Emergency Relief Guarantee Fund Regulations, 2000

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2000/2000-0005/EmergencyReliefGuaranteeFundRegulations2000_1.pdf
Published: 2000-01-21

Emergency Relief Guarantee Fund Regulations
EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 3


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 35

EMERGENCY RELIEF GUARANTEE FUND

EMERGENCY RELIEF GUARANTEE FUND
REGULATIONS, 2000

(SECTION 16)
[Commencement 21st January, 2000]

1. These Regulations may be cited as the Emergency
Relief Guarantee Fund Regulations, 2000.

2. An application for a guaranteed loan shall be made
by the borrower to an approved lender in the forms ERG-1
and ERG-2 specified in the Schedule.

3. (1) An approved lender who is prepared to make
a guaranteed loan to a borrower shall submit to the Minister
a copy of the borrower’s loan application referred to in
regulation 2.

(2) If the Minister approves the application with or
without an amendment, an undertaking to Guarantee shall
be issued to the approved lender Schedule. in the form
ERG-3 specified in the Schedule.

4. Where a borrower pursuant to section 23 of the
Act does not possess documentary title in respect of the
property upon which his premises is situated and the
guaranteed loan has been approved by the Minister, the
borrower shall sign an agreement with the approved lender
in the form ERG-4 specified in the Schedule.

5. An approved loan shall be made at not less than
par by the approved lender to the borrower, and the
borrower shall not be subject to a charge in the nature of a
discount or commission.

6. When the approved loan has been made to the
borrower, the approved lender shall forward to the Minister
the request for a loan guarantee within ninety days after the
last advance to the borrower by the approved lender.

S.I. 5/2000
S.I. 69/2000

Citation.

Application for
guaranteed loan.

Schedule.

Submission of
application.

Defects in title.

No discount of
commission.

Request for issue
of loan
guarantee.

CH.35 – 4] EMERGENCY RELIEF GUARANTEE FUND





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

7. (1) Upon receipt of the request for a loan
guarantee the Minister shall issue to the approved lender a
loan guarantee in the form ERG-5 specified in the Schedule.

(2) When the loan guarantee has been issued by the
Minister under paragraph (1), the approved lender may
lodge the agreement, mortgage deed and promissory note
duly executed in connection with the approved loan with the
Minister who shall thereupon stamp the same with an
official stamp bearing the words “Guaranteed by the
Government of the Commonwealth of The Bahamas” and
return it to the approved lender.

(3) The approved lender shall upon receipt of the
agreement, mortgage deed and promissory note endorse
thereon the words “Emergency Relief Guaranteed Loan”
and record it in the Registry of Records.

8. The monthly instalment to be paid by the
borrower shall be sufficient to amortize the principal and
interest of the approved loan in accordance with the terms
and conditions of the loan.

9. Where during the term of a guaranteed loan,
prepayment of the principal is made by the borrower, the
approved lender shall waive the interest charges payable in
lieu of any notice provided in the agreement, mortgage deed
and promissory note relating to the guaranteed loan.

10. Except as provided in regulation 11, and where
there are changes in the prime rate or a payment due under
the guaranteed loan has been delayed by not more than two
months and the maturity date has been extended for a period
of not longer than three months from the original maturity
date, an approved lender shall not alter the terms of
repayment of a guaranteed loan nor permit any derogation in
the rights of the approved lender against any mortgaged
premises by way of postponement, partial discharge or
otherwise without the written approval of the Minister.

11. An approved lender shall not, without prior
written approval of the Minister, release any collateral,
security or personal covenant taken as further security for a
guaranteed loan which was subject to the taking of such
further security.

Issue of loan
guarantee.

Monthly
Instalment.

Prepayment of
principal.

Term of
prepayment not
to be altered.

Collateral or
security not to be
released without
approval of
Minister

EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 5


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

12. Within sixty days after the end of each quarter,
March, June, September and December of each year, the
approved lender shall deliver to the Minister a list of all
loans in arrears that are administered by the approved lender
and the amount outstanding in respect of each loan in form
ERG-6 specified in the Schedule.

SCHEDULE

ERG-1

LOAN APPLICATION FORM

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999

Approved Lender’s Name: ................... Purpose of Loan:

repair damaged property

Branch: ................................................. replacement of destroyed property

2. Applicant Details

Name of applicant:
...................................................................

Name of co-applicant:
...................................................................

Street Address:
................................................................... Street address: ...................................................................

P. O. Box:
...................................................................

P. O. Box:
...................................................................

Date of Birth:
...................................................................

Date of birth:
...................................................................

Nationality:
...................................................................

Nationality:
...................................................................

Marital Status: Marital Status:

single married divorced
other

single married divorced
other



Notice of
outstanding on
loans.

Schedule.

CH.35 – 6] EMERGENCY RELIEF GUARANTEE FUND





STATUTE LAW OF THE BAHAMAS [Original Service 2001]



Number of Dependants:
..........................................................................................................................................

Ages:
..........................................................................................................................................

Type of property:

freehold commercial

leasehold residential

other

3. Employment details

Applicant Co-applicant

Name of Employer:

Address of Employer:

Years with present
Employer:



Position held:

Monthly salary:

Name of previous
Employer:



Years with previous
Employer:



4. Details of work to be done

Lot #: .................................. Subdivision: ......................... Island: ..................................

Current owner of property: ..............................................................................................

Property occupied at time of damage: .............................................................................

Brief description of work to be done: ..............................................................................

To be completed by: .........................................................................................................


EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 7


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS



5. Cost Estimates

Building $

Furnishings $

Insurance $

Other (specify) $

Connections (water, sewer, electricity) $

Total $ ...........................

Down payment available $

Loan requirement $. ...........................

$

6. Financial Status

Assets Liabilities

Cash in bank(s) $ Accounts Payable
(describe)

$

Bonds & Securities $ Loans outstanding
(describe)

$

Cash surrender value
(life insurance)

$ Automobile(s) instalment
payment(s)

$

Automobile(s) make &
year

$ Mortgage loan owing $

Real estate owned $ Other installment pay-
ments

$

Other assets $............... $ ....................

Total $ Total $


CH.35 – 8] EMERGENCY RELIEF GUARANTEE FUND





STATUTE LAW OF THE BAHAMAS [Original Service 2001]



7. Proposed Security
1st mortgage on above mentioned property
Promissory note
Other security .............................................................................................................

8. References


Name: Name:
Employer: Employer:
Address: Address:
Telephone Number (work): Telephone Number (work):
Telephone Number (home): Telephone Number (home):


I/We declare the foregoing (on both pages) to be a complete and true statement
of my/our financial position for the purpose of procuring credit facilities.
................................................................

Signature of Applicant
.......................................................................
Signature of Co-Applicant

........................................................................................................................................

Date
9. Lender’s Comments
Reasons for eligibility for ERG Loan:
High debt service ratio
Inadequate security
Past financial record of the borrower
Lack of stability in income
Other
...............................................................

Bank Signature
........................................................

Date

EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 9


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS



10. Ministry’s comment





..............................................................................

Minister’s Signature
........................................................

Date


ERG-2

SALARY VERIFICATION FORM

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999

Instructions: Please complete section A and have your employer complete section B.
Return in a sealed envelope to the approved lender.

SECTION A
Applicant’s Name: .................................................................................................
Surname Forename(s)
Employer: ...............................................................................................................
Address of Employer: ............................................................................................
Street and Postal Address
Applicant’s Signature: ...........................................................................................
Date
SECTION B
Please complete the following questions with reference to the above employee and
return to the employee in an envelope with your signature across the seal.

Basic salary/wages (per annum) $ .........................................................
Bonus $ .........................................................
Allowances $ .........................................................
Total Salary $ .........................................................
Employee’s title in company $ .........................................................
Total number years in company $ .........................................................

I ............................... certify that the above information is true and correct.

(Full Name)
Employer’s Signature: .................................... Date: .............................................
Official Position: ....................................................................................................


CH.35 – 10] EMERGENCY RELIEF GUARANTEE FUND





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

ERG-3

UNDERTAKING-TO-GUARANTEE

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999

To: ............................................................
Approved Lender

Date: .............................................
U.T.G. No.: ..................................
Lender’s Reference: .....................

Borrower’s Name(s): ...........................................................................................

Borrower’s Address: ............................................................................................

We hereby undertake to issue a guarantee in respect of a loan to the above-
mentioned borrower in accordance with and subject to the Emergency Relief
Guarantee Fund Act, as well as the Emergency Relief Guarantee Fund Regulations,
in the amount of $ ..............................................

TOTAL $ ..............................................
The Monthly Debt Service based on: .......... Year(s) amortisation is as follows:


Principal and interest at .............................% $ ............................... monthly
Insurance — Life $ ............................... monthly
Insurance — Hazard $ ............................... monthly
Other $ ............................... monthly

TOTAL $ .............................................
The Lending value of security is:

Land $ .............................................
Building/Plant $ .............................................
Tool and Equipment $ .............................................

TOTAL $ .............................................


The dwelling house/business is to be operational within ............... months of this
date and the loan funds have been applied as specified in the Loan Application Form
ERG-1.
...................................................

