QuestionsQuestions (Act No. 2356)
To amend Section 1 of Act No. 1729 by extending the time limit for loans from the sinking fund to provinces and municipalities and by adding/clarifying additional purposes for which such loans may be made.
Section 1 of Act No. 1729 is amended.
Out of any funds in the Insular Treasury not otherwise appropriated: (1) a fixed amount of ₱404,204.13 for the sinking fund; and (2) an additional continuing annual appropriation of ₱20,406.92 for each ₱1,000,000 of bonds issued, effective upon each anniversary of the date of issue until the fund is sufficient to pay all bonds.
It means the annual amount is appropriated repeatedly after each anniversary of the bond issue date, continuing until the sinking fund becomes sufficient to fully pay the bonds.
Bonds issued under Acts No. 1301 and No. 1444 (as referenced in the text of Act No. 2356 and the amended Section 1).
The investment and interest may be used with the approval of the Governor-General by depositing at interest with qualified depositaries of Government moneys and/or through loans and securities authorized in the provision.
Loans may be made for periods not exceeding ten (10) years in any instance.
Provincial and municipal governments.
The construction of public works of a permanent character.
Loans may cover the payment of the provincial and municipal share of the cost of cadastral surveys made under Act No. 2259, as amended, or the proportion of cost assumed by a province under Section 18 of Act No. 2259, as amended.
Act No. 2259 (as amended), particularly Section 18 (as referenced for the proportion of cost assumed by a province).
No loans shall be made from the fund for any period that will extend beyond the period for the redemption of the bonds for which the sinking fund is created.
The Governor-General, by authority of the section.
The Treasurer must obtain approval of the Governor-General for the investment of the fund and its interest.
Investment/placement through loans to provincial and municipal governments and for investment in such loans and securities as are authorized for the Postal Savings Bank by existing laws.
Yes. It expressly authorizes investment in such loans and securities as are authorized for the Postal Savings Bank by existing laws.
It takes effect on its passage.
Because provisos operate as additional conditions/limitations: (1) they control how interest rates are determined (by the Governor-General), and (2) they restrict loan maturity so it cannot extend beyond bond redemption—both of which directly affect whether and how loans may be granted.