Declaring The Lease-Sale Of One L-100-20 Hercules Aircraft No. PI 98, A Government Property, As A Valid And Binding Contract Of The Government Of The Republic Of The Philippines And Creatin

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PRESIDENTIAL DECREE No. 265 August 3, 1973

DECLARING THE LEASE-SALE OF ONE L-100-20 HERCULES AIRCRAFT NO. PI 98, A GOVERNMENT PROPERTY, AS A VALID AND BINDING CONTRACT OF THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND CREATING A SPECIAL FUND FROM THEPROCEEDS THEREOF.

I, FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution, as Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby order and decree as follows:

Section 1. Existing laws, orders, decrees, rules and regulations to the contrary notwithstanding, the agreement entered into by the Republic of the Philippines, through its duly authorized representative, on July 16, 1973 for the lease, with an option to purchase, of its aircrafts, No. PI 98, to James Bay Energy Corporation, a body politic incorporated under the laws of Quebec, Canada, is hereby declared a valid and binding contract of...

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Summary of Presidential Decree No. 265

Validity of Lease-Sale Agreement
- The agreement entered into by the Republic of the Philippines on July 16, 1973 for the lease, with an option to purchase, of its aircraft No. PI 98 to James Bay Energy Corporation is declared a valid and binding contract of the Government of the Republic of the Philippines. (Section 1)

Creation of Special Fund
- A Special Fund is constituted out of the proceeds of the lease-sale agreement for the following purposes:
• To finance partly the initial government acquisition of helicopters from the Federal Republic of Germany in conformity with the Progressive Helicopter Assembly and Manufacturing Program and/or expenditures for activities related thereto. (Section 2(1))
• To finance the prepayment to the Export-Import Bank of the United States of that portion of an existing loan covering the subject aircraft, which shall be made as soon as title to said aircraft passes to James Bay Energy Corporation on June 1, 1977. (Section 2(2))

Administration and Accounting of Special Fund
- The Special Fund shall be administered and accounted for by the Development Management Staff, Office of the President, as the owner-agency of the Hercules aircraft. (Section 2)
- Expenditures from the Special Fund shall be made subject to the approval of the Executive Secretary. (Section 2)

Effectivity
- This decree shall take effect upon approval. (Section 3)