Section 21
SEC. 21. Subsections (a) and (b) of Section thirty-one of the same Act is hereby amended to read as follows: "(a) Loans with the security of their own savings deposit obligations or of mortgage and cattle mortgage bonds which they have issued, or with the security of savings deposit obligations of other banks doing business in the Philippines: Provided, That clean loans for personal and household finance may be granted, but which shall not exceed the borrower's deposit in the bank plus his four month's salary or regular income in the case of a permanent employee or wage earner subject to such regulations as the Monetary Board may prescribe; "(b) Medium-term loans of the following types: "(1) Loans for the encouragement of cattle, carabao, and other livestock breeding, with maturities up to three years. Such loans 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 real 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 fertilizers and any instruments, machinery and other movable equipment used in the production, processing, transformation, handling or transportation of agricultural and industrial products. Such loans shall constitute a first lien on the assets 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 on the equipment or the assets acquired out of the proceeds of the loan 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."