Section 2
SEC. 2. Any banking corporation organized under this Act, in addition to the general powers incident to corporations as set forth in Act Numbered Fourteen hundred and fifty-nine and its amendments, shall have all such incidental powers as shall be necessary to carry on the business of banking, by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin and bullion, and by loaning money on personal security or real estate, or on bonds or evidences of debt of the Government of the United Stales, the Philippine Islands or the City of Manila, or of any province or municipality of the Philippine Islands authorized by law to issue bonds: Provided, That such banking corporation shall not invest more than sixty per centum of its paid-up capital and fifty per centum of the money received for deposit in loans on. real estate: Provided, That no loan shall be for a longer period than one year: Provided, further, That no loan shall be made on real estate unless it be secured: (a) By a duly registered mortgage or deed of trust to the corporation of unincumbered improved or actually cultivated real estate: Provided, however, That the amount loaned shall not exceed forty per centum of the reasonable market value of the real estate which is security for the loan or of the assessed value thereof, whichever may be the smaller; or (b) By first mortgages transferred to the corporation as collateral security on improved and otherwise unincumbered real estate: Provided, however, That the mortgage transferred to the corporation as collateral security with interest accrued and due shall not exceed forty per centum of the reasonable market value of the real estate which secures such mortgage, or of the assessed value thereof, whichever may be the smaller.