NATIONAL MORTGAGE, FINANCING AND GUARANTEE SCHEME ACT - 1976 (SMCD 23)

    Section - 11 - Disbursement of Loan.

    (1) Where the loan granted is intended for the acquisition of an existing dwelling house, the purchase price shall be paid by the financial institution direct to the vendor on the basis of a certificate issued by a valuer approved by the financial institution.

    (2) Where a loan granted is intended for the construction of a new dwelling house by a contractor, the property shall be constructed by a contractor approved by the financial institution.

    (3) The financial institution shall release to the Borrower's contractor direct not more than twenty per centum of the amount of the loan after the Borrower has committed to the cost of physical development on the site the minimum contribution required from him under section 3 of this Decree.

    (4) The Borrower shall submit subsequent requests for funds to the financial institution which shall vet such requests on the basis of a certificate issued by a valuer approved by the financial institution on the work done before releasing funds for the housing project and any sums approved under this subsection shall be paid direct to the Borrower's contractor.