Creation of Northern Samar Development Authority

Conduct comprehensive surveys of resources, social conditions, and regional problems.
Draft development plans aligned with directives from the National Economic Council and subject to Presidential approval.
Extend planning, management, and technical assistance to investors.
Recommend prioritization and support levels of industrial and agricultural projects to appropriate agencies.
Coordinate or integrate efforts of government and private entities for accelerated regional development.
Resolve jurisdictional disputes involving the Authority through the President’s decision.
Engage in pioneering enterprises and road-building programs necessary for regional development.
Facilitate resettlement of populations affected by government socio-economic policies nationwide.
Submit annual reports to the President, National Economic Council, and Congress evaluating ongoing regional development progress.

Legal personality with capacity to sue and be sued.
Use a corporate seal and enter into contracts.
Formulate and amend by-laws for governance.
Acquire, lease, mortgage, dispose of real and personal property, subject to Presidential approval for foreign sales.
Hold agricultural lands exceeding normal private ownership limits.
Exercise eminent domain for real estate acquisition in the name of the Republic of the Philippines.
Borrow funds from financial institutions within prescribed limits.
Invest in other corporations and perform acts consistent with corporate objectives.

Authorized capital stock of PHP 100 million, fully subscribed by the Philippine government.
Initial appropriation of PHP 10 million from the National Treasury, plus PHP 10 million annually for nine years.
PHP 30 million reserved exclusively for road-building projects over five years.
Operating expenses initially set at PHP 500,000, with ongoing funding mechanisms including revolving funds and reimbursements.
Authority empowered to issue bonds up to PHP 30 million, subject to Board resolution and Presidential and Secretary of Finance approval.
Bond issuance terms prescribed by the Secretary of Finance in consultation with the Monetary Board.
Bonds can be payable in Philippine or convertible foreign currency and are accepted as government security.
Authority and its bonds are exempt from taxes except inheritance and gift taxes; subsidiary corporations subject to phased taxation.
A sinking fund is established to ensure redemption of bonds at maturity, managed by the Central Bank.
Government guarantees payment of bonds; Secretary of Finance may disburse funds from the National Treasury if Authority defaults.

Corporate powers vested in a Board of Directors with seven Presidential appointees.
Board members serve staggered six-year terms; vacancies filled for unexpired terms.
Board members must be Filipino citizens of good integrity and socio-economic development expertise.
Prohibition on partisan political activities and conflict of interest; violations grounds for dismissal.
Board meets monthly; quorum is three members.
General Manager appointed by the President leads executive functions and is Vice-Chairman of the Board.
General Manager qualifications include executive competence and experience in public administration or enterprise management.
Salary set at PHP 24,000 annually; residence requirement enforced; no outside business allowed.
Organizational structure includes assistant general managers for planning and program implementation, and a General Counsel.
Employment governed by merit system consistent with Civil Service rules.
Board appoints high-ranking officials; General Manager appoints lower-ranking employees.
Minimum wage and labor law benefits apply to all workers employed under Authority contracts.

Authority must formulate and submit development plans within one year to the President.
Presidential approval required for plan implementation and land reservation or transfer.
Authority operates independently but under Presidential supervision.
Procurement of supplies and services conducted through proper bidding with limited exceptions for emergencies and small purchases.
Auditor General supervises Authority audits through appointed representative; annual financial reports submitted to President and Congress.
Separability clause ensures invalid provisions do not affect the remainder of the Act.
Repeal clause supersedes conflicting laws and regulations.
The Act takes effect upon approval on June 20, 1964.