Section 9. The President of the Philippines is authorized to issue, in the name and behalf of the Republic of the Philippines, bonds in an amount of twenty million pesos, the proceeds of which shall be used as a revolving fund for the acquisition of private estates, the subdivision of the area, and the construction of streets, bridges, waterworks, sewerage and other municipal improvements in the Capital City of the Philippines.

The bonds so authorized to be issued shall bear such date and in such form as the President of the Philippines may determine and shall bear such rate of interest and run for such length of time as may be determined by the President. Both principal and interest shall be payable in Philippine currency or its equivalent in the United States currency, in the discretion of the Secretary of Finance, at the Treasury of the Philippines, and the interest shall be payable at such periods as the President of the Philippines may determine.

Said bonds shall be exempt from taxation by the Government of the Republic of the Philippines or by any political or municipal subdivisions thereof, which fact shall be stated upon their face, in accordance with this Act, under which the said bonds are issued.