RULE WITH RESPECT BANKING INSTITUTIONS ON LOANS

> Before a bank grants a loan on the security of land, it first undertakes a careful examination of the title of the applicant as well as physical and on-the-spot investigation of the land itself offered as security

> If it didn’t conduct such examination, it must be held to be guilty of gross negligence in granting the loans, and cannot be considered as a mortgagee in good faith within the contemplation of law