Section 25
SEC. 25. Amendatory provisions— All banking institutions, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, insurance companies, the Government Service Insurance System, and other financial institutions, are hereby authorized to invest part of their funds for the purpose of giving loans and advance of credit contemplated and provided in this Act, as well as in the purchases of obligations representing loans and advances of credit made pursuant to the provisions of this Act, any provision of their respective charters or by-laws to the contrary notwithstanding. Any amount invested by banks and/or insurance companies in the financing of mortgage loans for housing development under this Act, shall be guaranteed both as to principal and interest by both the Home Financing Commission and the Government of the Republic of the Philippines. The Rehabilitation Finance Corporation shall: Purchase, service or sell mortgages which are insured under the provisions of this Act. Subject to the approval of the Monetary Board issue bonds, debentures, securities, collaterals and other obligations against the security of mortgages insured under this Act, in such amounts and in such proportion to the face value of such mortgage as the Board of Governors may designate and such obligations may be issued and offered for sale at such price or prices as the Rehabilitation Finance Corporation may determine, and shall be negotiable and exempt from taxes both as to principal and interest. The said obligations shall be and are hereby fully and unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines and such guarantee shall be expressed on the face thereof and the President is hereby authorized to endorse such debentures for the Government of the Republic of the Philippines as prime obligor in such form as may be designated by the International Bank of Reconstruction and Development. Interests accumulated by lending institutions on mortgages insured under the provisions of this Act shall be exempt from all taxation.