Notwithstanding anything contained in the Nepal laws in
force, the following matters shall be governed by the following:
(A) No coparcener of an employee shall, in consideration for his or her
partition share, be entitled to the moneys deposited with the Fund in the
name of the employee. The employee shall not also be bound to
partition such moneys. Despite a judgment by a court, no creditor shall
be entitled to claim the moneys deposited with the Fund in the name of
the employee. No moneys deposited with the Fund in the name of the
employee shall be confiscated for any offences including those
punishable with confiscation of entire property pursuant to the Nepal
laws. Such moneys shall not also be deducted or confiscated also for
any government dues or arrears.
(B) No tax of any kind other than income tax shall be levied on the
moneys deposited with the Fund in the name of any employee and on
profits of the Fund and on the moneys deposited by the employee upon
drawing the same from the Fund out of the moneys so deposited with
the Fund.
(C) In distributing the assets of a company in which any amount of the
Fund has been invested or which has borrowed a loan from the Fund,
upon the liquidation of the company, the Fund shall have the first and
foremost right in the assets of such a company for the investment by the
Fund, dividends thereon and outstanding and recoverable amount of the
loan. Even in cases where any amount of the Fund is due and
recoverable from any other person and such person becomes insolvent,
the Fund shall have the first and foremost right in the assets of such a
person for the amount to be recovered by the Fund. Only after the
recovery of the amount due and payable to the Fund, other persons shall
have the right in the remaining assets of such a company or person.
Provided that, this provision shall not apply to loans disbursed by the
Fund on the basis of co-financing pursuant to Clause (C2) of Section 19.
(D) If any industry, enterprise, body corporate or employee fails to pay in
time such advance, loan or interest as required to be paid to the Fund in
accordance in the deed, the Fund may recover the amount of the Fund
by foreclosing and auctioning the house and land or other property
furnished by such an industry, enterprise, body corporate or employee
as a security or wealth guarantee in favor of the Fund after Thirty Five
days of the expiration of that time. If no one buys such house and land
on the auction sale, the Fund may take over the ownership of that
property. In such a circumstance, the government offices responsible
for maintaining the records of such property or recovering the land
revenue thereon shall do action whatever required, including
transmission, on the records maintained in these offices, without
charging any fee.
(E) After the Fund has taken a property as a security or wealth guarantee
pursuant to Clause (d) or Section 19A., the borrower shall not furnish
such a property as a security in favor of, or usufruct it or otherwise
transfer his or her title in it, to another person, and if the registration
making office is requested by the Fund to withhold that person, the
office shall withhold it.
(F) The rate of interest to be taken and given by the Fund shall be as
specified by the Fund.
(G) In lending a loan or advance against the security of an immovable
property to any industry, enterprise, body corporate or employee, the
Fund may specify the repayment period of more than Five years.
(H) In lending a loan to an employee against a security or wealth
guarantee, the Fund shall lend the loan only after ascertaining that the
security or guarantee in any place within Nepal has been furnished in its
favor. The method of valuating the property so furnished as a security
or wealth guarantee shall be as determined by the Fund.
(I) If it is required to attach and auction the property furnished as a
security or wealth guarantee in the event of non-repayment of the
installments of principal and interest of a loan or advance lent or paid
by the Fund, the Fund may publish a notice in a local newspaper, giving
a time-limit of at least Thirty Five days and attach and auction such a
property after the expiration of that time-limit.
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18A Immunities and Privileges of the Fund: Notwithstanding anything
contains in prevailing laws, the Find shall have following immunities and
privileges.
(A) No registration fee shall be charged in registration of loan or re-loan to
be lent by the Fund.
(B) No Income Ticket Charge or Registration fee shall be charged in the
deed of transaction to be done by the Fund.