Malaysia legislation
Section 35
Section 35
⎯(1)
No loan or part of it made under this Ordinance shall be applied otherwise than for such purposes as may be authorized by the Corporation under this Ordinance or by its regulations.
(2)
If any loan made under this Ordinance or any part of such loan has been misapplied the Corporation may⎯
(a)
where such loan has been secured by charge, by notice in writing addressed to the chargor, recall the said loan or any part thereof, and 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; and
(b)
where such loan has been secured otherwise than by way of charge, by notice addressed to the borrower, require the loan or any part of it, together with any interest due on such loan or part of it 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 immediately after that of it be realised.
(3)
Where any loan by a financial institution or other financial source is secured by a guarantee by the Corporation, no such loan or any part of it shall be applied otherwise than for such purposes as shall have been approved by the financial institution or other financial source, the State Government and 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 financial institution or other financial source may exercise any of the powers conferred on the Corporation by subsection (2).
[Am. Ord. No. 1/79; Am. Cap. A41.]
(4)
Subsection (2) shall be in addition to any other proceedings under any written law.
Enforcement of securities