Section 3
SEC. 3. Subsection (b) of Section 31 of the same Act is hereby amended to road as follows: "(b) Loans of the following types: "(1) Loans to encourage the breeding, raising and production of cattle, carabao and other livestock, with maturities up to three years: Provided, however, That the Monetary Board may, in special cases and notwithstanding the provisions of the last paragraph of Section seventy-eight of this Act, allow longer maturities. Loans under this subsection shall be repaid in regular installments and shall have as principal security a lien on the animals, the bank being empowered, however, to require, in addition real estate and other securities to its satisfaction; Provided, however, That the livestock need not secure the loan if the borrower constitutes a lien or mortgage on reel estate property seventy per cent (70%) of the appraised value of which equals or exceeds the amount of the loan granted. The amount of any such loan shall not exceed fifty per cent (50%) of the commercial value of the animals at the time the loan is made but similar additional loans up to fifty per cent (50%) may be made as the value of the stock increases. "(2) Equipment loans, with maturities up to five years, for the acquisition of any instruments, machinery and other movable equipment for the production, processing, transformation, handling or transportation of agricultural and industrial products for the use of the borrower. Such loans shall constitute a first lien on the assets so acquired with the proceeds of the loan, the bank being empowered, however, to require as additional security a lien or mortgage on other properties of the debtor: Provided, That the lien need not be constituted if the borrower executes a mortgage on real estate property seventy per cent (70%) of the appraised value of which equals or exceeds the amount of the loan granted. "(3) Loans for the acquisition of agricultural inputs, such as seeds, fertilizers, feeds and other similar items. Such loans shall be secured either by chattel mortgage on growing, standing or stored crops or by any other acceptable collateral and shall be subject to such ceiling and regulations as the Monetary Board may prescribe: Provided, That the bank shall be empowered to require as additional security a lien or mortgage on other properties of the debtor: Provided, further, That such loans need not be secured by the growing, standing or stored crops or other collateral if the borrower executed a mortgage on real estate property seventy per cent (70%) of the appraised value of which equals or exceeds the amount of the loan granted."