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Provident Fund (Amendment) Act 1993

REPUBLIC OF KIRIBATI
(No. 6 of 1993)

I assent,

Teatao Teannaki
Beretitenti

1/09/1993

AN ACT TO AMEND THE PROVIDENT FUND
ORDINANCE (CAP. 78A)

Commencement:
1993

MADE by the Maneaba ni Maungatabu and assented to by the Beretitenti.

Short title

1. This Act may be cited as the Provident Fund (Amendment) Act 1993.

Amendment of Part VI

2. Part VI of the Provident Fund Ordinance (Cap. 78A) is amended by inserting a new Part VIA between Part VI and Part VII as follows –

"PART VIA

Member permitted to use fund as security for a loan

1. (1) In this Part -

"dwelling house" means a dwelling house constructed with permanent materials or other materials as the Board may approve;

"lender" means the –

(a) Bank of Kiribati Ltd;

(b) Housing Corporation; or

(c) Development Bank of Kiribati Ltd.

(2) The provisions of this Part shall apply only to a member of the Fund who may be able to secure a loan from a lender, for the purposes set out in the succeeding section.

Member may use Fund as security for the purchase of a dwelling house, etc.

2. (1) Notwithstanding any other provisions of this Act (Provident Fund Ordinance) or any other Act, the Board may, on the application of a lender and a member, permit such on the application of a lender and a member, permit such member to use as security for a loan from such lender not more than seventy percent of the amount standing to such member’s credit in the Fund only for the purpose of –

(a) purchasing a dwelling house and/or site for a dwelling house; or

(b) payment of the construction of a dwelling house.

(2) A security given under subsection (1) is given subject to any conditions which the Board may think fit to impose."

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