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PUBLIC SERVANTS (HOUSING LOANS
SCHEME) DECREE, 1975 (NRCD 319)
As amended
ARRANGEMENT OF SECTIONS
Section
1. Establishment of loans Scheme.
2. Application of Scheme.
3. Scheme not to apply to Public
Servants having their own Scheme.
4. Amount of loan and Interest.
5. Purpose of Loan.
6. Administration of the Scheme by
a Board.
7. Membership of the Board.
8. Functions of the Board.
9. Board to Regulate its Affairs.
10. Tenure of Office of Members of
the Board.
11. Executive Secretary and Staff.
12. Remuneration.
13. Expenses of the Board and Loan
Fund.
14. Loan Agreements.
15. Repayment of Loan and
Interest.
16. Security for Loan
17. Disbursement of Loan
18. Borrower to Meet Cost of
Valuation.
19. Effect of Dismissal from the
Service.
20. Resignation.
21. Transfers.
22. Retirement of Death.
23. Accounts and Audit.
24. Annual Report.
25. Regulations
25A. Repeals.
26. Interpretation.
IN pursuance of the National
Redemption Council (Establishment)
Proclamation, 1972, this Decree is
hereby made:
Section 1—Establishment of loans
Scheme.
There is hereby established a
Public Servants' Housing Loans
Scheme (in this Decree referred to
as "the Scheme").
Section 2—Application of Scheme.
(1) The Scheme shall apply in the
first instance only to public
servants whose salaries are paid
directly by the Controller and
Accountant-General.
(2) The Commissioner may by
executive instrument, and with the
prior approval of the National
Redemption Council, extend the
Scheme to employees in any other
part of the public service and may
by such instrument make such
modifications to the provisions of
this Decree, in its application to
such employees as may be necessary
having regards to the
circumstances of that part of the
public service.
(3) Subject to the provisions of
this Decree, a public servant who
has completed his period of
probation is eligible to apply in
such manner as may be prescribed
by regulations made under section
25 of this Decree, to the Board
established under section 6 of
this Decree for a loan for the
purpose specified in section 5 of
this Decree.
(4) The Scheme shall only apply
to citizens of Ghana.
Section 3—Scheme not to apply to
Public Servants having their own
Scheme.
The Scheme shall not apply to
employees in any part of the
Public Service which to the
satisfaction of the Commissioner
has an equivalent Scheme.
Section 4—Amount of loan and
Interest.
(1) The amount of loan to be
granted under the Scheme shall be
determined by the Board and shall
be a sum not exceeding ten times
the gross annual salary of the
applicant. [As substituted by
Public Servants (Housing Loans
Scheme) (Amendment) Decree, 1978 (SMCD
201), s. 1(i)]
(2) Interest on a loan shall be
charged at the rate of two and
one-half per centum per annum on
the reducing balance of the loan.
Section 5—Purpose of Loan.
Any public servant who obtains a
loan under the Scheme (in this
Decree referred to as "the
borrower") shall apply it for the
purpose of acquiring residential
property for his own use.
Section 6—Administration of the
Scheme by a Board.
There shall be established a
Management Board to be known as
the Public Servants' Housing Loans
Scheme Board (in this Decree
referred to as "the Board").
Section 7—Membership of the Board.
(1) The Board shall consist of the
following—
(a) a Chairman;
(b) the person appointed Executive
Secretary under section 11 of this
Decree;
(c) a representative of the Office
of the National Redemption
Council;
(d) a representative of the
Ministry responsible for Housing;
(e) a representative of the
Ministry responsible for Finance
(Budget Division);
(f) the Controller and
Accountant-General;
(g) a representative of the
Ministry of Lands who shall be a
valuer;
(h) a representative of the
Attorney-General's Department;
(i)
a representative of the
Architectural and Engineering
Services Corporation.
(2) All members of the Board other
than the Executive Secretary shall
be appointed by the National
Redemption Council.
Section 8—Functions of the Board.
(1) The functions of the Board
are:—
(a) to examine applications for
loans submitted under section 2 of
this Decree;
(b) to grant and recover loans in
accordance with the provisions of
this Decree;
(c) to enter into contracts and do
all things necessary for or
incidental or conducive to the
purposes of this Decree.
(2) The Board may, for the
purposes of this Decree, sue or be
sued as it it were a legal person.
Section 9—Board to Regulate its
Affairs.
(1) The Board may, subject to the
provisions of this Decree, in the
exercise of its functions,
regulate its own affairs.
(2) The Board may for the
discharge of its functions appoint
such committees consisting of such
persons (whether members of the
Board or not) as its thinks fit
and any such committee shall
perform such functions as the
Board may assign to it.
(3) The Board may at any time
co-opt any person or persons to
act as adviser or advisers at any
of its meetings, so however that
no person or persons co-opted
shall be entitled to vote at any
such meeting on any matter for
decision by the Board.
Section 10—Tenure of Office of
Members of the Board.
(1) The members of the Board other
than the Executive Secretary,
appointed under section 11 of this
Decree, shall hold office for a
period of three years and shall on
the expiry of that term be
eligible for re-appointment.
(2) A member of the Board other
than the Executive Secretary may,
at any time, by notice in writing
addressed to the Commissioner
resign his office, and the
National Redemption Council may if
it thinks fit at any time
terminate the appointment of any
such member.
Section 11—Executive Secretary and
Staff.
(1) The Board shall have an
Executive Secretary who shall be
appointed by the National
Redemption Council upon such terms
and conditions as the National
Redemption Council may determine.
(2) The Executive Secretary shall
be the Chief Executive of the
Board and shall be responsible for
the day-to-day management and
administration of the activities
of the Board subject to such
directions as may be given by the
Board.
(3) Where the Executive Secretary
is prevented by his absence from
Ghana or illness or any sufficient
cause from performing his
functions under this Decree, the
Board may appoint any officer of
the Board to act for the Executive
Secretary for the duration of his
incapacity.
(4) The National Redemption
Council shall provide to the Board
the services of any public
servants as may be needed by the
Board for the efficient
performance of its functions.
Section 12—Remuneration.
(1) Any member appointed to the
Board under section 7 of this
Decree as well as any person
co-opted to the Board under
subsection (3) of section 9 of
this Decree may be paid such
remuneration (if any) as may be
determined by the National
Redemption Council.
(2) There may also be paid to
members appointed to serve on any
committee under subsection (2) of
section 9 of this Decree such
allowances as the National
Redemption Council may determine.
Section 13—Expenses of the Board
and Loan Fund.
(1) The expenses of the Board in
the exercise of its functions
under this Decree shall be paid
out of grants made to the Board by
the Government.
(2) There shall be a Loans Fund
for the operation of the Scheme
which shall consist of moneys
received by the Board from time to
time from the Government or any
other source for the purpose.
(3) All sums received by the Board
under subsection (2) of this
section shall be lodged with the
Bank for Housing and Construction
as the Board's bankers.
(4) No such money shall be
withdrawn from the Bank, except by
cheque signed by the Executive
Secretary or any person acting for
him for the time being under
subsection (3) of section 11, and
countersigned by two other members
of the Board.
Section 14—Loan Agreements.
(1) No loan shall be granted under
this Decree unless the Board
enters into a loan agreement with
the borrower.
(2) The borrower shall, in
addition to any other terms which
the Board considers prudent,
undertake a covenant with the
Board in the agreement referred to
in subsection (1) of this section
—
(a) to keep in good repair the
property used as security for the
loan;
(b) not to assign, mortgage,
sublet or otherwise part with the
possession of such property or any
part thereof without the prior
consent in writing of the Board;
(c) to pay the ground rent (if the
property is leasehold) at all
relevant times and to produce the
receipts at the request of the
Board;
(d) to pay all property rates and
taxes imposed by law in respect of
the property in question as well
as all outgoings specified by the
Board in relation to the property.
Section 15—Repayment of Loan and
Interest.
(1) Repayment of the loan and
interest thereon shall be by
monthly deductions from the salary
of the borrower by the Controller
and Accountant-General and such
deductions shall be paid by the
Controller and Accountant-General
to the Board who shall credit the
amount to the loan account of the
borrower.
