EMERGENCY RELIEF GUARANTEE FUND REGULATIONS, 2000 |
| S.I. 5/2000
S.I. 69/2000 |
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| (SECTION 16) | |
| [Commencement 21st January, 2000] |
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1. These
Regulations may be cited as the Emergency Relief Guarantee Fund Regulations,
2000. | Citation. |
2. An
application for a guaranteed loan shall be made by the borrower to an approved
lender in the forms ERG-1 and ERG-2 specified in the Schedule. | Application for guaranteed loan. |
3. (1) An
approved lender who is prepared to make a guaranteed loan to a borrower shall
submit to the Minister a copy of the borrower's loan application referred to in
regulation 2. | Submission of application. |
(2) If the Minister
approves the application with or without an amendment, an undertaking to
Guarantee shall be issued to the approved lender Schedule. in the form ERG-3
specified in the Schedule. |
4. Where a
borrower pursuant to section 23 of the Act does not possess documentary title
in respect of the property upon which his premises is situated and the
guaranteed loan has been approved by the Minister, the borrower shall sign an
agreement with the approved lender in the form ERG-4 specified in the Schedule. | Defects in title. |
5. An
approved loan shall be made at not less than par by the approved lender to the
borrower, and the borrower shall not be subject to a charge in the nature of a
discount or commission. | No discount of commission. |
6. When the
approved loan has been made to the borrower, the approved lender shall forward
to the Minister the request for a loan guarantee within ninety days after the
last advance to the borrower by the approved lender. | Request for issue of loan guarantee. |
7. (1) Upon
receipt of the request for a loan guarantee the Minister shall issue to the
approved lender a loan guarantee in the form ERG-5 specified in the Schedule. | Issue of loan guarantee. |
(2) When the loan
guarantee has been issued by the Minister under paragraph (1), the approved
lender may lodge the agreement, mortgage deed and promissory note duly executed
in connection with the approved loan with the Minister who shall thereupon
stamp the same with an official stamp bearing the words "Guaranteed by the
Government of the Commonwealth of The Bahamas" and return it to the
approved lender. |
(3) The approved
lender shall upon receipt of the agreement, mortgage deed and promissory note
endorse thereon the words "Emergency Relief Guaranteed Loan" and
record it in the Registry of Records. |
8. The
monthly instalment to be paid by the borrower shall be sufficient to amortize
the principal and interest of the approved loan in accordance with the terms
and conditions of the loan. | Monthly Instalment. |
9. Where during
the term of a guaranteed loan, prepayment of the principal is made by the
borrower, the approved lender shall waive the interest charges payable in lieu
of any notice provided in the agreement, mortgage deed and promissory note
relating to the guaranteed loan. | Prepayment of principal. |
10. Except
as provided in regulation 11, and where there are changes in the prime rate or
a payment due under the guaranteed loan has been delayed by not more than two
months and the maturity date has been extended for a period of not longer than
three months from the original maturity date, an approved lender shall not
alter the terms of repayment of a guaranteed loan nor permit any derogation in
the rights of the approved lender against any mortgaged premises by way of
postponement, partial discharge or otherwise without the written approval of
the Minister. | Term of prepayment not to be altered. |
11. An
approved lender shall not, without prior written approval of the Minister,
release any collateral, security or personal covenant taken as further security
for a guaranteed loan which was subject to the taking of such further security. | Collateral or security not to be released without
approval of Minister |
12. Within
sixty days after the end of each quarter, March, June, September and December
of each year, the approved lender shall deliver to the Minister a list of all
loans in arrears that are administered by the approved lender and the amount
outstanding in respect of each loan in form ERG-6 specified in the
Schedule. | Notice of outstanding on loans. |
SCHEDULE |
ERG-1 |
LOAN APPLICATION
FORM |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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Approved Lender's Name: _____________
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Purpose of Loan:
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[ ] repair damaged property
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Branch: ____________________________
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[ ] replacement of destroyed property
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2. Applicant Details
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Name of applicant:
___________________________________
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Name of co-applicant:
__________________________________
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Street Address:
___________________________________
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Street address:
__________________________________
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P. O. Box:
___________________________________
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P. O. Box:
__________________________________
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Date of Birth:
___________________________________
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Date of birth:
__________________________________
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Nationality:
___________________________________
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Nationality:
___________________________________
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Marital Status:
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Marital Status:
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[ ] single [ ] married [ ] divorced [ ] other
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[ ] single [ ] married [ ] divorced
[ ] other
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Number of Dependants:
____________________________________
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Ages:
____________________________________
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Type of property:
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[ ] freehold [ ] commercial
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[ ] leasehold [ ] residential
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[ ] other
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3. Employment details
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Applicant
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Co-applicant
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Name of Employer:
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Address of Employer:
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Years with present Employer:
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Position held:
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Monthly salary:
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Name of previous Employer:
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Years with previous
Employer:
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4. Details of work to be done
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Lot #: _____________________ Subdivision: ________________ Island: ______________
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Current owner of property: ___________________________________________________
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Property occupied at time of damage: __________________________________________
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Brief description of work to be done: ___________________________________________
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To be completed by: ________________________________________________________
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5. Cost Estimates
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Building
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$
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Furnishings
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$
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Insurance
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$
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Other (specify)
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$
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Connections (water, sewer, electricity)
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$
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Total
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$____________
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Down payment available
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$
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Loan requirement
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$___________
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$
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6. Financial Status
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Assets
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Liabilities
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Cash in bank(s)
