Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697796042921.pdf (Guyana)
2TH DEC., 1970 THE 01:FJCJAL GAZETTE-LEGAL SUPPLEMENT--C157 ' GUYANA.

D.ILL NO.

32 OF 1970.

·HOUSiNG DEVELOPMENT BlLL, 1970. '

Arrangement of Sections.

of Housing Short title.

Interpretation.

Establishment Composition of Fund.

Application of Fund.

Custody and investment ·.Audit and report �ortgage guarantee.

Fund.

of Fund.

of Fund's !transactions.

THE 0FF1Cl/\.L GAZinTE-LEGAL SUPPLEMENT-C 158 9.

10.

11.

12. fee.

J nsurnncc Purchase Mortgage �egulations.

of mortgaged Insurauce Fund.


property.

A BILL Intituled AN ACT to provide for the establishment by of a Housing the Government Fund and the for the of mortgage effectuation purposes thereto.

l of housing guarantees development and other matters incidental A.O.

1970 - Enact�d by· the Parliament of Guyana:-­ Short title 1.

PART I PRELIM1NARY !Tltls Act may be cited as the Housing Development Act,,, .

1970. lnterpre­ tMiin1.

2.


Io this Act -;- by means a body-corporate for for the pur­ the Minister which may be guaranteed accordance charges,,.
; practices means such prescribed 1 mortgagee to safeguard the in-· J or ,t�1e Government or both; in respect of .. pursuant to : means a mortgage executed in mortgages an approved mortgagee" of the mortgagee guarantee" "approved the ,time being approved pose of effecting a .. provided by this Act; by "borrower charges" advanced with normal mortgage terests "mortgage which there subsists section "insurance Fund established "service approved guarantee; "d1c Central the Housing "!he Fund" means the Housing under :reetion Authority" Ordinance; pursuant to section charge" means the service by die Minister a guarantee 8; 3. fund" means the Mortgage Insurance I 1; cliarge made or for administering a mortgage has the same meaning · ,· as in Fund constituted .
;,.

C11p.

18'2.

PART II · HOUSING FUND l:!stnblM1mcnt or Housing Fund.

3.

There is hereby established Fund which shall be available a fund to be known as the for the purpos�s set· QUt jll Housing , ... ..i · -...� DEC., 1970 THE 01'FICLAL GAZI!TTE--LEGAL SUPPLEMENT- .

C : 159 .

of this Act there shall .be ·on 5 and to which at the commencement or on its behalf Authority [erred by th Central t?
it, pursu.at!t to the sale or of lands or bmldrngs �r a�1smg under mort­ ID respect of such Authority of the Central paid to its credit, se by l{hc Government es executed e or lease.

or l1erea[ter accruin� in favour all sums standing Coml,o�ition or Fund.
3; of - thereto pursuant to section from 1lhc Cnosolidated (a) (b) I (e) The Fund shall consist sums transferred sums appropriated thereto Fund; sums received as loans or &rants Guyana; by way 0£ interest sums accruing pursuant Fund deposited sums arising from the sale ings under the administration sible for housing; to section 6; or rental by t.be Government from time to t ime in for the purpose of housing of lands or build­ on moneys of the (e) (d) of the Ministry rcspon· (f).
such other sums as may from to time accrue to the Fund.

to which •the \SUlllS 5.

The purposes F d are - e pn may be applied, , standing to the credit of Am,Jicalion I 01 ruod.
(a), expenditure in relation houses, to the capital the property costs of con­ of the Govern­ dwelling structing ment; (b),expenditure in ,relation -to the acquisition and devel­ opment or lands or buildings housing; (c) the discharge of; liabilities relating rtaxcs and other liens in respect to be used for housing, or which were so used, by the to insurance, of lands or buildings rates, for the purposes of and are subject ito mortgages in favour .
.j Government thereof; ·(d) the repayment of Joans raised by the Government for of housing, together with other charges .

_ , the purposes :, incidental thereto; 1to section issued under this Act; bentures (e)" subject of any de­ 1.l(d), the redemption (f) such other purposes �elating authorised by affirmative as 111uy be to housing resolution.

