| (1) | The Management Committee may, in terms of clause 7 (2) (d), from not more than 10% (ten per cent) of the surplus monies of the Fund, grant housing or mortgage loans to contributors to the Fund or their legal spouses in an amount of not less than R1 000 or greater than R12 000: Provided that— |
| (a) | a loan contemplated in this clause shall not be granted— |
| (aa) | a first mortgage on the immovable property in respect of which it is granted; or |
| (ab) | a pledge of the benefits to which the member is entitled in terms of the rules of the fund; or |
| (ac) | both such mortgage and such pledge; |
| (ii) | in aspect of immovable property if the member concerned is liable to the Fund in respect of a loan granted to him in respect of other immovable property; |
| (iii) | at a lower rate than that which may from time to time be specified by regulation; |
| (iv) | unless the capital sum is redeemable over a period not exceeding 30 (thirty) years in equal weekly or monthly instalments, which shall include the interest on the capital sum outstanding; |
| (b) | a loan contemplated in this clause shall not exceed, where it is secured in accordance with— |
| (i) | subclause (1) (i) (aa), 90% (ninety per cent) of the market value of the hypothecated property concerned; |
| (ii) | subclause (1) (i) (ab), 90% (ninety per cent) of the amount of the benefit which the member would receive if he were to terminate his membership of the fund voluntarily or the market value of the immovable property concerned, after deduction of any tax which may be due; or |
| (iii) | subclause (1) (i) (ac), the amount equal to the aggregate of 90% (ninety per cent) of the market value of the hypothecated property concerned and the amount of the benefit which the member would receive if he were to terminate his membership of the fund in terms of clause 9 (1) or the market value of the property, whichever is the lesser amount; or |
| (iv) | items (aa) and (ac) of subclause (1) (i) (a), 100% (hundred per cent) of the market value of the hypothecated property, subject to the furnishing to the fund by the employer of the member of an irrevocable guarantee in respect of so much of the loan as may exceed 90% (ninety per cent); |
| (c) | a loan contemplated in this subclause shall be available only to members— |
| (i) | who do not qualify for a mortgage loan from an institution other than the fund itself; |
| (ii) | have at least 2 (two) years of membership of the fund; |
| (iii) | whose employers have irrevocably agreed in writing (in the form determined by the Fund) to deduct the repayments from the member’s wages: Provided further, that loans granted in terms of this subclause shall be subject to such rules as may be laid down by the Management Committee. |
| (2) | The Management Committee may invest and pledge movies of the Fund in accordance with the provisions of clause 7 in such a manner as to facilitate the provision of housing finance for its members as envisaged in clause 7 (2) (d). |
Such guarantees shall be provided only—
| (a) | in respect of loan finance which is secured by— |
| (i) | a pledge in writing by the member of the benefits to which he is entitled in terms of clause 9 (1); and/or |
| (ii) | a first mortgage bond in favour of the party to whom the guarantee is provided on the immovable property in respect of which the guarantee is made; and/or |
| (iii) | a pledge of acceptable collateral security in favour of the party to whom the guarantee is made to the full value of the amount to which the fund is at risk in respect of such guarantee less the members" benefits pledged in terms of subclause 2 (a) (i); or |
| (iv) | a combination of a pledge of benefits, first mortgage bond and pledge of collateral security as envisaged in subparagraphs 2 (a) (i), (ii) and (iii) to the full extent of the fund"s risk in terms of its guarantee; |
| (b) | in respect of a housing finance facility which has been negotiated and approved by the Management Committee in its sole discretion; |
| (c) | if the lending institution"s rules with regard to granting of loans, the amount that may be borrowed and repayments have been approved by the Management Committee; |
| (d) | the member has made application in the approved manner and such application has been approved by the Management Committee. Such approval shall not be granted unless— |
| (i) | the member has at least 2 (two) years of current contributory membership of the Fund; |
| (ii) | the member"s employer has irrevocably agreed in writing to deduct from the member"s wage the weekly or monthly instalments required in repayment of the amount loaned by the party to whom the guarantee has been made: |
Provided that such loans shall be subject to such rules as may be laid down by the Management Committee.
| (3) | A member shall not be entitled to more than one loan obtained under either subparagraph 11 (1) or 11 (2) at any one time. |
| (4) | The forms on which applications and a cession for authority to deduct and an employer"s undertaking are submitted shall be, as applicable, on the forms specified by the Fund. |
| (5) | Upon termination of membership of the Fund, a member, who has a loan obtained under clause 11 (1) or 11 (2), shall be entitled only to such benefits as exceed the amount due in full settlement of the loan. |