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$
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Accounts Payable (describe)
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$
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Bonds & Securities
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$
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Loans outstanding (describe)
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$
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Cash surrender value (life insurance)
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$
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Automobile(s) instalment payment(s)
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$
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Automobile(s) make & year
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$
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Mortgage loan owing
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$
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Real estate owned
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$
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Other installment payments
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$
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Other assets
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$__________
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$ ________
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Total
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$
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Total
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$
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7. Proposed Security
[ ] 1st mortgage on above mentioned property
[ ] Promissory note
[ ] Other security ________________________________________
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8. References |
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Name:
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Name:
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Employer:
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Employer:
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Address:
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Address:
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Telephone Number (work):
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Telephone Number (work):
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Telephone Number (home):
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Telephone Number (home):
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I/We declare the foregoing (on both pages) to be a complete and true statement of my/our financial position for the purpose of procuring credit facilities.
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___________________________________
Signature of Applicant
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__________________________________
Signature of Co-Applicant
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___________________________________
Date
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9. Lender's Comments
Reasons for eligibility for ERG Loan:
[ ] High debt service ratio
[ ] Inadequate security
[ ] Past financial record of the borrower
[ ] Lack of stability in income
[ ] Other
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__________________________________
Bank Signature
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__________________________________
Date
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10. Ministry's comment
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________________________________
Minister's Signature
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________________________________
Date
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ERG-2 |
SALARY
VERIFICATION FORM |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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Instructions: Please complete section A and have
your employer complete section B. Return in a sealed envelope to the approved
lender.
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SECTION A
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Applicant's Name: __________________________________________________________
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Surname
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Forename(s)
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Employer:
_________________________________________________________________
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Address of Employer:
________________________________________________________
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Street and Postal
Address
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Applicant's
Signature: ________________________________________________________
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Date
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SECTION B
Please complete the following questions with reference to
the above employee and return to the employee in an envelope with your
signature across the seal.
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Basic salary/wages (per annum)
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$ ___________________________________
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Bonus
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$ ___________________________________
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Allowances
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$ ___________________________________
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Total Salary
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$ ___________________________________
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Employee's title in company
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$ ___________________________________
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Total number years in company
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$ ___________________________________
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I ______________________________ certify that the above
information is true and correct.
(Full Name)
Employer's Signature: ____________________________ Date:
_____________________
Official Position: ___________________________________
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ERG-3 |
UNDERTAKING-TO-GUARANTEE |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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To:
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Approved Lender
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Date:
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U.T.G. No.: ...............................................
Lender's Reference: ................................
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Borrower's Name(s):
..........................................................................................................
Borrower's Address:
.........................................................................................................
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We
hereby undertake to issue a guarantee in respect of a loan to the
above-mentioned borrower in accordance with and subject to the Emergency
Relief Guarantee Fund Act, as well as the Emergency Relief Guarantee Fund
Regulations,
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| in the amount of | $ ................................ |
| TOTAL | $ ================ |
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The
Monthly Debt Service based on: _____________ Year(s) amortisation is as
follows:
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Principal
and interest at _______ %
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$ ............................................ monthly
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Insurance
- Life
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$ ............................................ monthly
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Insurance
- Hazard
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$ ............................................ monthly
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Other
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$ ............................................ monthly
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TOTAL
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$ ==========================
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The
Lending value of security is:
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Land
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$ ............................................
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Building/Plant
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$ ............................................
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Tool
and Equipment
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$ ............................................
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TOTAL
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$ =========================
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The
dwelling house/business is to be operational within ____________ months of
this date and the loan funds have been applied as specified in the Loan
Application Form ERG-1.
