Section 11Sec./Art. 11

AFP Modernization Act Trust Fund - There is hereby created a trust fund, to be known as the AFP Modernization Act Trust Fund. Said trust fund, which shall be used exclusively for the AFP modernization program, but not to include salaries and allowances, shall be funded out of the following:

a. Appropriations for the AFP modernization program;

b. the proceeds from the sale, lease or joint development of military reservations, as may be authorized by Congress, including such immovable and other facilities as may be found therein, not covered by the Bases Conversion Development Authority, as provided for in Republic Act No. 7227;

c. Shares of the AFP from the proceeds of the sale of military camps provided for under Republic Act No. 7227;

d. Proceeds from the sale of the products of the government arsenal;

e. the proceeds from the disposal of excess and/or uneconomically repairable equipment and other movable assets of the AFP and the government arsenal;

f. Funds from budgetary surplus, if any, as may be authorized by Congress subject to the provisions of Section 8 of this Act; and

g. All interest income of the trust fund.

The trust fund shall be administered by the Secretary of National Defense in accordance with existing government auditing rules and regulations.