Question & AnswerQ&A (Republic Act No. 3519)
The main purpose of Republic Act No. 3519 is to authorize the President of the Philippines to guarantee loans that may be granted by the Export-Import Bank of Washington, D.C., or any other international bank, for the establishment, management, and operation of an integrated steel mill at Iligan City.
The President of the Philippines is authorized to absolutely and unconditionally guarantee the payment of the loans on behalf of the Government of the Republic of the Philippines.
The maximum amount of the guaranty undertaken shall not exceed two hundred seventy-five million pesos (₱275,000,000), Philippine currency.
Yes, the President is authorized to designate by appointment in writing any other person to exercise any or all the powers conferred upon him by this Act.
The loan guarantees apply to loans granted by the Export-Import Bank of Washington, D.C., or any other international bank.
Yes, the guaranty must be absolute and unconditional, and the total loan guarantee must not exceed the amount prescribed by the Act (₱275 million).
This Act took effect upon its approval on June 19, 1963.
Authorizing the President to guarantee loans facilitates the financing and establishment of the integrated steel mill project by assuring lenders of the government's backing, thereby supporting industrial development.
The loan guarantee absolutely and unconditionally binds the government to pay the loans if the borrower defaults, thereby creating a legal obligation to cover the guaranteed amount.
Yes, the Act states that any provision of law to the contrary notwithstanding, the authorization to guarantee loans is permitted, effectively overriding conflicting laws to that extent.