Section 12Sec./Art. 12

Obligations.- The Corporation is authorized to secure or contract domestic or foreign loans, credits and other indebtedness, and to issue bonds, notes, debentures, securities and other instruments of indebtedness as it may deem necessary to carry out the purposes of this Act, provided that:

a. the outstanding liabilities and obligations, foreign and domestic, shall not exceed, at any time, fifty percent (50%) of its net worth;

b. the foreign indebtedness can only be contracted with the concurrence of the Department of Finance, or under such terms and conditions established by the Central Bank;

c. the annual amortizations on principal and interest shall not be more than twenty percent (20%) of the prior year's gross revenues;

d. where appropriate, obligations incurred from private sources of capital may be secured by suitable assets or backed by priority claims against property of the Corporation;

e. obligations shall be considered the sole liability of the Corporation, unless otherwise guaranteed by the Republic of the Philippines through the Secretary of Finance.

f. issuance of bonds or long term notes shall be with prior approval of or in accordance with the rules issued by the National Treasurer.