Revised Laws of Saint Lucia (2022)

Saint Lucia Housing Authority Regulations – Section 49

(Statutory Instrument 33/1967)

Statutory Instrument 33/1967 .. in force 7 October 1967

ARRANGEMENT OF REGULATIONS

PART 1

PART 2
DIRECT LOANS

SAINT LUCIA HOUSING AUTHORITY REGULATIONS – SECTION 49

Commencement [7 October 1967]

1.   Citation

These Regulations may be cited as the Saint Lucia Housing Authority Regulations.

Preliminary

2.   Interpretation

1.  

   (1)   In these Regulations—

“Act” means the Housing Act, 1966;  Editor's note: These Regulations are made under the Housing Act, 1966. That Act was repealed by the Saint Lucia National Housing Corporation Act, but these Regulations are saved under section 50.

“approved mortgage” means a mortgage that satisfies the provisions of regulation 13 of these Regulations and is otherwise in a form approved by the Authority;

“approved mortgagee” means a person approved by the Authority for the purpose of making loans under the Act;

“chairperson” means the chairperson of the Authority;

“Comptroller” has the meaning assigned to it in the Income Tax Act;

“guarantee” means a guarantee that satisfies the provisions of sections 12 and 13 of the Act;

“initial sale” means the first sale by any party, to any other party, of a dwelling-house, subsequent to completion, and prior to the first occupation thereof for any purpose whatsoever;

“Schedule” means Schedule to these Regulations;

“secretary” means the secretary of the Authority;

“registered trader” means a person registered under the provisions of regulation 5 of these Regulations as a trader in newly constructed houses used as dwellings.

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   (2)   Except where the context otherwise requires, expressions used in these Regulations have respectively the same meaning as in the Act.

PART 1

3.   Application for certificate of exemption

1.  

   (1)   

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      (a)     Any person requiring a certificate of the Minister for the purpose of claiming exemptions from income tax under the provisions of section 11A(2)(a) of the Income Tax Act, 1965 may apply to the Minister on the form set out as Form 1 in Schedule 1.

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      (b)     If the Minister is of opinion that the applicant qualifies for exemption under the provisions of section 11A(2)(a), he or she shall issue a certificate in the form set out as Form 2 in Schedule 1.

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   (2)   

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      (a)     Any person requiring a certificate of the Minister for the purpose of claiming exemptions from income tax under the provisions of section 11A(2)(b) of the Income Tax Act, 1965, (as amended) may apply to the Minister on the form set out as Form 3 in Schedule 1.

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      (b)     If the Minister is of opinion that the applicant qualifies for exemption under the provisions of section 11A(2)(b), he or she shall issue a certificate in the form set out as Form 4 in Schedule 1 to these Regulations.

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   (3)   

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      (a)     Any registered trader requiring a certificate of the Minister for the purpose of claiming exemptions from income tax under the provisions of section 11A(2)(c) of the Income Tax Act, 1965, may apply to the Minister on the form set out as Form 5 in Schedule 1.

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      (b)     If the Minister is of opinion that the applicant qualifies for exemption under the provisions of section 11A(2)(c), he or she shall issue a certificate in the form set out as Form 6 in Schedule 1 to these Regulations.

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   (4)   

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      (a)     Any person requiring a certificate of the Minister for the purpose of claiming exemptions from income tax under the provisions of section 11A(2)(d) of the Income Tax Act, 1965 may apply to the Minister on the form set out as Form 7 in Schedule 1.

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      (b)     If the Minister is of opinion that the applicant qualifies for exemption under the provisions of section 11A(2)(d), he or she shall issue a certificate in the form set out as Form 8 in Schedule 1.

4.   Registration as a trader

1.  

   (1)   Where any person desires to be registered as a trader in newly constructed dwelling houses he or she shall submit an application to the Authority on the form set out as Form 9 in Schedule 1 together with an application fee of $10.

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   (2)   The application fee shall be returned to the applicant if the application is rejected.

5.   Persons who may be registered

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   (1)   The Authority may direct the secretary to register, as a trader in newly constructed dwelling houses, any person whom it is satisfied is engaged in the construction of dwelling houses for sale.

