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Housing (Financial Provisions) (Scotland) Act 1968

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This is the original version (as it was originally enacted).

24Loans to housing associations by Public Works Loan Commissioners

(1)The Public Works Loan Commissioners may, subject to the provisions of this section, lend money to any housing association—

(a)for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement of, houses;

(b)for the purchase of houses;

(c)for the purchase and development of land,

and any housing association may borrow from the Public Works Loan Commissioners such money as may be required for the purposes aforesaid.

(2)A loan for any of the purposes specified in subsection (1) of this section shall be secured with interest by a heritable security over the land and houses in respect of which that purpose is to be carried out and over such other land and houses, if any, as may be offered as security for the loan.

(3)Any such loan may be made whether the housing association receiving the loan have or have not power to borrow on bond and disposition in security or otherwise, independently of this Act, but nothing in this Act or the principal Act shall affect any regulation, statutory or otherwise, whereby any company may be restricted from borrowing until a definite portion of capital is subscribed for, taken or paid up.

(4)The following conditions shall apply in the case of any such loan:—

(a)the period for repayment shall not exceed forty years;

(b)no money shall be lent on the security of any land or houses unless the estate or interest therein proposed to be burdened is either ownership or a lease of which a period of not less than fifty years remains unexpired at the date of the loan;

(c)the money lent shall not exceed such proportion as is hereinafter authorised of the value, to be ascertained to the satisfaction of the Public Works Loan Commissioners, of the estate or interest in the land or houses proposed to be burdened in pursuance of subsection (2) of this section; but loans may be made by instalments from time to time as the building of houses or other work on the land so burdened progresses, so, however, that the total loans do not at any time exceed the amount aforesaid; and the heritable security may be granted accordingly to secure such loans so to be made from time to time:

Provided that, where a loan is made under this section for the purpose of carrying out a scheme for the provision of houses approved by the Secretary of State—

(i)the maximum period for the repayment of the loan shall be fifty instead of forty years ;

(ii)money may be lent on heritable security over a lease recorded under the Registration of Leases (Scotland) Act 1857, being a lease of which a period of not less than ten years in excess of the period fixed for the repayment of the sums lent remains unexpired at the date of the loan.

(5)The proportion of such value as aforesaid authorised for the purpose of the loan shall be three-fourths:

Provided that—

(a)if payment of the principal of and interest on the loan is guaranteed by a local authority, the said proportion shall be nine-tenths;

(b)if payment is not guaranteed as aforesaid and the loan exceeds two-thirds of such value as aforesaid, the Public Works Loan Commissioners shall require, in addition to such a heritable security as is mentioned in subsection (2) of this section, such further security as they may think fit.

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