Participation of Financing Institutions and Other Investors.
Section 25
SEC. 25. Participation of Financing Institutions and Other Investors. - (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 GSIS, the SSS, the Development Bank of the Philippines (DBP), and other government financing institutions or other government-owned and -controlled corporations, are hereby authorized to invest part of their funds for the purpose of giving loans and advances 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 fixed by the Corporation to be granted by the foregoing government institutions shall be guaranteed by the Corporation under the provisions of this Act. All mortgagee institutions participating in the mortgage guaranty program shall be bound by the terms and conditions of guaranteed mortgage loans as may be approved by the Corporation. Any amount invested by all the foregoing entities in the financing or mortgage loans for housing development under this Act, shall be guaranteed both as to principal and interest, as herein provided, by both the Corporation and the Government of the Republic of the Philippines. (b) The aforementioned government financing institutions are hereby authorized to constitute the secondary market for guaranteed mortgages and shall: Purchase, service or sell mortgages which are guaranteed under the provisions of this Act. Subject to the approval of the Monetary Board of the Bangko Sentral ng Pilipinas, issue bonds, debentures, securities, collaterals and other obligations against the security of mortgages guaranteed 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, subject to Section 19 hereof.