Establishment and separation of territory
- The barrios of Baduang, Burayoc, Dampig, Pagudpud, Pasaleng, Subec, Tarrag, and Tongotong are separated from the municipality of Bangui, province of Ilocos Norte.
- The separated barrios are organized into an independent municipality.
- The new independent municipality is known as the Municipality of Pagudpud.
- The seat of government of the Municipality of Pagudpud is set at the Barrio of Pagudpud.
When the Municipality of Pagudpud begins existing
- The Municipality of Pagudpud begins to exist upon the appointment and qualification of the mayor, vice-mayor, and a majority of the councilors.
- The Municipality of Pagudpud also begins to exist upon certification by the Secretary of Finance that the municipality is financially capable.
- The Secretary of Finance’s certification requires financial capability to implement the provisions of the Minimum Wage Law.
- The Secretary of Finance’s certification also requires assurance that the municipality can provide all statutory obligations and ordinary essential services of a regular municipality.
- The Secretary of Finance’s certification requires assurance that the mother municipality of Bangui, after segregation of the specified barrios, can still maintain its municipal government, meet all statutory obligations, and provide for essential municipal services.