ARTICLE TWENTY-ONE OF THE RECAST TEXT OF THE LEGISLATION ON HOUSING FOR OFFICIAL PROTECTION, APPROVED BY ROYAL DECREE TWO THOUSAND NINE HUNDRED SIXENT/ONE THOUSAND NINE HUNDRED AND SEVENTY-SIX, OF TWELVE NOVEMBER, AUTHORIZES THE MORTGAGE BANK TO TO ISSUE CARDS FOR THE FINANCING OF SOCIAL HOUSING, WITHIN THE LIMITS AND WITH THE CONDITIONS REQUIRED BY THE MINISTRY OF FINANCE, TODAY THE MINISTRY OF ECONOMY, ENCRYPTING THE FINAL DISPOSITION THIRD, OF THE ROYAL DECREE TWO THOUSAND TWO HUNDRED AND SEVENTY OCHO/1000 NINE HUNDRED AND SEVENTY-SIX, OF 16 SEPTEMBER, THE AMOUNT OF SUCH EMISSIONS BY SEVEN BILLION PESETAS FOR THE YEAR ONE THOUSAND NINE HUNDRED AND SEVENTY-EIGHT.

ON THE OTHER HAND, ARTICLE NINE OF THE ROYAL DECREE TWO THOUSAND TWO HUNDRED AND SEVENTY-ONE THOUSAND NOVENTIENTOS SEVENTY-SIX, OF 16 SEPTEMBER, CITED ABOVE, STATES THAT THE MORTGAGE BANK MAY BE GRANTED ORDINARY LINES OF OFFICIAL CREDIT AND TO ALSO FINANCE SOCIAL HOUSING, AUTHORIZATION OF CREDITS WITH THE MINIMUM LIMIT OF SEVEN THOUSAND FIVE HUNDRED MILLION PESETAS IN ONE THOUSAND NINE HUNDRED AND EIGHTY EIGHT.

CONSEQUENTLY, IT IS APPROPRIATE TO ESTABLISH THE AMOUNT AND CONDITIONS OF THE LOANS THAT THE MORTGAGE BANK MAY GRANT FOR THE CONSTRUCTION AND ACQUISITION OF SOCIAL HOUSING, AS WELL AS FOR THE FINANCING OF THE PROMOTION OF THIS CLASS. HOUSING ON A LEASE BASIS, FOR WHICH THE FINANCIAL SUPPORT OF THE NATIONAL HOUSING INSTITUTE IS ALSO ESTABLISHED.

FINALLY, AND IN THE SAME WAY AS IN ARTICLE SEVEN OF THE ROYAL DECREE TWO THOUSAND AND THREE THOUSAND NINE HUNDRED AND SEVENTY-SEVEN, OF FIVE AUGUST, THE MORTGAGE BANK IS AUTHORIZED TO FINANCE THOSE HOMES THAT COMPLY WITH THE LAW. THE REQUIREMENTS IN THE SAME MENTIONED, AND IN FAVOR OF THOSE PERSONS WHO FULFILL THE CONDITIONS TO BE A BENEFICIARY OF A SOCIAL HOUSING, AND AS SUCH HAS BEEN RECOGNIZED BY THE MINISTRY OF PUBLIC WORKS AND URBANISM, OR IN FAVOR OF THOSE WHO, NOT YET BY BRINGING TOGETHER SUCH CONDITIONS, HOUSING AND THE HOUSING CONDITIONS DO NOT MEET THE MINIMUM CONDITIONS OF HABITABILITY, PROVIDED THAT, IN ANY CASE, THEY ARE INTENDED FOR PERMANENT AND PERMANENT RESIDENCE.

IN ITS VIRTUE, ON THE PROPOSAL OF THE MINISTERS OF PUBLIC WORKS AND URBANISM AND OF ECONOMY, AND AFTER DELIBERATION OF THE COUNCIL OF MINISTERS AT ITS MEETING OF THE SIXTEENTH DAY OF JUNE OF A THOUSAND NINE HUNDRED AND SEVENTY-EIGHT, I HAVE:

ARTICLE FIRST. -MORTGAGE BANK OF SPAIN IS AUTHORIZED TO FINANCE THE ACQUISITION AND CONSTRUCTION OF SOCIAL HOUSING, UNDER THE CONDITIONS LAID DOWN IN THIS PROVISION, FROM THE FUNDS IT OBTAINS FROM THE EMISSIONS OF MORTGAGE CREDIT CARDS AUTHORISED BY ARTICLE 21 OF THE RECAST OF THE LEGISLATION ON HOUSING FOR OFFICIAL PROTECTION, APPROVED BY ROYAL DECREE TWO THOUSAND NINE HUNDRED AND ONE THOUSAND NINE HUNDRED AND SEVENTY-SIX, OF TWELVE NOVEMBER, AND OF THE ORDINARY LINES OF THE OFFICIAL CREDIT REFERRED TO IN ARTICLE NINE OF THE ROYAL DECREE TWO THOUSAND NINE HUNDRED AND SEVENTY-ONE THOUSAND NONEIGHBORS SEVENTY-SIX, OF SIXTEEN OF SEPTEMBER, IN WHAT BOTH DISPOSITIONESS ESTABLISH FOR THE YEAR ONE THOUSAND NINE HUNDRED AND SEVENTY-EIGHT.

ARTICLE SECOND. THE LOANS MAY BE REQUESTED BY THE PROMOTER OR BY THE BUYER OF THE DWELLINGS UNDER THE CONDITIONS SET OUT IN ARTICLE 7 OF THIS PROVISION AND SHALL BE SECURED BY MORTGAGE.

ARTICLE 3. THE AMOUNT OF THE LOAN SHALL BE AT MOST EIGHTY-FIVE PERCENT OF THE VALUE FOR SALE OF THE HOUSE, ACCORDING TO THE VALUATION MADE BY THE MORTGAGE BANK, WITHOUT IN ANY CASE EXCEEDING EIGHTY-FIVE PERCENT OF THE LEGAL MAXIMUM PRICE OF THE SALE; THE TOTAL AREA OF THAT WILL NOT EXCEED ONE HUNDRED AND TWENTY-FIVE SQUARE METERS.

ARTICLE FOURTH. -ONE. IF THE APPLICANT FOR THE LOAN IS THE SPONSOR, THE MORTGAGE BANK, AFTER THE GRANTING OF THE LOAN, WILL BE ABLE TO DELIVER TO HIM DURING THE EXECUTION OF THE WORKS UP TO FIFTY PERCENT OF THE LOAN GRANTED. DURING THIS PERIOD THE SPONSOR SHALL PAY THE MORTGAGE BANK ONLY THE INTEREST OF THE AMOUNTS RECEIVED.

TWO. FOR LOANS GRANTED TO THE SPONSOR, THE BUYER MAY BE SUBROGATED, FROM THAT POINT OF TIME OF 15 YEARS FOR ITS AMORTISATION.

THREE. IN THE CASE OF LOANS TO EMPLOYERS AND NON-PROFIT-MAKING ENTITIES, WHICH WERE INCLUDED IN ARTICLE SEVEN OF THE ROYAL DECREE TWO THOUSAND NINE HUNDRED AND SIX HUNDRED AND SEVENTY-SIX, OF TWELVE NOVEMBER, FOR THE CONSTRUCTION OF DWELLINGS UNDER THE LEASE, DELIVERIES DURING THE WORKS WILL REACH UP TO THE ENTIRE LOAN. THE TERMS OF THE LEASE SHALL BE IN ACCORDANCE WITH THE REQUIREMENTS OF THE MINISTRY OF PUBLIC WORKS AND URBAN PLANNING.

ARTICLE QUINTO. -ONE. AFTER THE CONSTRUCTION OF THE HOUSES, THE MORTGAGE BANK WILL REVIEW ITS APPRAISAL CONSIDERING THE EXECUTION OF THE WORK AND THE MODIFICATION THAT HAS BEEN ABLE TO EXPERIENCE THE MAXIMUM PRICE AUTHORIZED BY THE OBJECTIVE RATING. IT MAY ALSO RAISE THE AMOUNT OF THE LOAN SUBJECT TO THE LIMITS LAID DOWN IN THE THIRD ARTICLE.

