Recommendations and Government Approval
- The Secretary of Finance recommended the bond issuance on August 17, 1939.
- Section 3 of Commonwealth Act No. 428 permits the issuance of National Government bonds equivalent to the par value of the City of Bacolod bonds.
- The Commonwealth of the Philippines will use the proceeds from National Government bonds to purchase an equivalent amount of Bacolod’s city bonds.
Presidential Authority and Terms of Bond Issuance
- The President of the Philippines is authorized to issue and sell these National Government bonds on behalf of the Commonwealth.
- Bonds are to be sold through the Treasurer of the Philippines via public auction under terms favorable to the Commonwealth.
Specific Bond Details
- Amount: One hundred twenty thousand pesos (subset of the total requested sum).
- Date of bonds: December 1, 1939.
- Maturity: Thirty years from the date of issue.
- Interest Rate: Five percent per annum, payable semi-annually.
- Denominations: Fifty pesos or multiples thereof.
- Form: Can be coupon or registered bonds.
- Registration: Bonds are to be registered at the Treasury of the Philippines in Manila.
- Payment: Principal and interest payable in Philippine currency or its equivalent in United States currency, at the discretion of the Secretary of Finance.
Legal Effect and Execution
- The executive order constitutes formal authorization and issuance of bonds.
- The bonds are to aid municipal infrastructure development in Bacolod.
- The document bears the signatures of the President and the Secretary to the President, confirming official enactment.