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

    Section - 16 - Bank to provide Indemnity against Non-payment of Loan and Interest.

    The Bank shall provide an indemnity of 95 per centum of any loss incurred by a financial institution as a result of the default of a mortgagor in the payment of the principal of the loan and interest.