Section 14
SEC. 14. Section twenty-six of the same Act is further amended by amending all paragraphs and adding thereto paragraph (g) to read as follows: "SEC. 26. Investment of reserve funds. — All revenues of the SSS as are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the 'Reserve Fund' which shall be used exclusively for the payment of the benefits under this Act, and no amount thereof shall be withdrawn or used for any other purpose. Such portions of the reserve funds as are not needed to meet the current benefit obligations thereof shall be invested to earn an average annual income of at least seven per cent: Five per cent shall be invested in bank deposits to be known as the 'contingency reserve fund' to meet and cover contingent and extraordinary disbursements for death, sickness and disability claims under this Act, and the remaining balance shall be credited to a fund to be known as the 'investment reserve fund to be invested by the Commission in any or all of the following ways only: "(a) In interest-bearing bonds or securities of the Government of the Philippines, or bonds or securities for the payment of the interest and principal to which the faith and credit of the Republic of the Philippines is pledged. "(b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That such deposits shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That said bank shall first have been designated as a depository for this purpose by the Monetary Board of the Central Bank of the Philippines: Provided, finally, That such investment in deposits or securities shall be equitably distributed to all designated depository banks. "(c) In loans or interest-bearing advances to the National Government for the construction of permanent toll bridges, toll roads or government office buildings in accordance with actuarial considerations and the conditions prescribed by the law in such cases: Provided, That the tolls shall be collected by the SSS for a reasonable fee. "(d) In direct housing loans to covered employees giving priority to the low-income groups, up to a maximum of ninety per cent of the appraised value of the properties to be mortgaged by the borrowers under such rules and regulations as the Commission may adopt, and in building projects referred to in Section four (j) of this Act for the maintenance of hospitals and institutions for the sick, aged and infirmed members and their families. "(e) In investments which will provide credit facilities for small short-term loans to covered employees: Provided, That not more than ten per cent of the investment reserve fund at any time shall be invested for this purpose. "(f) In other income earning projects and investments secured by first mortgages on real estate collaterals which, in the determination of the Commission, shall redound to the benefit of the SSS, its members, as well as the public welfare: Provided, That any such investments shall be made with due diligence and prudence to earn the highest possible interest consistent with safety. "(g) As part of its investment operations the SSS shall act as insurer of all or part of its interest on properties mortgaged to the SSS or on the lives of mortgagors whose properties are mortgaged to the SSS in accordance with such rules and regulations prescribed by the Commission: Provided, That the Commission shall fix its own rates of premiums based on studies recommended by the actuary but in no case higher than the rates approved by the insurance commissioner: Provided, further, That the SSS may insure any of its interest or part hereof with any private company or reinsurer: Provided, finally, That the general law on insurance and the rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflict with the Social Security Law and its rules and regulations."