Statutory Bodies Family Protection Fund Act

Statutory Bodies Family Protection Fund (Housing Loan) Regulations 2010

[GN 94 of 2010 – 20 April 2010] [Section 21]

1. These regulations may be cited as the Statutory Bodies Family Protection Fund (Housing Loan) Regulations 2010.

2. In these regulations –

"Act" means the Statutory Bodies Family Protection Fund Act;

"construction" includes reconstruction, renovation, repair or extension;

"Engineer" means a person registered as a professional engineer under the Registered Professional Engineers Council Act;

"scheme" means the scheme set up under regulation 3;

"spouse", in relation to an associate, means the person to whom the associate is civilly married.

3. There shall be set up, from the assets of the Fund, a scheme to grant loans to associates for –

(a) the purchase or construction of a residential building; or

(b) the purchase of a residential plot of land.

4. Every loan granted under the scheme shall –

(a) be secured by a first rank mortgage in favour of the Fund on the property concerned;

(b) be witnessed by an authentic deed drawn up, at the cost of the associate, by a notary; and

(c) be vetted by the legal adviser of the Fund.

5. Subject to regulations 6, 7 and 8, no loan shall be granted for the construction of a residential building unless the land on which the construction is to be carried out is freehold land and is owned by the associate or his spouse.

6. No loan shall be granted for –

(a) the purchase or construction of a residential building on a plot of land acquired by prescription; or

(b) the purchase of a residential plot of land acquired by prescription,

unless 30 years have elapsed since the date of transcription of the affidavit of prescription sworn in respect of that plot of land or of the notarial deed witnessing the acquisition by prescription of that plot of land.

7. A loan application in respect of leasehold property held by an associate or his spouse may be favourably entertained provided the duration of the loan does not exceed that of the lease.

8. (1) A loan may be granted to an associate who has obtained a droit de surélévation from his parents, brothers or sisters.

(2) The droit de surélévation shall be witnessed by a duly registered notarial deed.

(3) The deed witnessing a droit de surélévation shall make mention of the division of ownership of specific parts of the entire building and of the proportion of the land accruing to each co-proprietor, including any droit de passage.

(4) Where, in relation to a construction en surélévation, a réglement de copropriété is drawn up at the instance of the co-proprietors, the réglement de copropriété shall be finalised with the consent of the Board.

9. Where the Board grants a loan to an associate who is the bare owner of a residential property and the usufruct belongs to his parents, they shall –

(a) consent to the granting of the loan; and

(b) together with the associate, execute a mortgage inscription on the property as security for the repayment of the loan.

10. (1) The Board shall not grant a loan to an associate against whom disciplinary proceedings have been instituted or are being contemplated by his employer.

(2) The Board shall not grant a loan for the purchase or construction of a second residential building or the purchase of a second residential plot of land.

11. (1) The Board shall not grant a loan for an amount which exceeds –

 (a) 70 per cent of the value of the proposed acquisition or the cost of the proposed construction, as assessed by an Engineer; or

 (b

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