Housing Finance Agency Act, 1981
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Loans and advances for acquisition and construction of houses. |
5.—(1) The Agency may, subject to such conditions as for the time being stand approved of under this section by both the Minister and the Minister for Finance— | |
(a) make a loan to a person to acquire or construct a house, | ||
(b) advance moneys to a housing authority to enable loans to be made by the authority for the acquisition and construction of houses. | ||
(2) Where money is advanced to a housing authority under subsection (1) of this section, the authority shall use the advance to make loans either under section 39 of the Housing Act, 1966 , or in accordance with such terms and conditions relating to the acquisition and construction of houses as for the time being stand approved of for the purposes of this section by both the Minister and the Minister for Finance. | ||
(3) Without prejudice to the generality of subsection (1) of this section, conditions referred to in the said subsection (1), and which apply to loans made to persons other than a housing authority, may— | ||
(a) specify the class or classes of persons to whom such loans may be made, and the minimum contribution to be made at the time of the acquisition or construction of a house by a person to whom such a loan is to be made towards the cost of such acquisition or construction, | ||
(b) specify the class or classes of houses in respect of which such loans may be made, | ||
(c) specify the maximum amount of, and the security for, such a loan and the method of ascertaining the value of a house in respect of which such a loan is sought, | ||
(d) as regards such loans, relate to the repayment of the principal, including the manner of and period for such repayment, | ||
(e) as regards such loans, relate to the payment of interest thereon and the fixing of the rate of such interest, | ||
(f) specify the conditions subject to which a house, being a house in respect of which such a loan is made, is held by a borrower during the period until the loan is repaid and the interest thereon is paid to the Agency or a housing authority, as the case may be, | ||
(g) relate to the personal liability of the owner of a house in respect of which such a loan is made for the repayment of any sum due in respect of the loan and for the payment of any sum due in respect of interest on the loan, | ||
(h) provide for the giving of a notice to a borrower requiring him to comply with a condition subject to which such a loan is made to him or subject to which a house, in respect of which such a loan is made, is held by him, | ||
(i) relate to the payment by instalments of such loans by the Agency or the housing authority, as may be appropriate, in respect of houses in course of construction, | ||
(j) require the transfer by the borrower of his interest in a house in respect of which such a loan (other than a loan in relation to which an agreement has been made under subsection (4) of this section) is made at a time when the loan or part of it or the interest thereon or part of it has not been repaid or paid, as the case may be, to the Agency or the housing authority, as may be appropriate, | ||
(k) specify the manner in which, for the purposes of conditions referred to in paragraph (a), (d) or (e) of this subsection, the income of a borrower or an applicant for a loan shall be determined. | ||
(4) In case conditions which for the time being stand approved of for the purpose of this section enable a loan described in subsection (3) of this section to be secured by a second mortgage or a second charge on the house to which the loan relates, the Agency or the housing authority, as the case may be, may for the purpose of securing the loan, enter into and carry out an agreement. | ||
(5) Incase— | ||
(a) default is made in complying with any of the conditions— | ||
(i) subject to which a loan described in subsection (3) of this section (other than a loan secured by a second mortgage or a second charge) is made, or | ||
(ii) subject to which a house in respect of which such a loan is made is held by the borrower, | ||
or | ||
(b) the borrower becomes bankrupt, | ||
the Agency or the housing authority, as the case may be, may recover possession of the house (whatever may be its value) under sections 84 to 89 of the Landlord and Tenant Law Amendment Act, Ireland, 1860 , as if the Agency or the housing authority, as may be appropriate, were the landlord and the borrower were the tenant. | ||
(6) Where the Agency or a housing authority recovers possession of a house under subsection (5) of this section, all the estate, right, interest and title of the borrower in the house shall vest without any conveyance or transfer in the Agency or the authority, as may be appropriate, and the Agency or authority may use the house for the purposes of any of their functions or sell or otherwise dispose of it as it thinks fit. | ||
(7) Where the Agency or a housing authority recovers possession of a house under subsection (5) of this section, it shall pay to the borrower a sum equal to the value of the interest in the house at the disposal of the Agency or the authority, as the case may be, after deducting therefrom the amount of the loan then remaining unpaid, any sum due for interest and all costs incurred by the Agency or authority in the recovery of possession and disposal of the house, including the costs incurred by the Agency or authority in relation to any arbitration under subsection (8) of this section. | ||
(8) In default of agreement between the Agency or a housing authority and a borrower, the value of the interest in a house which is by virtue of this section at the disposal of the Agency or authority shall be determined under and in accordance with the Acquisition of Land (Assessment of Compensation) Act, 1919, by a property arbitrator nominated under the Property Values (Arbitrations and Appeals) Act, 1960 . |