Section 3
SEC. 3. Section five of Republic Act Numbered Thirteen hundred, as amended, is further amended to read as follows: "BANKING OPERATIONS IN GENERAL" "SEC. 5. Loans and investments authorized-Total liabilities of a single borrower—Additional liabilities and security required. - Said National Bank is hereby authorized; "(a) To purchase or discount promissory notes, drafts, and bills of exchange issued or drawn for agricultural, export, industrial or commercial purposes with securities required by the Bank, or the proceeds of which have been used or are to be used for such purposes; "(b) To make loans on or to discount notes, secured by, harvested and stored crops: Provided, That no loan on the security of such harvested and stored crops shall exceed eighty per centum of the market value thereof on the date of the loan: Provided, further. That the crops so mortgaged shall be insured by the mortgagor for the benefit of the National Bank for their entire market value: And provided, finally, That if, owing to any circumstance whatever the value of the crops given as security shall diminish, the mortgagor shall obligate himself to furnish additional security or refund such part of the loan as the Bank may deem necessary. Such loans shall be granted for a period of not to exceed one year, subject to extension, in the discretion of the Bank; "(c) To make loans to agriculturists in installments, on standing crops of the natural products of the Philippines such as rice, hemp, copra sugar tobacco corn, maguey, etc., not in excess of seventy per centum of the estimated value of such crops: Provided, however, That before granting such loans the National Bank may require additional security in the nature of mortgage's on real estate duly registered in the name of the debtor, or chattel mortgage including those upon livestock, machinery, and agricultural implements, or personal bonds with sufficient surety or sureties, satisfactory to the Bank;' "(d) To make loans to any branch or subdivision of the Republic of the Philippines or to government-owned or controlled corporations, subject to the condition that such loans should be for productive revenue producing socio-economic development project pursuant to the priorities established in the development program, as certified to by the National Economic Development Authority in an amount within the borrowing entity's paying capacity, duly guaranteed by the National Government through the Secretary of Finance upon authority of the President of the Philippines with respect to principal and interest: Provided, however, That loans covered by government guarantees shall not exceed the ceiling prescribed by the Monetary Board: Provided, finally, That such a ceiling shall exclude loans to government corporations with acceptable and sufficient collateral which shall however be subject to the limitation hereinunder provided. "The aggregate obligation of all these government agencies and entities for the loans herein authorized shall at no time exceed the advances, deposits, and paid-in capital contribution of the Government [plus twenty percent (20%)], except in cases of emergency situations. "(e) Generally, to make advances or discount paper for agricultural, export, manufacturing, industrial, or commercial purposes: Provided, That loans, discounts or advances made under this section shall have maturities not exceeding one year, renewable from year to year, in the discretion of the Bank; "(f) To engage or participate in the development of secondary markets for medium and long-term papers. "(g) To invest in equities of the following allied, undertakings: warehousing companies as provided for under Section 2 subsection (h), leasing companies, storage companies, sate deposit box companies, trust companies, companies, engaged in the management of mutual funds but not in the mutual funds themselves, banks other than rural banks, and such other similar activities as the Monetary Board of the Central Bank of the Philippines may declare as appropriate from time to time: Provided, however. That (a) the total investment in equities shall not exceed twenty-five percent (25%) of the net worth of the Bank, (b) the investment in any one enterprise shall not exceed ten per cent (10%) of the net worth of the Bank; (c) the investment of the Bank in any single enterprise, except where that enterprise is not a financial intermediary; and (d) the investment in other banks shall be deducted from the Bank's net worth for purposes of computing the prescribed ratio of net worth to risk assets. Equity investments shall not be permitted in non-related activities. "Where the allied undertaking is a wholly-owned or majority controlled subsidiary of the Bank, it shall be subject to examination by the Central Bank." "(h) To grant loans to cooperatives as well as to individual members of such cooperatives: Provided, That in the grant of said loans the collateral requirements elsewhere required in this Act may be waived in appropriate cases. "The aggregate amount of loan for any single industry shall at no time exceed twenty (20%) per cent of the Bank's lending capacity. "The total liabilities to the Bank of any individual, including the liabilities of the individual's spouse for money borrowed shall at no time exceed two-and-a-half per cent of the unimpaired capital and surplus of the Bank. The total liabilities to the Bank of any company corporation, or firm, for money borrowed including in the liabilities, of the company or firm, the liabilities of the several members thereof, shall at no time exceed ten (10%) per centum of the unimpaired capital and surplus of the Bank. But the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed, and in addition to the ten (10%) per centum of the unimpaired capital and surplus of Bank provided such additional liabilities are secured by shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, nonperishable stocks, when such staples have a market" value equal to at least one hundred twenty-five per centum of such additional liabilities. "Provided, further, That the total contingent liabilities to the Bank of any person, whether natural or juridical, under any form or type of letters of credit accommodations, whether domestic or foreign, or under any other form of financing shall at no time exceed ten (10%) per centum of the unimpaired capital and surplus of the Bank. "The Bank shall not make any loan upon the stock of any other corporation as collateral if the aggregate market value of all such stocks held as collateral exceeds an amount equal to ten (10%) per centum of the unimpaired capital stock and surplus of the Bank. ''The term 'loan' whenever used in this Act shall include overdrafts and the limitations contained in this section shall apply to any loan of any kind whenever secured wholly or partly by real estate mortgage."