Section 1
SECTION 1. All financing institutions shall hereafter accept as collateral for loans any duly registered Land Transfer Certificate issued by the Government, through the Department of Agrarian Reform, to tenant-farmers in an amount not less than sixty percent (60%) of the value of the farmholding as determined under Presidential Decree No. 27: Provided, That such loans shall be guaranteed by the Guarantee Fund established by the Samahang Nayon (Barrio Association) in which a tenant-farmer is a full-fledged member: Provided, further, That the loans obtained shall be used in the improvement or development of the farmholding of the tenant-farmer or the establishment of facilities that will enhance production or marketing of agricultural products or increase farm income therefrom.