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[Act No. 3228, (1925-11-12)](https://lawyerly.ph/laws/view/l4ad9)
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[ Act No. 3228, November 12, 1925 ]

AN ACT AUTHORIZING THE PROVINCE OF PANGASINAN TO ISSUE BONDS FOR THE PURPOSE OF RAISING FUNDS FOR THE CONSTRUCTION OF PERMANENT IMPROVEMENTS, AND AUTHORIZING ALSO AN INSULAR GOVERNMENT BOND ISSUE SECURED BY SAID PROVINCIAL BONDS AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Pursuant to the provisions of section eleven of the Act of Congress approved August twenty-ninth, nineteen hundred and sixteen, entitled "An Act to declare the purpose of the people of the United States as to the future political sratus of the people of the Philippine Islands, and to provide a more autonomous government for those Islands," as amended by the Act of Congress approved May thirty-first, nineteen hundred and twenty-two, the Province of Pangasinan is hereby authorized to negotiate a loan in the sum of eight hundred and fifty-seven thousand pesos to be used for construction of the following permanent improvements: high-school building and permanent bridge across the Ago River at Carmen, Villasis, and also for reimbursement to the Insular Government of Outstanding loans contracted for the construction of permanent improvements.  At the request of the provincial board of Pangasinan. the necessary bonds for said loan shall be issued by the Governor-General of the Philippine Islands, who is hereby authorized to issue the same in the name and behalf of said province.  The bonds so authorized shall be issued in convenient denominations, in registered form, and shall be registered and transferable and payable in the office of the Insular Treasurer in Manila.  they shall have the same date, bear interest at the same rate, and be payable at the same time as the bonds of the Government of the Philippine Islands authorized to be issued in section three of this Act: Provided, however, that the interest rate on said bonds shall not be in excess of five and one-half per centum per annum.

SEC. 2. The Governor-General is further authorized to convey and transfer said bonds to the Government of the Philippine Islands for a consideration, charging the same to the net proceeds of the sale of the bonds of the Government of the Philippine Islands issued in an equivalent  amount, as provided in section three  of  this Act, and to deposit the proceeds of said conveyance with an authorized depository  of  the Government  of the Philippine Islands.

The  proceeds  of the conveyance  to  the  Insular Government of said bonds shall be applied by the Insular Treasurer to the payment  of  the  outstanding  indebtedness of the Province  of Pangasinan with the Insular  Government, and the balance shall be credited  to the "Public Works  Bond Fund, Province of Pangasinan" and be withdrawn only for the purposes set forth in this Act, by order of the Secretary of Finance.

SEC. 3. The  Secretary of War is hereby  authorized to issue  in the name and behalf of the  Government of the Philippine Islands, bonds  to the amount  of  four hundred and twenty-eight  thousand five hundred dollars, United States currency, for a term of thirty years, secured by the authorized bonds of the Province of Pangasinan conveyed and transferred to the  Insular Government as provided in sections one and two of this Act. The Secretary of War shall determine the form of the Insular bonds,  the date of issue thereof,  and the  rate and dates of payment of the interest thereon, which rate shall not be  in  excess of five and one-half per centum per  annum.   The Insular  bonds may  be coupon bonds  or registered bonds, convertible, in the discretion  of  the Secretary  of War, into either form, and shall be registered in the Treasury of the United States, where the principal and interest shall be payable in gold coin of the United States.

The Secretary of War is further  authorized to sell such Insular bonds  upon such  terms and conditions as in his judgment are  most favorable to the  Government of the Philippine Islands, and  he  shall deposit the proceeds of the sale thereof with the authorized depository or depositories of the Government of the Philippine Islands  in the United States,  to the  credit of the Treasurer of the  Philippine Islands.

SEC. 4.  The  proceeds of the sale of the  Insular bonds authorized to be issued by this Act are hereby appropriated for the payment of the bonds issued by the  Province of Pangasinan and conveyed and transferred  as  security for the Insular bonds above mentioned, in accordance with sections one and two of this Act.

SEC. 5.  The Insular and provincial bonds hereby authorized to be issued shall be exempt  from  taxation by the Government of the United States, by the Government of the Philippine Islands or any political or municipal subdivision thereof, or by any State or territory of the United States, or by  any county, municipality, or other municipal sub- division of any  State or territory of the United  States, or by the District of Columbia, which fact shall be stated upon their face  by virtue of section  one of the  Act of Congress approved  February  sixth,  nineteen  hundred  and five, according to which Act, as well as in accordance  with the Act of Congress approved on  August twenty- ninth,  nineteen hundred and sixteen, as amended, and in accordance with this Act. the said bonds are issued.

SEC. 6.  A sinking fund  is hereby created  for  the  payment of the Insular bonds issued under the provisions of this Act, in such a manner that the total amount thereof at each annual due date of the bond issue shall be equal to the total of an annuity of  nineteen hundred and  thirty-seven pesos and thirteen centavos for each one hundred thousand pesos of bonds  outstanding, accrued at the rate of interest of three and  one-half per centum per annum.   Said fund shall be under the custody of the  Treasurer of the Philippine Islands,  who shall invest the same, in such manner as the Secretary of Finance may approve, in accordance with the provisions of  Act Numbered Three thousand and fourteen which governs the investment of sinking  funds; shall charge all the expenses of  such  investment to  said sinking fund, and shall credit to the same the interest  on investments and other income belonging to it.

SEC. 7. A standing annual appropriation is hereby made out of any of the  general funds in the Insular Treasury, of such sums as may be necessary  to provide  for the sinking fund created in  section six and for the interest on the Insular bonds issued  by virtue  of  this Act.   A further appropriation is hereby made out of  the general funds in the Insular Treasury, not otherwise appropriated, of a sufficient sum to cover the expenses of the issue and sale of the Insular and provincial  bonds  authorized by this Act.   The Insular Government  shall be  reimbursed by the  Province of Pangasinan for the sums so disbursed for  the sinking fund, interest, and expenses of the issue and  sale of the bonds, within thirty days after payment of said expenses by the Insular  Government.

In case the provincial board of Pangasinan shall fail to  make such reimbursements, the Collector of Internal Revenue and  the provincial  treasurer of the Province  of Pangasinan are hereby  authorized and directed,  any provisions of  existing law to  the contrary notwithstanding,  to withhold from the  revenues of said province that may come into their possession an amount, sufficient  to make the  reimbursement or any other reimbursement above provided  and shall deposit said sum with the Treasurer  of the Philippine Islands, to the credit of the general funds of the Insular Government.

SEC.  8. The  Director of Public Works of the Philippine Islands  shall  have charge and exclusive control of all work to be done and improvements to be made under the provisions of this  Act, which work shall be begun as soon as the Insular Treasurer shall certify  that the  funds herein provided for are available.

SEC.  9. This Act shall take effect  on its approval.

Approved,  November 12, 1925.

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