Loans to mortgage, institutions.
Section 88
SEC. 88. Loans to mortgage, institutions.— Under special circumstances in which the Monetary Board considers it advisable to promote or facilitate the lending operations, or certain classes thereof, of savings banks, building and loan associations, or of the Rehabilitation Finance Corporation, the Central Bank may grant loans or advances with maturities of not more than, one year to said institutions against pledge or assignment of payments, installments or amortizations of their borrowers coming due within the twelve months from the date of the granting of such loans or advances, and in an amount not exceeding forty per cent of the payments, installments or amortizations pledged or assigned: Provided, however, That the Central Bank shall not make such loans or advances whenever such action would aggravate or contribute to inflationary tendencies existing in the economy. In granting loans and advances under this section, 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.