"Sec. 4. The Board of Directors shall apply and apportion the receipts from the sale of the tickets for said races as follows:
"Out of the gross receipts from the sale of tickets, sixty-five per centum shall be deducted for the payment of the prizes, including those to be paid to owners of winning3horses and their jockeys, and ten per centum for the expenses of the management and holding of races. The prizes for winning horses and horses placed second and third shall be in direct proportion to the three main prizes for winning tickets and shall be ten per cent thereof. The remaining twenty-five per centum together with the receipts for the holding of the sweepstakes races shall be apportioned by the Board of Directors, with the approval of the President of the Philippines, after due consideration of the recommendations of the Secretary of Health and Public Welfare and shall be paid over by said Board among and to institutions or organizations engaged in charitable, relief, civic, and health work or work for the improvements of the conditions of the indigent Filipino masses in this country or abroad: Provided, That out of the sixty-five per centum intended for the payment of prizes, including those to be paid to the owners of winning horses and their jockeys, there shall be deducted ten per centum thereof which shall be allotted to the provinces and cities in the Philippines, excepting the City of Manila, in proportion to the collections therein made and under such rules and regulations as the Board of Directors may prescribe, the amounts so allotted to be expended by the corresponding provincial and city governments for the maintenance of provincial, city and municipal hospitals, and for other health, social welfare, civic, and charitable work in their respective jurisdictions.1avvphi1
"No aid from the proceeds of the sweepstakes herein authorized shall be given to any charitable organization not granted a special charter by law, unless it shall have first complied with the rules and regulations issued by the Board of Directors and approved by the President of the Philippines governing the disposition of the sweepstakes fund and unless provision is contained in its by-laws to the effect that any property acquired or which it may acquire from the funds given to it under this Act shall not be sold or otherwise disposed of without the approval of the President of the Philippines, and that in event of its dissolution, all its properties shall be transferred to and shall automatically become the property of the Philippine Government.
"The funds given to any institution by virtue of this section shall be used for no other purpose than those authorized by the Board of Directors."
Approved: October 21, 1946.
