June, 1910.] 



523 



and Co-operation. 



Mortgage. 



Sec, 24. All mortgages guaranteeing 

 loans shall be made in such form as 

 required by the manager of the bank, 

 with the approval of the board of direc 

 tors. All mortgages shall contain among 

 others the stipulation that funds ad- 

 vanced thereunder shall be used solely 

 for the purpose therein designated, that 

 the mortgagor shall pay the taxes, and 

 any failure or neglect to so use the funds 

 or to otherwise observe the explicit 

 terms of the mortgage agreement, will 

 work a forteiture of the mortgages and 

 terminate the periods of loans as express- 

 ed in the mortgage, resulting in fore- 

 closure proceedings or any other action 

 on behalf of the manager of the bank 

 that may become necessary to protect the 

 interests of the bank. Whenever in the 

 opinion of the manager of the bank such 

 a course is advisable, the mortgage shall 

 contain a provision that the principal of 

 the loan secured by the mortgage may 

 be retained by the bank and paid out 

 from time to time as the expense for 

 which the loan is made falls due, or as 

 the money is required for the purpose 

 for which the loan is made. 



Sec. 25. Upon the breach of any mort- 

 gage condition which shall become 

 known to any officer or employee of the 

 bank, it shall be the duty of said officer 

 or employee to report to his immediate 

 superior, who shall take immediate 

 action to notify the manager of the 

 bank, who shall take such action as he 

 may deem necessary to protect the 

 interests of the bank. 



Insurance. 



Sec. 26. Prior to the advance of any 

 money on a loan by the manager of the 

 bank, the borrower shall deliver to the 

 proper officer of the bank an insurance 

 policy against fire, covering the build- 

 ings, improvements, or stored crop?, as 

 the case may be, which are offered as 

 security for the money, in such amounts 

 as are required by the board of directors. 

 If the borrower neglects to pay the 

 premium on insurance on the property 

 mortgaged, the bank may pay such 

 premium and the amount so paid be 

 chargeable to the borrower. 



Appraisement of Property. 

 Sec. 27. Before any loan is granted 

 by the board of directors, the property 

 shall be appraised. The manager of the 

 bank may, before submission of the 

 loan to the board, have the property 

 offered as security appraised by a com- 

 mittee, the members of which shall be 

 appointed by him, and who shall in no 

 way be associated with the applicant for 

 the loan, and shall be acquainted with 



the property valuations in the locality 

 where the property is situated. Said 

 committee shall certify under oath that 

 they have a knowledge of the property 

 offered as security and that they believe 

 the actual cash value thereof as stated 

 by them is just and reasonable and the 

 condition of the property is such as to 

 warrant a loan of the amount stated in 

 the application, or such amount as they 

 may determine. 



Personnel. 

 Sec. 28. The personnel of the bank 

 shall consist of a secretary who shall not 

 receive more than four thousand pesos 

 per annum. 



Manila, September 22, 1908. 



Approved as provided by section 8, 

 Act No. 1865 of the Philippine Legis- 

 lature, 



JAMES P. SMITH. 

 Governor-General, 



REGULATIONS, 



(Agricultural Bank of the Philippine 

 Government, 1909.) 

 All officers and employees of the pro- 

 vincial agencies of the Agricultural 

 Bank of the Philippine Government are 

 governed by the provisions of Act No. 

 1865 creating the bank, Acts, amenda- 

 tory thereof and by the by-laws adopt- 

 ed by the Board of Directors of the 

 bank. 



The following regulations are promul- 

 gated for the information and guidance 

 of all officers and employees of agencies 

 of the Agricultural Bank of the Philip- 

 pine Government and strict compliance 

 therewith is requested. 



Reports. 



1. Immediately upon balancing the 

 books at the close of business on the 

 last business day of each week, a re- * 

 port on Form No. 13 shall be made out 

 and mailed to the Manager at Manila. 

 This report should show ; (a) The total 



of all deposits made during the week, 

 (b) the total of all withdrawals made 

 during the week, (c) the total amount 

 remaining on deposit in the Agency at 

 the time the report is made, (d)) the 

 number of new accounts opened during 

 the week, (e) The number of accounts 

 closed during the week, and (f) The 

 number of active accounts on the books 

 at the time of making the report. 



2. Immediately upon balancing the 

 books at the close of business on the 

 last business day of each calendar 

 month, a report on Form No, 13 shall 