TWO. IF THE ASSUMPTIONS REFERRED TO IN ARTICLE 6 ARE NOT GIVEN, THE SPONSOR MAY REQUEST THE MORTGAGE BANK TO DELIVER THE DIFFERENCE UP TO THE FULL AMOUNT OF THE LOAN THAT CORRESPONDS TO IT, BY CREDITING THE PURCHASE AND SALE THE ACQUIRERS AND HAVING DISCOUNTED THE SALE PRICES THE AMOUNT OF THE LOAN ON WHICH THE REPAYMENT WAS SUBROGATED TO THOSE.

ARTICLE SIXTH.-IF THE PERIOD OF 30 MONTHS AND SIX MONTHS HAS ELAPSED SINCE THE GRANTING OF THE LOAN, THE HOUSING HAS NOT BEEN SOLD OR LEASED, UNDER THE CONDITIONS REQUIRED, OR OBJECTIVELY DISQUALIFIED, THE LOANS THEY SHALL BE DEEMED TO BE DUE AND THE MORTGAGE BANK SHALL REQUIRE THE SPONSOR OR, WHERE APPROPRIATE, THE ACQUIRER, THE RETURN OF THE LOAN RECEIVED WITH HIS INTEREST, PLUS A COMPENSATION OF 20% OF THAT.

ARTICLE SEVENTH. -ONE. IF THE APPLICANT FOR THE LOAN IS THE BUYER OF THE HOUSE, HE MAY OBTAIN IT BY PRESENTING TO THE MORTGAGE BANK OF SPAIN THE SUBJECTIVE RATING THAT HAS BEEN GRANTED TO HIM, PROVIDED THAT THE LATTER IS OBJECTIVELY TERMINATED AND QUALIFIED AS SOCIAL HOUSING BY THE NATIONAL HOUSING INSTITUTE.

TWO. THE MAXIMUM AMOUNT AND REPAYMENT PERIODS OF THE LOAN SHALL BE AS SET OUT IN THE THIRD AND FOURTH ARTICLES.

ARTICLE EIGHTH. -ONE. THE NATIONAL HOUSING INSTITUTE SHALL FINANCIALLY SUPPORT THE LOANS GRANTED TO THE ACQUIRERS OR IN WHICH THEY HAVE BEEN SUBROGATED, TO WHICH THE SEVENTH AND FOURTH ARTICLES REFERRED TO IN PARAGRAPH 2 ARE REFERRED TO, AS WELL AS TO THE PROMOTERS CONCERNED. IN THE FOURTH ARTICLE, PARAGRAPH THREE.

TWO. SUCH FINANCIAL SUPPORT SHALL CONSIST OF THE PAYMENT TO THE MORTGAGE BANK OF SPAIN, ON BEHALF OF THE BORROWER, OF TWENTY-SIX PERCENT OF THE PRINCIPAL AND INTEREST AMORTISATION FEES TO BE MET BY THE BANK.

THREE. THIS AID MUST BE REINTEGRATED BY ITS BENEFICIARIES TO THE NATIONAL HOUSING INSTITUTE, THROUGH THE MORTGAGE BANK. THIS AMOUNT SHALL NOT ACCRUE INTEREST, ITS PAYMENT FEES SHALL BE CONSTANT AND THE REPAYMENT PERIODS FOR THE LOAN AND THE REPAYMENT OF THIS AID SHALL NOT EXCEED 20 YEARS TOGETHER. THE RETURN TO THE NATIONAL HOUSING INSTITUTE WILL BE MORTGAGED.

ARTICLE NINTH. -THE NATIONAL INSTITUTE OF HOUSING AND THE MORTGAGE BANK OF SPAIN WILL REGULATE BY CONVENTION THE MODALITIES AND PROCEDURES OF THE RELATIONS THEY MUST ESTABLISH BETWEEN THEM AS A RESULT OF THIS ROYAL DECREE.

