Section 19Sec./Art. 19

Guarantee by the Government. - The Republic of the Philippines may guarantee the payment of both the principal and the interest of the bonds, debentures, collaterals, notes, or such other obligations issued or incurred by the Authority by virtue of this Act, and may pay such principal interest in case the Authority fails to do do. In such event, the Republic of the Philippine shall succeed to all the rights of the holders of such bonds, debentures, collaterals, notes, or other instruments to the extent of the payment made, unless the sum paid by the Republic of the Philippines is refunded by the Authority within a reasonable time: Provided, that the issuance of the Republic of the Philippines guarantee shall be subject to necessary approvals from appropriate agencies such as the DOF, the Monetary Board, and the Office of the President.