Section 10
SEC. 10. Sec. 25 of the same Act as amended is hereby further amended to read as follows: "(a) All banking institutions, trust companies, personal finance companies, mortgage companies, building and loan associations, savings and loan associations, installment lending companies, insurance companies, the Government Service Insurance System, the Social Security System, and the Development Bank of the Philippines and other government 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 on 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. All housing loans within the loan ceiling of the Commission to be granted by the foregoing government financing institutions from the date of effectivity of this amendatory Act shall be insured by the Commission under the provisions of the Home Financing Act. All mortgagee institutions participating in the mortgage insurance program shall be bound by the terms and conditions of insured mortgage loans as may be approved by the Commission. Any amount invested by all the foregoing entities in the financing of mortgage loans for housing development under this Act, shall be guaranteed both as to principal and interest by both Home Financing Commission and the Government of the Republic of the Philippines. "(b) The Development Bank of the Philippines, the Government Service Insurance System, and the Social Security System are hereby authorized to constitute the secondary market for insured mortgages and shall: "(1) Purchase, service or sell mortgages which are insured under the provisions of this Act. "(2) Subject to the approval of the Monetary Board issue bonds, debentures, securities, collateral and other obligations against the security of mortgages insured under this Act, in such amount and in such proportion to the face value of such mortgage as their respective boards may designate and such obligations may be issued and offered for sale at such price or prices as the particular government institution 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 for Reconstruction and Development. "(c) Interests accumulated by lending institutions on mortgages insured under the provisions of thias Act shall be exempt from all taxation. Sec. 11. Out of any funds in the National Treasury not otherwise appropriated, the sum of five million pesos is hereby appropriated to augment the original funds of the Home Financing Commission.