(1)

Subject to the provisions of this Act and of the bye-laws made thereunder the Commissioner may, with the previous sanction of the [Improvements Committee] [These words were substituted for the words 'the Member-in-Charge' by Maharashtra 27 of 1999, Section 146, (w.e.f. 23-4-1999).], advance loans to persons desiring to erect buildings on land vested in the corporation in consequence of the transfer to them of the property of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925.

(2)

Any person desiring to erect a building on any such land may make an application to the Commissioner in the form prescribed by the bye-laws for a loan to be advanced by way of a mortgage on the security of the building to be so erected; and the Commissioner may, after making such enquiry as he thinks necessary, and subject to the conditions mentioned in sub-sections (1) and (3) and the bye-laws made under section 461, advance such loans.

(3)

Every such loan shall be subject to the following, among other conditions:-

(1)

that the building in respect of which the loan is advanced shall be used wholly or mainly for residential purposes;

(2)

that the aggregate amount of the loan shall not exceed twenty thousand rupees in any individual case;

(3)

that the period within which the loan shall be repayable shall not exceed twenty years from the date of the first occupation of the building;

(4)

that the amount of the loan shall not exceed 60 per cent of the cost of the building (including outhouses and other works, if any, connected therewith) irrespective of the period of repayment;

(5)

that the person to whom the loan is advanced shall execute a mortgage of the building (including outhouses and other works, if any, connected therewith) together with the site on which they are erected in favour of the corporation containing such convents and conditions as may be prescribed in the bye-laws.