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

    Section - 27 - Obligations of Financial Institution after Transfer to Bank.

    (1) In the case of a transfer of a mortgage by a financial institution to the Bank, the financial institution making the transfer shall for a fee of one half of one per centum per annum on the reducing balance of the loan, perform the following functions:-

    (a) collect the monthly instalments due from the mortgagor and pay such instalments to the Bank;

    (b) continue to operate an escrow account in respect of the mortgagor as referred to in section 28 of this Decree for the benefit of the Bank;

    (c) report promptly to the Bank any default by the mortgagor on repayment of the monthly instalments;

    (d) furnish to the Bank such other information and returns as the Bank may reasonably request.

    (2) The fee of one half of one per cent shall be realised by the financial institution by deducting the amounts from the monthly interest payment received from the mortgagor before remitting the amount to the Bank.