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Be it enacted by the National Assembly of the Philippines: 

SECTION 1. Sections eight and ten of Act Numbered Thirty-two hundred and twenty-two are amended, to read as follows:

"SEC. 8. An appropriation is made out of the general funds in the National Treasury not otherwise appropriated of a sufficient sum to defray the expenses incidental to the issue and sale of the insular as well as provincial and municipal bonds herein authorized, the payment of the interest of said insular bonds, and the expenses incidental to the investment of the sinking fund. The Province of Iloilo, the City of Iloilo, and the municipalities of Pavia, Santa Barbara, Cabatuan, Maasin, Pototan, and Dingle shall reimburse the Insular Government for all such expenses and payments made to constitute, maintain, and invest the sinking fund provided for in section three hereof, within thirty days after said expenses and sinking fund shall have been paid by the Insular Government. The reimbursement shall be made in proportion to the obligations incurred by the Province of Iloilo, the City of Iloilo, and the six municipalities above mentioned. In the event that the Provincial Board of Iloilo, the Municipal Board of the City of Iloilo, and the municipal councils of the municipalities concerned should fail to make said reimbursement, the Collector of Internal Revenue, the Provincial Treasurer of Iloilo, and the City Treasurer of Iloilo are authorized and directed to retain out of the revenues of the said province and the municipalities herein mentioned and of the City of Iloilo that may come into their possession, the necessary amount to make said reimbursement or any other of those herein prescribed, and shall deposit the amount so retained with the Treasurer of the Philippine Islands to the credit of the genera] funds of the Insular Government,"
 
"SEC. 10. Until the bonds shall have been totally paid and until the Legislature provide otherwise, the administration, control, operation, maintenance, and improvement of the waterworks systems established with the proceeds of the sale of the bonds herein authorized, shall be under the charge of a waterworks board to be constituted with the Provincial Governor, as Chairman ex-officio, the two provincial board members, the provincial treasurer, the district engineer the district health officer, the mayor of the City of Iloilo, the city treasurer, and the physician thereof, as members. The waterworks board created shall perform its duties in accordance with the rules promulgated or that may hereafter be promulgated jointly by the Secretary of the Interior and the Secretary of Public Works and Communications. All receipts from the waterworks systems shall be credited to a special fund which may be used with approval of such board solely for the following purposes and in the order given; first, for the payment of the reimbursement mentioned in section eight hereof; second, for the operation and maintenance of the waterworks systems; third, for the improvement and extension of the system, provided the plans for same have been approved by the Director of Public Works; and fourth, in case of a surplus of receipts which is not required for such purposes, the same may be used for general purposes of the Province of Iloilo, the City of Iloilo, and the municipalities of Cabatuan, Maasin, Pavia, Santa Barbara, Dingle, and Pototan, of said province, such surplus to be apportioned on the basis of the total consumption of water in each municipality during the year in which said surplus accrued."

SEC. 2. This Act shall take effect upon its approval.

APPROVED, June 11, 1941.