Mortgage Institutions Act

Arrangement of Sections

Licensing of mortgage institutions

1. Mortgage business by mortgage institutions.

2. Licensing.

3. Revocation of licence.

4. Requirement as to minimum paid up capital.

Operations of mortgage institutions

5. Power to grant building loans and accept savings deposits.

6. Duty to evaluate proposals.

7. Requirements as to security, and certain restrictions on operations.

8. Opening and closing of branches.

9. Maintenance of reserve fund.

10. Restriction on dividend.

11. Liquidity requirements.

12. Restriction as to amalgamation.

Books of account

13. Keeping of books of account.

14. Contents of balance sheet.

15. Publication of balance sheet and profit and loss account.

16. Appointment and powers of auditor.

General and supplemental

17. Submission of returns to the Federal Mortgage Bank.

18. Appointment and powers of examiners.

19. Disclosure of interests by directors.

20. Restriction of interests by officials of mortgage institutions.

21. Prohibition of receipt of commission, etc., by staff.

22. Priority of deposit liabilities.

23. Jurisdiction.

24. Application of Companies and Allied Matters Act.

25. Regulations.

26. Interpretation.

27. Short title.

MORTGAGE INSTITUTIONS ACT

An Act to make provisions for establishment and licensing of mortgage institutions to grant loans and advance to individuals for the purchase or construction of a dwelling house; improvement or extension of an existing dwelling house; and to accept savings and deposits from members of the public and to pay interest thereon.

[29th December, 1989] [Commencement]

Licensing of mortgage institutions

1. Mortgage business by mortgage institutions

(a) the Federal Mortgage Bank or any bank licensed under the Banks and other Financial Institutions Act and carrying on mortgage business as part of its normal operations; or

(b) any institution which before the coming into force of this Act was carrying onmortgage business if such institution has before the 1st day of March 1990 applied to the Minister through the Federal Mortgage Bank for licence and the application has been granted by the Minister before that date.