MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 351 December 22, 1973
FURTHER AMENDING SECTION 1 (C) OF REPUBLIC ACT NUMBERED FORTY-EIGHT HUNDRED SIXTY AS AMENDED BY PRESIDENTIAL DECREE NO. 150 RE: FOREIGN BORROWING ACT
I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of 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 part of the law of the land that:
Section 1. Sub-section "(C)", Section 1 of Republic Act Numbered Forty-eight hundred sixty, as amended by Presidential Decree No. 150, is hereby further amended to read as follow:
"(C) Lend the proceeds of such loans, credits or indebtedness to the Development Bank of the Philippines and/or the Land Bank of the Philippines which shall administer said proceeds in accordance with the agreement with the foreign creditor for relending to individuals, partnerships,...
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Presidential Decrees
Further Amending Section 1 (C) Of Republic Act Numbered Forty-Eight Hundred Sixty As Amended By Presidential Decree No. 150 Re: Foreign Borrowing Act
Presidential Decree No. 351
Summary of Presidential Decree No. 351
Amending the Foreign Borrowing Act
- Allows the Philippine government to lend proceeds of foreign loans, credits, or indebtedness to the Development Bank of the Philippines (DBP) and/or the Land Bank of the Philippines (LBP). (Section 1)
- The DBP and LBP shall administer the proceeds in accordance with the agreement with the foreign creditor for relending to:
- Individuals, partnerships, cooperatives, associations, or private corporations with open capital stock subscription. (Section 1(C))
- Government-owned or controlled corporations. (Section 1(C))
- Local governments. (Section 1(C))
- The relending shall be used to meet direct and indirect foreign exchange requirements, including peso costs for industrial, agricultural, and other economic development projects. (Section 1(C))
- The DBP and LBP shall pay the Philippine government at least the principal, interests, and other charges on the loans turned over to them. (Section 1(C))
- The National Economic and Development Authority (NEDA) shall allocate the total authorized borrowing for relending to the private sector to maintain a proper balance among industrial, public utility, and agricultural projects. (Section 1(C))
- Industrial and public utility projects shall be approved by the Board of Investments and relevant regulatory boards, respectively. (Section 1(C))
- Agricultural projects shall be recommended by the Department of Agriculture and Natural Resources and approved by NEDA. (Section 1(C))
- Proceeds shall not be reloaned to entities with arrears of three or more installments with the DBP or any government financial institution, except for force majeure or circumstances beyond their control. (Section 1(C))
- Proceeds shall not be used for purposes other than the intended project. (Section 1(C))
- Failure to meet three amortization payments, except for force majeure or circumstances beyond control, shall render the entire loan due and demandable, with a 2% special penalty on the total amount due. (Section 1(C))
- The President of the Philippines has the authority to issue bonds, debentures, securities, or other evidences of indebtedness for sale in the international market, with income fully tax-exempt in the Philippines. (Section 1(C))
- Any inconsistent provisions of law, decree, rules, or regulations are repealed, amended, or modified accordingly. (Section 2)
- The Decree takes effect immediately. (Section 3)
Amending the Foreign Borrowing Act
- Allows the Philippine government to lend proceeds of foreign loans, credits, or indebtedness to the Development Bank of the Philippines (DBP) and/or the Land Bank of the Philippines (LBP). (Section 1)
- The DBP and LBP shall administer the proceeds in accordance with the agreement with the foreign creditor for relending to:
- Individuals, partnerships, cooperatives, associations, or private corporations with open capital stock subscription. (Section 1(C))
- Government-owned or controlled corporations. (Section 1(C))
- Local governments. (Section 1(C))
- The relending shall be used to meet direct and indirect foreign exchange requirements, including peso costs for industrial, agricultural, and other economic development projects. (Section 1(C))
- The DBP and LBP shall pay the Philippine government at least the principal, interests, and other charges on the loans turned over to them. (Section 1(C))
- The National Economic and Development Authority (NEDA) shall allocate the total authorized borrowing for relending to the private sector to maintain a proper balance among industrial, public utility, and agricultural projects. (Section 1(C))
- Industrial and public utility projects shall be approved by the Board of Investments and relevant regulatory boards, respectively. (Section 1(C))
- Agricultural projects shall be recommended by the Department of Agriculture and Natural Resources and approved by NEDA. (Section 1(C))
- Proceeds shall not be reloaned to entities with arrears of three or more installments with the DBP or any government financial institution, except for force majeure or circumstances beyond their control. (Section 1(C))
- Proceeds shall not be used for purposes other than the intended project. (Section 1(C))
- Failure to meet three amortization payments, except for force majeure or circumstances beyond control, shall render the entire loan due and demandable, with a 2% special penalty on the total amount due. (Section 1(C))
- The President of the Philippines has the authority to issue bonds, debentures, securities, or other evidences of indebtedness for sale in the international market, with income fully tax-exempt in the Philippines. (Section 1(C))
- Any inconsistent provisions of law, decree, rules, or regulations are repealed, amended, or modified accordingly. (Section 2)
- The Decree takes effect immediately. (Section 3)