My bookmarksSign up free

Act No. 2427 Section 197

Section 197

SEC. 197. No insurance corporation shall loan any of its money or deposits except upon first mortgages or deeds of trust of unincumbered improved real estate, in cities and centers of population of municipalities in the Philippine Islands when the amount of such loan is not in excess of sixty per centum of the value of such real estate, or upon the security of first mortgages or deeds of trust of actually cultivated, improved and unincumbered agricultural lands in the Philippine Islands when the amount of such loans is not in excess of forty per centum of the value of such land, or upon bonds or other evidence of debt of the Government of the United States, or of the Philippine Islands, or of the city of Manila, or of municipalities in the Philippine Islands authorized by law to issue bonds, or such other securities, deposited as collateral, as may be approved by the Insurance Commissioner: Provided however, That a life insurance corporation may loan its money upon the security of a policy to an amount not exceeding the net reserve value of the policy at the time said loan is made.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER V.—Insurance companies. →

Other provisions in CHAPTER V.—Insurance companies.

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationAct No. 2427 Section 197 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

Continue your research