Investment of funds.
Section 19
SEC. 19. Investment of funds.—The Board shall invest directly or through the National Loan and Investment Board, created by Commonwealth Act Numbered Seven, as amended, upon such terms and conditions as may be agreed upon between them, such portions of the moneys as shall not be required to meet the current payments in the form of life annuities, death claims, or otherwise, and expenses incidental to the carrying out of the provisions of this Act, in any or all of the following ways and in no others: In interest-bearing bonds or securities of the Government of the United States or of the Philippines, or bonds or securities of said countries for the payment of the interest and principal of which the faith and credit of said countries are pledged. In interest-bearing deposits in any bank doing business in the United States or in the Philippines, having an unimpaired paid up capital and surplus equivalent to one million five hundred thousand pesos or over: Provided, That said bank shall first have been designated as a depository for this purpose by the President, upon the recommendation of the Secretary of Finance. In first liens upon improved and unencumbered real estate situated in the City of Manila or adjacent munic ipalities, or in the Cities of Baguio, Iloilo, Cebu, Davao, Zamboanga, or in other cities that may be created by law, title to which is duly registered under Act Numbered Four hundred and ninety-six, as amended: Provided, That no loan shall be made upon the security of real estate in excess of fifty per centum of the fair appraised value thereof to be determined in such manner as the Board shall prescribe: And provided, finally, That no loan shall be made for a period exceeding ten years, and that not more than seventy per centum of the total assets shall be invested in loans on the security of real estate. In commuting installment payments due from the Government of the Philippines to individuals upon the proper assignment of the individual's claim to the System. In loans to provincial and municipal governments for the construction or acquisition of permanent public improvements, subject to the following conditions: That no loans shall be granted to a province or chartered city in excess of one hundred and fifty thousand pesos, to a municipality in excess of fifty thousand pesos; that loans shall be repaid in installments within ten years, with at least four per centum interest; that in case of default, the Col lector of Internal Revenue and the provincial treasurer are authorized and directed to withhold from the revenue^ of the municipality, city or province concerned such amounts as may be needed to pay the installments and interest due, and remit the same to the Board; that no loan or the interest thereon shall be remitted under any consideration; and that no loan shall be granted unless the municipality, city, or province concerned shall have first demonstrated its capacity to pay the same within the time required for such payment. Loans to local governments as provided herein may be renewed in the discretion of the Board for a period not exceeding ten years, and in case of renewal, the amount due at the time of such renewal shall be paid in not more than ten annual installments under the same conditions specified in the preceding paragraph: Provided, That such loans shall be granted only under the conditions to be prescribed by the Board. (f) In loans or advances to the Insular Government for the construction of permanent toll bridges in accordance with the conditions prescribed in the law in such cases made and provided. In loans to members on the security of their policies: Provided, That no loan on the security of a membership policy shall be granted in excess of fifty per centum of its cash value, except for the purpose of continuing it in force, whenever necessary. And, generally, in such other loans or securities as may be approved by the Insurance Commissioner.