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

    Section - 8 - Terms of Loan Granted under the Scheme.

    (1) The amount of loan granted shall not exceed 95 per centum of the total estimated cost of the housing project or 90 per centum in the case of loans obtained by an organisation referred to in section 3(2) of this Decree.

    (2) the applicant shall enter into a loan agreement with the financial institution.

    (3) The applicant shall, in addition to any other terms which the financial institution considers prudent, undertake in the agreement referred to in subsection (2) of this section

    (a) to keep in good repair the property used as security for the loan;

    (b) take out in respect of the loan or property which has been acquired with the proceeds of the loan or both, such insurance policy or policies with such insurer and on such terms and conditions as the Bank may approve;

    (c) to repay the loan in accordance with the loan agreement.