Increase Water District Bonded Debt Limit

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Republic Act No. 1149: Increase Water District Bonded Debt Limit

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Title Supreme Court: Increase Water District Bonded Debt Limit

Law: Republic Act No. 1149

Decision Date: Jun 17, 1954

Republic Act No. 1149 increases the bonded indebtedness limit of the Metropolitan Water District from twenty million pesos to thirty million pesos, allowing them to contract indebtedness and issue bonds for revenue-producing projects, including sinking underground water main pipes in Manila.

increased limit

bonded indebtedness

corporate affairs

A

Amendment to Existing Law

The increase amends subsection (m) of section two of Act No. 2832 as previously amended by Commonwealth Act No. 438.
The amendment specifically modifies the provision relating to the District’s authority to contract indebtedness and issue bonds.

Conditions on Contracting Indebtedness and Issuing Bonds

Indebtedness and bond issuance must be essential for the proper administration of the District’s corporate affairs or necessary for conducting its business.
Bonds issuance requires approval from the Secretary of Finance.
The issuance is limited to revenue-producing projects only.
Bond issuance and indebtedness are subject to the conditions stated in section five of the original Act, as amended.

Specific Allocation of Borrowed Amount

Part of the borrowed funds must be allocated specifically to the project of sinking underground the water main pipes in Manila.

Effectivity

The Act took effect immediately upon approval on June 17, 1954.

END