, including both coin and treasury certificates, except treasury certificates covered by dollar deposits with the Secretary of the Treasury of the United States or with such Federal Reserve Banks or member banks of the Federal Reserve system in the United States as may from time to time be designated by the President of the Philippines to be branches of the Philippine Treasury for receiving such deposits. Any surplus in the said fund in excess of the said twenty-five per centum may be transferred, in whole or in part, to the general fund of the National Treasury upon the recommendation of the Secretary of Finance and the approval of the President of the Philippines: Provided, That in calculating the twenty-five per centum the proceeds of the sale of outstanding certificates of indebtedness shall not be included: And provided, further, That no surplus shall be so transferred while certificates of indebtedness are outstanding."

SECTION 3. When this Act shall have been approved by the President of the United States, as provided in subsection (9), section 1, of the Ordinance Appended to the Constitution of the Philippines, such fact shall be made known by proclamation of the President of the Philippines, and this Act shall take effect on the date of said proclamation. CETIDH

Approved, November 14, 1945.