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Section 1.    Authority is hereby granted to all municipalities, and chartered cities to undertake and carry out at their own expense the reclamation by dredging, filling, or other means, of any foreshore lands bordering them, and to establish, provide, construct, maintain and repair proper and adequate docking and harbor facilities as such municipalities and chartered cities may determine in consultation with the Secretary of Finance and the Secretary of Public Works and Communications.  

Sec. 2.    Any and all lands reclaimed, as herein provided, shall be the property of the respective municipalities or chartered cities: Provided, however, That the new foreshore along the reclaimed areas shall continue to be the property of the National Government.  

Sec. 3.    For the purpose of this reclamation, and of the construction, maintenance and repair of such wharves, piers, docking and other harbor facilities as may be provided in accordance with section one hereof, the municipalities and chartered cities are hereby authorized to contract indebtedness with any person, association, corporation, or lending institution. Upon proper application, a municipality or chartered city may, for the same purpose, likewise issue bonds in such amounts and under such terms and conditions as may be fixed by the Secretary of Finance. Such bonds shall be guaranteed by the Government of the Philippines and their issue, servicing and liquidation shall be undertaken by the Central Bank of the Philippines.cralaw

Sec. 4.    All lands reclaimed as herein provided, except such as may be necessary for wharves, piers and embankments, roads, parks and other public improvements, may be sold or leased under such rules and regulations as the municipality or chartered city may prescribe. All proceeds derived from such sale or lease, and all berthing and other fees and such other earnings as the municipality or chartered city shall derive from the use of the port facilities and improvements contemplated under this Act, shall be credited to a special fund which shall accrue in the first instance to the sinking fund hereafter provided. Any balance thereof in excess of periodic sinking fund requirements shall be available for other permanent public improvements of the municipality or chartered city.  

Sec. 5.    Upon application by a municipality or chartered city to issue bonds, the Secretary of Finance, shall determine the borrowing and paying capacity of the applicant, the amount of the issue that may be authorized, and, in consultation with the Monetary Board of the Central Bank of the Philippines, the form, rate of interest, and redemption of said bonds. In the redemption of these bonds the Secretary of Finance may apply the lottery principle by which bonds, drawn by lot, may be redeemed before maturity.  

Sec. 6.    All laws contracted, and bonds issued, under this Act shall be payable, both as to the principal and interests, in Philippine currency or in the currency in which the principal has been originally received, which fact shall be acknowledged on the face of the note or certificate accomplished therefor, free from any tax or other public impost arising from currency conversion, any existing law to the contrary notwithstanding.cralaw

Sec. 7.    Bonds issued under this Act shall be exempt from taxation, which fact shall be stated on the face of the certificates which shall be issued in accordance with this Act.cralaw

Sec. 8.    Should the receipts accruing under section four be insufficient to service adequately bonds issued under this Act, the sinking fund deficiency shall be made good by the general funds of the municipality or chartered city in such manner that the annual contribution shall be sufficient to redeem at maturity the bonds issued under this Act. The sinking fund shall be under the custody of the Central Bank of the Philippines which shall invest the same in such manner as the Monetary Board shall approve.  

Sec. 9.    The provisions of existing laws to the contrary notwithstanding, municipalities and chartered cities are hereby authorized and empowered to execute by administration any reclamation work or any construction authorized in section one hereof: Provided, That all such works shall be prosecuted on the basis of plans and specifications approved by the Director of Public Works: And provided, further, That the District or City Engineer concerned shall certify every statement of accomplished worked that the same is in accordance with the approved plans and specifications.cralaw

Section 10.    This Act shall take effect upon its approval.cralaw

Approved: June 22, 1957 

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