Section 55
Provisions Relating To Disbursement Of Credits
(1) A bank or financial institution shall disburse credits only after disclosing the purpose subject to the directives issued by the Rastra Bank and the credit policy as determined by the Board of Directors.
(2) While disbursing credits, a bank or financial institution shall obtain any movable or immovable property acceptable to it as a collateral security or an appropriate guarantee in manners as to safeguard the interests of its own and of its depositors.
(3) A bank or financial institution shall write to the concerned office to withhold any property which it has taken as collateral security against a credit pursuant to this Section in the name of the bank or financial institution so that such property may not be registered in the name of, or transferred to, any person in any manner whatsoever.
(4) In cases where a request has been made for registration, transfer or to withhold pursuant to Sub-Section (3), the concerned office shall withhold the registration or transfer thereof accordingly.
(5) In cases where the Rastra Bank gives direction to disburse credits for such class and in such area as prioritized for the economic upliftment of the persons belonging to a low-income group and indigent class and of the inhabitants residing in any particular geographical region, banks or financial institutions shall disburse credits according to the direction.
(6) The terms and conditions, repayment schedule, and interests of the credits borrowed by a borrower shall be according to the deeds or contract executed between the bank or financial institution and the borrower.
(7) If the borrower is a guarantor, or firm, company or an institution, the directors, the shareholders having subscribed the shares in numbers more than the percent prescribed by the Rasta Bank or partners or owners in any manner thereof; members of the families of all of the above persons and if any of them is a beneficiary of any institution get all the details thereof and also get the proof of identity while taking actions according to the prevailing laws.
(8) While disbursing any credit by a bank or financial institution to anyone, the regular installment of the credit, interests thereon, damage thereon and the repayment schedule shall be clearly specified in a deed or contract and information thereof shall be given to the borrower and guarantor in case where there exists a guarantor.
(9) A borrower may make a request for details of the payable or paid amount of principal, interests, damage, and other fees and the deed or contract executed in the
course of availing the credit and banks or financial institutions shall make such details available accordingly.
(2) While disbursing credits, a bank or financial institution shall obtain any movable or immovable property acceptable to it as a collateral security or an appropriate guarantee in manners as to safeguard the interests of its own and of its depositors.
(3) A bank or financial institution shall write to the concerned office to withhold any property which it has taken as collateral security against a credit pursuant to this Section in the name of the bank or financial institution so that such property may not be registered in the name of, or transferred to, any person in any manner whatsoever.
(4) In cases where a request has been made for registration, transfer or to withhold pursuant to Sub-Section (3), the concerned office shall withhold the registration or transfer thereof accordingly.
(5) In cases where the Rastra Bank gives direction to disburse credits for such class and in such area as prioritized for the economic upliftment of the persons belonging to a low-income group and indigent class and of the inhabitants residing in any particular geographical region, banks or financial institutions shall disburse credits according to the direction.
(6) The terms and conditions, repayment schedule, and interests of the credits borrowed by a borrower shall be according to the deeds or contract executed between the bank or financial institution and the borrower.
(7) If the borrower is a guarantor, or firm, company or an institution, the directors, the shareholders having subscribed the shares in numbers more than the percent prescribed by the Rasta Bank or partners or owners in any manner thereof; members of the families of all of the above persons and if any of them is a beneficiary of any institution get all the details thereof and also get the proof of identity while taking actions according to the prevailing laws.
(8) While disbursing any credit by a bank or financial institution to anyone, the regular installment of the credit, interests thereon, damage thereon and the repayment schedule shall be clearly specified in a deed or contract and information thereof shall be given to the borrower and guarantor in case where there exists a guarantor.
(9) A borrower may make a request for details of the payable or paid amount of principal, interests, damage, and other fees and the deed or contract executed in the
course of availing the credit and banks or financial institutions shall make such details available accordingly.