Housing Loans Fund
Subject to section 4A , there shall be paid into the Housing Loans Fund specified in the Second Schedule to the Financial Procedure Act 1957 (hereinafter referred to as “the Fund”)—
(a) sums representing the proceeds of loan raised under this Act;
(b) moneys from time to time appropriated by Parliament for the purposes of the Fund;
(c) sums representing the repayment of the principal of any loan made under this Act and interests due thereon unless the Minister of Finance authorizes the payment of any such sums to any person pursuant to any arrangement entered into with such person under which any asset paid for out of the moneys of the Fund, or any right or interest derived or arising from the grant of any loans out of the moneys of the Fund, is sold, disposed of or transferred to such person;
(d) sums representing interest received from investment of moneys of the Fund;
(e) moneys received from the sale or realization of any assets paid for out of the Fund or from or pursuant to any arrangement entered into any person under which
Housing Loans Fund
any asset paid for out of the moneys of the Fund, or any right or interest derived or arising from the grant of any loans out of the moneys of the Fund, is sold, disposed of or transferred to such person; and
(f) other moneys received by the Federal Government for the purposes of the Fund.
Minister may authorize payment
Notwithstanding section 4 and the Financial Procedure Act 1957, the Minister of Finance may authorize—
(a) the payment into the Consolidated Revenue Account in the Federal Consolidated Fund of all or any part of any moneys of the Fund received from or pursuant to any arrangement entered into with any person under which any asset paid for out of the moneys of the Fund, or any right or interest derived or arising from the grant of any loans out of the moneys of the Fund, is sold, disposed of or transferred to such person; and
(b) the payment to any person of any moneys of the Fund pursuant to any arrangement entered into with such person under which any asset paid for out of the moneys of the Fund, or any right or interest derived or arising from the grant of any loans out of the moneys of the Fund, is sold, disposed of or transferred to such person.
Application of the moneys of the Fund
(1) The moneys of the Fund shall be applied and are appropriated for the purpose of granting loans upon such terms and conditions as the Minister of Finance may think fit to any person—
(a) who is a member of the public services referred to in Article 132 of the Federal Constitution;
(b) who is a Member of the administration in the Federation or a State as defined in Clause (2) of Article 160 of the Federal Constitution;
(c) who is a Judge of the Federal Court or High Court;
Laws of Malaysia A CT 42
(d) who is a member of the Parliamentary Service as defined in section 2 of the Parliamentary Service Act 1963 [Act 394];
(e) who is a member of either House of Parliament;
(f) who is the Speaker of the Dewan Rakyat;
(g) who is a member of a State Legislative Assembly;
(h) who is an employee of any statutory body or local authority;
(i) who is a spouse of any deceased person (who before his death was eligible, by reason of his being within one of the categories of persons described in paragraphs
(a) to (h) of this subsection, for the grant of a loan) as the Minister of Finance may in his discretion decide, but the loan if granted shall not exceed the amount of the loan for which the deceased person was eligible before his death; or
(j) whom the Minister of Finance may by order in the Gazette specify, to enable or assist such person—
(aa) to purchase land with or without a dwelling house thereon;
(bb) to construct a dwelling house and road as a means of access thereto; or
(cc) to settle the whole or part of a debt or debts incurred in a purchase of land, with or without a dwelling house thereon, or in the construction of a dwelling house and road as a means of access thereto, prior to the granting of the loan.
(2) Subject to Clause (7) of Article 125 of the Federal Constitution, a person concurrently holding two or more posts or offices described in subsection (1) shall be eligible to apply for a loan in respect of one post or office only, and a person who has been granted a loan under subsection (1) shall not be eligible to apply for another loan under that subsection in respect of any other post or office he may subsequently hold.
(3) Nothing in subsection (2) shall be construed as precluding a person who has been granted a loan from obtaining—
(a) the balance of the amount for which he is eligible; or
Housing Loans Fund
(b) the balance of the amount for which he may become eligible as a result of any change of post or office.
(4) A person who is eligible to apply for a loan from a State Government, statutory body or local authority that operates its own housing loans scheme shall not be eligible for a loan under subsection (1).
Repayment of loan
(1) Notwithstanding subsection 13(2) of the Financial Procedure Act 1957—
(a) sums representing the proceeds of loan raised under the provisions of this Act together with interests due thereon shall, subject to paragraph (b), be repaid out of the Fund; and
(b) the Minister of Finance may authorize the payment of such portion as he may determine of the interest due in paragraph (a) out of the Consolidated Fund.
(2) If the moneys standing to the credit of the Fund are insufficient to repay the whole sum raised or part thereof together with interests due thereon, the Minister of Finance shall appropriate out of the Consolidated Fund and repay the sum outstanding together with interest due thereon.
Minister may issue directions
The Minister of Finance may issue directions, not inconsistent with this Act, as to the management and operation of the Fund.
P ART IV STATE HOUSING LOANS FUND
State Housing Loans Fund
(1) Part III of this Act shall have application in respect of the Housing Loans Fund of a State as they have application in respect of the Housing Loans Fund specified in the Second Schedule to the Financial Procedure Act 1957 , and references in that Part to the Housing Loans Fund specified in the said Second Schedule shall be construed accordingly.
Laws of Malaysia A CT 42
(2) In relation to the application of Part III of this Act to the Housing Loans Fund of a State as aforesaid—
(a) references in that Part specified in the first column of the Schedule to this Act shall be construed as references specified in the corresponding second column of the said Schedule;
(b) paragraphs 5(1)(c), (d), (e) and (f) shall not apply.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
