EMPLOYER LOAN AGREEMENT
SAMPLE
Employer Loan Agreement
THIS AGREEMENT is made the ……… day of …………….… BETWEEN …. (hereinafter called “the Lender”) of the one part AND ……..(NRIC No…..) of PT (hereinafter called “the Borrower”) of the other part.
WHEREAS
(1) By an Agreement dated the ….. (hereinafter called “the said Agreement”) made between ….[Company No….], a company incorporated in Malaysia and having its registered office at Suite …. Kuala Lumpur and a place of business at ….(hereinafter called “the Vendor”) and the Borrower the Vendor sold and the Borrower purchased a plot of land (hereinafter called “the lot”) situated in the Mukim/Town of … District of …. State of … being the lot numbered .. and coloured red on the plan annexed to the said Agreement and containing an area of … square feet or thereabouts.
(2) The Borrower has requested the Lender to grant him a loan of Ringgit Malaysia ………only to enable him to build or purchase a dwellinghouse which is in the course of construction or has already been erected on the lot and the Lender has agreed to do on condition that the Borrower assigns to the Lender all his right title and interest in and to the lot under the said Agreement and subject also to his entering into the covenants hereinafter contained.
(3) The Borrower by an Assignment executed on even date with these presents has assigned all his said right title and interest to the Lender.
NOW THEREFORE IN CONSIDERATION OF THE LOAN AFTERDEFINED AND TO THE COVENANTS AFTERMENTIONED IT IS HEREBY AGREED AND DECLARED AS FOLLOWS:
1. (i) The Lender shall pay to the Borrower or as the Borrower shall direct the said sum of Ringgit Malaysia ……………only (hereinafter called “the Loan”) by advances of such amounts and at such times as the Lender shall in its absolute discretion think fit having regard to the progress of the construction of the said dwellinghouse upon the lot.
(ii) Notwithstanding the provisions of paragraph (i) of this Clause the Lender may at its sole discretion pay the whole or any part of the Loan to the Architect, Builder, Contractor or other person or persons responsible for or engaged in the construction of the said dwellinghouse or to any Solicitor or firm of Solicitors purporting to act for the Borrower and every payment so made shall be deemed to be an advance to the Borrower for the purposes hereof including the calculation of interest. It is hereby expressly agreed and confirmed by the Borrower that any acknowledgement or receipt given by the aforesaid person or persons shall be as good and effective as if the same has been made or given the Borrower personally.
PROVIDED ALWAYS the Lender shall be at liberty to withhold any part of the Loan for any reason or reasons it may have.
(iii) The Lender shall permit the Borrower to have possession of the lot and the building erected or to be erected thereon but only as Licensee of the Lender until this License is terminated by the Lender in the manner provided by Clause 12 hereof.
2. (a) The Borrower shall:
(i) pay to the Lender instalment of Ringgit Malaysia …………only or of such other sum as the Lender shall require in accordance with the provisions of this Agreement punctually on the last day of every month the first of such instalments shall be paid on such date as shall be specified by the Lender by notice in writing to the Borrower and thereafter on the last day of each and every succeeding month until the Borrower shall have repaid to the Lender the Loan as aforesaid and such other sums as shall from time to time be payable by the Borrower to the Lender under Clause 4 hereof together with interest upon all the premises computed as hereinafter provided (which Loan and other sums paid under Clause 4 hereof together with interest are hereinafter called “the debt payable”).
(ii) pay interest on the Loan granted irrespective of whether or not the whole of the Loan or any part thereof shall have been paid or advanced for the benefit of the Borrower at the rate as determined by the Lender per annum with monthly rests (hereinafter referred to as “the ruling rate”).
(iii) pay interest on such other sums as shall from time to time be payable by the Borrower to the Lender under Clause 4 hereof at the ruling rate.
(iv) be responsible for and discharge all outgoings of whatever kind in respect of the lot and the building thereon and the occupation possession and enjoyment thereof whether such outgoings are normally paid by an owner or occupier or otherwise.
(b) The Borrower hereby irrevocably authorizes the Lender to deduct the aforesaid instalments or such other sums as may be determined in accordance with this Agreement from the Borrower’s salary and/or pension every month until the whole of the Loan together with interest thereon and all other sums payable hereunder has been fully paid and satisfied.
3. The Borrower hereby covenants with the Lender to pay to the Lender the debt payable less the aggregate of such monthly instalments and any other sums which he shall have paid to the Lender hereunder (referred to hereafter as “the balance of the debt payable”) upon written demand by the Lender being made for the same; and such demand may be made by the Lender at any time that it thinks fit whether or not the circumstances mentioned in Clause 12 hereof or any of them exist.
4. (a) Without in any way limiting the scope of the provisions of Clause 2(iv) hereof the Borrower hereby covenants with the Lender to make all payments in respect of:
(i) the balance of the purchase price of the lot if it has not been paid for in full at the date hereof.
(ii) assessments, rates, taxes, quit rents and other outgoings payable in respect of the lot or in respect of any interest of the Borrower in any other plot of land containing a septic tank which may serve any building on the lot.
(iii) the effecting or keeping on foot of any such policy or policies of assurance as are provided for in Clause 8 hereof.
(iv) maintaining repairing or so far as may be necessary in the opinion of the Lender for preserving its security maintaining altering or improving the building fixtures and fittings on the lot whether such payments shall be made to the Borrower or to any other person.
(v) the construction maintenance repair or improvement of any private road or street which is in the opinion of the Lender necessary or convenient for the enjoyment of the lot.
(vi) the costs and expenses legal or otherwise (including stamp duty if any) of or connected with:-
(a) the assignment referred to in paragraph (3) of the Recital hereto;
(b) the preparation and execution of this Agreement;
(c) the preparation and execution of the charge as are provided for in Clause 14 hereof;
(d) the reassignment provided for in Clause 15(i) hereof.
(vii) the preservation protection and reasonable improvement generally of the security of the Lender.
