An Act to Amend Sections One Hundred and Fifty and One Hundred and Eighty-Two of Act Numbered Fourteen Hundred and Fifty-Nine by Authorizing Insurance Corporations to Make Loans on the Security of Real Estate with "Titulo Real" Duly Registered or with Title Registered under the Spanish Mortgage Law, and for Other Purposes

February 3, 1911

ACT NO. 2037

AN ACT TO AMEND SECTIONS ONE HUNDRED AND FIFTY AND ONE HUNDRED AND EIGHTY-TWO OF ACT NUMBERED FOURTEEN HUNDRED AND FIFTY-NINE BY AUTHORIZING INSURANCE CORPORATIONS TO MAKE LOANS ON THE SECURITY OF REAL ESTATE WITH "TITULO REAL" DULY REGISTERED OR WITH TITLE REGISTERED UNDER THE SPANISH MORTGAGE LAW, AND FOR OTHER PURPOSES

SECTION 1. Section one hundred and fifty of Act Numbered Fourteen hundred and fifty-nine, entitled "The Corporation Law," is hereby amended to read as follows:

"SEC. 150. No loan by any insurance corporation on the security of real estate shall be made unless the title to such real estate shall have been first registered in accordance with the Land Registration Act, or shall be a titulo real duly registered or have been previously registered under the provisions of the Mortgage Law; that is, under the system of registration established by the laws in force on the date of the passage of Act Numbered Four hundred and ninety-six, entitled "The Land Registration Act."

SECTION 2. Section one hundred and eighty-two of said Act Numbered Fourteen hundred and fifty-nine is hereby amended to read as follows:

"SEC. 182. Every loan made by the corporation must be properly evidenced by a note or other instrument in writing and must be secured by a first mortgage or deed of trust on unencumbered real estate and also by the pledge to the corporation of shares of stock of the corporation the matured value of which shall at least equal the amount loaned: Provided, However, That loans may be made on the security of free shared pledged to the corporation for the payment of the loan in case, at the time that the loan is made, the withdrawal value of such free shares under the by-laws shall exceed the amount borrowed and interest thereon for six months: And Provided Further, That no loan on the security of real estate shall be made unless the title to such real estate shall have been first registered in accordance with the Land Registration Act or under the system of registration established by the by laws in force on the date of the passage of said Land Registration Act, and unless such real estate shall be situate within the city or municipality in which the principal place of business of the corporation is established."

SECTION 3. The public good requiring the speedy enactment of this bill, the same shall take effect on its passage, in accordance with section one of Act Numbered Nineteen hundred and forty-five of the Philippine Legislature.

ENACTED, February 3, 1911.