Section 354WA(3) in The Mumbai Municipal Corporation Act, 1888
(3)Every such loan shall be subject to the following among other conditions :-(a)that the building in respect of which the loan is to be advanced will, when the construction, alteration or repair has been completed be in all respects fit for human habitation and shall be used wholly or mainly for residential purposes;(b)that the amount of the loan with interest thereon shall be secured by a mortgage of the building (including outhouses and other works, if any, connected therewith) together with the site on which they are erected in favour of the Corporation containing such covenants and conditions as may be prescribed in the bye-laws;(c)that the period within which the loan shall be repayable shall not exceed thirty years from the date on which the construction, alteration or repair has been completed;(d)that the amount of the loan shall not exceed sixty per cent of the cost of building irrespective of the period of repayment, and in no case shall exceed Rs. 30,000;(e)that, where the property intended to be mortgaged consists of a leasehold interest, no loan shall be made unless the unexpired period of the lease is not less than forty years from the date of the granting of the lease.