(viii)all legal fees as between Solicitor and Client and other costs and disbursements incurred in evicting the Borrower from the lot and the buildings erected thereon and generally in connection with demanding and enforcing payment of the monies due hereunder or otherwise howsoever in enforcing any of the terms conditions and stipulations herein contained.
(b) In the event of the Borrower failing to make any of the payments referred to in Clause 4(a) hereof within seven (7) days of the same becoming payable the Lender shall be at liberty at its sole discretion either to make such payments on behalf of the Borrower and thereby increase the indebtedness of the Borrower to the Lender hereunder or to treat such failure as a breach of contract and proceed to exercise all the rights, powers and remedies available to the Lender and referred to in Clause 12 hereof.
5. (i) Interest payable on all monies secured by this Agreement shall be paid at the ruling rate which expression shall mean interest at the rate as determined by the Lender per annum with monthly rests computed monthly.
(ii) No part of any instalments to be paid by the Borrower as hereinbefore provided or any other payments which the Borrower may make to the Lender shall be deemed to be a repayment of principal until all interest and other miscellaneous payments due or deemed to the Lender have been paid.
(iii) Any statement of account sent by the ….. to the Borrower as to the debt payable or the balance of the debt payable by the Borrower shall be final and conclusive and shall not be questioned on any account whatsoever.
(iv) Interest due hereunder at the rate herein provided shall continue to be payable to the Lender so long as any part of the Loan and monies referred to in Clause 4 hereof remain unpaid by the Borrower to the Lender and the exercise by the Lender of its rights referred to in Clause 12 hereof shall not relieve the Borrower from liability to pay interest hereunder on any balance remaining due and unpaid to the Lender after affecting such sale or assignment of rights.
6. Notwithstanding the provisions relating to the rate of interest as hereinbefore provided the Lender shall be entitled at any time and from time to time at its absolute discretion by a notice in writing of its intention so to do increase or reduce the ruling rate of interest payable hereunder and in regard thereto the following provisions shall apply and have affect:
(i) any increase or decrease in the ruling rate shall take effect and be payable as from the date specified in the said notice and the increased or reduced interest shall be calculated as hereinbefore provided.
(ii) In lieu of the monthly instalments referred to in Clause 2 hereof the Borrower shall as from the expiry of such notice pay such increased or reduced monthly instalments as shall in the opinion of the Lender be appropriate having regard to the alteration affected in the rate of interest payble.
(iii) The Borrower may at his option elect to treat such notice as a notice requiring payment of all monies then due to the Lender hereunder but in that event he shall give written intimation of such election to the Lender within one month of the date of service of the notice and shall on the expiration of the notice pay all such monies to the Lender.
(iv) The decision of the Lender as to what at any time is the appropriate rate of interest chargeable shall be final and conclusive and shall not be questioned on any account whatsoever.
7. (i) The Borrower shall entitled at any time or times on giving two (2) months’ notice in writing to the Lender to repay to the Lender the balance of the debt payable or any lesser sum or sums of not less than Ringgit Malaysia ……………… each in part repayment thereof but any partial repayments made by the Borrower shall not affect the amount of the monthly instalments payable to the Lender hereunder.
(ii) It shall be lawful for the Lender from time to time at the request of the Borrower to accept payment of the monies due hereunder by such increased or reduced instalments as shall from time to time be agreed or to agree to suspend payment of such instalments or to give such further time for payment thereof or to grant such indulgences as shall from time to time seem to the Lender proper but nothing contained herein shall be construed as prejudicing the Lender in the exercise of all or any of the remedies available to it on default by the Borrower.
8. (i) At all times during the continuance of this Agreement the Lender mat at its absolute discretion and through selected agencies approved by the Lender and at the expense of the Borrower insure and keep insured for such amounts in such names and with such insurers as the Lender may from time and time select any buildings or any fixtures or property of an insurable nature whether affixed to the lot or not, being or forming part of the lot:
(a) against loss or damage by fire.
(b) Against such other risks as the Lender may from time to time think expedient.
and the Lender may retain for its own use and benefit any commission paid or allowed to it as agent for such insurers.
(ii) The Borrower shall permit all insurance policies and the receipts or other evidence of payment of any premium paid by the Lender to remain in the custody of the Lender and will when required deliver or produce to the Lender or to such persons as the Lender may direct any policy of insurance effected by the Borrower and the receipt or other evidence of payment of the current premium in respect thereof.
(iii) The Lender may require any money received on any insurance of the said buildings fixtures or property whether effected by the Lender or by the Borrower to be applied in or towards making good the loss or damage in respect of which the money is received or in or towards the discharge of any principal money or interest payable hereunder and the Borrower shall hold any money received on such insurance in trust for the Lender and the Lender may receive or give a good discharge for any such money.
(iv) At all times during the continuance of the Agreement the Lender may through the same selected agencies take out a Mortgage Protecting Decreasing Policy on the life of the Borrower at the cost and expense of the Borrower. The Lender shall be the beneficiary of such policy.
9. The Lender shall be entitled to retain the receipts or evidences of payment of all payments made by the Lender.
10. The Borrower shall:
(i) not use or permit to be used the building, erected or to be erected on the lot for any other purpose except for residence only. PROVIDED ALWAYS that notwithstanding anything to the contrary hereinbefore contained the Borrower may use such building as shophouses where it comes within the definition of a “dwellinghouse” under Clause 26(e) hereof.
(ii) Not part with the possession of the lot or any part thereof or of any building erected or to be erected thereon and not make any alterations or erect any additional buildings or execute any improvement thereto without the consent in writing of the Lender which may be refused without assigning any reason therefor or given either absolutely or on such terms and conditions including the payment of increased monthly instalments or additional interest as the Lender may deem necessary or advisable for the protection of its security and the decision of the Lender shall be final and conclusive and shall not be questioned on any account whatsoever.
(iii) Not grant or attempt to grant any sub-license or sell or attempt to sell or transfer or assign his contractual rights hereunder or relating to any part of the lot or the buildings erected thereon to any person or company without the prior written consent of the Lender which may be refused without assigning any reason therefor or given absolutely or on such terms and conditions including the payment of increased monthly instalments or additional interest as the Lender may deem necessary or advisable for the protection of its security and the decision of the Lender shall be final and conclusive and shall not be questioned on any account whatsoever.
(iv) On receipt of a notice in writing from the Lender that in the opinion of the Lender any user by the Borrower of the lot or any part thereof whether by reason of overcrowding or for any other reason whatsoever is calculated to affect adversely the security of the Lender discontinue such user forthwith.
(v) At all times during the continuance of this Agreement keep the lot and all buildings and other property thereon including all fixtures and additions thereto in good and substantial repair and condition to the satisfaction of the Lender and shall permit the Lender or its Agents with or without workmen and others at convenient hours in the daytime to enter into or upon the lot and all buildings and other property thereon and examine the state and condition thereof and shall forthwith repair and make good all defects and want of repair of which notice in writing shall be given to the Borrower by the Lender.
(vi) Within seven days of the receipt of notice of the same by him give full particulars to the Lender of any notice or proposal for a notice or order or proposal for an order given issued or made to the Borrower in respect of the lot or any buildings erected thereon by or on behalf of any planning, local government, public health, sanitary, housing or other authority and if so required by the Lender shall produce such notice to the Lender and also shall without delay and within the period prescribed by such notice take all reasonable or necessary steps to comply with the provision of such notice or order and also shall at the request of the Lender and at the cost of the Borrower make or join with the Lender in making such objection or representation or representations against or in respect of any proposal for such a notice or order as the Lender shall deem expedient.
11. The Borrower during the continuance of this Agreement shall observe and comply with all conditions and covenants binding upon the lot or upon the Lender as beneficial owner or registered proprietor or otherwise howsoever in respect of the lot and shall not do or omit or suffer to be done or omitted any act matter or thing in or on or respecting the lot or any building erected thereon which shall contravene the provisions of any Act of Parliament, Enactment, Ordinance, order, rule, by-law or regulation now or hereafter affecting the same and shall at all times hereafter indemnify and keep indemnified the Lender against all actions, proceedings, costs and expenses, claims and demands in respect of any such act matter or thing done or omitted to be done in contravention of the said provisions.
12. (a) Without prejudice to the provisions of Clause 3 hereof in case default be made by the Borrower in the payment of any or more of the instalments referred to in Clause 2 hereof or other payments hereby covenanted to be made at the times and in the manner aforesaid or in the performance of any of the covenants agreements, stipulations terms and conditions herein expressed or implied or if the Borrower, or any of them where there are more than one, shall die or if the Borrower, or any of them where there are more than one resigns, is dismissed or his service is being terminated either by the Government of Malaysia, a State Government, a Statutory Authority or local Authority or if the lot is subject to an order for compulsory acquisition under the Land Acquisition Act then and in any such case the Lender shall be at liberty to demand immediate payment of the balance of the debt payable and upon such demand being made the balance of the debt payable shall be immediately payable and in the event of any part of the same remaining unpaid after fourteen (14) days from the date of such demand or after the date specified in a notice of demand made under Clause 3 hereof the Lender shall by notice in writing have the right and power to terminate the license granted in Clause 1 (iii) hereof and to enter upon the lot and to deal with all the right title and interest of the Lender in relation to, or in, as the case my be the lot and the building thereon arising out of the beneficial ownership by the Lender of the lot or the registration of the Lender as owner of the lot or otherwise in all respects as the person absolutely and beneficially entitled thereto including the right and power to assign the said right title and interest at such price and in such manner and subject to such conditions as the Lender shall in its absolute discretion think fit free from any interest of the Borrower hereunder or otherwise and the Lender shall apply the net proceeds of any such assignment or sale after payment of all the legal costs and expenses thereof and incidental thereto in or towards the payment of the balance of the debt payable and the Lender shall pay to the Borrower or any other occasion has arisen for the exercise of the Lender’s right and power of assignment or sale hereunder.
(b) If the net proceeds of any such assignment or sale is less than the balance of the debt payable after deduction and payment from the proceeds of such assignment or sale of all fees (including the Lender’s Solicitors’ fees), dues, costs, rents, taxes and other outgoings and all the expenses incurred in connection with the making and carrying into effect of the assignment or sale notwithstanding the fact that the Lender is the assignee or purchaser or otherwise, the Borrower shall pay to the Lender the difference between the balance of the debt payable and the net proceeds of such assignment or sale until payment the Borrower shall also pay interest on such difference at the ruling rate.
13. Notwithstanding anything in this Agreement contained, it is hereby declared that the Borrower shall during the continuance of this Agreement retain possession of the lot as the Licensee of the Lender and by no other right and within seven days after his license to occupy the lot has been terminated in manner referred to in Clause 12 hereof he will give immediate vacant possession of the lot and the buildings erected thereon to the Lender or as the Lender may direct.
14. At such time as there shall be issued a separate document of title to the lot, the Borrower shall execute a charge over the premises comprised in the said document of title such charge to be in the Lender’s standard form in use at the time of such charge with such amendments only thereto as may required having regard to the nature of such premises and to be in favour of the Lender for securing the payment to the Lender of the balance of the debt payable so as to terminate this Agreement forthwith PROVIDED THAT notwithstanding such termination this Agreement shall as regards any antecedent default of the Borrower remain in full force and effect.
15. At such time as the Borrower shall have paid to the Lender all sums payable hereunder (except sums payable hereunder in respect of the matters in this Clause herein referred to) then:
(i) the Lender shall reassign all its rights title and interest in and to the lot under the said Agreement and the Borrower shall accept the same.
(ii) Upon execution by the Lender of the reassignment provided for in paragraph (i) hereof this Agreement shall forthwith terminate and be at an end except for the payment by the Borrower to the Lender hereunder of the monies payable by reason of the compliance by the Lender with the provisions of this Clause.
(iii) Until such time as the Lender’s right title and interest in and the lot are reassigned to the Borrower the Lender shall hold the lot as trustee for the Borrower subject always to the compliance by the Borrower with the covenants terms and provisions of this Agreement and any notice or notices served by the Lender hereunder.
