Amendment to sinking fund loan provisions

Act No. 2356 amends Act No. 1729, which appropriated funds for a sinking fund and related investments.
The amended sinking fund is for the payment of bonds issued under Act No. 1301 and Act No. 1444.
The amended loan authorization includes payment for cadastral surveys under Act No. 2209, as amended.
The investment and loan framework also references existing authorization for investments allowed for the Postal Savings Bank.

Section 1 appropriates PHP 404,204.13 out of any funds in the Insular Treasury not otherwise appropriated as a sinking fund for the payment of bonds issued under Act No. 1301 and Act No. 1444.
Section 1 appropriates an additional amount for the sinking fund: PHP 20,406.92 for each PHP 1,000,000 of bonds issued under Act No. 1301 and Act No. 1444.
Section 1 makes this additional appropriation a continuing annual appropriation effective on each anniversary of the date of issue.
Section 1 states the continuing annual appropriations run until the fund hereby created shall be sufficient to pay all of said bonds.

Section 1 provides that the appropriated sums and interest thereon are available for investment by the Treasurer.
Section 1 requires the approval of the Governor-General for the Treasurer’s investment actions.
Section 1 authorizes deposits at interest with qualified depositaries using Government moneys.

Section 1 authorizes the Treasurer, with the Governor-General’s approval, to make loans from the fund to provincial and municipal governments.
Section 1 imposes a loan-term limit: loans may be made for periods not exceeding ten years in any instance.
Section 1 limits loan purposes to construction of public works of a permanent character.
Section 1 also allows loans for the payment of the provincial and municipal share of the cost of cadastral surveys made under Act No. 2209, as amended.

Section 1 authorizes loans for cadastral surveys for the provincial and municipal share of the cost where cadastral surveys are made in accordance with Act No. 2209, as amended.
Section 1 allows loans for such proportion of the cost as may be assumed by a province under section eighteen of Act No. 2209, as amended.
Section 1 treats these assumed proportions as within the permissible cadastral-survey loan purpose.

Section 1 authorizes investment of loan proceeds and fund-related securities in ways that are authorized for the Postal Savings Bank by existing laws.
Section 1 ties these investments to the same overall availability and investment process for the sinking fund and its interest.

Section 1 provides that the rates of interest on all loans made under authority of the section are fixed by the Governor-General.
Section 1 prohibits borrowing terms that extend past the sinking fund’s redemption horizon: no loans shall be made for any period that extends beyond the period for the redemption of the bonds for which the sinking fund is created.

Section 2 states that Act No. 2356 takes effect immediately upon passage.