[ Commonwealth Act No. 4, December 31, 1935 ]
AN ACT TO PROVIDE FUNDS TO HE LOANED TO THE MANILA RAILROAD COMPANY FOR THE PURCHASE OR REDEMPTION BEFORE MATURITY OF CERTAIN OUTSTANDING MANILA RAILROAD COMPANY FIRST MORTGAGE SOUTHERN LINES FOUR PER CENT GOLD BONDS DUE MAY FIRST, NINETEEN HUNDRED AND THIRTY NINE, AND FOR OTHER PURPOSES.
Be it enacted by the National Assembly of the Philippines:
Section 1. The Treasurer of the Philippines is hereby authorized, upon the order of the Secretary of Finance and with the approval of the President of the Philippines, to loan to the Manila Railroad Company a sum not exceeding thirteen million three hundred fifty thousand pesos to bear interest at the rate of two per centum per annum payable semiannually, for the purpose of purchasing; or redeeming, before maturity, certain outstanding Manila Railroad Company First Mortgage Southern Lines Four Per Cent Gold S Bonds due May first, nineteen hundred and thirty-nine: Provided, That the price at which said bonds shall be acquired shall not exceed eighty per centum of their par value.
Section 2.(awÞhi( This loan is to be secured by the deposit as collateral with the Government by the Manila Railroad Company of the Southern Lines Four Per Cent Bonds acquired in accordance with the provisions of section one, and after maturity of said bonds, by such security as may be acceptable to the Government, which shall be at least equal to that at present securing the payment of the said bonds. The Manila Railroad Company shall pay to the Government an annual amortization of not less than two per centum of the amount loaned, and shall continue until the loan is repaid in full.
Section 3. The sum of thirteen million three hundred fifty thousand pesos is hereby appropriated out of any funds m the Treasury not otherwise appropriated, to carry out the provisions of this Act.
Section 4. This Act shall take effect on its approval.
Approved, December 31, 1935.
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