53 STAT.] 76TH CONG., 1ST SESS.-CH. 502 -AUG. 7, 1939 pine Government, purchase with such excess any other bonds of the Philippines, its Provinces, cities, municipalities, and instrumentalities. For the purpose of this subsection obligations may be acquired on original issue at par, or by purchase of outstanding obligations at the market price. Any obligations acquired by the fund may, with the approval of the Philippine Government, be sold by the Secretary of the Treasury at the market price and the proceeds of such sale and the proceeds of the payment upon maturity or redemption of any obligations held in the supplementary sinking fund, as well as all moneys in any manner earned by such fund or on any obligations acquired by said fund, shall be paid into the said fund. "(4) During the three months preceding July 4, 1946, the Philip- pine Government and the Secretary of the Treasury of the United States shall confer to ascertain that portion of the bonds of the Philip- pines, its Provinces, cities, and municipalities, issued prior to May 1, 1934, under authority of Acts of Congress, which will remain out- standing on July 4, 1946; and the Philippine Government shall turn over to the Secretary of the Treasury of the United States for destruc- tion all such bonds that are then held, canceled, or uncanceled, in any of the sinking funds maintained for the payment of such bonds. After such outstanding portion of this indebtedness is thus deter- mined, and before July 4, 1946, (i) there shall be set up with the Treasurer of the United States a special trust account in the name of the Secretary of the Treasury of the United States to pay future interest and principal payments on such bonds; (ii) the Philippine Government shall pay to the Secretary of the Treasury of the United States for deposit in this special trust account all of the sinking funds maintained for the payment of such bonds; and (iii) the Secretary of the Treasury of the United States shall transfer into this special trust account all of the proceeds of the supplementary sinking fund referred to in subdivision (1) of this subsection. Any portion of such special trust account found by the Secretary of the Treasury of the United States on July 4, 1946, to be in excess of an amount adequate to meet future interest and principal payments on all such outstanding bonds shall be turned over to the Treasury of the inde- pendent Government of the Philippines to be set up as an additional sinking fund to be used for the purpose of liquidlting and paying all other obligations of the Philippines, its IProvinces, cities, mllnici- palities, and instrumentalities. To the extent that such special trust account is determined by the Secretary of the Treasury of the United States to be insufficient to pay interest and principal on the outstand- ing bonds of the Philippines, its Provinces, cities, and municipalities, issued prior to May 1, 1934, under authority of Acts of Congress, the Philippine Government shall, on or before July 3, 1946, pay to the Secretary of the Treasury of the United States for deposit in such special trust account an amount which said Secretary of the Treasury determines is required to assure payment of principal and interest on such bonds: Provided,however, That if the Secretary of the Treas- ury of the United States finds that this requirement would impose an undue hardship upon the Philippines, then the Philippine Gov- ernment shall continue to provide annually the necessary funds for the payment of interest and principal on such bonds until such time as the Secretary of the Treasury of the United States determines that the amount in the special trust account is adequate to meet interest and principal payments on such bonds. "(5) On and after July 4, 1946, the Secretary of the Treasury of the United States is authorized, with the approval of the independ- ent Government of the Philippines, to purchase at the market price for the special trust account bonds of the Philippines, its Provinces, 1229 Joint conference prior to July 4, 1946, on designated out- standing Philippine, etc., bonds. Special trust ac- count, establishment. Payments by Phil- ippine Government for deposit in trust account. Transfer of proceeds ofsupplementarysink- ing fund. Use of excess of such special trust account in liquidating other obligations. Payment of defclit by Philippine Govern- nment. Proriso. Modification of re- quirements. Purchase for special trust account of bonds of the Philippines, etc., issued prior to May 1, 1934.
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