An Act Amending Sections One Hundred Ninety-Seven and Two Hundred of Act Numbered Two Thousand Four Hundred and Twenty-Seven, Otherwise Known as "The Insurance Act," and for Other Purposes

REPUBLIC ACT No. 273

An Act Amending Sections One Hundred Ninety-Seven and Two Hundred of Act Numbered Two Thousand Four Hundred and Twenty-Seven, Otherwise Known as "The Insurance Act," and for Other Purposes

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Section One hundred and ninety-seven of Act Numbered Two thousand four hundred and twenty-seven, otherwise known as "The Insurance Act," is hereby amended to read as follows:

Section 2. Section two hundred of Act Numbered Two thousand four hundred and twenty-seven, otherwise known as "The Insurance Act," is hereby amended to read as follows:

Section 3. This Act shall take effect upon its approval.

Approved: June 15, 1948.

"Sec. 197. No insurance corporation shall loan any of its money or deposits to any person, corporation or association except upon first mortgages or deeds of trust or unencumbered improved or unimproved real estate, in cities and centers of population of municipalities in the Philippines when the amount of such loan is not in excess of sixty per centum of the market value of such real estate, or upon the security of first mortgages or deeds of trust of actually cultivated, improved or unencumbered agricultural lands in the Philippines when the amount of such loans is not in excess of forty per centum of the market value of such land, or upon bonds or other evidences of debt of the Government of the Philippines, or its political subdivisions authorized by law to issue bonds, or upon bonds or other evidences of debt of government-owned or controlled corporations and instrumentalities including the Central Bank, or upon stocks and bonds specified in section two hundred of this Act: Provided, However, That a life insurance corporation may loan its money upon the security of a policy to an amount not exceeding the net reserve value of the policy at the time said loan is made: Provided, further, That no loan upon the security of real estate shall have a maturity in excess of fifteen years: And Provided, finally, That where such loans upon the security of real estate are granted for a period longer than five years, payment hereof shall be made in monthly, quarterly, semi-annual or annual installments."

"Sec. 200. Insurance corporations may purchase, hold, own and convey real and personal property as follows: