Section 29Part 6 — General and Supplementary
Application of loans
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Where the Bank has made a loan under this Law it shall —
from time to time, make or cause to be made such examination as may be necessary to ensure that the loan is being applied to the purpose for which it was made, and for this purpose may authorise in writing any of its officers or any other person to make the examination, and an officer or person so authorised shall be entitled to demand the production of all such books, documents and other matters and things as he may consider necessary for the purpose of making the examination; and
require financial statements in such detail as it may be determined to be submitted by the person in receipt of the loan biannually or at shorter intervals at the discretion of the Bank.
Whoever fails to submit any financial statement or to produce any book, document or other matter or thing demanded in accordance with subsection (1) is guilty of an offence.
Where, upon an examination made under paragraph (a) of subsection (1) it appears to the Bank that
any sum, being the whole or any part of the loan, has not been applied to the purpose for which the loan was made; or
any condition imposed in respect of the loan is not being complied with,
it may (without prejudice to any other power or remedy) order that the whole or any part of the loan be applied to the purpose specified in the order, within the time so specified, or that such sum together with any interest due be repaid to the Bank at the expiration of the time specified in the order.
If any such loan has been secured by mortgage or otherwise, and the borrower defaults in complying with the order made in accordance with subsection (3), the Bank may, by notice in writing addressed to the borrower, demand repayment of the loan or any part of the loan on such date as is specified in the notice together with the payment of all interest, fees and charges due on the sum demanded at the date of the notice; and, in default of payment on the specified date, the Bank may sell all or part of the land or other assets mortgaged for the purpose of the loan and take steps to enforce any other security provided by the borrower for the purpose of the loan.
Where any security for a loan under this Law is sold for the purpose of the enforcement of the security the Bank may acquire the whole or part of the property concerned and may hold and manage that property.