Minister Responsible For
Disaster Preparedness



EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 11


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

ERG-4

PROMISSORY NOTE

(Issued pursuant to section 23 of the Emergency Relief Guarantee Fund Act, 1999)

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999
Borrower’s address ................................................................................................
Date: ..........................................................
On demand [on the ................day of ........................] I/[we jointly and severally]
promise to pay to [the approved lender] the sum of [$ .........] received [with interest
thereon at % per annum] on the ................... day of ........................ for the repair
or replacement of a dwelling house/business owned by [the borrower] and damaged
or destroyed by [a disaster declared by the Minister] on the .................................
day of ................................. by Order published in the Gazette.
In default of payment ........ payable under this note, the whole sum is to become
immediately due and payable.
...................................................

Signature of borrower
...................................................

Signature of the approved lender


ERG-5

EMERGENCY RELIEF LOAN GUARANTEE

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999
The Minister responsible for disaster preparedness (hereinafter called the Minister),
pursuant to the Emergency Relief Guarantee Fund Act and its undertaking-to-
guarantee No................ dated ............................. 20 .............., hereby guarantees
................................................................ (hereinafter called the approved lender)
a loan made and secured as follows:
Name of Borrower: ................................................................................................
Address of Borrower: .............................................................................................
Purpose of Loan Guarantee: ..................................................................................
Property Description: .............................................................................................
Guaranteed Loan No.: ............................................................................................
Amount of Loan: ................................ Interest Rate ............................. % ...........
Amount Guaranteed: ..............................................................................................
Period of Guarantee: ......................... years Maturity Date .................. 19 ...........
Title Defects if any: ...............................................................................................
................................................................................................................................

CH.35 – 12] EMERGENCY RELIEF GUARANTEE FUND





STATUTE LAW OF THE BAHAMAS [Original Service 2001]



NOTE: In accordance with the terms and conditions of the Fund you are asked
to read carefully and take note of the following:
1. The Rate of Interest: The maximum rate of interest which the qualified

borrower may be charged under the loan guarantee programme shall in the
case of residential property be at a rate not exceeding the prime rate and in
the case of any other property be at a rate not exceeding the prime rate plus
one per centum.

2. Extensions, Restructuring: All applications for the extension, or
restructuring of loan guarantees should be received by the Minister not
later than 14 days prior to the intended date of renewal, extension or
restructuring.

3. Obligations of the approved lender: The approved lender shall as far as
possible, ensure that the loan granted under the Emergency Relief
Guarantee Fund Act is used for the intended purpose. The approved lender
shall refer to the Minister for approval of any changes in the terms and
conditions of a loan guaranteed under the Emergency Relief Guarantee
Fund Act including any changes which may affect the security of terms of
repayment. The approved lender shall submit such returns or furnish such
information as the Minister may require in connection with any loan
guaranteed under the Emergency Relief Guarantee Fund Act. The
approved lender shall comply with any reasonable instructions given by
the Minister for the purpose of administering the Emergency Relief
Guarantee Fund Act.

4. Revocation and Termination: The Minister may take such action as is
deemed fit and proper, including the revocation of the guarantee, if the
approved lender fails to report without delay, all cases of misrepresentation
of information and misuse of funds by the borrower.

5. Where it is drawn to the attention of the Minister that the Borrower in
respect of whom a loan is guaranteed under the Emergency Relief
Guarantee Fund Act has defaulted on the loan, all reasonable efforts should
be made to recover the loan and if such efforts have failed, the Minister
shall settle the amount outstanding on the guarantee within a period not
exceeding two months.

6. Where the liability in respect of the loan guaranteed is assigned or
conveyed without the approval of the Minister, the guarantee in respect of
the loan guaranteed under the Emergency Relief Guarantee Fund Act shall
be terminated from the date of such assignment or transfer, unless the
Minister makes a declaration to the contrary in writing.

7. Special conditions (if any): The guaranteed loan extended to the qualified
borrower is guaranteed by the Emergency Relief Guarantee Fund Act
subject to the following conditions: ..............................................................
........................................................................................................................
........................................................................................................................
........................................................................................................................
For clarification and details of any of the above-mentioned or other matters
you are invited to contact the Minister at your earliest convenience.



EMERGENCY RELIEF GUARANTEE FUND [CH.35 – 13


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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

ERG-6

QUARTERLY REPORT ON BORROWERS IN ARREARS1

THE EMERGENCY RELIEF GUARANTEE FUND ACT, 1999
Name of
Borrower

Loan Guarantee
Policy Number

Maximum
Limit of

Loan
Guarantee

Maturity
Date

Days
Past
Due

Amount
in

Arrears

Out-
standing
Balance

Recovery
Efforts












To: Minister
P. O. Box
Nassau, Bahamas




Name of Approved Lender: ....................................

Branch Office: ........................................................
Authorised Signature: .............................................
Date: ........................................................................




1 Declarations must be submitted at the end of each quarter i.e. March, June, September, December
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