Malaysia legislation
Section 34
Section 34
In any case where the Corporation has approved the making of a loan by instalments or has guaranteed such a loan by a financial institution or other financial source and any part of such loan has not yet been advanced, if⎯
(a)
any sum of money, whether principal or interest, due in respect of any loan made under this Ordinance remains unpaid;
(b)
in the opinion of the Corporation, any prior loan made under this Ordinance has not been applied for the purpose for which it was made, or has not been carefully and economically expended;
(c)
the borrower has become insolvent or has been sentenced to a term of imprisonment without the option of the payment of a fine, or has assigned his estate for the benefit of creditors;
(d)
there has been a breach or non-observance of any condition attached to the loan; or
(e)
in the opinion of the Corporation, the sums already advanced were not applied to the purposes for which the loan was made within a reasonable time, then, without prejudice to any other remedy, the Corporation may, or, as the case may be, the financial institution or other financial source may, refuse to advance any portion of the loan still outstanding.
[Am. Ord. No. 1/79; Am. Cap. A41.]
Misapplication of loan secured by charge or otherwise