Loans, investments and liabilities.
Section 5
SEC. 5. Loans, investments and liabilities.—The Veterans Bank is hereby authorized: To grant loans for the establishment, rehabilitation, expansion or development of any agricultural, commercial, or industrial enterprise, or personal services including public utilities, under such rules and regulations as may be prescribed by the Board of Directors and that preference be given to applicants who are veterans; To make loans on, or to discount notes and/or receipts secured by, harvested and stored crops: Provided, That no loans on the security of such harvested and stored crops shall exceed eighty per cent of the market value thereof on the date of the loans: Provided, further, That the crops so mortgaged shall be insured by the mortgagor for the benefit of the Veterans Bank for their entire market value at the discretion of the Board of Directors: Provided, furthermore, That if owing to any circumstances the value of the crops given as security shall diminish, the mortgagor shall furnish the Veterans Bank with additional security or refund such part of the loan as the Bank may deem necessary: Provided, finally, That such loans shall be granted for a period of not to exceed one year, subject to extension, in the discretion of the Board of directors; To make loans to agriculturists in installments, on landing crops of the natural products of the Philippines such as palay, copra, sugar, tobacco, corn, abaca and maguey, of not exceeding seventy per centum of the estimated value of such crops: Provided, however, That before granting such loans, the Veterans Bank may require additional security in the nature of mortgage on landed estate duly registered in the name of the debtor, or chattel mortgage including those upon livestock, machineries and agricultural implements or personal bonds with sufficient surety or sureties satisfactory to the bank; Generally, to make advances or discount paper for agricultural, manufacturing, industrial or commercial purposes: Provided, That loans, discounts, or advances made under this section shall have maturities of not exceeding one year, renewable from year to year, in the discretion of the Board of Directors: The aggregate amount of loans for any single industry shall at no time exceed twenty per cent of the Banks lending capacity; The total liabilities to the Bank of any person, or 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 fifteen 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 owned by the person negotiating the same shall not be considered as money borrowed, and in addition to the fifteen per centum of the unimpaired capital and surplus of the Bank, hereinbefore provided for the total liabilities of any borrower, may amount to a further fifteen per centum of the unimpaired capital and surplus of the 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 are fully covered by insurance and when such staples have a market value equal to at least one hundred twenty-five per centum of such additional liabilities. The Bank shall not make any loan upon the security of the stock of any other corporation if the aggregate market value of all such stocks as collateral exceeds an mount equal to ten 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. BOARD OF DIRECTORS—COMPOSITION AND ORGANIZATION