(1) The Board may grant loans and advances to any Nagar Mahapalika, Nagarpalika, Improvement Trust or any other local authority, and registered cooperative housing society or to any other person for acquisition and development of land and for construction of houses.
(2) The grant of such loans and advances shall be subject to such terms and conditions as the Board may determine keeping in view-
(i) The standing instructions of the Government of India and the Government of Uttar Pradesh regarding each scheme,
(ii) The terms and conditions on which the funds are received by the Board, and
(iii) The regulations to be framed by the Board relating to grant of loans and advances under each scheme.
5. The Housing Commissioner or the officer specifically authorises by him in this behalf shall ensure;
(i) The due fulfilment of the conditions of eligibility and existence of genuine need of loans;
(ii) The proper assessment of the cost of land and the cost of construction of the house;
(iii) The due furnishing of the prescribed security;
(iv) The execution of proper instrument of mortgage, etc.;
(v) The proper timely and satisfactory utilisation of the loan and execution of construction work;
(vi) The regular recovery of repayment instalments of the loan;
(vii) The fulfilment of the terms and conditions of the loans and realisation of the entire balance of the principle and all accrued interest in one lump sum in the event of a breach or violation thereof.
6. (1) The Housing Commissioner or the officer authorised under sub-rule (3) shall also ensure that details account of the amounts received by the Board for disbursement are properly maintained in a separate register scheme wise.
This register shall also show the up-to-date position regarding disbursement of instalments of each loan sanctioned, recovery of each repayment instalment (principal and interest separately) and the dates of commencement and completion of each scheme or house, as the case may be, for which the loan was sanctioned.
(2) Annual statements clearly showing the position regarding disbursement and realisation scheme wise shall be submitted to Government by June 30 every year.
7. Before grant of any loan or advance to any local body, the Board shall carefully examine its financial condition. No fresh loans shall be sanctioned to any local body which has defaulted in repayment of any loan previously sanctioned to it.