16. Any notice required to be served under this Agreement shall be in writing and shall sufficiently served on the Lender if addressed to the Lender and left or sent by post to its office for the time being and shall be sufficiently served on the Borrower if addressed to the Borrower and left at or sent by post to the address of the Borrower hereinabove stated or left a or sent by post to the usual or last known place of abode or employment of the Borrower or left at or sent by post to the address last provided in writing by the Borrower and any notice given by the Lender including any notice of demand may be signed on behalf of the Lender by the Setiausaha, Timbalan Setiausaha or any officer of the Bahagian Pinjaman Perumahan, Perbendaharaan Malaysia.
17. Notwithstanding the fact that it may not have exercised and remedy available to it immediately on default by the Borrower or that it may have accepted moneys from the Borrower after such default the Lender shall not be held to have condoned or acquiesced in such default and may at any time thereafter exercise all or any of the remedies available to it and any delay on the part of the Lender in taking steps to enforce the remedies available to it by this Agreement shall not be held to prejudice its rights of action in respect thereof.
18. The Borrower hereby covenants with the Lender that each and every statement contained in the Loan Application form and every declaration made therein is true and accurate and that if it is hereinafter discovered that any of the statements or declarations contained herein is false or untrue the Borrower shall be deemed to have defaulted and committed a breach of covenant and in such an event the Lender shall be entitled to have recourse to the remedies provided in Clause 12 hereof.
19. The Loan herein granted to the Borrower is subject to the provisions of the Lender’s Housing Loan Scheme and the Borrower hereby agrees that he will further comply with such terms, conditions and stipulations therein contained in the Lender’s Housing Loan Scheme or such amendments or modifications thereof in force.
20. This Agreement shall be binding upon the heirs administrators executors and permitted assigns of the Borrower and the successors in title and assigns of the Lender.
21. For the consideration aforesaid the Borrower hereby irrevocably appoints the Secretary General of the Federal Treasury of the Lender the attorneys of the Borrower for him and in his name or in the name of the attorney or otherwise and on his behalf to deal with the lot and the buildings erected thereon in any manner whatsoever and to enforce all rights and remedies under the said Agreement and do all things as fully and effectually as the Borrower could do himself in connection therewith and in particular but without prejudice to the generality of the foregoing to assign sell let lease or demise the lot and the buildings erected thereon or any part thereof and to do all whatsoever acts and execute all whatsoever documents to give effect to such sale letting or lease or which the Lender may deem necessary on any sale by the Lender of the Borrower’s rights title and interest in the lot and the buildings erected thereon under the power of sale conferred by this Agreement and to give a good receipt for the purchase monies received and also to perform all whatsoever acts matters and things necessary or expedient for the registration of this instrument as fully and effectually as the Borrower could do himself if he were personally present with power for such attorney to substitute and appoint one or more attorneys under him for all or any of the purposes aforesaid as he shall think fit. AND the Borrower hereby agrees and undertakes at all times hereafter to ratify and confirm whatsoever the said attorney or his attorney or attorneys shall lawfully do or cause to be done in and concerning the premises by virtue of this instrument.
22. In the event that the lot or any part thereof shall at any time become the subject matter of or be included in any notice notification or declaration concerning or relating to acquisition by Government or any Government Authority or any enquiry or proceedings in respect thereof the Borrower shall forthwith inform the Lender of the same and shall forward the Lender a copy or copies of any such notice notification or declaration as soon as the same shall be delivered to or be served on the Borrower. The Lender shall be entitled at the expense of the Borrower to engage such advisers and agents (including solicitors and valuers) as it may think fit for the purpose of appearing or attending at or advising upon any enquiry or proceedings affecting concerning or relating to any such acquisition. All monies received as or by way of compensation for the acquisition of the lot or any part thereof shall be applied in or towards the discharge or repayment of any money or liability secured by this Agreement and the Borrower shall and hereby declares that the Borrower shall hold all monies so received in trust for the Lender and the Borrower agrees and confirms that the Lender may receive and give a good discharge for all such monies.
23. So long as any monies shall be owing by the Borrower to the Lender and during the continuance of this Agreement the Lender shall have the custody and possession of the Borrower’s copy of the said Agreement and of all other whatsoever documents evidencing any title to or right in the lot or any benefits or rights annexed appurtenant or relating thereto or in any way connected therewith.
24. Nothing herein contained shall prejudice or affect any lien to which the Lender is entitled or any other securities which the Lender may at any time to time hold for on account of the money hereby secured, nor shall anything herein contained operate so as to merge or otherwise prejudice or affect any bill, will note, guarantee, mortgage or other security which the Lender may for the time being have for any money intended to be hereby or otherwise secured or any right or remedy of the Lender thereunder.
25. Nothing contained herein shall be deemed to render it obligatory upon the Lender either at law or in equity to make or continue to make any advances or to afford any other accommodation or facilities whatsoever.
26. In this Agreement, where the context so admits:
(a) “Month” means calendar month.
(b) The expression “monthly instalment” means an instalment payable by the Borrower under any covenant or provision herein contained.
(c) Words importing the masculine gender only include the feminine and neuter genders.
(d) Words importing the singular number only include the plural number and where there are two or more persons included in the expression “the Borrower” covenants expressed to be made by and provisions expressed to be binding upon the Borrower shall be deemed to be made by and to be binding upon such persons jointly and severally.
(e) The word “dwellinghouse” includes a shophouse with adequate residential facilities for a family and where the title to the lot referred to herein does not prohibit the erection of a shophouse, the necessary planning permission for the erection of a shophouse has been obtained, and the application to the Lender for a loan has been made in respect of such shophouse.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and year first above mentioned.
Signed for and on behalf of
THE GOVERNMENT OF MALAYSIA
in the presence of: ..……………………………………………
Signed by the said (the Borrower):
in the presence of:
Signature of Witness:
Official Chop :
……………………………….
