Authorize Local School Boards to Invest in Bonds

Presidential Decree No. 127 is issued pursuant to the President’s powers under the Constitution “as Commander-in-Chief of the Armed Forces of the Philippines.”
The Decree is issued pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order No. 1 dated September 22, 1972, as amended.
The Decree is also issued pursuant to Proclamation No. 1103 dated January 17, 1973.
The Decree authorizes bond investments in government bonds issued or which may hereinafter be issued under Republic Act No. 4861.
The Decree ties the investment funding base to shares from additional real property tax under Republic Act No. 5447.

The Decree addresses an urgent need to immediately implement the Educational Development Decree of 1972.
It is designed to assure improved management and operation of the educational system to achieve quality academic instruction.
It is intended to develop skills among citizens belonging to the lower-income group, especially those coming from rural areas.
It directs local government resources to generate cash to underwrite and carry out the objectives and goals envisioned in the Educational Development Decree of 1972.

Presidential Decree No. 127 authorizes all Local School Boards of chartered cities and of first class-1 and first class-2 municipalities created under Republic Act No. 5447.
Investments must be made in government bonds issued or which may hereinafter be issued under Republic Act No. 4861.
Investments must be funded from the local boards’ shares from the additional one per centum (1%) of the real property tax under Republic Act No. 5447.
The funding shares must be actually realized during the next preceding fiscal year.

Local School Boards are authorized to invest beginning March 1, 1973.
Investments must be made in amounts not less than thirty per centum (30%) of the board’s respective shares from the additional one per centum (1%) real property tax.
The computation base is the additional real property tax that is levied and apportioned under Republic Act No. 5447.
The investment authorization is tied specifically to the additional tax actually realized during the next preceding fiscal year.

The Secretary of Finance must formulate the implementing rules and regulations for immediate and successful implementation.
The implementing rules and regulations must be followed by Local School Boards of chartered cities and first class-1 and first class-2 municipalities.
The implementing authority is directed to issue rules sufficient to enable prompt compliance with the investment authorization starting March 1, 1973.