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

    Section - 26 - Secondary Mortgage Market.

    (1) The Bank shall for the purposes of the Scheme establish and operate under section 13 of the Mortgages Decree, 1972 a secondary mortgage market at which any mortgages to which the Scheme applies may be sold, purchased, transferred or accepted.

    (2) A transfer of a mortgage to which the Scheme applies may be made only between the Bank and a financial institution or between a financial institution and another such institution.

    (3) Where in order to enhance the liquidity of a financial institution that institution requests the Bank to purchase any mortgage held by it the Bank shall comply with such request.

    (4) A financial institution shall not under this section sell or transfer more than fifty per centum of the total value of all mortgages held by it at any particular time and in respect of which an indemnity is afforded by the Bank under section 16 of this Decree.

    (5) The price payable for a mortgage sold or transferred by a financial institution under this section, or taken over by the Bank at the request of the financial institution under subsection (3) of this section shall be the outstanding balance of the loan and interest at the time of such sale or transfer.