(1) An application for grant of housing advance under these rules shall be made in Form-I hereto to the Sanctioning Authority.
(2) The housing advance granted under these rules shall be charged interest at the rate of two percent per annum.
(3) The advance shall be paid by cheque in favour of the Member.
(4) At the time of drawing the housing advance, the Member shall execute an Agreement in Form-II hereto and on completing the construction of house or bungalow or acquisition of a flat, as the case may be, shall execute a mortgage deed in Form-III hereto mortgaging the house or bungalow or flat, as the case may be, in favour of the Government as security for the housing advance and interest thereon.
(5) When a housing advance is drawn, the Sanctioning Authority shall furnish to the Accounts Officer, a certificate that the Agreement in Form-II hereto has been signed by the Member drawing the housing advance and that it has been found to be in order. The Sanctioning Authority shall ensure that the house or bungalow or flat, as the case may be is -2- constructed or acquired, as the case be within 24 months from the date of receipt of the advance by the Member and shall keep every mortgage deed, after examination for record.
(6) The mortgage deed shall be kept in the safe custody of the Sanctioning Authority.
When the advance together with interest thereon and the penal interest, if any, has been fully repaid, the mortgage deed shall be returned to the Member duly cancelled after obtaining a certificate from the Accounts Officer as to the complete repayment of the advance and the interest thereon and the penal interest, if any—
(7) The Sanctioning Authority shall require the Member to furnish additional collateral security, where considered necessary. The collateral security may be in the form of assignment of Life Insurance Policies or title deeds of other properties.