HOME MORTGAGE FINANCE ACT - 1993 (PNDCL 329)

    • (1) Despite anything in this Act, where at least eighty-five per cent of the total loan amount has been paid or tendered by or on behalf of the borrower, the Company shall not enforce a right to recover possession of the premises or its power of sale otherwise than by a court action.

      (2) Where the mortgage involves a progressive repayment scheme or in the case of an indexed transaction, where the principal advanced may be adjusted upwards, if the adjusted principal outstanding is less than 15 per cent of the initial loan amount, the Company shall not enforce a right to recover possession of the premises or its power of sale otherwise than by a court action.

    • There is hereby established the Home Mortgage Financing Scheme.

    • The objects of the Scheme are,

      (a) to provide mortgage financing for the purchase of dwelling houses by private individuals and institutions including the financing of the completion of uncompleted houses, and

      (b) to establish a secondary mortgage market with a view to making money available to the financial institutions which are participating in the Scheme.

    • (1) The Home Finance Company Limited may administer the Scheme through the financial institutions specified in the Schedule.

      (2) The Minister may, on the advice of the Bank of Ghana after consulting the company by legislative instrument, amend the Schedule.

    • On failure of performance of an act secured by a mortgage to which this Act applies, the mortgagee may

      (a) sue the mortgagor or obligor or both on a personal covenant to perform, or

      (b) realise the security of the mortgagee in the mortgaged property in all or any of the ways provided in this Act.

    • Except as otherwise provided in this Act, the Mortgages Decree, 1972 shall apply to mortgages under this Act.

    • (1) The Company shall furnish, at the request of the Bank of Ghana, particulars of the loans granted to a person in whose activities or enterprise the Company or any of its directors, officers or employees is interested as director, agent, guarantor or principal shareholder.

      (2) The Bank of Ghana may, if satisfied that the loan is not in the best interest of the public, in writing prohibit the Company from granting any further loan or permit a grant to be made only subject to such terms and conditions which the Bank of Ghana may impose or the Bank of Ghana may direct in writing to ensure the repayment of the loan so granted within the time and to the extent that the Bank of Ghana may specify in the direction, and the Company shall comply with any prohibition, terms, conditions or direction imposed or given by the Bank of Ghana.

    • (1) A director, an officer or any other employee of the Bank of Ghana shall not disclose any information relating to the affairs of the Company or a financial institution which that person acquired in the performance of functions except as required by law or by a Court of competent jurisdiction.

      (2) A director, an officer or any other employee of the Company shall not disclose any information relating to the affairs of a borrower with the Company which is acquired in the course of duty except where the disclosure is authorised by the borrower or is in the interest of the Company.

      (3) A person who contravenes subsection (1) or (2) commits an offence and is be liable on conviction to a fine not exceeding two hundred penalty units or to a term of imprisonment not exceeding six months or to both the fine and the imprisonment.

    • In this Act, unless the context otherwise requires,

      "Company" means the Home Finance Company Limited;

      "Minister" means the Minister responsible for Finance;

      "mortgage" means a mortgage agreement entered into between the Home Finance Company Limited by itself or with any other party and the mortgagor;

      "mortgagee" means the Home Finance Company Limited and the relevant financial institution;

      "mortgagor" or "borrower" means a person who has taken a loan under the Scheme;

      "Scheme" means the home finance scheme established by section 1.

      SCHEDULE

      [Section 3]

      Financial Institutions

      1. Barclays Bank of Ghana Limited.

      2. Ghana Commercial Bank (Ghana) Limited.

      3. Standard Chartered Bank (Ghana) Limited.

      4. Social Security Bank Limited.

      5. State Insurance Corporation.

      6. National Savings and Credit Bank Limited.

      Made this 5th day of January, 1993.