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   (2)   Where the secretary has been directed by the Authority under the provisions of subregulation (1) to register a person as a trader in newly constructed dwelling houses, the secretary shall register such person by entering such person's name in a Register to be kept by him or her for the purpose.

6.   Cancellation of registration

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   (1)   Where a person is registered as a trader in newly constructed dwelling houses the Authority may, in its discretion, direct the secretary to cancel such registration and to remove such person's name from the Register.

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   (2)   Despite the removal of a person's name from the Register under a direction of the Authority under the provisions of subregulation (1), such person shall be deemed to be a registered trader for the purpose of claiming exemption from income tax under section 11A(2)(c) of the Income Tax Act, 1965 in respect of any newly constructed dwelling house the construction of which the Authority certifies was commenced prior to the date of such removal.

7.   Separate accounts to be kept by builder

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   (1)   Where a registered trader is engaged in the exercise of the trade or profession of a builder, such trader shall keep separate accounts, in such form as the Comptroller may prescribe, showing the measure of profits he or she claims in respect of—

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      (a)     his or her trade or profession as a builder; and

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      (b)     the sale of newly constructed dwelling houses.

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   (2)   A registered trader shall produce his or her accounts for inspection by the Comptroller or by the Authority at his or her or its request.

8.   Approval of mortgagees

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   (1)   The Authority may approve of such persons as it thinks fit as approved mortgagees and may at any time withdraw such approval.

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   (2)   The Authority shall publish in the Gazette notice of any such approval or withdrawal of approval.

9.   Application for guarantee of Authority

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   (1)   Where an approved mortgagee proposes to lend a sum of money not exceeding $20,000 to a person (in this regulation referred to as “the mortgagor”) for the purchase or construction of a dwelling house to which Part 2 of the Act applies, the mortgagor and the approved mortgagee shall, if they desire the Authority to enter into a guarantee in respect of the repayment of the loan, make an application to the Authority for an undertaking as provided for in regulation 10 of these Regulations.

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   (2)   

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      (a)     An application under this regulation shall be in the form set out as Form 10 in Schedule 1 and shall be submitted to the Authority together with—

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         (i)     a fee of $3 for every $1,000 or part thereof of the amount of the proposed loan, which fee shall be paid by the mortgagor, and

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         (ii)     3 copies of the plans and specifications of the proposed building, where the loan is for the purpose of constructing a dwelling house.

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      (b)     If the Authority does not approve of the application, or if the application is withdrawn by the applicants before the undertaking is given, 1/2 of such fee shall be returned to the mortgagor.

10.   Manner of undertaking guarantee by Authority

Subject to the provisions of the Act and of these Regulations, the Authority shall, on approving an application made under regulation 9, give an undertaking signed by the secretary in the form set out as Form 11 in Schedule 1 that it will enter into a guarantee in respect of the loan that is the subject of the application.

11.   Circumstances in which guarantee may be entered into

The guarantee referred to in regulation 10 shall be entered into only—

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   (a)     where the loan is to be made for the purpose of purchasing a dwelling house, upon satisfactory proof of the purchase by the mortgagor of the dwelling house and on production of an approved mortgage executed by the mortgagor and the mortgagee securing the repayment of such loan;

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   (b)     where the loan is to be made for the purpose of constructing a dwelling house, if the dwelling house is constructed in accordance with the plans and particulars as approved by the Authority and upon presentation of an approved mortgage on the said dwelling house executed by the mortgagor and the mortgagee securing the repayment of such loan.

12.   Circumstances in which application under regulation 9 must not be approved

An application made under regulation 9 shall not be approved—

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   (a)     where the repayment of any other loan by the mortgagor is the subject of a guarantee by the Authority;

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   (b)     where there is an undischarged undertaking by the Authority to enter into a guarantee in respect of any other loan to be made to the mortgagor, unless the parties for whose benefit such undertaking was given shall, by writing under their hand, release the Authority from its obligations thereunder; and

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   (c)     unless the mortgagor establishes to the satisfaction of the Authority—

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      (i)     that he or she has a good credit standing, and

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      (ii)     that the periodic payments which he or she will be required to make under the approved mortgage securing the repayment of the loan referred to in such application bears a proper relation to his or her present and anticipated net income.

