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[ Act No. 3905, November 18, 1931 ]

AN ACT TO AMEND SECTION TWENTY-ONE HUNDRED AND SIX OF THE ADMINISTRATIVE CODE, BY GRANTING PROVINCIAL BOARDS THE AUTHORITY TO EXTEND LOANS TO RURAL BANKS OR TO RURAL CREDIT ASSOCIATIONS ORGANIZED UNDER ACTS NUMBERED THIRTY-EIGHT HUNDRED AND NINETY-SIX AND THIRTY-EIGHT HUNDRED AND NINETY-FIVE, RESPECTIVELY, FROM THE FIXED DEPOSITS OF THE PROVINCIAL GOVERNMENTS IN THE PHILIPPINE NATIONAL BANK.

Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section twenty-one hundred and six of the Administrative Code is hereby amended so as to read as follows:
"SEC. 2106. Powers to be exercised with approval of Department Head.—Upon approval by the Department Head of the particular resolution by which such action shall be taken, the provincial boards of the respective provinces shall have authority:

"(a) To appropriate money for purposes not specified by law, having in view the general welfare of the province and its inhabitants.

"(b) To fix or change the salary of the lieutenant-governor of any subprovince specified in section two thousand one hundred and thirty-six hereof.

"(c) To appropriate money for loans to municipalities, or municipal districts of the province, under such conditions as to the use of the funds loaned and as to the repayment of the loans with interest at three per centum per annum, as may be fixed by the provincial board; but the entire indebtedness of any municipality to which a loan is made shall not, inclusive of such loans, exceed five per centum of the assessed valuation of the property in said municipality.

"(d) To authorize the Philippine National Bank to invest, for the account and risk of the province, an amount not exceeding twenty per centum of the fixed deposits of said province which are in the possession of the said bank, in the form of loans to rural banks or to rural credit associations organized under the provisions of Acts Numbered Thirty-eight hundred and ninety-six and Thirty-eight hundred and ninety-five, respectively, and operating within the province, under such terms and conditions as are authorized by the said acts or which may hereafter be authorized by law.

"(e) To authorize municipal councils of the capitals of provinces and subprovinces to fix the salaries of their municipal officers at amounts in excess of those authorized in the scale established by law, provided that the salaries so authorized shall not be over fifty per centum in excess of those established by said scale.

"(f) To exercise the power of eminent domain for the following purposes: the construction or extension of roads, streets, sidewalks, bridges, ferries, levees, wharves, or piers; the construction of public buildings, including schoolhouses, and the making of the necessary improvements in connection therewith; the establishment of parks, playgrounds, plazas, market places, artesian wells, or systems for the supply of water and the establishment of cemeteries, crematories, drainage systems, cesspools or sewage systems.

"(g) To permit, upon favorable recommendation by the Secretary of Commerce and Communications, and subject to such conditions as may properly protect the public interests, the construction and maintenance, for private use, of railways, conduits, and telephone lines across public thoroughfares, streets, roads, and other public property in the province: Provided, That such construction and private use shall not prevent or obstruct the public use of such thoroughfares, streets, roads, or other public property, and that the permit granted shall at all times be subject to revocation by the Secretary of the Interior, if in the judgment of that official, the public interest requires it."
SEC. 2. This Act shall take effect upon its approval.

Approved, November 18, 1931.
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