(NRIC No…….)
Employer Loan Agreement
THIS AGREEMENT is made the ……… day of …………….… BETWEEN …. (hereinafter called “the Lender”) of the one part AND ……..(NRIC No…..) of PT (hereinafter called “the Borrower”) of the other part.
WHEREAS
(1) By an Agreement dated the ….. (hereinafter called “the said Agreement”) made between ….[Company No….], a company incorporated in Malaysia and having its registered office at Suite …. Kuala Lumpur and a place of business at ….(hereinafter called “the Vendor”) and the Borrower the Vendor sold and the Borrower purchased a plot of land (hereinafter called “the lot”) situated in the Mukim/Town of … District of …. State of … being the lot numbered .. and coloured red on the plan annexed to the said Agreement and containing an area of … square feet or thereabouts.
(2) The Borrower has requested the Lender to grant him a loan of Ringgit Malaysia ………only to enable him to build or purchase a dwellinghouse which is in the course of construction or has already been erected on the lot and the Lender has agreed to do on condition that the Borrower assigns to the Lender all his right title and interest in and to the lot under the said Agreement and subject also to his entering into the covenants hereinafter contained.
(3) The Borrower by an Assignment executed on even date with these presents has assigned all his said right title and interest to the Lender.
NOW THEREFORE IN CONSIDERATION OF THE LOAN AFTERDEFINED AND TO THE COVENANTS AFTERMENTIONED IT IS HEREBY AGREED AND DECLARED AS FOLLOWS:
1. (i) The Lender shall pay to the Borrower or as the Borrower shall direct the said sum of Ringgit Malaysia ……………only (hereinafter called “the Loan”) by advances of such amounts and at such times as the Lender shall in its absolute discretion think fit having regard to the progress of the construction of the said dwellinghouse upon the lot.
(ii) Notwithstanding the provisions of paragraph (i) of this Clause the Lender may at its sole discretion pay the whole or any part of the Loan to the Architect, Builder, Contractor or other person or persons responsible for or engaged in the construction of the said dwellinghouse or to any Solicitor or firm of Solicitors purporting to act for the Borrower and every payment so made shall be deemed to be an advance to the Borrower for the purposes hereof including the calculation of interest. It is hereby expressly agreed and confirmed by the Borrower that any acknowledgement or receipt given by the aforesaid person or persons shall be as good and effective as if the same has been made or given the Borrower personally.
PROVIDED ALWAYS the Lender shall be at liberty to withhold any part of the Loan for any reason or reasons it may have.
(iii) The Lender shall permit the Borrower to have possession of the lot and the building erected or to be erected thereon but only as Licensee of the Lender until this License is terminated by the Lender in the manner provided by Clause 12 hereof.
2. (a) The Borrower shall:
(i) pay to the Lender instalment of Ringgit Malaysia …………only or of such other sum as the Lender shall require in accordance with the provisions of this Agreement punctually on the last day of every month the first of such instalments shall be paid on such date as shall be specified by the Lender by notice in writing to the Borrower and thereafter on the last day of each and every succeeding month until the Borrower shall have repaid to the Lender the Loan as aforesaid and such other sums as shall from time to time be payable by the Borrower to the Lender under Clause 4 hereof together with interest upon all the premises computed as hereinafter provided (which Loan and other sums paid under Clause 4 hereof together with interest are hereinafter called “the debt payable”).
(ii) pay interest on the Loan granted irrespective of whether or not the whole of the Loan or any part thereof shall have been paid or advanced for the benefit of the Borrower at the rate as determined by the Lender per annum with monthly rests (hereinafter referred to as “the ruling rate”).
(iii) pay interest on such other sums as shall from time to time be payable by the Borrower to the Lender under Clause 4 hereof at the ruling rate.
(iv) be responsible for and discharge all outgoings of whatever kind in respect of the lot and the building thereon and the occupation possession and enjoyment thereof whether such outgoings are normally paid by an owner or occupier or otherwise.
(b) The Borrower hereby irrevocably authorizes the Lender to deduct the aforesaid instalments or such other sums as may be determined in accordance with this Agreement from the Borrower’s salary and/or pension every month until the whole of the Loan together with interest thereon and all other sums payable hereunder has been fully paid and satisfied.
3. The Borrower hereby covenants with the Lender to pay to the Lender the debt payable less the aggregate of such monthly instalments and any other sums which he shall have paid to the Lender hereunder (referred to hereafter as “the balance of the debt payable”) upon written demand by the Lender being made for the same; and such demand may be made by the Lender at any time that it thinks fit whether or not the circumstances mentioned in Clause 12 hereof or any of them exist.
4. (a) Without in any way limiting the scope of the provisions of Clause 2(iv) hereof the Borrower hereby covenants with the Lender to make all payments in respect of:
(i) the balance of the purchase price of the lot if it has not been paid for in full at the date hereof.
(ii) assessments, rates, taxes, quit rents and other outgoings payable in respect of the lot or in respect of any interest of the Borrower in any other plot of land containing a septic tank which may serve any building on the lot.
(iii) the effecting or keeping on foot of any such policy or policies of assurance as are provided for in Clause 8 hereof.
(iv) maintaining repairing or so far as may be necessary in the opinion of the Lender for preserving its security maintaining altering or improving the building fixtures and fittings on the lot whether such payments shall be made to the Borrower or to any other person.
(v) the construction maintenance repair or improvement of any private road or street which is in the opinion of the Lender necessary or convenient for the enjoyment of the lot.
(vi) the costs and expenses legal or otherwise (including stamp duty if any) of or connected with:-
(a) the assignment referred to in paragraph (3) of the Recital hereto;
(b) the preparation and execution of this Agreement;
(c) the preparation and execution of the charge as are provided for in Clause 14 hereof;
(d) the reassignment provided for in Clause 15(i) hereof.
(vii) the preservation protection and reasonable improvement generally of the security of the Lender.
