The State Government has decided that officers on the permanent establishment who have been confirmed
in their appointments shall be eligible to apply for loans under the Scheme without having to complete three years'
continuous service.

2.              Paragraph 2 in Appendix 'A' of Circular No. 2/80 issued by this office on 1st July, 1980 is therefore amended by substituting the whole paragraph with the following:-

                2.        Only officers on the permanent establishment, who have reached the age of 21 years and have
                been confirmed in their appointment shall be eligible to apply for loans under the Scheme.
 
 

Date : 10th October, 1984
Our Ref : SFS/00021/3
C.C. : C/SFS/01742/5

Distribution :

                        State Secretary
                        All Residents
                        All Permanent Secretaries to Ministries
                        All Heads of State Departments
 

Appendix A

                The State Government has recently reviewed the Government Officers' Building Loans Scheme as set out to the State Financial Sccretary's Office Circular No. 4 of 1974 and has approved the revision of the Scheme with effect from 5th June, 1980. Full details of the revised Scheme are provided in Appendix A attached. (This Circular does not apply to Federal Government officers or officers working in Federal Departments in the State).

                The salient features of the revised Scheme are summarised below:-

I.    Eligibility

                Under this Scheme the State Government Officers are eligible for two loans while in Service. A second loan is
allowed to enable officers to buy or build a better house.

                It both husband and wife are eligible for loans under the Scheme they will have to choose on whose eligibility they would wish the loans to be considered. The Scheme does not allow joint application.

                It the wife it in the Government Service while the husband is not the wife in her own right is eligible for loans if she meets the requirements of the Scheme.

II.   Interest

                Interest at the rate of 3% per annum calculated on half yearly basis, will be charged on the loan and this has to be paid together with the repayment of the principal sum of the loan.

III.  Amount of Loan

                The maximum amount of loan that may be granted to an officer is 50 times his monthly basic salary including the regional allowance at the time of application. The amount of loan shall not exceed 100% of the valuation of the property as assessed by Borneo Housing Mortgage Finance Berhad.

                In the case of the second loan, the maximum amount of loan that may be granted to an officer will be the difference between the maximum amount of the Officer's current eligibility and whatever amount of loan or loans including any supplementary loans for approved extension or renovation which he has already been granted.

IV.  Period of Repayment

                The loan must be repaid in full within the period of 25 years or before reaching the age of 65 whichever is the earlier.

V.   Death, Resignation and Dismissal

                If a participant dies while in the Service and if the loan is not adequately covered by insurance the participant is deemed to have agreed to the appropriation of the necessary sum from any gratuity payable to his estate from public funds upon his death to settle his outstanding loan. However, pending the settlement of insurance claim or payment of gratuity to the estate, the management fee in respect of the deceased's loan shall continue to be payable by Government subject to a maximum period of one year from the date of death of the participant.

                In the event of resignation or dismissal of the participant from the service the management fee payable by Government on the participant's loan shall cease with effect from the date of his resignation of dismissal. The participant will have to pay the full interest rate currently in force as any member of the public.

VI.   Renting

                A participant may let his house at his discretion. However, a participant who lets out his house will not be eligible for Government quarters or Government rented accommodation in the station where his house is situated.

VII.  Insurance

                The taking up of an insurance to cover the loan is not compulsory. However, the participant who has obtained a Government assisted loan is strongly advised to do so. It a participant elects to take up an acceptable single premium mortgage insurance policy : he may be granted an additional amount on top of the loan already approved  for the payment of the premium.
 
 

Date : 1st July, 1980.

Distribution :

    State Secretary.
    All Residents
    All Permanent Secretaries to Ministries
    All Heads of State Departments

Eligibility

        2.    Only Officers on the permanent establishment who have reached the age of 21 years and        3 of 8/57
who have not less than three years' continuous service and have been confirmed in their appointments,    8/58
shall be eligible to apply for loans under the Scheme except that officers over the age of 40 years shall    1/71
not be required to serve three years before becoming eligible for a loan.

