Section 10
SEC. 10. Said National Bank is hereby authorized to loan not to exceed fifty percent of its capital and surplus and all amounts realized from the sale of real estate bonds, as provided in section fifteen herein, on notes secured by real estate mortgages. Payment of such notes shall be secures by first mortgages on farm lands in the Philippine Islands, and in no case shall such loans exceed sixty percent of the actual value of said land, exclusive of buildings: Provided, however, That where buildings or machinery for the preparation or manufacture of sugar, copra, or other staple products o fthe Philippine Islands have been erected on real estate, said buildings and machinery may be appraised as a part of said real estate, in which case 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 machinery. The due date of said mortgages shall not be less than one year from the date thereof, nor more than thrity 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 more than five years after the date of 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 Bank on real estate security shall be made for the purpose of promoting agriculture. Appliocation for such loans shall be in writing and under oath. The said applications 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 bu 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 of the contract and the foreclosure of the mortgage.