(viii)all legal fees as between Solicitor and Client and other costs and disbursements incurred in evicting the Borrower from the lot and the buildings erected thereon and generally in connection with demanding and enforcing payment of the monies due hereunder or otherwise howsoever in enforcing any of the terms conditions and stipulations herein contained.
(b) In the event of the Borrower failing to make any of the payments referred to in Clause 4(a) hereof within seven (7) days of the same becoming payable the Lender shall be at liberty at its sole discretion either to make such payments on behalf of the Borrower and thereby increase the indebtedness of the Borrower to the Lender hereunder or to treat such failure as a breach of contract and proceed to exercise all the rights, powers and remedies available to the Lender and referred to in Clause 12 hereof.
5. (i) Interest payable on all monies secured by this Agreement shall be paid at the ruling rate which expression shall mean interest at the rate as determined by the Lender per annum with monthly rests computed monthly.
(ii) No part of any instalments to be paid by the Borrower as hereinbefore provided or any other payments which the Borrower may make to the Lender shall be deemed to be a repayment of principal until all interest and other miscellaneous payments due or deemed to the Lender have been paid.
(iii) Any statement of account sent by the ….. to the Borrower as to the debt payable or the balance of the debt payable by the Borrower shall be final and conclusive and shall not be questioned on any account whatsoever.
(iv) Interest due hereunder at the rate herein provided shall continue to be payable to the Lender so long as any part of the Loan and monies referred to in Clause 4 hereof remain unpaid by the Borrower to the Lender and the exercise by the Lender of its rights referred to in Clause 12 hereof shall not relieve the Borrower from liability to pay interest hereunder on any balance remaining due and unpaid to the Lender after affecting such sale or assignment of rights.
6. Notwithstanding the provisions relating to the rate of interest as hereinbefore provided the Lender shall be entitled at any time and from time to time at its absolute discretion by a notice in writing of its intention so to do increase or reduce the ruling rate of interest payable hereunder and in regard thereto the following provisions shall apply and have affect:
(i) any increase or decrease in the ruling rate shall take effect and be payable as from the date specified in the said notice and the increased or reduced interest shall be calculated as hereinbefore provided.
(ii) In lieu of the monthly instalments referred to in Clause 2 hereof the Borrower shall as from the expiry of such notice pay such increased or reduced monthly instalments as shall in the opinion of the Lender be appropriate having regard to the alteration affected in the rate of interest payble.
(iii) The Borrower may at his option elect to treat such notice as a notice requiring payment of all monies then due to the Lender hereunder but in that event he shall give written intimation of such election to the Lender within one month of the date of service of the notice and shall on the expiration of the notice pay all such monies to the Lender.
(iv) The decision of the Lender as to what at any time is the appropriate rate of interest chargeable shall be final and conclusive and shall not be questioned on any account whatsoever.
7. (i) The Borrower shall entitled at any time or times on giving two (2) months’ notice in writing to the Lender to repay to the Lender the balance of the debt payable or any lesser sum or sums of not less than Ringgit Malaysia ……………… each in part repayment thereof but any partial repayments made by the Borrower shall not affect the amount of the monthly instalments payable to the Lender hereunder.
(ii) It shall be lawful for the Lender from time to time at the request of the Borrower to accept payment of the monies due hereunder by such increased or reduced instalments as shall from time to time be agreed or to agree to suspend payment of such instalments or to give such further time for payment thereof or to grant such indulgences as shall from time to time seem to the Lender proper but nothing contained herein shall be construed as prejudicing the Lender in the exercise of all or any of the remedies available to it on default by the Borrower.
8. (i) At all times during the continuance of this Agreement the Lender mat at its absolute discretion and through selected agencies approved by the Lender and at the expense of the Borrower insure and keep insured for such amounts in such names and with such insurers as the Lender may from time and time select any buildings or any fixtures or property of an insurable nature whether affixed to the lot or not, being or forming part of the lot:
(a) against loss or damage by fire.
(b) Against such other risks as the Lender may from time to time think expedient.
and the Lender may retain for its own use and benefit any commission paid or allowed to it as agent for such insurers.
(ii) The Borrower shall permit all insurance policies and the receipts or other evidence of payment of any premium paid by the Lender to remain in the custody of the Lender and will when required deliver or produce to the Lender or to such persons as the Lender may direct any policy of insurance effected by the Borrower and the receipt or other evidence of payment of the current premium in respect thereof.
(iii) The Lender may require any money received on any insurance of the said buildings fixtures or property whether effected by the Lender or by the Borrower to be applied in or towards making good the loss or damage in respect of which the money is received or in or towards the discharge of any principal money or interest payable hereunder and the Borrower shall hold any money received on such insurance in trust for the Lender and the Lender may receive or give a good discharge for any such money.
(iv) At all times during the continuance of the Agreement the Lender may through the same selected agencies take out a Mortgage Protecting Decreasing Policy on the life of the Borrower at the cost and expense of the Borrower. The Lender shall be the beneficiary of such policy.
9. The Lender shall be entitled to retain the receipts or evidences of payment of all payments made by the Lender.
10. The Borrower shall:
(i) not use or permit to be used the building, erected or to be erected on the lot for any other purpose except for residence only. PROVIDED ALWAYS that notwithstanding anything to the contrary hereinbefore contained the Borrower may use such building as shophouses where it comes within the definition of a “dwellinghouse” under Clause 26(e) hereof.
(ii) Not part with the possession of the lot or any part thereof or of any building erected or to be erected thereon and not make any alterations or erect any additional buildings or execute any improvement thereto without the consent in writing of the Lender which may be refused without assigning any reason therefor or given either absolutely or on such terms and conditions including the payment of increased monthly instalments or additional interest as the Lender may deem necessary or advisable for the protection of its security and the decision of the Lender shall be final and conclusive and shall not be questioned on any account whatsoever.
(iii) Not grant or attempt to grant any sub-license or sell or attempt to sell or transfer or assign his contractual rights hereunder or relating to any part of the lot or the buildings erected thereon to any person or company without the prior written consent of the Lender which may be refused without assigning any reason therefor or given absolutely or on such terms and conditions including the payment of increased monthly instalments or additional interest as the Lender may deem necessary or advisable for the protection of its security and the decision of the Lender shall be final and conclusive and shall not be questioned on any account whatsoever.
