Section 2. The City of Ilagan. —

The Municipality of Ilagan shall be converted into a component city to be known as the City of Ilagan, hereinafter referred to as the City, which shall comprise the present territory of the Municipality of Ilagan, Province of Isabela.

The territorial jurisdiction of the City shall be within the present metes and bounds of the Municipality of Ilagan.

The foregoing provision shall be without prejudice to the resolution by the appropriate agency or forum of any boundary dispute or case involving questions of territorial jurisdiction between the City of Ilagan and the adjoining local government units.