Section 16
SEC. 16. A new paragraph is hereby added after the second paragraph of Section 90 of the same Act and the last paragraph of the same Section is hereby amended, to read as follows: "The Monetary Board may, with the concurrent vote of at least five of its members, waive the collateral requirement under this Section and subsections A and B of Section 88 for loans to banking institutions, majority of the capital stock of which is owned by a Government financial institution: Provided, however, That loans and advances to banking institutions controlled by a Government financial institution shall be secured by a guarantee of such Government financial institution. "In connection with the exercise of these powers, the prohibitions in Section 133 of this Act shall not apply insofar as it refers to acceptance as collateral of shares and their acquisition as a result of foreclosure proceedings, including the exercise of voting rights pertaining to said shares: Provided, however, That should the Central Bank acquire any of these shares it has accepted as collateral as a result of foreclosure proceedings, the Central Bank shall dispose of said shares to the public within one year from the date of consolidation of title by the Central Bank."