Presidential Decree No. 346 — NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in-Chief of all the Armed Forces of the Philippines, pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1 dated September 22, 1972, as amended, do hereby decree and order that certain provisions of Presidential Decree No. 286, dated September 5, 1973, be amended:

Section 5

Section 5. Section (5) paragraph (1) of the Decree is hereby amended to read as follows:

"Sec. 5. Functions and Duties of the Board of Directors.

(1) THE BOARD SHALL APPOINT AND FIX THE SALARIES OF SUCH EXECUTIVE OFFICERS and other officials of the Corporation as may be necessary for the accomplishment of its corporate purposes."

Section 6

A new section is hereby added to the Decree

Section 6. A new section is hereby added to the Decree.

Section 8

FOREIGN LOANS

Section 8. FOREIGN LOANS. THE CORPORATION IS HEREBY AUTHORIZED TO CONTRACT LOANS, CREDITS, ANY CONVERTIBLE FOREIGN CURRENCY OR CAPITAL GOODS, AND INDEBTEDNESS FROM TIME TO TIME FROM FOREIGN GOVERNMENTS, OR ANY INTERNATIONAL FINANCIAL INSTITUTIONS OR FUND SOURCES OR TO ISSUE BONDS, THE TOTAL OUTSTANDING AMOUNT OF WHICH, EXCLUSIVE OF INTEREST, SHALL NOT EXCEED ONE BILLION UNITED STATES DOLLAR OR THE EQUIVALENT THEREOF IN OTHER CURRENCIES, ON SUCH TERMS AND CONDITIONS AS IT SHALL DEEM APPROPRIATE FOR THE ACCOMPLISHMENT OF ITS PURPOSES AND TO ENTER INTO AND EXECUTE AGREEMENTS AND OTHER DOCUMENTS SPECIFYING SUCH TERMS AND CONDITIONS.

THE PRESIDENT OF THE PHILIPPINES, BY HIMSELF, OR THROUGH HIS DULY AUTHORIZED REPRESENTATIVE, IS HEREBY AUTHORIZED TO NEGOTIATE AND CONTRACT WITH FOREIGN GOVERNMENTS OR ANY INTERNATIONAL FINANCIAL INSTITUTIONS OR FUNDS SOURCES, IN THE NAME AND IN BEHALF OF THE CORPORATION, ONE OF SEVERAL LOANS, FOR THE ACCOMPLISHMENT OF ITS PURPOSES.

THE PRESIDENT OF THE PHILIPPINES, BY HIMSELF, OR THROUGH HIS DULY AUTHORIZED REPRESENTATIVE, IS HEREBY FURTHER AUTHORIZED TO GUARANTEE, ABSOLUTELY AND UNCONDITIONALLY, AS PRIMARY OBLIGOR AND NOT AS SURETY MERELY, IN THE NAME AND IN BEHALF OF THE REPUBLIC OF THE PHILIPPINES, THE PAYMENT OF THE LOANS, CREDITS, INDEBTEDNESS AND BONDS ISSUED UP TO THE AMOUNT WHICH THE PRESIDENT OF THE PHILIPPINES IS AUTHORIZED TO GUARANTEE UNDER REPUBLIC ACT NUMBERED SIXTY-ONE HUNDRED FORTY-TWO, AS AMENDED, AS WELL AS THE PERFORMANCE OF ALL OR ANY OF THE OBLIGATIONS UNDERTAKEN BY THE CORPORATION IN THE TERRITORY OF THE REPUBLIC OF THE PHILIPPINES PURSUANT TO LOAN AGREEMENTS OR ANY INTERNATIONAL FINANCIAL INSTITUTIONS OR FUND SOURCES.

THE LOANS, CREDITS AND INDEBTEDNESS CONTRACTED UNDER THIS SUBSECTION AND THE PAYMENT OF THE PRINCIPAL, INTEREST AND OTHER CHARGES THEREON, AS WELL AS THE IMPORTATION OF MACHINERY, EQUIPMENT, MATERIALS, SUPPLIES AND SERVICES, BY THE CORPORATION, PAID FROM THE PROCEEDS OF ANY LOAN, CREDIT OR INDEBTEDNESS INCURRED UNDER THIS ACT, SHALL ALSO BE EXEMPT FROM ALL DIRECT AND INDIRECT TAXES, FEES, IMPORTS, OTHER CHARGES AND RESTRICTIONS, INCLUDING IMPORT RESTRICTIONS PREVIOUSLY AND PRESENTLY IMPOSED, AND TO BE IMPOSED BY THE REPUBLIC OF THE PHILIPPINES, OR ANY OF ITS AGENCIES AND POLITICAL SUB-DIVISIONS."

This Decree shall take effect immediately.

Done in the City of Manila, this 14th day of December, in the year of Our Lord, nineteen hundred and seventy-three.