Question & AnswerQ&A (Republic Act No. 1165)
The main purpose of Republic Act No. 1165 is to authorize the City of Manila to issue bonds for the payment of real estate to be expropriated for the widening of all streets in Intramuros and to authorize a national government bond issue secured by these city bonds.
The government of the City of Manila is authorized to negotiate a loan of three million pesos for the payment of real estate to be expropriated for street widening in Intramuros.
Yes, matured bonds may be discounted by the holders in payment of real estate taxes for properties in the City of Manila.
The President is authorized to issue the city bonds in the name and behalf of Manila, and to transfer said bonds to the Republic of the Philippines in exchange for national government bonds.
The national government bonds, amounting to three million pesos, are secured by the bonds of the City of Manila authorized and transferred to the National Government.
They shall be sold only at public auction through the Central Bank of the Philippines, under terms most favorable to the Republic of the Philippines.
The sinking fund is established to accumulate sufficient funds, including interest, to redeem the bonds at maturity and is managed by the Central Bank of the Philippines.
The Act provides for a standing annual appropriation from the general fund of the National Treasury for the sinking fund and interest on the bonds, as well as additional appropriations for the expenses of issuing and selling the bonds.
The Secretary of Finance or the Central Bank of the Philippines acting as his agent may purchase materials, order printing, advertising, and other services necessary for the bonds' successful issuance and operation.
The Act took effect upon its approval on June 18, 1954.