f

o

166

Administration
expenses.

Postal  savings
bank  reserve
fund.

APPENDIX  B
all  of  the  following  ways,  and  in  no  others,  in
such  amounts  and  under  such  regulations  as  the
postal  savings  bank  investment  board  shall  determine, ­
  unless  otherwise  provided  by  this  Act:
1.  Investment  in  bonds  or  other  evidences  of
indebtedness  of  the  United  States.
2.  Investment  in  bonds  or  other  evidences  of
indebtedness  of  the  Insular  Government  of  the
Philippine  Islands,  of  the  city  of  Manila,  and
of  any  municipality  in  the  Islands  having  a  paidup
  capital  of  one  million  five  hundred  thousand
pesos  or  over:  Provided,  however,  That  not  exceeding ­
  ten  per  centum  of  the  total  deposits  shall
be  invested  in  such  stocks  or  shares.
Sec.  19.  All  expenses  properly  chargeable  to
the  administration  of  the  Postal  Savings  Bank
shall  be  paid  from  the  profits  arising  from  the  investment ­
  of  the  postal  savings  bank  funds  :
Provided,  That  if  the  profits  arising  from  said
investments  are  not  sufficient  during  any  year,
together  with  the  reserve  fund  accrued  as  hereinafter ­
  provided,  to  pay  the  interest  upon  the
deposits  and  the  expenses  of  administration,
there  shall  be  appropriated  out  of  the  general
funds  of  the  Insular  Treasury,  not  otherwise  appropriated ­
  at  the  time,  sufficient  funds  to  cover
the  deficit  so  created.
Sec.  20.  Should  the  earnings  of  any  fiscal
year  exceed  the  amount  necessary  for  the  payment ­
  of  interest  and  the  expenses  of  administration, ­
  the  surplus  shall  be  set  aside  as  a  special
fund  to  be  known  as  the  postal  savings  bank  reserve ­
  fund  and  as  such  shall  be  invested  and
permitted  to  accumulate  until  it  shall  equal  five
per  centum  of  the  interest-bearing  deposits  of
the  Postal  Savings  Bank.  This  fund  shall  be  a
trust  fund  and  shall  be  used  for  no  other  purpose ­
  than  to  meet  deficits  in  those  years  in  which
the  earnings  of  the  Postal  Savings  Bank  shall