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AMENDMENT TO SECTION 5(b) OF REPUBLIC ACT NO. 6395 AS AMENDED BY PRESIDENTIAL DECREE NOS. 380, 395, 758 AND 1360.
WHEREAS, the power expansion program undertaken by theNational Power Corporation covering a period of ten (10) years would needeffective government support through equity contributions to NPC to sustain saidprogram;
WHEREAS, the present Revised Charter of National PowerCorporation limits the government equity contributions to an annualappropriation of P200 Million to pay the balance of the unpaid subscription ofthe government to the capital stock of the Corporation;
WHEREAS, to insure adequate funds and sustain theCorporation's power development, there is an imperative need to appropriate suchadditional sums as may be necessary to meet the yearly financial requirements ofthe power program;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of thePhilippines, by virtue of the powers in me vested by the Constitution, do herebyorder and decree that —
"SECTION 5. Capital Stock of the Corporation—Theauthorized capital stock of the Corporation shall be Fifty Billion Pesos(P50,000,000,000.00) divided into Five Hundred Million (500,000,000) shareshaving a par value of One Hundred Pesos each, which shares are not to betransferred, negotiated, pledged, mortgaged, or otherwise given as security forthe payment of any obligation. The sum of Three Hundred Million Pesos of saidcapital stock has been subscribed and paid wholly by the Government of thePhilippines in accordance with the provisions of Republic Act Numbered FourThousand Eight Hundred Ninety-Seven.
"(a) The sum of Twenty-Nine Million Two Hundred Sixty-Seven Thousand SixHundred Pesos representing outstanding cost and interest of reparation goodsprocured by the Corporation pursuant to the provisions of Republic Act NumberedSeventeen Hundred Eighty-Nine, shall be additional paid-in subscription of theGovernment of the Philippines for Two Hundred Ninety-Two Thousand Six HundredSeventy-Six shares of stock of said capital stock.
"(b) The balance of said subscription shall be paid by the conversion intoequity capital of the existing bonding indebtedness, cost of reparation goodsthat may be allocated in the future and surpluses of the Corporation as well asfrom such sums as shall be appropriated annually out of any funds in theNational Treasury not otherwise appropriated, be they collections from any orall taxes accruing to the general funds or proceeds from loans, the issuance ofbonds, treasury bills or notes which are hereby authorized to be incurred or tobe issued by the Secretary of Finance for the purpose, such annual appropriationto be programmed and released by the Budget Commission in accordance with theschedule of cash requirements to be submitted by the Corporation until thebalance of the unpaid subscription of the Government to the capital stock of theCorporation shall have been paid in full."
SECTION 2. This Decree shall take effect immediately.
DONE IN THE CITY OF MANILA, this 11th day of June in the Year of Our Lord,Nineteen Hundred and Seventy-eight.
(Sgd.) FERDINAND E. MARCOSPresident of thePhilippines
By the President: (Sgd.) JACOBO C. CLAVE Presidential ExecutiveAssistant
Source: Supreme Court E-Library