6..

The Fund, or any part thereof, ana N?tional aot requtred for early disbursement the Minister responsible for Co-operative finance may specify.
- with the custody "°d may be deposited t Dank and any part of the Fund whiclt ��·;;t �' may be invested in such securities t • I, .

160 THE 0FI'1CI.AL GAZETTE-LEGAL SUPP EMENT-C A.udlt and report <lt Fund's h"Ms:1ctlon,.

7.
7.

(1) The Minister ,shall cau e to be kept annual account s of the rtransactions accouats mitted of the Fund for the preceding year and, such shall, within four months of the end of that year, be sub· l financial for auditi11g in (2)A report on the transa to the Director (1) pre-, of Audit.

tions of the Fund dtu"ing i year together ceding financial audited the end of that year, be laid by he Minister Assembly.

with ,subsecti accordance within wit a statement shall the of.
the accounts six months of berore the National as · 1 n .

PART III Mort11Agn GuarAnlcc .

MORTGAGE GUARANTEE it j the Minister 11101 8.

(1) Where the payment of or not in additio (whether construction thereof (if any) and the othe1wise subsistence in authorised uarantee into a written g to the mortgage .

is sccuerd tgage contains the mortgagor of that mo.rtgage, by ,him, may, subject -to ;this loan -f�r the purchase stands) on that house that.
unless in the house during the n to the l�nd whereon by a !mortgage a condition sh�ll reside the Minister, the Government with the parties with ubseotion accordance or any public on behalf permits, officer duly f of a house or for the and land of (2).
in subsection t (2)The guarantee referred that in the event of the mortgagee sold, the mortgagee the p�opevty upon the sale is kss tha that owing um.lcr the mortgage, the mortgage recover the mortgage , if the net amount realised (1) shall provide and having by for closing sh uuder the guarant J (a) a sum equal to the difference ee - Part and the :regulations,.
enter t , ,the v,alue of the mqrtgagcd ?r such ot cent of that value, of wi11ich the principal al ithe time of sale, Whichever I and the arpount realised amount outstanding If is the lesser sum; between two-thirds h property of and ninety per er sum the aggregate would not exceed under the mortgage ( c)interest specified (b)borrower charges of the the ex.crcisc m:ade before aud after the date of Wer of foreclosure; ., rate on each sum ·: interest at the mortgage in paragrapF,s (a) �nd (b) - was 01 the (i)for the period (or which interest thereon.
'• date accrued ·.

the due a of sale, or - of one year, whichever and unpaid at (ii)for is periocl and (3) to petiod; shorter • I (d) ,such fee in respect the period, the default In calculatiug pursuant this section, account shall be credited ner as may be prescribed.

amou11-t payable amounts receiv d at ,the date of the receipt uader the of administration expenses guarantee a� may be prescribed.

during for the credit of the mortgage thereof in such man- .
I .2TH DEC. 1970 THB 0PFICJiAL GAZETTE-LEGAL SUPPLEMENT-C -161 ,, "(4) o payment shall be made by the Minister that the mortgagee under the has taken �rantee 1ch steps i!

respect of the mortgage un1ess the Minister is satisfied account as were in a'ccordance ith normal mortgage .

, practice anything Notwithstandiog o r ceeds ot the sale of the mortgaged uc1rnnlcc ith the pro isions (S y in respect of which.
a � he applied w s given under this section shall 31 of the Deeds Registry to the L"Ontrary propent in this Part, the in accordance .Ordinance.

Ca11.

32. of.
Ca11.

32. of.

section to - (6)This/section-applied (.i) r newly constructed house, the cost of construction of of the Minister, �vbich, in the opinion to normal building constru ction, lars, inclusive would not exceed fifteen of the cost of the land; and (b) any other house the pu,rchase costs prevailing price of which is not at the time of its ,thousand dol­ having regard fifteen thousand dollars, inclusive of the more than cost of the land.
under a mortgage in respect of the guiuanteC' one per cent 'of the principal , 9.