13.   Matter to be contained in mortgage where application for Authority's guarantee thereof

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   (1)   Subject to the provisions of sections 12 and 13 of the Act, every mortgage produced to the Authority for the purpose of obtaining the Authority's guarantee under an undertaking shall satisfy the provisions of this regulation.

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   (2)   The interest of the mortgagor subject to the mortgage shall be, either—

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      (a)     the ownership of the land on which the dwelling house stands; or

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      (b)     a lease of land and which lease is due to expire at least 2 years after the date when the last of the amortization payments becomes due.

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   (3)   The mortgage shall be a first charge upon the property mortgaged.

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   (4)   The mortgage shall bear interest at a rate approved by the Authority which, when consolidated with—

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      (a)     the prescribed rate prevailing at the date of the execution of the mortgage in respect of mortgage insurance; and

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      (b)     the maximum rate in respect of a service charge prescribed by subregulation (6)(b),

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   does not exceed an interest rate of 8% per annum calculated on the principal sum in the manner approved by the Authority.

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   (5)   The mortgage shall contain provisions satisfactory to the Authority for—

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      (a)     the complete amortization calculated in the manner approved by the Authority under subregulation (4) but payable by monthly instalments of the principal sum, interest and other sums, if any, payable under subregulation (6) secured within a period of not more than 25 years from the date of guarantee nor more than 3/4 of the Authority's estimate of the economic life of the building, whichever is the less;

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      (b)     the insurance by the mortgagor of the building against fire and such other hazards as the Authority may stipulate, and in such amount and with such insurance company as the Authority may approve;

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      (c)     equal monthly payments by the mortgagor of such an amount as will discharge the ground rent, if any, and the estimated amount of all rates, taxes, and other special assessments, if any, and fire and other hazard insurance premiums within a period ending on the interest payment date immediately prior to the date on which such rent, assessments or premiums, as the case may be, shall become due and owing;

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      (d)     the adjustment of the monthly payments referred to in paragraph (c) in case the estimated amount of such taxes, assessments and insurance premiums shall prove to be or shall become more or less than the actual amount thereof so paid by the mortgagor;

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      (e)     requiring the consent of the Authority, so long as it is liable under the guarantee, to the assignment or conveyance by the mortgagor to a third person of his or her interest in, the mortgaged property.

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   (6)   In addition to the interest permitted under subregulation (4) the mortgage shall provide—

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      (a)     for payment by the mortgagor on or before the execution of the approved mortgage of a sum equal to the first annual insurance fee payable by the mortgagee under section 14 of the Act and, thereafter, so long as the Authority is liable under the guarantee, for equal monthly payments by the mortgagor of such an amount as will provide for each subsequent annual insurance fee within a period ending on the interest payment date immediately prior to the date on which each such insurance fee shall become due and payable by the mortgagee; but where such a provision is contained in the mortgage, there shall be inserted a condition permitting the adjustment of the mortgage account in case the monthly payments shall be more, or less, than the annual insurance fee in respect of which they are made;

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      (b)     for monthly payments by the mortgagor of a service charge at a rate not exceeding the rate of 1% per annum of the balance of the principal sum for the time being owing under the mortgage;

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      (c)     for such other matters as the Authority may approve.

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   (7)   The mortgage shall contain a provision permitting the mortgagor, on the expiration of 2 years after the mortgage was executed, and upon giving 30 days notice in writing and paying such additional charges as may be agreed upon by the parties to the mortgage, to discharge the balance for the time being outstanding, or any part thereof amounting to the sum of either $480 or $500 (at the option of the mortgagee) or any multiple thereof, on the day when payment of interest is due.

14.   Aggregate Monthly payment

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   (1)   All monthly payments to be made by the mortgagor to the mortgagee under an approved mortgage shall be added together and the aggregate amount thereof paid, on a date to be fixed in the mortgage in a single payment (in this regulation referred to as the “aggregate monthly payment”).

