Section 47
SEC. 47. Section eighty-eight of the same act is hereby amended to read as follows: "SEC. 88. Loans to long-term lending institutions. — A. Under special circumstances in which the Monetary Board considers it advisable to promote or facilitate the lending operations, or certain classes thereof, of banking institutions engaged in long-term financing, the Central Bank may grant loans or advances to said institutions against pledge or assignment of payments, installments or amortizations of their borrowers and in an amount not exceeding forty per cent (40%) of the payments, installments or amortizations pledged or assigned: Provided, however, That the Central Bank shall finance said loans from non-inflationary sources and shall establish additional safeguards as it may deem proper. "In granting loans and advances under this subsection, the Central Bank shall first ascertain that the payments, installments and amortizations to be pledged or assigned to it are in no case currently in arrears and that said payments, installments and amortizations are related to credit operations which in every case are adequately secured by mortgages. Said mortgages shall be assigned to the Central Bank." "B. Under special circumstances, such as the encouragement of bank mergers and consolidations, in which the Monetary Board considers it advisable to properly and effectively achieve the objectives mentioned in Section 2 of this Act and to discharge its responsibility of administering the banking system, the Central Bank may grant loans or advances to the Development Bank of the Philippines or to any appropriate Government financial institution under such terms and conditions as may be prescribed by the Monetary Board which loans or advances shall be used by the Development Bank of the Philippines or such Government financial institution to purchase shares of stock of a banking institution in the Philippines for resale to the general public: Provided, however, That the amounts of such loans and advances which may be released at any given period of time shall be compatible with the requirements of stability: Provided, further. That such loans and advances are secured by assets which are defined as acceptable security by a concurrent vote of at least five members of the Monetary Board. "For the purpose of this subsection, the Development Bank of the Philippines shall be authorized to underwrite, purchase, sell, pledge, mortgage or otherwise dispose of shares bf stock of a banking institution in the Philippines."