Amendment to R.A. No. 1000 on Govt. Bonds

The President of the Philippines, upon recommendation by the Secretary of Finance, Monetary Board, and National Economic Development Authority, is authorized to issue bonds.
Bonds may be issued domestically or internationally in the name and behalf of the Republic of the Philippines.
The maximum authorization amount is two billion pesos.
Bonds will finance public works and projects for economic and social development with high returns and authorized by law.
Bonds may also be used for expropriation of lands for subdivision and resale, or to service existing government bond obligations tied to such projects.

Provincial, city, and municipal investments in such projects are limited by their paying capacity, certified by the Secretary of Finance.
The probable income from the projects must be considered before investment.
No new bond issue of the same type may be made unless eighty percent of the immediate preceding issue has been sold.
Not more than five percent of the bond issue may be used to pay government obligations, loans, and advances from government-owned or controlled financial institutions other than the Central Bank.

Bonds will have maturities of not less than five years.
Issuance amounts will depend on market absorption and project funding needs.
The Secretary of Finance, in consultation with the Monetary Board, will prescribe:
- Form
- Interest rate (including tax exemption status)
- Denominations
- Maturities
- Negotiability
- Convertibility
- Call and redemption features
- Terms of issuance, placement, sale, servicing, redemption, and payment
Bonds may be payable in Philippine currency or any readily convertible foreign currency.

The Secretary of Finance may adopt a lottery bond scheme:
- Bondholders holding bonds are eligible for lotteries drawn at specified times.
- Awards or prizes may be given additionally or alternatively to interest.
The lottery principle can also apply to bond redemption:
- Bonds drawn by lot may be redeemed before maturity at face value or above.

Bonds issued under this Act may be exempt from taxation including taxes on foreign exchange.
This tax exemption may be granted by the National Government or any political or municipal subdivision.
Bonds must state the exemption on their face as per the Act.
Bonds are also exempt from attachment, execution, or seizure.

This amendment is declared as part of the laws of the land upon issuance.
It was promulgated by President Ferdinand E. Marcos on March 2, 1973, in Manila.
It confers continuous authority to finance economic development projects via bond issuance under the outlined terms and procedures.