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   (2)   The mortgagee shall apply the aggregate monthly payment towards the discharge of the mortgagor's obligations under the mortgage in the following order—

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      (a)     the amount, if any, payable under the mortgage under regulation 13(6)(a);

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      (b)     the amount payable under the mortgage under regulation 13(5)(c);

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      (c)     the service charge, if any;

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      (d)     interest due under the mortgage;

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      (e)     the amortization of the principal sum secured under the mortgage.

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   (3)   For the purpose of section 10 of the Act, borrower charges are such expenses as are incurred by an approved mortgagee in accordance with the terms of the mortgage to safeguard the interest of the mortgagee and the Authority for—

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      (a)     insurance premiums for fire and other perils insured against;

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      (b)     taxes and other rates and charges levied against the property which have priority over the mortgage;

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      (c)     any premiums in respect of life insurance required to be effected under the mortgage;

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      (d)     any emergency expense; and

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      (e)     such other purposes and in such amounts as may be approved by the Authority in writing.

15.   Sums payable by mortgagor to mortgagee before mortgage executed

On or before the execution of the approved mortgage the mortgagor shall pay to the mortgagee such a sum as will be sufficient to discharge—

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   (a)     the ground rent, if any, and the estimated amount of all rates, taxes, special assessments and fire and other hazard insurance premiums for the period beginning on the date up to which such ground rent, rates, taxes, assessments and fire and other hazard insurance premiums were last paid and ending on the date on which the next monthly payment is due under the mortgage; and

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   (b)     the first annual insurance fee payable by the mortgagee under section 14(1) of the Act, where a provision is contained in the mortgage under regulation 13(6)(a).

16.   Consent of Authority necessary before execution of alterations or improvements

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   (1)   Where the repayment of a loan secured by a mortgage on a dwelling house is subject to a guarantee, a mortgagor or mortgagee, as the case may be, shall obtain the consent of the Authority before he or she executes any alterations or improvements to such dwelling house.

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   (2)   If any mortgagor or mortgagee acts in contravention of subregulation (1) he or she is liable on summary conviction to a fine of $250.

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   (3)   In this regulation “mortgagor” and “mortgagee” include the assignee of, or the successor in title to, the interest of the mortgagor or mortgagee, as the case may be, in the dwelling house.

17.   Mortgagee to inform Authority of failure of mortgagor to perform covenants

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   (1)   At the end of each month the mortgagee shall notify the Authority, in the form set out as Form 12 in Schedule 1 to these Regulations of all mortgagors who have failed to make any payment or to perform any other covenant or obligation under the mortgage of which the mortgagee has actual knowledge.

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   (2)   If after the making of a report under this regulation the mortgagor shall perform the covenant or obligation occasioning such report, the mortgagee shall notify the Authority accordingly.

18.   Condition of guarantee

It shall be a condition of every guarantee that the interest of the mortgagor in the mortgaged premises is not less than it is represented to be in the mortgage deed securing the repayment of the loan in respect of which such guarantee was entered.

19.   Restrictions on exercise of power of sale

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   (1)   So long as the Authority is liable under a guarantee, the mortgagee with whom such guarantee was entered into shall not exercise the power of sale—

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      (a)     at any time without giving 14 days prior notice in writing to the Authority of his or her intention so to do;

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      (b)     within one month from the date on which such right shall have become exercisable under the mortgage, except with the written consent of the Authority;

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      (c)     without giving the Authority the option, on the exercise of such power, of purchasing the property which is the subject of the mortgagee;

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      (d)     by private contract if the Authority shall request a sale by public auction.

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   (2)   Without prejudice to the provisions of subregulation (1), when a mortgagee's power of sale becomes exercisable, such mortgagee shall exercise such power within such time and in such manner as the Authority may direct.

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   (3)   Despite subregulations (1) and (2), the mortgagee may at any time after a mortgagor has twice in one year been in default give 7 days' notice in writing to the Authority of its intention to foreclose or exercise its power of sale and if the Authority does not within 14 days after the expiration of the notice exercise its option to purchase the property the mortgagee shall be at liberty to foreclose or exercise its power of sale and any such sale may be by public action or private contract in the discretion of the mortgagee.

