MORTGAGE INSURANCE ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Insurance of loans

   4   Insurable loans

   5   Collection of insurance fee on loans

   6   Termination of policy

   7   Insurance settlement

   8   Alternative insurance settlement

   9   Mortgage Insurance Fund

   10   Payment in debentures

   11   Government guaranteed loans

   12   Insurance in lieu of Government guarantee

   13   Limit on total amount of insurance to be undertaken by Bank

   14   Administrative expenses of the Bank

   15   Government advances to the Bank

   16   Accounts and reports

   17   Increased powers of approved lenders

   18   Regulations

   19   Exemption from provisions of Insurance Act

 

THE MORTGAGE INSURANCE ACT

[Date of Commencement: 15th June, 1960]

Law 26 of 1960.

Acts
21 of 1967,
42 of 1969,
20 of 1971,
48 of 1973,
1 of 1994,
9 of 2008.

1   Short title

   This Act may be cited as the Mortgage Insurance Act.

2   Interpretation

   In this Act-

   "administer", in relation to an insured loan, means to have the right to collect interest and other payments in respect of the loan and the power to enforce any security for the loan;

   "agricultural land" means any land which is used or may be used for any activities relating to horticulture, afforestation, apiculture, viticulture, fishing, the development and maintenance of pastures, the cultivation of crops and the keeping or breeding of livestock or poultry;

[20/1971 s 3(a).]

   "appraised value" means the value for lending purposes of a house, commercial property, residential lot, or agricultural land as determined by the Bank;

[20/1971 s 3(b); 1/1994 ss 2(a) and 3.]

   "approved lender" means a lender for the time being approved by the Minister for the purpose of making loans which may be insured under this Act;

   "approved loan" means a loan in respect of which the Bank has given an undertaking pursuant to paragraph (b) of subsection (1) of section 3;

[1/1994 s 3.]

   "Bank" means the Jamaica Mortgage Bank established by the Jamaica Mortgage Bank Act;

[1/1994 s 2(b).]

   "borrower's charges" means prescribed charges advanced by an approved lender to safeguard the interests of the mortgagee or the Bank or both;

[1/1994 s 3.]

   "commercial property" means property, not being a residential lot or agricultural land, which has on it hotels, offices, factories or other industrial or commercial buildings;

[1/1994 s 2(c).]

   "Government guaranteed loan" means a loan in respect of which, pursuant to paragraph (b) of subsection (2) of section 49 of the Housing Act, the Government has guaranteed the repayment of any portion of the sum of money lent to any person for the purpose of purchasing a house constructed by a housing association as defined for the purposes of Part VI. of that Act;

   "house" means a building, together with the curtilage thereof, intended for human habitation and includes that portion of a building which constitutes a strata lot under the Registration (Strata Titles) Act;

[48/1973 s 2.]

   "insured loan" means a loan in respect of which an insurance policy issued under this Act is in force;

   "lender" means-

   (a)   any of the following-

         (i)   a loan company, insurance company, trust or other company or corporation;

         (ii)   a trustee of trust funds;

         (iii)   a building society, co-operative credit society, co-operative housing society, or other society, authorised to lend money on the security of real or immovable property;

[9/2008 s 2(a).]

   (b)      a bank licensed under the Banking Act; or

[9/2008 s 2(b).]

    (c)   a financial institution licensed under the Financial Institutions Act.

[9/2008 s 2(b).]

3   Insurance of loans

   (1) The Bank may in accordance with the provisions of this Act-

[1/1994 s 3.]

   (a)   effect contracts of insurance and issue insurance policies in respect of loans insurable under the provisions of this Act;

   (b)   prior to the issue of an insurance policy in respect of a loan give an approved lender an undertaking that the Bank will issue the insurance policy if the loan is made in accordance with this Act;

   (c)   charge fees (in this Act called "insurance fees") in respect of such contracts of insurance as aforesaid;

   (d)   administer any fund established by or pursuant to this Act.

[1/1994 s 3.]

   (2) Subject to the provisions of regulations made under this Act, where an approved loan is made by an approved lender and the insurance fee in respect thereof has been paid, the Bank shall, at the request of the approved lender, issue to the lender an insurance policy in respect of the loan or part thereof.

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