Assignment and Transfer of Bonds to the Government
- The Governor-General may assign and transfer the provincial bonds to the Government of the Philippine Islands for consideration.
- The bonds assigned serve as security for an equivalent amount of Government of the Philippine Islands bonds.
- Proceeds from this transaction are deposited with authorized government depositories and credited to the "Province of Masbate Public Improvement Bond Issue Fund."
- Withdrawals from this fund are strictly limited to purposes outlined in the Act.
Issuance and Sale of Insular Government Bonds
- The Secretary of War may issue government bonds worth thirty thousand US dollars, secured by provincial bonds.
- Bonds shall have a thirty-year term and bear interest not exceeding five percent per annum.
- Form and payment schedules of these bonds are determined by the Secretary of War.
- Bonds may be coupon or registered, payable in US gold coin, and registered in the US Treasury.
- The Secretary of War is authorized to sell these bonds under terms favorable to the Philippine Government.
- Sales proceeds are deposited in authorized depositories credited to the Treasurer of the Philippine Islands.
Appropriation of Bond Sale Proceeds
- The money obtained from the sale of insular bonds is appropriated to redeem the provincial bonds used as security.
Tax Exemption of Bonds
- Both provincial and insular bonds are exempt from taxation by all Philippine and U.S. governmental authorities, including subdivisions.
- This exemption is explicitly stated on the bond faces.
Creation and Management of a Sinking Fund
- A sinking fund is established to secure the payment of insular bonds.
- Contributions to the fund are calculated as an annuity based on outstanding bonds, with interest accrued at 3.5% per annum.
- The Treasurer of the Philippine Islands manages and invests the fund according to the Secretary of Finance's approval.
- All expenses related to fund investment are charged to the sinking fund.
Appropriation for Bond Interest and Issuance Expenses
- The Insular Treasury is annually appropriated funds to cover sinking fund contributions and bond interest.
- Additional funds are allocated for expenses resulting from bond issuance and sale.
- The Province of Masbate is required to reimburse the Insular Government within thirty days of payment for these expenses.
- Failure to reimburse authorizes withholding of revenues by provincial tax collectors to recover such sums.
Oversight of Public Improvement Projects
- The Director of Public Works of the Philippine Islands retains exclusive control over all construction work financed under the Act.
- Work commencement is contingent upon certification of available funds by the Insular Treasurer.
Effective Date
- The law takes effect immediately upon approval on February 21, 1929.