Presidential Authority to Negotiate and Contract Loans
- The President of the Philippines is empowered to negotiate and contract loans with the IBRD on behalf of NPC.
- The purpose of these loans is to assist in the reconstruction and development of the Philippine economy.
Presidential Guarantee of Loans
- The President is authorized to guarantee loans absolutely and unconditionally.
- Such guarantee is as a primary obligor, not merely as a surety.
- The guarantee covers payment and performance obligations of NPC under loan agreements with the IBRD.
- This guarantee is made in the name and on behalf of the Republic of the Philippines.
Power to Enter into Agreements
- The President may enter into agreements with the IBRD under terms deemed proper to effectuate the Act's purposes.
Loan Amount Limitation
- The total principal amount of loans contracted or guaranteed by the Republic under this Act shall not exceed fifty million US dollars or equivalent.
Delegation of Authority
- The President may designate other persons in writing to exercise any or all powers conferred by this Act.
Tax Exemptions on Agreements and Payments
- Agreements made under this Act may provide for exemption from all taxes, contributions, and restrictions imposed by the Republic of the Philippines and its local government units.
Tax Exemption on Loans
- The loans themselves are exempt from all taxes, duties, fees, imposts, charges, contributions, and restrictions within the Republic and its subdivisions.
Exemption from Commonwealth Act No. 120 Provisions
- Loans contracted under this Act are exempt from the provisions of section 4 of Commonwealth Act No. 120, as amended by other Commonwealth Acts.
Repeal of Conflicting Laws
- Any laws or provisions contrary to this Act are repealed to the extent of conflict.
Effectivity
- The Act takes effect immediately upon its approval.