(iv) On receipt of a notice in writing from the Lender that in the opinion of the Lender any user by the Borrower of the lot or any part thereof whether by reason of overcrowding or for any other reason whatsoever is calculated to affect adversely the security of the Lender discontinue such user forthwith.
(v) At all times during the continuance of this Agreement keep the lot and all buildings and other property thereon including all fixtures and additions thereto in good and substantial repair and condition to the satisfaction of the Lender and shall permit the Lender or its Agents with or without workmen and others at convenient hours in the daytime to enter into or upon the lot and all buildings and other property thereon and examine the state and condition thereof and shall forthwith repair and make good all defects and want of repair of which notice in writing shall be given to the Borrower by the Lender.
(vi) Within seven days of the receipt of notice of the same by him give full particulars to the Lender of any notice or proposal for a notice or order or proposal for an order given issued or made to the Borrower in respect of the lot or any buildings erected thereon by or on behalf of any planning, local government, public health, sanitary, housing or other authority and if so required by the Lender shall produce such notice to the Lender and also shall without delay and within the period prescribed by such notice take all reasonable or necessary steps to comply with the provision of such notice or order and also shall at the request of the Lender and at the cost of the Borrower make or join with the Lender in making such objection or representation or representations against or in respect of any proposal for such a notice or order as the Lender shall deem expedient.
11. The Borrower during the continuance of this Agreement shall observe and comply with all conditions and covenants binding upon the lot or upon the Lender as beneficial owner or registered proprietor or otherwise howsoever in respect of the lot and shall not do or omit or suffer to be done or omitted any act matter or thing in or on or respecting the lot or any building erected thereon which shall contravene the provisions of any Act of Parliament, Enactment, Ordinance, order, rule, by-law or regulation now or hereafter affecting the same and shall at all times hereafter indemnify and keep indemnified the Lender against all actions, proceedings, costs and expenses, claims and demands in respect of any such act matter or thing done or omitted to be done in contravention of the said provisions.
12. (a) Without prejudice to the provisions of Clause 3 hereof in case default be made by the Borrower in the payment of any or more of the instalments referred to in Clause 2 hereof or other payments hereby covenanted to be made at the times and in the manner aforesaid or in the performance of any of the covenants agreements, stipulations terms and conditions herein expressed or implied or if the Borrower, or any of them where there are more than one, shall die or if the Borrower, or any of them where there are more than one resigns, is dismissed or his service is being terminated either by the Government of Malaysia, a State Government, a Statutory Authority or local Authority or if the lot is subject to an order for compulsory acquisition under the Land Acquisition Act then and in any such case the Lender shall be at liberty to demand immediate payment of the balance of the debt payable and upon such demand being made the balance of the debt payable shall be immediately payable and in the event of any part of the same remaining unpaid after fourteen (14) days from the date of such demand or after the date specified in a notice of demand made under Clause 3 hereof the Lender shall by notice in writing have the right and power to terminate the license granted in Clause 1 (iii) hereof and to enter upon the lot and to deal with all the right title and interest of the Lender in relation to, or in, as the case my be the lot and the building thereon arising out of the beneficial ownership by the Lender of the lot or the registration of the Lender as owner of the lot or otherwise in all respects as the person absolutely and beneficially entitled thereto including the right and power to assign the said right title and interest at such price and in such manner and subject to such conditions as the Lender shall in its absolute discretion think fit free from any interest of the Borrower hereunder or otherwise and the Lender shall apply the net proceeds of any such assignment or sale after payment of all the legal costs and expenses thereof and incidental thereto in or towards the payment of the balance of the debt payable and the Lender shall pay to the Borrower or any other occasion has arisen for the exercise of the Lender’s right and power of assignment or sale hereunder.
(b) If the net proceeds of any such assignment or sale is less than the balance of the debt payable after deduction and payment from the proceeds of such assignment or sale of all fees (including the Lender’s Solicitors’ fees), dues, costs, rents, taxes and other outgoings and all the expenses incurred in connection with the making and carrying into effect of the assignment or sale notwithstanding the fact that the Lender is the assignee or purchaser or otherwise, the Borrower shall pay to the Lender the difference between the balance of the debt payable and the net proceeds of such assignment or sale until payment the Borrower shall also pay interest on such difference at the ruling rate.
13. Notwithstanding anything in this Agreement contained, it is hereby declared that the Borrower shall during the continuance of this Agreement retain possession of the lot as the Licensee of the Lender and by no other right and within seven days after his license to occupy the lot has been terminated in manner referred to in Clause 12 hereof he will give immediate vacant possession of the lot and the buildings erected thereon to the Lender or as the Lender may direct.
14. At such time as there shall be issued a separate document of title to the lot, the Borrower shall execute a charge over the premises comprised in the said document of title such charge to be in the Lender’s standard form in use at the time of such charge with such amendments only thereto as may required having regard to the nature of such premises and to be in favour of the Lender for securing the payment to the Lender of the balance of the debt payable so as to terminate this Agreement forthwith PROVIDED THAT notwithstanding such termination this Agreement shall as regards any antecedent default of the Borrower remain in full force and effect.
15. At such time as the Borrower shall have paid to the Lender all sums payable hereunder (except sums payable hereunder in respect of the matters in this Clause herein referred to) then:
(i) the Lender shall reassign all its rights title and interest in and to the lot under the said Agreement and the Borrower shall accept the same.
(ii) Upon execution by the Lender of the reassignment provided for in paragraph (i) hereof this Agreement shall forthwith terminate and be at an end except for the payment by the Borrower to the Lender hereunder of the monies payable by reason of the compliance by the Lender with the provisions of this Clause.
(iii) Until such time as the Lender’s right title and interest in and the lot are reassigned to the Borrower the Lender shall hold the lot as trustee for the Borrower subject always to the compliance by the Borrower with the covenants terms and provisions of this Agreement and any notice or notices served by the Lender hereunder.
