Section 7Sec./Art. 7

A new Section 86-B is hereby added to read as follows:

"Section 86-b foreclosure of collaterals and disposal of bank acquired properties -

"1. Foreclosure of Mortgage Collaterals - Foreclosure of mortgage collaterals to loans may be made either judicially or extrajudicially.

"2. Deputization of Legal Staff - The bank may, with the approval of the court, deputize any member of its legal staff to act as special sheriff in foreclosure cases, in the sale or attachment of debtor's properties and in the enforcement of court writs and processes in cases involving the bank. The Special Sheriff of the bank shall make a report to the proper court after any action has been taken by him, which court shall treat such actions as if it were an act of its own sheriffs in all respect.

"3. Disposal of Real Estate and Other Properties in the Collection of Debt - Real estate and other properties acquired by the bank in the collection of debts or investment by way of foreclosure or other means shall be sold or disposed of in accordance with law, within five (5) years after date of acquisition. The sale or disposal shall be effected through public bidding, in accordance with law.

"4. Exemption from Attachment - The provisions of any law to the contrary notwithstanding, securities on loans and/or other credit accommodations granted by the bank shall not be subject to attachment, execution to any other court process, nor shall they be included in the property of insolvent persons or institutions, unless all debts and obligations of the debtors to the bank have been paid, including accrued interest, penalties, collection expenses, and other charges.

"5. Right of Redemption of Foreclosed Property; Right of Possession during Redemption Period - Within one (1) year from the registration of the foreclosure sale of real estate, the mortgagor shall have the right to redeem the property by paying all claims of the bank against him on the date of the sale including all the cost and other expenses incurred by reason of the foreclosure sale and custody of the property, as well as charges and accrued interest. The bank may take possession of the foreclosed property during the redemption period. The bank shall be eligible to post a bond for the purpose of such possession."