20.   Circumstances in which guarantee becomes void

If the mortgagee shall fail to observe any of the mortgagee's covenants under the mortgage or any of the provisions of these Regulations in force at the time of the execution of the mortgage, the Authority's liability under the guarantee shall, unless the Authority shall otherwise determine, cease and the guarantee shall be void and of no effect.

21.   Effect of assignment of mortgage debt by an approved mortgagee

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   (1)   Where an approved mortgagee assigns the mortgage debt secured under an approved mortgage and conveys the mortgaged property to another person, the Authority's liability under the guarantee entered into in respect of the repayment of such mortgage debt shall cease and the guarantee shall be void, unless—

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      (a)     the assignment of such debt and the conveyance of the mortgaged property were made to an approved mortgagee; or

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      (b)     the person to whom the assignment and conveyance were made permits the mortgage to be serviced by the Authority or, subject to such terms as the Authority may think fit, by an approved mortgagee.

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   (2)   Regulation 20 shall apply in the case of any such assignment and conveyance as if the expression “the mortgagee” contained therein included a reference to the assignee of the interest of the mortgagee.

22.   Reasonable care to be exercised by approved mortgagee

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   (1)   For the purpose of section 10(a) and section 13(3) of the Act, an approved mortgagee shall exercise reasonable care and prudence in the administration of an approved mortgage and the collection and repayment thereof, and it shall be satisfactory to the Authority and the approved mortgagee shall be deemed not to be negligent if it follows the practice and procedure which pertain to the approved mortgagee's general practice.

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   (2)   If an approved mortgagee is negligent in the administration of an approved mortgage or the protection of the security, then the Authority may deduct from any sum payable under the Authority's guarantee given under Part 2 of the Act, the amount of the damage sustained by the Authority as a result of such negligence.

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   (3)   If the Authority and the approved mortgagee are unable to agree on the extent of such negligence or of the damages arising therefrom, then the matter shall be referred for arbitration to a sole arbitrator acceptable to the Authority and the approved mortgagee or if no sole arbitrator is acceptable to both parties, then to 2 arbitrators, one of whom shall be chosen by each party and an umpire to be chosen by the 2 arbitrators. The cost of the arbitration shall be borne as agreed between the parties or in default of such agreement as shall be determined in the arbitration award.

23.   Expression of mortgage in foreign currency

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   (1)   A mortgage may, with the approval of the Authority be expressed in a currency other than East Caribbean currency, and where this is the case, these Regulations shall apply with the necessary modifications.

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   (2)   All monies payable by the mortgagor to an approved mortgagee or to an approved housing company shall be payable by the mortgagee in the currency in which the mortgage loan is expressed, or the equivalent in East Caribbean currency at the official rate prevailing in Saint Lucia on the date on which payment is made.

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   (3)   This regulation shall not prejudice the operation of any law in force in Saint Lucia relating to foreign currency.

24.   Mortgage Insurance fee

The insurance fee payable under section 14 of the Act is ½ of 1% per annum.

PART 2
DIRECT LOANS

25.   Term of direct loans

Except as is herein otherwise provided, direct loans shall be made on similar terms and conditions as those upon which a guaranteed loan would be made to such person under the provisions of Part 2 of the Act.

26.   Interest rate applicable to direct loans

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   (1)   The interest rate that is applicable to loans made under this Part shall be determined by the Authority, and published in the Gazette not less frequently than semi-annually.

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   (2)   In determining the interest rate the Authority shall fix a rate that is not less than the current rate obtainable by Government for long term borrowings by Government, and the Authority may fix a rate that exceeds such rate by not more than 1%, which excess shall constitute a servicing fee in the hands of the Authority.

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   (3)   In order to encourage home ownership by persons in the Public Service of Saint Lucia, and by persons in receipt of below average family incomes, and in furtherance of any rental-mortgage and aided-self-help housing programmes, the Authority may, with the approval of the Minister, establish interest rates lower than those prescribed in subregulation (1) above, but such rate shall not be more than 2 ½% below the rate so prescribed.

