CA 459 Section 24

Section 24

SEC. 24. The Agricultural and Industrial Bank is authorized to receive savings and time deposits. The de­posits received by the Agricultural and Industrial Bank may be loaned or invested only as follows: (a) Loans secured by mortgage or deed of trust to the Bank of unencumbered improved real estate in cities and municipalities, or by mortgage or deed of trust to the Bank of actually cultivated and improved agricultural lands. The amount loaned shall not exceed sixty per centum of the appraised value of the real estate including the value of the insured improvements thereon which is security for the loan. In determining the amount to be loaned upon a given parcel of real estate careful consideration shall be given to the prices at which surrounding property has been sold, the assessed value of the property offered as security, and the revenue-producing capacity of such property. (b) Bonds or evidences of debt, or loans secured by such bonds or evidences of debt of the Government of the United States or of the Philippines or of any province, city, or municipality in the Philippines authorized by law to issue bonds; and bonds or evidences of debt, or loans secured by such bonds or evidences of debt, of any per­ son, firm, company, corporation, or other entity guaranteed both as to principal and interest by the Government of the United States. Any loan made upon the security of such bonds or evidences of debt shall not exceed the face value of such bonds or evidences of debt, or the mar­ket value thereof, whichever may be the smaller; (c) Loans with first mortgages transferred to the Agricultural and Industrial Bank as collateral security on improved' arid otherwise unencumbered real estate in ci­ties and municipalities in the Philippines. The mortgages shall not exceed sixty per centum of the appraised value of the real estate and insured improvements which secure such mortgage; (d) Collateral trust bonds or notes or obligations se­cured by such bonds or notes secured by a first mortgage or by a participating interest in a first mortgage upon improved urban real estate in cities and municipalities of the Philippines: Provided, That such bonds and notes shall have been outstanding for at least three years prior to their purchase by the Agricultural and Industrial Bank: And provided, That during the period, the earnings of the property mortgaged and available for paying interest have been equal to at least two hundred per centum of the an­nual interest payable on account of all first mortgage obli­gations outstanding. No such bonds or notes or obliga­tions secured thereby shall be purchased if the aggregate of first mortgage obligations outstanding against the pro­perty exceeds sixty per centum of the appraised value thereof. SPECIAL SECURITY FOR LOANS