Title
Amendment Guaranteeing Payment of Bonds
Law
Presidential Decree No. 1020
Decision Date
Sep 22, 1976
Presidential Decree No. 1020 guarantees the payment of principal and interest on bonds issued by the Corporation, with the Republic of the Philippines stepping in if the Corporation fails to make the payment, taking effect immediately upon its issuance on September 22, 1976.
A

Scope and Effectivity

  • The decree takes effect immediately upon its promulgation.

Legal Authority and Purpose

  • Issued by President Ferdinand E. Marcos under the powers vested by the Constitution.
  • The amendment aims to make minor corrections and effectuate needed changes in existing law, specifically ensuring the government's backing of bond payments.

Key Legal Concept: Government Guarantee

  • The law explicitly affirms the State's guarantee as to bond payments which enhances investor confidence.
  • Appropriation from the National Treasury for guaranteed bond payments underscores the priority and validity of such financial obligations.

Procedural Aspect

  • The amendment required no further legislative action and was implemented directly by presidential decree.
  • The guarantee and appropriation are automatic and legally binding once the Corporation issues the bonds whose payments are guaranteed.

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