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___________________________________
Minister Responsible For
Disaster Preparedness
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ERG-4 |
PROMISSORY NOTE
(Issued pursuant to section 23 of the Emergency Relief Guarantee Fund Act,
1999) |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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Borrower's address ________________
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Date: ____________________________
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On
demand [on the day of ] I/[we jointly and
severally] promise to pay to [the approved lender] the sum of
[$ ] received [with interest thereon at% per annum]
on the day of for the repair or
replacement of a dwelling house/business owned by [the borrower] and damaged
or destroyed by [a disaster declared by the Minister] on the day
of by Order published in the Gazette.
In
default of payment of $ payable under this note, the whole
sum is to become immediately due and payable.
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________________________________
Signature of borrower |
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Signature of the approved lender |
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ERG-5 |
EMERGENCY RELIEF
LOAN GUARANTEE |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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The
Minister responsible for disaster preparedness (hereinafter called the
Minister), pursuant to the Emergency Relief Guarantee Fund Act and its
undertaking-to-guarantee No._____ dated _______________ 20 __________, hereby
guarantees ___________ (hereinafter called the approved lender) a loan made
and secured as follows:
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Name of Borrower:
__________________________________________________________
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Address of Borrower: ________________________________________________________
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Purpose of Loan Guarantee:
__________________________________________________
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Property Description:
________________________________________________________
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Guaranteed Loan No.:
_______________________________________________________
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Amount of Loan: _________________ Interest Rate
_______________ % _____________
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Amount Guaranteed:
________________________________________________________
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Period of Guarantee: __________________ years Maturity Date
___________ 19 _______
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Title Defects if any:
__________________________________________________________
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__________________________________________________________________________
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NOTE: In accordance with the terms and conditions of the Fund you are asked to read carefully and take note of the following:
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1. The Rate of Interest: The maximum rate of interest which the qualified borrower may be charged under the loan guarantee programme shall in the case of residential property be at a rate not exceeding the prime rate and in the case of any other property be at a rate not exceeding the prime rate plus one per centum.
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2. Extensions, Restructuring: All applications for the extension, or restructuring of loan guarantees should be received by the Minister not later than 14 days prior to the intended date of renewal, extension or restructuring. |
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3. Obligations of the approved lender: The approved lender shall as far as possible, ensure that the loan granted under the Emergency Relief Guarantee Fund Act is used for the intended purpose. The approved lender shall refer to the Minister for approval of any changes in the terms and conditions of a loan guaranteed under the Emergency Relief Guarantee Fund Act including any changes which may affect the security of terms of repayment. The approved lender shall submit such returns or furnish such information as the Minister may require in connection with any loan guaranteed under the Emergency Relief Guarantee Fund Act. The approved lender shall comply with any reasonable instructions given by the Minister for the purpose of administering the Emergency Relief Guarantee Fund Act. |
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4. Revocation and Termination: The Minister may take such action as is deemed fit and proper, including the revocation of the guarantee, if the approved lender fails to report without delay, all cases of misrepresentation of information and misuse of funds by the borrower. |
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5. Where it is drawn to the attention of the Minister that the Borrower in respect of whom a loan is guaranteed under the Emergency Relief Guarantee Fund Act has defaulted on the loan, all reasonable efforts should be made to recover the loan and if such efforts have failed, the Minister shall settle the amount outstanding on the guarantee within a period not exceeding two months. |
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6. Where the liability in respect of the loan guaranteed is assigned or conveyed without the approval of the Minister, the guarantee in respect of the loan guaranteed under the Emergency Relief Guarantee Fund Act shall be terminated from the date of such assignment or transfer, unless the Minister makes a declaration to the contrary in writing. |
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7. Special conditions (if any): The guaranteed loan extended
to the qualified borrower is guaranteed by the Emergency Relief Guarantee
Fund Act subject to the following conditions:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________ |
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For clarification and details of any of the above-mentioned or other matters you are invited to contact the Minister at your earliest convenience.
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ERG-6 |
QUARTERLY REPORT
ON BORROWERS IN ARREARS [i] |
THE EMERGENCY
RELIEF GUARANTEE FUND ACT, 1999 |
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Name of Borrower
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Loan Guarantee
Policy Number
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Maximum Limit of
Loan Guarantee
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Maturity Date
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Days Past Due
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Amount in Arrears
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Outstanding Balance
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Recovery Efforts
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To: Minister
P. O. Box
Nassau, Bahamas
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Name of Approved Lender:________________
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Branch Office:__________________________
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Authorised Signature:____________________
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Date:_________________________________
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