(1) The mortgagee l!

Ministe� 1ceeding 1tee, .

/ iereof.

guarantee shall pay to an insurance fee at a rate not sum then cove: cd by the guar- such rate being that prescribed 1at tl1e dare of the execution t_uranc• (2)The insurance fee shall be pay'able tat such time or times 1 may be pecified in the guarantee.

10.
10.

(I) � (, It s!f811 be ,an implied ( ) h a w ere property, t e tem1 of every guarantee h b• � su 3cct OL a mortgage properly, guarantee, rt.o a foreclosure, by purchase the and of the Govern­ is to be put up for sale pursuant Minister thereafter ment; and.

(b)unless may acquire •the property deal with it as the property prescribed, otherwise r ence o( the Minister the Minister responsible for may, with the concur finance, to paragraph satisfy pursuant any sum due to a mortgagee, debe-ntures.
(a), with Government t � that - :::,r��:�/ 1 (2)Debentures issued under this Act shall, if not redeemed Act, be charged upon the Consolidated as Fu nd itrwise provid 1- ed in tl1is l at ,the tate payable under the mortgage (a)bear.

interest guarantee; (b� be redeemable not later than the date specified r mortgage guarantee for the by the guarantee; covered repayment of the.
in the sum (c)be transferrable only by instruments in a book kept for the purpose by the registered Minister wherein particulars the date of issue and tnmsfer the debenture, of transfer relating to the value of · (if any), ·-· ,.

- ·-162THE 0:PPiqAL GAZBTTJ!-LEGAL SUPPLEMENt-C and t11c name and address recorded.

of each hokier shall be Morti:ago J11su1·anco Fund.

in any other law - anything 11.


Notwithstanding to the contrary in this Act tir (a)the Minister the "Mortgage shatl comprise shall establish Insurance - a fund to be known as Fund" the assets of which';' .. ,, .

..... , � : .
·: (i)all insurance (ii)property 9; under by the Minister fees received acquired under section section 10; (iii)in vestments pursuant pectively; made and au y stuns a rising, (b) and ( c) res­ to paragraphs ( b)moneys standing /JlaY be invested ponsible (c)moneys standing for rinancc may specify; to the credit of the insurance lo the credit in such manner as the Minister fund res­ of the insurance with Guyana National fund Co-· may be held on deposit operative ( tl) all payments Bank; required a mortgage pursuant to property liability pursuant fund.
o[ the insurance to be maJc by the Minister guarantee or in acquiring to section 10 shall first be the RcEulation,.

12.

(1) TJ1c Minister may make regulations provisions .
foregoing of this Act and without may make regulalions:- prejudice for carrying out lhc ity of the to the general (a)with respect and circumstances to applications permitting, mortgage for, the conditions guarantees; of, ( b) · for the manner and payment of sums due unclcr mortgage guarantees; ( c)the manner and form for the issuing in respect and the payment of interest of debentures thereof; .

(d)prescribiug anything which is required to be pre.'

scribed .

.. � : .. .


to negative (2)Regulations resolution.

made under subsection ( l) shall be subject -; , EXPLANATORY M�MORANDUM ·· ·.

· · To alleviate pedient purpose as provided ex· to channel for the to · the Government into a partic1ilar Fund) fund (to be known as the Housing 'by the provisions .

needs o[ Guyana it is considered available Lhe housing the funds.

of Part Ir of the Bill.

't !

!.


:TH DEC., 1 970 THE 0.1'1'ICIAL _ GAZE'rTE-:; LEGAL SuPPLEMENT-C 163 e to prospective r The provisions gages availabl by enabling occupied houses tbat portion of the mortgage be normally mort­ of Part Ill ·of the Bill seek to make larger of owner who are builders mortgagors to guarantee the Government which but for the guarantee available to a mortgago.r.

would not a mortgagee .. (Bill No.

32/1970) (HR: 129/12) ·Minister of Housing D.A.

SINGH, and Reconstruction .