Payment of Interest and Principal on Public Debt
- The Secretary of Finance shall pay interest due or accruing from the National Treasury funds not otherwise appropriated or from lawful sinking funds.
- Principal amounts of matured or called obligations shall also be paid from the same sources.
- The Secretary may exchange matured obligations with other Government obligations of equivalent value if the holder agrees.
- Payment rules:
- Interest-bearing obligations: payment of at least face value.
- Discount-issued obligations: payment of face value at maturity or stipulated portion if redeemed early.
- There is a continuing appropriation for necessary funds to fulfill these payments.
- An annual detailed expenditure report on these payments must be submitted to Congress during the first month of each regular session.
Authority to Incur Expenses Related to Debt Instruments
- Subject to presidential approval, the Secretary of Finance or the Central Bank (as his agent) may purchase materials, equipment, and order services (printing, engraving, advertising, etc.) necessary for the successful issuance and servicing of government debt.
- Continuing appropriation is provided for these expenses from unappropriated National Treasury funds.
- The President is required to submit an annual detailed report on expenditures under this provision to Congress.
Rulemaking and Protective Measures
- The Secretary of Finance is empowered to issue rules, regulations, and instructions necessary to implement the Act effectively.
- Measures shall be taken to protect the Republic and the investing public from fraud or loss in connection with government borrowing and securities issuance.
Effectivity
- The Act takes effect immediately upon approval.