Section 8 in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
8. Security for the loan.
(1)Every borrower shall be required to furnish the following securities:-(i)Personal security of the borrower himself.(ii)Mortgage in favour of Parishad of the land/house proposed to be constructed thereon, or the land and house proposed to be purchased by the borrower.(iii)One security of any person other than the borrower to the satisfaction of the Parishad.(2)Where an advance for purchase of land for constructing a house or for purchase of a house is sanctioned under sub-rule (2) or sub-rule (1) of Rule 7 to any person, he shall, in addition to the securities mentioned in sub-rule (1) furnish any of the following securities of the value of such loan:(i)Hypothecation of Government securities.(ii)Assignment in favour of the Parishad of an Insurance Policy or Fixed Deposit Receipt of a Bank or any other form of guarantee. The Insurance Policy shall be kept and for the full amount by the borrower or at his expense by the Parishad.(iii)Simple mortgage of immovable property.(iv)Any other property to the satisfaction of the Parishad.(v)Two personal, sureties of solvent persons who guarantee due observance and performance of various terms and conditions of the agreement which is to be executed by the borrower at the time of sanctioning the advance, till such time as the borrower has purchased the plot of land or the house, as the case may be, and has executed the prescribed mortgage deed in favour of the Parishad.(3)The Parishad may, at their discretion, require the applicant to furnish additional security where considered necessary.(4)An advance to the extent admissible in accordance with sub-rule (2) of Rule 6 for completing purchase of land, if required by the applicant will be made on his executing with the Parishad on agreement-cum-surety bond in the prescribed form.(5)The security referred to in clause (iii) of sub-rule (1) shall stand discharged as soon as the house has been completed.(6)The security referred to in sub-rule (2) shall stand discharged as soon as mortgage under clause (ii) of sub-rule (1) is duly executed.
