Section 71May 25, 1973, Sec./Art. 71

Borrowing Authority. - Subject to prior approval by the President of the Philippines, the Administration shall have the right and power to borrow additional sums: Provided, That the loans outstanding at any time shall not exceed the principal sum of five hundred million pesos to domestic sources both government and private and the principal sum of one hundred million dollars in United States currency or its equivalent in other currencies, to supplement said Revolving Loan Fund from:

(a) Agencies of the Government of the Philippines, including, but not limited, to the Social Security System, Government Service Insurance System and Development Bank of the Philippines.

(b) International Loan Sources, both public and private. The Secretary of Finance is authorized to assist with and underwrite such loans, with the approval of the President of the Philippines. Said underwriting shall include the increased obligation that may accrue to the Administration relative to foreign borrowing based upon unfavorable changes in the rate of currency exchange.

Any and all loan obligations incurred by the Administration in virtue of this section shall be fully and unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines which guaranty shall be expressed on the face of any document, note, bond, debenture, or other securities evidencing said loan obligations. Such guaranty shall be without compensation in any form whatsoever to the Government.