Section 3. Section 3 of Republic Act Numbered Forty-One Hundred and Fifty-Six as amended by Republic Act Numbered Sixty-Three and Sixty-Six, is hereby amended to read as follows:
"Sec. 3. Authorized Capital Stock of the Philippine National Railways. — The authorized capital stock of the Philippine National Railways shall be One Billion, Five Hundred Million Pesos divided into seven million, five hundred thousand common shares all with par value at two hundred pesos each, which shall include the present authorized capitalization of six hundred fifty million pesos of the Philippine National Railways; Provided, That the increase in the authorized capital shall be fully subscribed by the Government: Provided, further, That the sum of five hundred thirty-four million, nine hundred sixteen thousand, seven hundred nine pesos and eighty-five centavos (P534,916,709.85) as of June 30, 1975, which has been already subscribed and fully paid for by the Government of the Republic of the Philippines shall be the initial paid-in capital of the authorized capital of one billion, five hundred million pesos provided herein.
The remaining unpaid subscription of the Government in the amount of nine hundred sixty-five million, eighty-three thousand two hundred ninety pesos and fifteen centavos (P965,083,290.15) shall be paid as follows:
(a) The sum of twenty-nine million, one hundred seventy-seven thousand, four hundred twenty-six pesos and forty-three centavos (P29,177,426.43) representing the following obligations of the Philippine National Railways to the Government shall be additional paid-in subscription for one hundred forty-five thousand eighty-seven (145,887) common shares of stock to be held by the National Government;
(1) Advances by the National Treasury for payment of P29,177,426.43
(2) Taxes due to the Bureau of Customs covering importations for the Rehabilitation and Selective Modernization Program 11,341,484.00
(3) Guaranteed dividends of six percent (6%) on preferred share of the Government Service Insurance System 5,260,800.00
(4) MRRCo. loans with PNR included in the Government rehabilitated accounts which were liquidated by the National Government 5,959,005.58
(5) Releases from the Calamity Fund for the Repair of PNR Lines and Bridges damaged by typhoon 3,000,000.00
P29,177,426.43
(b) The sum of five million, six hundred eighty-nine thousand, five hundred fifty-four pesos and twenty-eight centavos (P5,689,554.28) representing the remaining unpaid account of the Philippine National Railways to the Development Bank of the Philippines shall likewise be additional paid-in subscription for twenty-eight thousand four hundred forty-seven (28,447) common shares of stock to be held by the Development Bank of the Philippines;
(c) The sum of two million, five hundred seventeen thousand, seven hundred seventy-nine pesos and eighteen centavos (P2,517.779.18) representing the remaining unpaid account of the Philippine National Railways to the Philippine National Bank shall be also additional paid-in subscription for twelve thousand, five hundred eighty-eight (12,588) common shares of stock to be held by the Philippine National Bank;
(d) The sum of forty million, five hundred thousand pesos (P40,500,000.00), released to the Philippine National Railways out of the appropriation under Presidential Decree Number Three for national railway projects and the sum of thirteen million, eight hundred ten thousand pesos (P13,810,000.00) released out of the appropriation of two hundred sixty-nine million pesos (P269,000,000.00) under Presidential Decree Number Four Seventy-Five for the construction, installation, improvement, rehabilitation, reconstruction, completion, including project preparation and purchase of necessary material for various railways projects, or a total of Fifty-four million, three hundred ten thousand pesos (P54,310,000.00) representing two hundred seventy-one thousand, five hundred fifty (271,550) common shares of stock, shall also form part of the paid-in capital of the Philippine National Railways; and
(e) Whatever balance remaining of the authorized capital of the Philippine National Railways shall be paid from a continuing annual appropriation of not less than one hundred million pesos which is hereby appropriated out of any funds in the National Treasury not otherwise appropriated, such amount to be programmed and released by the Budget Commission in accordance with the schedule of cash requirements to be prepared and submitted by the Philippine National Railways; Provided, That this continuing annual appropriation of one hundred million pesos and the programming and release thereof shall remain in force until the authorized capital stock subscribed by the Government shall have been paid in full.