An Act to Amend Sections Two, Four And Five of Commonwealth Act Numbered Seven, Entitled "An Act to Create A National Loan And Investment Board, Defining its Powers, and for Other Purposes"

October 30, 1936

COMMONWEALTH ACT NO. 109

AN ACT TO AMEND SECTIONS TWO, FOUR AND FIVE OF COMMONWEALTH ACT NUMBERED SEVEN, ENTITLED "AN ACT TO CREATE A NATIONAL LOAN AND INVESTMENT BOARD, DEFINING ITS POWERS, AND FOR OTHER PURPOSES"

SECTION 1. Section two of Commonwealth Act Numbered Seven is hereby amended so as to read as follows:

"SEC. 2. The National Loan and Investment Board shall be under the Department of Finance for administrative purposes, and shall have the power to invest all existing funds, the investment of which is authorized by law, and such other funds which may hereafter be declared by law to be available for loan or investment, more particularly the following:

"(1) The Loan Fund, created under Act Numbered Thirty-three hundred and thirty-five, as amended;

"(2) The Municipal Loan Fund, created under Act Numbered Thirty-nine hundred and thirty-two;

"(3) The Friar Lands Loan Fund, created under Act Numbered Seventeen hundred and thirty-six;

"(4) The San Lazaro Estate Loan Fund, created under Act Numbered Twenty-four hundred and seventy-eight, as amended;

"(5) The Private Surveyors' Loan Fund, created under Act Numbered Thirty-three hundred and twenty-seven, as amended;

"(6) The Postal Savings Bank Fund, created under Act Numbered Fourteen hundred and ninety-three, and now governed by Act Numbered Twenty-seven hundred and eleven, as amended;

"(7) The Teachers' Retirement and Disability Fund, created under Act Numbered Thirty hundred and fifty, as amended;

"(8) The Pension and Retirement Fund of the Philippine Health Service, created under Act Numbered Thirty-one hundred and seventy-three, the investment of which is authorized by Act Numbered Thirty-three hundred and ninety-one;

"(9) The Pension and Retirement Fund of the Philippine Constabulary, created under Act Numbered Twenty-seven hundred and eleven, as amended;

"(10) The Land Title Assurance Fund, created under Act Numbered Four hundred and ninety-six;

"(11) The Rice and Corn Fund, created under Act Numbered Twenty-eight hundred and eighteen, as amended; and

"(12) The Property Insurance Fund, created under Act Numbered Twenty-seven hundred and eleven, as amended.

"In connection with the investment of such funds, the National Loan and Investment Board shall have power to enter into contracts, to discount notes, securities, and other obligations, to execute and foreclose mortgages, to sue and be sued, and perform such other acts as may be required to accomplish the purposes of this Act. aETAHD

"The National Loan and Investment Board is hereby authorized to issue rules and regulations, subject to the approval of the President of the Philippines, governing the exercise by the Board of its powers and duties, the investment of the funds under its jurisdiction and control and such other matters as may be necessary for the proper functioning of the Board: Provided, however, That the investment of these funds shall be subject to the conditions and limitations prescribed in the respective laws creating them except as otherwise provided herein: And provided, further, That the total amount of investments in discounting notes, securities and other obligations authorized herein from any of the funds enumerated above, shall not exceed twenty per centum of such fund, and the transactions of the Board shall be subject to the inspection of the Bank Commissioner of the Philippines, free of charge, and the Bank Commissioner shall make a report to the Secretary of Finance of the result of his inspection together with such recommendations as the said commissioner may deem proper to make."

SECTION 2. Section four of Commonwealth Act Numbered Seven is hereby amended so as to red as follows:

"SEC. 4. The expenses of the National Loan and Investment Board shall be paid from the various investable funds under its jurisdiction and control and shall be assessed against each fund in the proportion which its average total investments bears to the average total investments of all said funds in force during the year: Provided, That the total amount that may be spent for this purpose for the year nineteen hundred and thirty-six shall not exceed the aggregate sum authorized to be spent under the laws now in force for the same purposes, for each and all of said funds. Thereafter, the expenses of the Board shall be provided for in the general Appropriation Act."

SECTION 3. Section five of Commonwealth Act Numbered Seven is hereby amended so as to read as follows:

"SEC. 5. The Secretary of Finance is hereby authorized to issue rules and regulations to the end that the powers of the National Loan and Investment Board and the various boards, institutions, and offices now in existence and administering the funds mentioned in section two hereof, may be delimited, and their functions coordinated. Subject to the approval of the President, the Secretary of Finance is likewise authorized to make and effect adjustments in the personnel of the various boards or offices now administering and controlling such funds, by transferring all or some of them to the office of the National Loan and Investment Board and/or leaving them with their respective bureaus and offices.

SECTION 4. This Act shall take effect upon its approval.

APPROVED, October 30, 1936.