(2) Where the borrower's salary is
paid by any person other than the
Controller and Accountant-General,
the monthly deductions referred to
in subsection (1) of this section
shall be made from the borrower's
salary by his employer and paid by
the employer to the Board who
shall credit the amount to the
loan account of the borrower.
(3) Where there is any doubt as to
the authority or person actually
responsible for effecting monthly
deductions from the salary of a
borrower under subsection (2) of
this section that doubt shall be
resolved by the Commissioner
acting on the advice of the
Controller and Accountant-General.
(4) The monthly deductions in
respect of both principal loan and
interest shall not exceed—
(a) thirty per centum of the
borrower's basic monthly salary
for the time being as may be
determined by the Board, in the
case of a person whose gross
annual salary does not exceed
¢3,000.00; and
(b) thirty-five per centum of the
borrower's basic monthly salary
for the time being as may be
determined by the Board, in the
case of a person whose gross
annual salary exceeds ¢3,000.00.
[As substituted by Public Servants
(Housing Loans Scheme) (Amendment)
Decree, 1978 (SMCD 201), s. 1(ii)]
(5) The period of repayment of the
loan and interest shall not exceed
a period of thirty years.
(6) The borrower shall commence
repayment of the loan and interest
as follows—
(a) in the case of a loan for the
purchase of an existing house, on
the date of payment of his salary
in the third month following the
release of the loan;
(b) in the cause of the loan for
the building of a new house, on
the date of salary payment nine
months from the date of first
drawing on the loan or two months
from the date of completion of the
house, whichever is earlier:
Provided that in the case of a
loan to which paragraph (b) of
this subsection applies, interest
shall accrue on any part of the
loan released for the purpose of
building the house from the day of
such release and such interest
shall be paid at such times, in
such instalments and in such
manner as the Board may determine.
(6) (a). The Board may if
satisfied that there are
exceptional circumstances which
justify its doing so, postpone any
date prescribed by subsection (6)
of this section for the
commencement of the repayment of
any loan and interest to such
later date as it may consider
reasonable. [As inserted by the
Public Servants (Housing Loans
Scheme) (Amendment) Decree, 1977 (SMCD
79), s. 1(ii)]
(7) If any borrower fails or
neglects to pay any sum due and
payable under this Decree the
Board may take legal proceedings
to recover it or enforce any
security for the loan given by the
borrower.
Section 16—Security for Loan
Where a loan is granted under this
Decree, security for the loan
shall be provided as follows—
(a) the property shall be
mortgaged to the Board;
(b) the title deeds and mortgage
deeds relating to the property,
duly stamped and registered, shall
be deposited with the Board;
(c) a borrower who obtains a loan
shall take out in respect of the
loan or the property or both, such
insurance policy or policies with
such insurer and on such terms and
conditions as the Board may
approve;
(d) the Board shall on the failure
of a borrower to take the
necessary insurance policies, take
the policies for and on behalf of
such borrower and debit any moneys
paid to the loan account of the
borrower and may be recovered by
the Board under the provisions of
section 15 (7) of this Decree;
(e) further premiums on such
insurance policies may be paid by
the Board and debited to the loan
account of the borrower and may
accordingly be recovered by the
Board under the provisions of
section 15 (7) of this Decree.
Section 17—Disbursement of Loan
(1) Where the loan granted is
intended for the acquisition of an
existing residential property, the
purchase price shall be paid by
the Board direct to the vendor, on
the basis of a certificate issued
by a valuer approved by the Board.
(2) Where the loan granted is
intended for the construction of a
new residential property by a
contractor, the property shall be
constructed by a contractor
approved by the Board, to whom
payment by instalments shall from
time to time be made by the Board
on the basis of a certificate
issued by a valuer approved by the
Board.
(3) Where the constructional works
are to be supervised by the
borrower, an initial disbursement
not exceeding 10 per centum of the
approved loan may be made direct
to the borrower and subsequent
disbursements may be made from
time to time on the basis of a
certificate of work done issued by
a valuer approved by the Board.
(4) Where the construction of a
residential property is to be done
for the borrower by the Ghana
Housing Corporation, the Tema
Development Corporation or any
other Government Institution, the
Board may make such special
arrangements as it deems fit for
the payment of the cost of the
building to such corporation or
institution for and on behalf of
the borrower.
