Malaysia legislation
Section 61
Section 61
Power to enter into contracts of guarantee or indemnity
The Corporation may, with the approval of the Minister, enter into contracts of guarantee or indemnity for the purpose of facilitating the acquisition or erection of dwelling houses by officers or other servants of the Corporation.
[Added Ord. No. 15/76.]
FIRST SCHEDULE
(Section 37)
PROVISIONS WHICH APPLY TO EVERY
CHARGE CREATED UNDER SECTION 37
Rights conferred and obligations imposed by a charge on the Corporation 1.
A charge shall, so long as it continues in force, confer the following rights and impose the following obligations on the Corporation:
(a)
a right to take possession of any of the property subject to the charge—
(i)
if the borrower shall fail to pay the Corporation any money which shall for the time being be owing under the charge within four days after the same, or any instalment thereof, shall become due;
(ii)
if the borrower shall fail to discharge any of the obligations imposed upon him by any provision of this Schedule;
(iii)
if the borrower shall become insolvent or make any arrangement or composition with his creditors;
(iv)
if any distress or execution be issued or levied against or upon any of the property of the borrower;
(v)
on the death of the borrower; or
(vi)
if the borrower does any act prohibited by this
Ordinance or regulations;
(b)
where possession of any property has been so taken, a right, after an interval of five clear days or such less time as may be allowed by the instrument, to sell the property either at auction or, if the instrument so provides, by private treaty, and either for a lump sum payment or payment by instalments;
(c)
an obligation, in the event of such power of sale being exercised, to apply the proceeds of sale in or towards the discharge of the moneys and liabilities secured by the charge, and the cost of seizure and sale, and to pay the surplus, if any, of the proceeds to the borrower.
Obligations imposed by a charge on a borrower 2.
A charge shall, so long as it continues in force, impose on the borrower the following obligations:
(a)
if required by the Corporation, to insure and keep insured, so long as the charge continues in force, the property subject to the charge for a sum of money not less than the value of that property, and to assign the policy of insurance to the Corporation;
(b)
to keep in good and substantial repair and condition the buildings, erections, plant, machinery and other property and equipment subject to the charge;
(c)
not to sell or again encumber or charge any property subject to the charge, so long as the charge continues;
(d)
to pay punctually, as the same shall become due and payable, any land rent, rate or tax payable by him in respect of the land on which the property stands, and upon demand in writing by the Corporation to produce his last receipts for such rent, rate or tax;
(e)
not to have execution issued against his goods under any legal process;
(f)
not to remove, dismantle or in any way alter any buildings, erections, plant, machinery, equipment or other property subject to the charge without the prior consent in writing of the Corporation.
Penalty for sale of security 3.
Every person who sells any property subject to the charge, otherwise than in pursuance of the charge, shall be guilty of an offence: Penalty, imprisonment for six months and a fine of one thousand ringgit.
Charge not to be defeated by sale, etc., of property subject to it 4.
A charge created under this Ordinance shall not be liable to be defeated by any sale of, or by a subsequent charge of any nature created upon, the property specified in the instrument creating it, and, upon the borrower committing an act of bankruptcy, the Corporation shall be at liberty to take possession of the property subject to the charge and sell the same in accordance with paragraph 1(b).
Charge not to be affected by Bills of Sale Ordinance 5.
A charge created under this Ordinance shall have effect notwithstanding anything contained in the Bills of Sale Ordinance [Cap. 68 (1958 Ed.)], and an instrument made under this Ordinance shall not be deemed to be a bill of sale within the meaning of that Ordinance.
Property charged not affected by order or disposition section of the
Bankruptcy Act 1967 [Act 360]