16. Any notice required to be served under this Agreement shall be in writing and shall sufficiently served on the Lender if addressed to the Lender and left or sent by post to its office for the time being and shall be sufficiently served on the Borrower if addressed to the Borrower and left at or sent by post to the address of the Borrower hereinabove stated or left a or sent by post to the usual or last known place of abode or employment of the Borrower or left at or sent by post to the address last provided in writing by the Borrower and any notice given by the Lender including any notice of demand may be signed on behalf of the Lender by the Setiausaha, Timbalan Setiausaha or any officer of the Bahagian Pinjaman Perumahan, Perbendaharaan Malaysia.
17. Notwithstanding the fact that it may not have exercised and remedy available to it immediately on default by the Borrower or that it may have accepted moneys from the Borrower after such default the Lender shall not be held to have condoned or acquiesced in such default and may at any time thereafter exercise all or any of the remedies available to it and any delay on the part of the Lender in taking steps to enforce the remedies available to it by this Agreement shall not be held to prejudice its rights of action in respect thereof.
18. The Borrower hereby covenants with the Lender that each and every statement contained in the Loan Application form and every declaration made therein is true and accurate and that if it is hereinafter discovered that any of the statements or declarations contained herein is false or untrue the Borrower shall be deemed to have defaulted and committed a breach of covenant and in such an event the Lender shall be entitled to have recourse to the remedies provided in Clause 12 hereof.
19. The Loan herein granted to the Borrower is subject to the provisions of the Lender’s Housing Loan Scheme and the Borrower hereby agrees that he will further comply with such terms, conditions and stipulations therein contained in the Lender’s Housing Loan Scheme or such amendments or modifications thereof in force.
20. This Agreement shall be binding upon the heirs administrators executors and permitted assigns of the Borrower and the successors in title and assigns of the Lender.
21. For the consideration aforesaid the Borrower hereby irrevocably appoints the Secretary General of the Federal Treasury of the Lender the attorneys of the Borrower for him and in his name or in the name of the attorney or otherwise and on his behalf to deal with the lot and the buildings erected thereon in any manner whatsoever and to enforce all rights and remedies under the said Agreement and do all things as fully and effectually as the Borrower could do himself in connection therewith and in particular but without prejudice to the generality of the foregoing to assign sell let lease or demise the lot and the buildings erected thereon or any part thereof and to do all whatsoever acts and execute all whatsoever documents to give effect to such sale letting or lease or which the Lender may deem necessary on any sale by the Lender of the Borrower’s rights title and interest in the lot and the buildings erected thereon under the power of sale conferred by this Agreement and to give a good receipt for the purchase monies received and also to perform all whatsoever acts matters and things necessary or expedient for the registration of this instrument as fully and effectually as the Borrower could do himself if he were personally present with power for such attorney to substitute and appoint one or more attorneys under him for all or any of the purposes aforesaid as he shall think fit. AND the Borrower hereby agrees and undertakes at all times hereafter to ratify and confirm whatsoever the said attorney or his attorney or attorneys shall lawfully do or cause to be done in and concerning the premises by virtue of this instrument.
22. In the event that the lot or any part thereof shall at any time become the subject matter of or be included in any notice notification or declaration concerning or relating to acquisition by Government or any Government Authority or any enquiry or proceedings in respect thereof the Borrower shall forthwith inform the Lender of the same and shall forward the Lender a copy or copies of any such notice notification or declaration as soon as the same shall be delivered to or be served on the Borrower. The Lender shall be entitled at the expense of the Borrower to engage such advisers and agents (including solicitors and valuers) as it may think fit for the purpose of appearing or attending at or advising upon any enquiry or proceedings affecting concerning or relating to any such acquisition. All monies received as or by way of compensation for the acquisition of the lot or any part thereof shall be applied in or towards the discharge or repayment of any money or liability secured by this Agreement and the Borrower shall and hereby declares that the Borrower shall hold all monies so received in trust for the Lender and the Borrower agrees and confirms that the Lender may receive and give a good discharge for all such monies.
23. So long as any monies shall be owing by the Borrower to the Lender and during the continuance of this Agreement the Lender shall have the custody and possession of the Borrower’s copy of the said Agreement and of all other whatsoever documents evidencing any title to or right in the lot or any benefits or rights annexed appurtenant or relating thereto or in any way connected therewith.
24. Nothing herein contained shall prejudice or affect any lien to which the Lender is entitled or any other securities which the Lender may at any time to time hold for on account of the money hereby secured, nor shall anything herein contained operate so as to merge or otherwise prejudice or affect any bill, will note, guarantee, mortgage or other security which the Lender may for the time being have for any money intended to be hereby or otherwise secured or any right or remedy of the Lender thereunder.
25. Nothing contained herein shall be deemed to render it obligatory upon the Lender either at law or in equity to make or continue to make any advances or to afford any other accommodation or facilities whatsoever.
26. In this Agreement, where the context so admits:
(a) “Month” means calendar month.
(b) The expression “monthly instalment” means an instalment payable by the Borrower under any covenant or provision herein contained.
(c) Words importing the masculine gender only include the feminine and neuter genders.
(d) Words importing the singular number only include the plural number and where there are two or more persons included in the expression “the Borrower” covenants expressed to be made by and provisions expressed to be binding upon the Borrower shall be deemed to be made by and to be binding upon such persons jointly and severally.
(e) The word “dwellinghouse” includes a shophouse with adequate residential facilities for a family and where the title to the lot referred to herein does not prohibit the erection of a shophouse, the necessary planning permission for the erection of a shophouse has been obtained, and the application to the Lender for a loan has been made in respect of such shophouse.
IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and year first above mentioned.
Signed for and on behalf of
THE GOVERNMENT OF MALAYSIA
in the presence of: ..……………………………………………
Signed by the said (the Borrower):
in the presence of:
Signature of Witness:
Official Chop :
……………………………….
(NRIC No…….)