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   (4)   A service charge shall not be made by the Authority with respect to any loan which qualifies for a reduced interest rate as provided in subregulation (3).

27.   Applicant to prove loan unavailable from approved mortgagees

At the time of application for a direct loan under this Part, the applicant shall satisfy the Authority that he or she has sought but been unable to obtain, a loan from any 2 (if there be more than one) approved mortgagees, and for this purpose the Authority shall make available upon request up-to-date lists of all approved mortgagees.

28.   Provision of borrower's equity

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   (1)   Before approving any application, the Authority shall be satisfied that the borrower can provide from his or her own resources, the difference between the amount of the approved loan and the cost of the house, hereinafter called the “borrower's equity”.

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   (2)   The borrower's equity may be represented by all land, all cash, all labour or any combination thereof employed in the acquisition of the house. Secondary borrowing to provide the borrower's equity may be permitted only in rare instances.

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   (3)   Borrower's equities obtained through benevolent sources, such as a relative or employer, shall not be excluded unless the terms of repayment are onerous and in such cases, be taken into account in determining the borrower's ability to discharge his or her obligations.

29.   Establishment of firm age limits

The Authority shall not establish firm age limits for a borrower, except in any case where the loan is to benefit from a reduced interest rate as provided in regulation 26(3).

30.   Loans not normally to be made if applicant spouse owns a house

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   (1)   Save in special circumstances a loan shall not be made to any person for the purpose of acquiring land or a house from his or her spouse or for the purpose of acquiring a house if his or her spouse is the owner of a house.

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   (2)   The written declaration to be signed in accordance with section 19(2) of the Act, by a person applying for a loan shall be in Form 1 in Schedule 2.

31.   Matters to be considered in determining amount of loan

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   (1)   In determining the amount of a loan that is to be granted the Authority shall have regard to—

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      (a)     the value of the house to be built or acquired by the person applying for the loan;

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      (b)     the value of the land owned or acquired by such person, on which the house is situate or is to be built;

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      (c)     the present and prospective income of such person; and

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      (d)     such other circumstances as the Authority may consider material.

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   (2)   For the purpose of determining the amount of a loan to be made under Part 3 of the Act, the Authority shall place a valuation on the property forming the security for the loan; but where the loan is for a purpose specified in section 18(d) of the Act, the value shall be the net difference in the estimated value of the premises before and after improvement or repair.

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   (3)   Subject to subregulation (4) of this regulation the loan shall be—

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      (a)     90% of the first $6,000 of lending value;

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      (b)     70% of the next $4,000of lending value;

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      (c)     60% of the remainder.

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   (4)   The maximum amount of the loan that may be made to any person shall be—

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      (a)     where the loan is for a purpose specified in section 18(a) or section 18(b) of the Act, $12,000;

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      (b)     where the loan is for a purpose specified in section 18(c) of the Act $10,000;

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      (c)     where the loan is for a purpose specified in section 18(d) of the Act $3,000.

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   (5)   Despite the provisions of subregulations (2), (3) and (4) of this regulation a loan shall not be made to any Government employee or any person in the service of any statutory corporation specified by the Authority and published in the Gazette—

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      (a)     in excess of the value of the standard grade of house approved by the Cabinet as being appropriate to the salary of the borrower;

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      (b)     in excess of a sum equal to 3 times the annual salary of the employee at the date of application.

32.   Form in which direct loans to be made

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   (1)   Applications for direct loans shall be made in the form given as Form 2 in Schedule 2, and shall be accompanied by such plans specifications and site information as the Authority may require to enable the Authority to determine the lending value of the property.

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   (2)   Each application shall be accompanied by a fee of $3 for every $1,000 or part thereof of the amount of the proposed loan; if the Authority does not approve of the application, or if the application is withdrawn before the Authority has given an undertaking to make a loan, 1/2 of such fee shall be returned to the applicant.

33.   Particulars to be supplied to Authority if so required

A person who applies for a loan shall—

1.  

