Section 14
SEC. 14. In order to assist in developing rural areas and to encourage development of agricultural areas by individuals and associations, the Commission is authorized to insure loans as hereinafter provided: All loans insured under this section, whether in the form of notes secured by mortgages or in the form of debentures secured by mortgages, shall be subject to all of the conditions set forth in subsection (a)-(1), (2) and (3) of section eleven. Such loans may cover the installation and operation of improvements involving: Subdividing and developing tracts into small farms, including housing, for subsequent sale: Provided, That such projects shall be limited to one hundred units and involve a principal obligation in an amount not to exceed one million pesos nor in any case ninety per centum of the amount which the Commission estimates will be the value of the property or project when the improvements are completed, including the land, and that the mortgage shall have a maturity satisfactory to the Commission not to exceed twenty years from the date of the insurance of the mortgage. Acquisition or installation of facilities and equipment for increasing the productivity of land and the marketing of crops: Provided, That the borrower or mortgagor shall be a corporation owning land or association of landowners; that the loan or mortgage shall involve a principal obligation in an amount not to exceed ten million pesos and shall not exceed fifty per centum of the amount the Commission shall estimate to be the value of the property and project including the land, above all other encumbrances, when the improvements have been installed and are functioning; and, that the mortgage shall have a maturity satisfactory to the Commission not to exceed twenty years from the date of the insurance of the mortgage. Irrigation projects, including. hydro-electric power, when in the opinion of the Commission it shall benefit agricultural development: Provided, That the borrower or mortgagor shall be a corporation owning land or association of landowners; that the loan or mortgage shall involve a principal obligation not to exceed ten million pesos, and shall not exceed the cost of the improvement project, including the cost of preliminary surveys and initial operating fund; and that the mortgage shall have a maturity satisfactory to the Commission not to exceed twenty years from the date of the insurance of the mortgage: And provided, further, That disbursements hereon shall be made against progress reports verified by the Commission. The Commission is authorized to require that a portion of the crops or produce of any project insured under this section be allocated to the Commission to assure the amortization of such loan or mortgage. GENERAL PROVISIONS