Commonwealth Act No. 460




[ Commonwealth Act No. 460, June 09, 1939 ] AN ACT TO RAISE THE AMOUNT THAT MAY BE LOANED BY THE NATIONAL BANK.FOR AGRICULTURAL PURPOSES FROM SIXTY TO SEVENTY-FIVE PER CENT OF ITS CAPITAL AND SURPLUS, BY AMENDING ACT NUMBERED TWENTY-NINE HUNDRED AND THIRTY-EIGHT, AS AMENDED BY.ACT NUMBERED FORTY-ONE HUNDRED AND SEVENTY. Be it enacted by the National-Assembly of the Philippines; Section 1. Section nine of the present Charter of the Philippine National Bank, contained in Act Numbered Twenty-nine hundred and thirty-eight, as amended by Act Numbered Forty-one hundred and seventy, is hereby further amended to read as follows: "Section 9. Said National Bank is hereby authorized to loan, for agricultural purposes, not to exceed seventy-five per cent of its capital and surplus and all amounts realized from the sale of real estate bonds, as provided in sections eleven and twelve herein, on notes secured by real estate mortgages.ℒαwρhi৷ Payment of such.notes shall be secured by first mortgages on real estate in the Philippines, and in no.case shall such loans exceed sixty per cent of the actual value of said real estate, including the value of the permanent improvements thereon, such as buildings and machinery if the same form an integral part of the agricultural development: Provided, however, That whenever the Bank nay deem it advisable, the mortgages shall contain a clause obliging the mortgagor to insure to their full value in the name of the National Bank such buildings and improvements. The due date of said mortgages shall not be less than one year from the date thereof,nor more than thirty years. The said mortgages may, by their terms be made payable at one time or in installments: Provided, That when the due date of the mortgage is five years or more after the date of its execution, the principal and interest of the loan shall be made payable by its terms in equal installments of not more than one year each. Loans made by the National Dank on real estate security shall be made for the purpose of promoting agriculture. Application for such loans shall be in writing and under oath, and shall contain, among other things: "(a) A detailed description of the real estate; "(b) An appraisal thereof at its reasonable market value; "(c) A full statement of the purposes for which the loan is desired. "It shall be unlawful to use the proceeds of said loan or any part thereof, for any purpose or purposes except the purpose or purposes set out in said application. Any violation of this clause shall be sufficient cause for the rescission oi the contract and the foreclosure of the mortgage." Section 2. This Act shall take effect on its approval. Approved, June 9, 1939. The Lawphil Project - Arellano Law Foundation