An Act Converting the National Power Corporation into a Stock Corporation, Amending for the Purpose Commonwealth Act Numbered One Hundred Twenty

REPUBLIC ACT No. 2641

An Act Converting the National Power Corporation into a Stock Corporation, Amending for the Purpose Commonwealth Act Numbered One Hundred Twenty

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Commonwealth Act Numbered One hundred twenty, as amended, is further amended by inserting between sections two and three thereof a new section, to be known as Section Two-A which shall read as follows:

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

Approved: June 18, 1960.

Sec. 2-A. The National Power Corporation shall have an authorized capital stock of one hundred million pesos divided into one million shares having a par value of one hundred pesos each, which shares may not be transferred, negotiated, pledged, mortgaged, or otherwise given as security for the payment of any obligation. The said capital stock shall be subscribed wholly by the Government of the Philippines and shall be paid as follows:

"The sum of eighty-two million advanced to the National Power Corporation by the Government of the Philippines pursuant to the provisions of Republic Act Numbered Two hundred sixty-six shall be the paid-in subscription for eight hundred twenty thousand shares of stock of said capital stock;

"The surplus of ten million pesos of the National Power Corporation shall be capitalized, and shall also be an additional paid-in subscription of the Government of the Philippines for one hundred thousand shares of stock of the capital stock; and

"The balance of eight million pesos shall be paid from time to time from surpluses of the Corporation, and in the absence thereof, from bond issues upon request of the National Power Corporation for specific projects duly approved by the President of the Philippines. The payment of the interest of the bonded indebtedness incurred by the government to capitalize the National Power Corporation shall be paid by the National Power Corporation after the completion of the project for which such indebtedness was incurred."