TRANSIENT DISPOSITION

ONE. THE MORTGAGE BANK IS HEREBY AUTHORIZED TO GRANT LOANS TO THE PROMOTERS AND TO THE ACQUIRING OF DWELLINGS WHICH HAVE APPLIED FOR THE SPECIAL FINANCING PROGRAMME OF A THOUSAND OF THE FUNDS REFERRED TO IN THIS ROYAL DECREE. NINE HUNDRED AND SEVENTY-SIX-THOUSAND NINE HUNDRED AND SEVENTY-EIGHT, REGULATED BY THE ORDER OF TWENTY NOVEMBER OF A THOUSAND NINE HUNDRED AND SEVENTY-FIVE, AND HAVING FILED THE PETITION BEFORE THE MORTGAGE BANK BEFORE THIRTY-ONE OF DECEMBER, THOUSAND NINE HUNDRED AND SEVENTY-SEVEN, THEY COULD NOT HAVE BEEN TAKEN CARE OF FOR LACK OF CREDIT, PROVIDED THEY WERE MEET THE FOLLOWING REQUIREMENTS:

A) THAT THE DWELLING HAS A TOTAL AREA OF NOT MORE THAN ONE HUNDRED AND TWENTY-FIVE SQUARE METRES AND ITS SELLING PRICE IS NOT HIGHER, PER SQUARE METRE, AT 10 PER CENT OF THE CURRENT PRICE FOR GROUP I HOUSING.

B) THAT THE PROMOTER UNDERTAKES THAT THE PURCHASER OF THE HOUSE MEETS THE CONDITIONS REQUIRED TO BE A BENEFICIARY OF A SOCIAL HOUSING AND THAT THE NATIONAL INSTITUTE OF HOUSING HAS BEEN RECOGNIZED AS SUCH, GIVING THE THE CERTIFICATION EFFECT IS PROOF OF THEIR SUBJECTIVE CONDITIONS OR THAT, EVEN IF THEY DO NOT MEET THESE CONDITIONS, LACK OF HOUSING OR THE ONE THAT OCCUPIES DOES NOT POSSESS THE MINIMUM CONDITIONS OF HABITABILITY IN THE JUDGMENT OF THAT ORGANISM.

TWO. IN THE FIRST CASE, THE LOAN WILL BE ABLE TO REACH UP TO SEVENTY PERCENT OF THE SELLING PRICE OF THE HOUSE, AND IN THE SECOND, THE AMOUNT OF THE LOAN WILL NOT BE ABLE TO EXCEED FIFTY PERCENT OF THE SALE PRICE.

THREE. IF, ON THE EXPIRY OF THE PERIOD OF 30 MONTHS FROM THE GRANTING OF THE LOAN TO THE SPONSOR, THE LATTER HAS NOT SOLD THE HOUSE TO A PERSON MEETING ANY OF THE REQUIREMENTS REFERRED TO IN PARAGRAPH 1 (B) OF THIS TRANSITIONAL PROVISION, THE HOUSE SHALL BE DEEMED TO BE THE LOAN SHALL BE DEFEATED, AND THE MORTGAGE BANK SHALL REQUIRE THE SPONSOR OR, WHERE APPROPRIATE, THE ACQUIRER TO REPAY THE LOAN RECEIVED WITH HIS INTEREST, PLUS AN INDEMNITY OF TWENTY PER CENT OF THE LOAN.

FINAL PROVISIONS

FIRST. THE PROVISIONS OF THE SAME OR LOWER RANK SHALL BE REPEALED AS SET OUT IN THIS PROVISION.

SECONDLY, THE PRECISE RULES FOR THE DEVELOPMENT OF THIS PROVISION WILL BE DICTATED BY THE MINISTRIES OF ECONOMY AND PUBLIC WORKS AND URBANISM, WITHIN THE FRAMEWORK OF THEIR RESPECTIVE COMPETENCES.

THIRD. THE PRESENT ROYAL DECREE WILL ENTER INTO FORCE ON THE DAY OF ITS PUBLICATION IN THE "OFFICIAL STATE BULLETIN".

GIVEN IN MADRID TO TWENTY-THREE OF JUNE OF A THOUSAND NINE HUNDRED AND SEVENTY-EIGHT. -JUAN CARLOS. -THE MINISTER OF THE PRESIDENCY, JOSÉ MANUEL OTERO NOVAS.