Section 18—Borrower to Meet Cost
of Valuation.
The cost of any valuation
undertaken by a valuer approved by
the Board in respect of any loan
shall be borne by the borrower and
may be recovered under section 15
(7) of this Decree.
Section 19—Effect of Dismissal
from the Service.
Where a borrower is dismissed from
the public service, his
outstanding loan as at the date of
dismissal shall become due and
payable immediately, unless the
Board accepts a new arrangement
for repayment of the loan, but the
rate of interest shall be the
current commercial rate prevailing
as at the date of dismissal.
Section 20—Resignation.
Where a borrower resigns to take
up an appointment outside the
Public Service or becomes
self-employed, the Board may, at
its discretion, demand immediate
payment of the loan outstanding or
accept an arrangement for
repayment of the outstanding
balance to continue at the current
commercial rate of interest.
Section 21—Transfers.
Where a borrower transfers to any
employment approved by the
Government, repayment of the
remaining balance of the loan
shall continue on the same terms
as before, subject to any
directions given by the
Commissioner on the advice of the
Controller and Accountant-General
as to the authority responsible
for making deductions from the
borrower's salary.
Section 22—Retirement or Death.
Where a borrower retires or dies
before he has completed the
repayment of the loan, the Board
may, at its discretion, permit
repayment to continue by the
retired officer or in the case of
death by his legal successor on
the same terms as before, subject
to such modifications as the
Commissioner may direct.
Section 23—Accounts and Audit.
(1) The Board shall—
(a) cause proper accounts and
other records in relation thereto
to be kept;
(b) prepare an annual statement of
accounts in such form and
containing such particulars as the
Auditor-General may from time to
time direct.
(2) The financial year of the
Board shall be the same as that of
the Government.
(3) The accounts of the Board
shall be audited annually by the
Auditor-General who shall forward
a copy of his report thereon to
the Commissioner.
Section 24—Annual Report.
(1) The Board shall, as soon as
possible after the expiration of
each financial year, but within
six months after the termination
of that financial year, submit to
the Commissioner an annual report
dealing generally with the
activities and operations of the
Board within that year which shall
include the copy of the audited
accounts of the Board together
with the Auditor-General's report
thereon.
(2) A copy of the annual report of
the Board shall be sent by the
Board to the Commissioner
responsible for Finance.
(3) The Board shall also submit to
the Commissioner such other
reports on its affairs as the
Commissioner may by writing
request from time to time.
Section 25—Regulations.
(1) The Commissioner may by
legislative instrument, make such
regulations on the recommendations
of the Board, as the Commissioner
may think fit for the purpose of
giving full effect to the
provisions of this Decree.
(2) Without prejudice to the
generality of subsection (1),
regulations may be made thereunder
for regulating the grant of loans
under the Scheme for effecting the
extension of an existing
residential property and also for
paying off existing loans in
respect of property already
acquired.
Section 25A—Repeals.
Paragraph (i) of section 1 of the
Public Servants (Housing Loans
Scheme) (Amendment) Decree, 1977 (SMCD
79) and also the Public Servants
(Housing Loans Scheme) (Amendment)
(No. 2) Decree, 1977 (SMCD 87) are
hereby repealed. [Inserted by and
to be cited as Public Servants
(Housing Loans Scheme) (Amendment)
Decree, 1978 (SMCD 201) s. 2]
Section 26—Interpretation.
In this Decree unless the context
otherwise requires—
"Commissioner" means Commissioner
responsible for Housing.
"Public Service" means service in
the civil employment of the
Republic and includes the Judicial
Service and also service with any
Statutory Corporation financed
entirely out of public funds.
Made this 7th day of March, 1975.
COLONEL I. K. ACHEAMPONG
Chairman of the National
Redemption Council.
Date of Gazette Notification: 14th
March, 1975.
amended
by
PUBLIC SERVANTS (HOUSING LOANS
SCHEME) (AMENDMENT) DECREE, 1977 (SMCD
79).1
PUBLIC SERVANTS (HOUSING LOANS
SCHEME) (AMENDMENT) DECREE, 1978 (SMCD
201).2
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