(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.
(2)
(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—
(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
(ii) 3 copies of the plans and specifications of the proposed building, where the loan is for the purpose of constructing a dwelling house.
(b) If the Authority does not approve of the application, or if the application is withdrawn by the applicants before the undertaking is given, 1/2 of such fee shall be returned to the mortgagor.