Malaysia legislation
Section 45
Section 45
(1)
No loan or part thereof made under the provisions of this Enactment shall be applied otherwise than for such purposes as may be authorised by the Corporation under this
Enactment or by any regulation made thereunder.
(2)
If any loan made under the provisions of this Enactment or any part of such loan has been misapplied the Corporation may –
(a)
where such loan has been secured by mortgage, by notice in writing addressed to the mortgagor, recall the said loan or any part thereof and
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may require the loan or that part together with any interest due on such loan or part thereof on the date of the notice to be repaid on a date to be specified in the notice and in default of payment on such specified date any security given for the purpose of the loan may thereupon be realised;
(b)
where such loan has been secured otherwise than by way of mortgage, by notice addressed to the borrower require the loan or any part thereof together with any interest due on such loan or part thereof on the date of the notice to be repaid on a date to be specified in the notice and in default of payment on such specified date any security given for the purpose of the loan may thereupon be realised.
(3)
Where any loan by a bank is secured by a guarantee by the Corporation no such loan or any part thereof shall be applied otherwise than for such purposes as shall have been approved by the bank, the Government, or the Corporation at the time of the grant of such loan and if such loan or any part thereof shall have been applied otherwise than for purposes so approved then the bank may exercise any of the powers conferred on the
Corporation by subsection (2).
(4)
The provisions of subsection (2) shall be in addition to any other proceedings under any written law.
Enforcement of securities.