Section 16
SEC. 16. To be eligible for insurance under this chapter, a mortgage shall— Have been made to, and be held by, a qualified mortgagee approved by the Commission as responsible and able to service the mortgage properly; Contain complete amortization provisions satisfactory to the Commission requiring periodic payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Commission; Bear interest (exclusive of premium charges for insurance) at not to exceed five per centum per annum on the amount of the principal obligation outstanding at any time, or not to exceed six per centum per annum if the Commission finds that in certain areas or under special circumstances the mortgage market demands it: Provided, That loans made under section nine may be made at a discount of five pesos per annum per one hundred pesos; Provide, in a manner satisfactory to the Commission for the application of the mortgagor's periodic payments (exclusive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as hereinafter provided) to amortization of the principal obligation of the mortgage; and, Contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Commission may in its discretion prescribe. PAYMENT OF INSURANCE