Amending Republic Act No. 245 Entitled "An Act Authorizing The Secretary Of Finance To Borrow To Meet Public Expenditures Authorized By Law And For Other Purposes"

Case Overview and Summary

Summary of Presidential Decree No. 142

Amending Republic Act No. 245 on Borrowing Authority of the Secretary of Finance

- Authorizes the Secretary of Finance, with the approval of the President and after consultation with the Monetary Board, to borrow funds on behalf of the Philippine government and issue evidences of indebtedness to:
• Meet public expenditures authorized by law. (Section 1)
• Provide for the purchase, redemption, or refunding of any direct or guaranteed obligations of the Philippine government. (Section 1)

- Types of evidences of indebtedness that can be issued:
• Treasury bills issued on a discount basis or at par, payable at maturity without interest, with maturities not later than one year from the date of issue. (Section 1(a))
• Certificates of indebtedness with maturities not exceeding eighteen months from the date of issue. (Section 1(b))
• Treasury bonds, notes, securities, or other evidences of indebtedness with maturities of one year or more but not exceeding twenty-five years from the date of issue. (Section 1(c))

- The Secretary of Finance, in consultation with the Monetary Board, shall prescribe the terms and conditions of issuance, placement, sale, servicing, redemption, and payment of all evidences of indebtedness, subject to the maturity limitations specified in Section 1(a) through (c). (Section 1)

- The evidences of indebtedness may be made payable, both as to principal and interest, in any readily convertible foreign currency. (Section 1)

- The Secretary of Finance may apply the lottery principle for redemption of securities before maturity, either at their face value or above. (Section 1)