Be it enacted, by the Senate and House of Representatives of the Philippines in Legislature  assembled and by the authority of the same:

SECTION 1. Section ten of Act Numbered Twenty-seven hundred and forty-seven is hereby amended  to read  as follows:

"SEC. 10. Said National Bank is hereby authorized to loan not to exceed seventy per cent of its capital and surplus and all amounts realized from the  sale of  real estate bonds, as provided in sections twelve and thirteen herein, on notes secured by  real estate mortgages.  Payment of such notes  shall be secured  by first mortgages on farm lands in the Philippine Islands, and in no case shall such loans exceed sixty per cent of the actual value of said land, including the value of the permanent improvements thereon, such as buildings and machinery if the same form an integral part of the agricultural development:  Provided,  however, That whenever the bank may deem it advisable, the mortgages shall contain a clause obliging the mortgagor to insure to their full value in the name of the National Bank such buildings  and improvements.  The due date  of said mortgages shall not be less than one year from the  date thereof, nor more than thirty years.  The said mortgages may, by  their terms, be made payable at one time or in installments: Provided, That when the  due date of the mortgage is five years or more after  the date of its execution, the principal and interest of the loan shall be made payable by its terms in equal installments of not more than one year each.  Loans made  by the National Bank on real estate security  shall be made for the purpose of promoting agriculture.  Applications for such loans shall be  in writing and under oath, and  shall  contain, among other things:

"(a) A detailed description  of the real estate;
"(b) An appraisal thereof at its reasonable market value;
"(c) A full statement of the purposes  for which the loan is desired.

"It shall be unlawful to use the proceeds of said  loan, or any part thereof, for any purpose or purposes except the purpose or purposes set out in said application.  Any violation of this clause shall be sufficient cause for the rescission of the contract and the foreclosure of the mortgage."

SEC. 2. This Act  shall take effect on its approval.

Approved, March 9, 1922.