Providing for the Issuance of Bonds of the Government of the Philippine Islands for the Establishment of Irrigation Systems

April 6, 1920

ACT NO. 2931

AN ACT TO PROVIDE FOR THE ISSUANCE OF BONDS OF THE GOVERNMENT OF THE PHILIPPINE ISLANDS, IN SUCH A SUM AS THE CONGRESS OF THE UNITED STATES MAY AUTHORIZE, FOR THE PURPOSE OF PROVIDING FUNDS FOR THE ESTABLISHMENT OF IRRIGATION SYSTEMS IN THE PHILIPPINE ISLANDS

SECTION 1. The Governor-General is hereby authorized to issue, in the name of the Government of the Philippine Islands, such additional bonds as may be authorized to be issued by Act of Congress, in amounts to be fixed by the Council of State within the limits provided for in said Act of Congress, for the purpose of establishing irrigation systems in the Philippine Islands. The bonds thus authorized to be issued shall bear a date to be fixed by the Council of State and shall bear such interest as is authorized by Congress, or in default thereof such interest as may be fixed by the Governor-General, with the consent of the presiding officers of both Houses of the Philippine Legislature. Such interest shall be payable quarterly or at such periods as may be designated by Congress. The bonds shall be redeemable and payable after such periods as may be designated by Congress, or in the event that no definite time is fixed by the same, they shall be made redeemable at the pleasure of the Government of the Philippine Islands after ten years from date of issue and payable in thirty years after said date. The principal and interest thereof shall be payable in gold coin of the United States or its equivalent, in the discretion of the Insular Treasurer in Manila, if the bonds are sold in the Philippine Islands, or in gold coin of the United States in the United States Treasury, if sold in the United States, unless otherwise provided by Congress. The said bonds shall be in registered form, and in suitable denominations. Said bonds are hereby declared to be exempt from the payment of any tax established by the Government of the Philippine Islands or any authority, branch, division, or political subdivision thereof, which fact shall be stated upon their face, as well as any other exemption which Congress may determine with regard to taxes of the Government of the United States or any authority, branch, division or political subdivision thereof. SDHTEC

SECTION 2. The Governor-General is further authorized to sell said bonds on such terms as are most favorable to the Government of the Philippine Islands and to deposit the proceeds of such sale or sales with an authorized depository of the Government of the Philippine Islands.

SECTION 3. The proceeds of the sale of said bonds shall be placed by the Insular Treasurer to the credit of the "Irrigation System Bond Issue" account and shall be disbursed only upon appropriation by the Secretary of Commerce and Communications, with the approval of the Council of State, for the purposes mentioned in this Act.

SECTION 4. Commencing with the fiscal year of the issuance of the bonds, and each succeeding year thereafter until said bonds shall have been paid, there is hereby made a continuing annual appropriation, authorized to be paid out of any funds in the Insular Treasury not otherwise appropriated, of such sums as may be necessary to meet the annual interest payments upon the bonds issued and to make up the sinking fund herein provided for.

SECTION 5. A sinking fund for the payment of the bonds issued shall be formed by means of annual payments so arranged that, together with the accrued interest at three and one-half per centum per annum, counted from the date of the bond issue, they shall aggregate an amount equal to the amount of the bond issue at the date when the same shall become due. This sinking fund shall be under the custody of the Insular Treasurer, who shall invest it in such manner as the Secretary of Finance may approve. AScHCD

SECTION 6. This Act shall take effect on its approval.

Effective, April 6, 1920.