   (a)     if so required by the Authority, supply the Authority with the title of the land on which the house is situate or to be built and shall comply with all requisitions as to title made on behalf of the Authority;

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   (b)     on demand, permit or obtain permission for any person acting on behalf of the Authority and authorised thereunto in writing under the hand of the secretary or chairperson of the Authority to enter and inspect any land or building in connection with which he or she has applied for a loan.

34.   Deviation from plans or specifications prohibited

A person to whom a loan is made under these Regulations shall not without the consent in writing of the Authority, deviate from plans or specifications approved by the Authority in respect of the loan.

35.   Nature of land in respect of which loans made

Land for the acquisition of which loans may be made under these Regulations shall consist of either—

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   (a)     land absolutely owned; or

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   (b)     land the subject of a lease in respect of which the unexpired period of the lease embraces the period for which the loan is to be granted.

36.   Loans for acquisition, erection, repair, of houses

A loan for the acquisition, erection, repair or improvement of any house may be made only if the land on which such house is situated or to be situated consists of either—

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   (a)     land absolutely owned; or

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   (b)     land the subject of a lease in respect of which the unexpired period of the lease embraces the period for which the loan is to be granted.

37.   Condition of loans and power of Authority where premiums unpaid

It shall be lawful for the Authority to require as a condition of the loan that so long as any amount remains outstanding on the loan the premises in respect of which the loan is made shall be insured, in the name of the Authority, for the amount so outstanding, against fire and such other risks as the Authority shall think proper; and where the borrower fails to pay any premium when it becomes due, or where the terms of the loan provide that the premiums shall or may be paid by the Authority, the Authority may upon payment thereof charge the borrower interest thereon, until reimbursement, at the same rate as is to be paid on the mortgage loan.

38.   Attorney General to be Solicitor of Authority Fees

For the purposes of this Part, the Attorney General shall be the attorney-at-law for the Authority, and the fees payable to him or her shall be those set out in Schedule 3.

39.   Memorandum of charge

The memorandum of charge for securing a loan shall be in a form set out in Part 1 of Schedule 4, and shall be appropriate to the circumstances of the case.

40.   Memorandum of discharge

The memorandum of discharge to be issued by the Authority on the payment of all sums due under a memorandum or charge shall be in the form set forth in Part 2 of Schedule 4.

41.   Progress advances

1.  

   (1)   The Authority may, in its discretion with respect to any loan, make progress payments of the loan (hereinafter called “progress advances”) as construction of the premises proceeds.

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   (2)   Progress advance shall not be made unless the Authority is satisfied that the full value of the required borrower's equity has gone into the construction or in the purchase of land.

1.  

   (3)   Progress advance, or aggregate of any number of progress advances shall not exceed an amount which, when added to the full value of the borrower's equity, equals 75% of the value of the stage of construction reached at the date of application for such progress advance, as determined by the Authority.

1.  

   (4)   Progress advance shall not be made unless the Authority is satisfied that the borrower has, from any previous advance made, or from his or her borrower's equity, discharged his or her obligations with respect to labour and materials, at least in such proportion as the amount of such equity and progress advances made bears relation to the approved loan.

1.  

   (5)   Progress advance shall not be made unless the Authority has been satisfied with matters pertaining to land title and completion of required documents securing the loan, or any part thereof advanced as progress advances.

42.   Sums payable by employees

1.  

   (1)   Any sum payable by a Government employee to the Authority by virtue of the Act may be deducted by the paying authority concerned from the salary of such employee, but subject to any general or special directions which may be given by the Minister.

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   (2)   Such deduction shall not be made by a paying authority except in accordance with a certificate under the hand of the secretary as to the amount payable and the date on which it is payable.

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   (3)   Any sum deducted by a paying authority shall be paid to the Authority.

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   (4)   In this regulation “Government employee” includes an employee of a statutory corporation under the control of the Government.

43.   Authority deemed to be an approved mortgageE

1.  

   (1)   The Authority shall be deemed to be an approved mortgagee under the Act.

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   (2)   The Authority shall act as an approved mortgagee in administering direct loans and shall, in the discretion of the Authority, apply the same remedies in the case of default as are described in Part 1.