Further Amending Republic Act One Thousand Entitled "An Act Authorizing The President Of The Philippines To Issue Bonds To Finance Public Works And Projects For Economic Development, Author

Case Overview and Summary

Summary of Presidential Decree No. 1622

Amending Republic Act No. 100 on Issuance of Bonds for Public Works and Economic Development

- Increases the authorized amount for bond issuance from 2 billion pesos to 10 billion pesos. (Section 1)
• The bonds, including lottery bonds, can be issued in the Philippines or abroad.
• The purpose is to finance public works and projects for economic and social development with high economic or social rates of return, as authorized by law.
• The bonds can also be used to repay or service bonded obligations of the government incurred for such projects.
• The bonds can be used for expropriation of lands for subdivision and resale to individuals.

- Imposes limitations on investments in such projects by provinces, cities, and municipalities: (Section 1)
• The investments shall be limited by the paying capacity of the province, city, or municipality, as certified by the Minister of Finance.
• The probable income from such projects shall be taken into consideration.

- Prohibits new bond issuance if 80% of the immediately preceding issue of the same type has not been sold. (Section 1)

- Limits the use of bond proceeds for paying government obligations, loans, and advances to 10% of the bond issue. (Section 1)
• This includes secured or unsecured obligations, loans, and advances guaranteed by the National Government, made by government-owned or controlled financial institutions other than the Central Bank.
• It also includes loans committed by government-owned and/or controlled financial institutions other than the Central Bank, guaranteed by the Government, that cannot be met on maturity.