Republic Act No. 3961

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

Section 1. Purpose; creation

For the purpose of developing the San Juanico Strait, which separates the Provinces of Samar, Leyte and Southern Leyte, there is hereby created a non-stock corporate body to be known as the San Juanico Strait Tourist Development Authority, hereinafter referred to as Authority, which shall have its principal office in Tacloban and a sub-office in Sta. Rita, Samar.

Section 2. Governing board; meetings

The powers and functions of the Authority shall be vested in, and exercised by, a Board of Directors composed of the Secretary of Commerce and Industry, as chairman, the Secretary of Public Works and Communications, the Tourist Commissioner and the Provincial Governors of Samar, Leyte and Southern Leyte as members.

The chairman and members of the Board shall receive no per diems but may be allowed to draw travel allowances.

The Board shall meet regularly once a month and may hold such special meetings, at the call of the chairman or a majority of the members of the Board, as may be necessary in the interests of the Authority. The meetings may be held in any place at the discretion of the Board.

Section 3. General corporate powers

The Authority shall have the power to adopt, alter, and use a corporate seal which shall be judicially noticed; to lease or own real and personal property and to sell, mortgage or otherwise dispose of the same; to sue and be sued; and to exercise such other general powers as are authorized under the Corporation Law.

Section 4. Special corporate powers

The Authority shall, likewise, have the power to borrow money; float bonds, securities, and other certificates of indebtedness with the approval of the Central Bank and the President of the Philippines, which shall be guaranteed by the Philippine Government, both as to principal and interest; to enter into contracts with any person, association or corporation, public or private; to construct hotels, lodging houses, rest houses and other improvements that, in the discretion of the Board, may redound to the interests of the Authority; and to appoint a general manager and such other subordinate personnel as may be necessary to accomplish its ends, to fix their duties and salaries.

Section 5. Corporate Auditor

The Auditor General shall appoint an auditor of the Authority and such other personnel as may be necessary to compose the auditing personnel of the Authority, and fix their salaries after prior consultation with and approval of the Board of Directors of the Authority. Any disagreement as to the number and salaries of the auditing personnel, and to the sum appropriated by the Authority, for equipment and supplies of the Auditing Service shall be referred to the President of the Philippines whose decision thereon shall be final.

Section 6. Appropriation

There is hereby authorized to be appointed out of any funds in the National Treasury not otherwise appropriated, the sum of five hundred thousand pesos for the initial organization and operation of the Authority. Thereafter, such sums as may be necessary to augment the income of the Authority shall be included in the annual General Appropriations Act.

Section 7. Effectivity

This Act shall take effect upon its approval.

Approved: June 18, 1964.