Act No. 2740

: The sinking fund is created for redeeming the bonds issued under Acts Numbered 1301, 1444, and 1954 to ensure the fund equals the par value of the outstanding bonds.
: For each one million pesos of bonds outstanding, the appropriation must equal an annuity of 19,371.33 pesos with interest at the rate of 3.5% per annum.
: The appropriation shall continue until the sinking fund equals the par value of the outstanding bonds.
: The Insular Treasurer, with the approval of the Governor-General, is authorized to invest the sinking fund.
: Investments may be made in loans and securities authorized for the Postal Savings Bank, deposits with qualified depositaries, loans to provincial and municipal governments for public works or cadastral surveys, and loans to the Manila Railroad Company.
: Loans must not exceed ten years, must be at rates fixed by the Governor-General (except as otherwise provided), and must not extend beyond the redemption period of the bonds.
: Loans to the Manila Railroad Company must be evidenced by notes bearing 4% interest per annum and secured according to the memorandum of agreement in Act No. 2574.
: Acts Numbered 2425, 2593, and all other acts or parts inconsistent with Act No. 2740 are repealed.
: This Act took effect upon its approval on February 18, 1918.
: The Governor-General approves investments and fixes interest rates on loans made from the sinking fund, except where otherwise stated.