Law Summary
Duties and Functions of the Central Sugar Board
- Promote and aid in establishing sugar centrals, including machinery, equipment, rights of way, railroads for sugar manufacture.
- Authorization based on local sugar-producing province conditions.
Powers of the Central Sugar Board
- Guarantee payment and interest to sugar central concerns from net proceeds.
- Purchase bonds issued by corporations owning land planted with sugar cane.
- Make loans secured by first mortgage for additions and improvements to sugar centrals.
Operational Authorizations and Responsibilities
- Negotiate, receive propositions, make contracts with constructing firms on behalf of sugar corporations.
- Select locations prioritizing maximum beneficiary numbers.
- Determine operating capacity and set minimum production guarantees.
- Establish aid rules, provide training for technical supervisors, employees, and laborers.
- Exercise all necessary powers to fulfill the Act's objectives.
Restrictions on Land and Cane Ownership and Contracts
- Prohibits disposal or engagement of cane production or property to others than the central for 20 years without board permission.
- Applies only to contracts with sugar centrals benefiting from the Act.
- Any violating agreement is null and void.
Supervision and Intervention in Sugar Central Operations
- Sugar centrals are supervised by the board until government obligations are fully discharged.
- Board may appoint a representative to intervene in operations, with compensation fixed by the Governor-General.
Financial Provisions and Conditions for Government Investment
- Up to two million pesos gold standard fund available for investment.
- Purchase of bonds limited to 60% of property value offered as security.
- Corporations must have contracts with minimum landowners, owners must be majority stockholders.
- Requirements for sinking funds, bond retirement within 20 years, limits on dividend payments.
- Loans secured by first mortgage up to 60% of property value with required annual installments.
Interest and Repayment Terms
- Investments earn at least 5% annual interest, paid yearly with principal installments.
- First two payments may be deferred until operation start year.
- Government may accept early repayment with proportional interest reduction.
Audit and Accountability
- Bureau of Audits may examine books of sugar centrals upon board request.
Reporting and Transparency
- Board must report to Legislature each session on sugar centrals aided, sums invested, repayments, interest, and profit/loss details.
Appropriations and Compensation
- Appropriation of 25,000 pesos for board operation, including salaries, personnel, materials.
- Expenditure may be charged to sugar centrals for costs related to their formation.
- Government officials on the board receive no additional compensation from this fund.
Short Title and Effectivity
- Known as the "Sugar Central Act."
- Effective immediately upon passage.