Purpose of Loans

        3.    Loans may be granted for the erection of new houses or for the acquisition of existing houses.   8(i) of 8/57
Loans for the acquisition of existing houses may include rehabilitation and/or extension costs.

        4.    Loans may also be granted for repairs or extension of houses already owned by officers.          8(ii) of 8/57

        5.    A second loan may be granted to enable an  officer to acquire a better house.

Amount of Loan

        6.    Loans shall not exceed 100% of mortgage valuation of the property.

        7.    Loans shall not exceed in the aggregate 50 times the monthly basic salary of the applicant
plus regional allowance.

        8.    In the case of second loans, the amount shall not exceed the difference between the officers'
current eligibility and whatever amount of loans including additional-loans already granted.

Period of Repayment

        9.    The maximum period of repayment of any loan granted under the Scheme shall be twenty-five
years or before reaching the age of 65 years whichever is the earlier.

Interest

        10.   Interest at the rate of 3% per annum will be charged on the loans.However, the rate of interest    22 of 8/157
may be varied by Government from time to time as may be necessary but any applications already then
approved will not be affected.

Repayment

        11.    Loans together with the interest thereon are to be repaid on an installment basis by making          23 of 8/57
monthly deductions from the officers' salaries or pensions. The monthly repayments may be maintained at
the same amount throughout the period of the loan.

        12.    Participants shall have the right at any time to pay off the whole or part of the outstanding           24 of 8/57
principal and interest. When the whole loan is paid oil any charge to the Stale Financial Secretary or
Borneo Housing Mortgage Finance Berhad against the property concerned will be released.

Stamp Duty

        13.    Stamp duty and the fees payable if any on any charge release of  documents required to             25 of 8/57
be executed under the Scheme shall be paid by the participant.

Death, Resignation or Dismissal

        14.    If a participant should die while in the service and if the loan  is not adequately covered by
insurance the participant will be deceived it) have agreed to the appropriation of the necessary sum from
any gratuity payable to his estate from public funds upon his death to settle his outstanding loan. However,
pending the settlement of the insurance claim or payment of gratuity, the management fee in respect of the
deceased's loan shall continue to be payable by Government subject to a to a maximum period  of one
year from the date of the death of the participant.

        15.    In the event of resignations or dismissal of the participant from the service, the management fee
payable by Government on behalf of the participant shall cease with effect from the date of resignation or
dismissal. The participant will have to pay the full interest rate currently in force as any member of tile public.

        16.    (a) No participant shall, without the Financial Secretary, be allowed to sell any of his property      30 of 8/57
acquired under this scheme within five years from the taking up of the full advance.
 
                 (b) It the property is sold without such approval within the first five years, the State Financial
Secretary shall be entitled to demand interest at a rate not exceeding 10% per annum on the loan made to
the participant with effect from the date of making the loan to the date of such sale.

                 (c) After five years the participant shall be at liberty to sell his house at his own discretion. But
in whatever circumstances the property is sold, the outstanding balance of the loan must be settled when
the sale takes place.

        17.    The State Financial Secretary may, however, at his discretion, permit a participant to sell,            31 of 8/57
without any penalty, his house and land to any other officer eligible to participate in the Scheme provided
that the purchaser complies with the provisions of the Scheme and takes over all the commitments of the
vendor under the Scheme and provided that the amount of such commitments then out standing does not
exceed the maximum laid down in Rules 6, 7 and 8 above in relation to such purchaser.

Renting

        18.    A participant may let out his property at his own discretion. However, the participant who lets
out his house will not be eligible for Government accommodation in the station where his house is built.

Number of Loans

        19.    Government officers are eligible for a maximum of two loans (i.e.. for two separate houses) only
in their service. A second loan may be allowed to enable an officer to purchase or build a better house.
However, the maximum amount of the loan for such purpose will be the difference between the officer's
present entitlement and whichever amount of loans including additional loans lot extension or renovation,
already granted.

        20.    Subject to the condition that repayment shall be made within the original period specified for        10 of 8/57
repayment, further loans may be granted under and in accordance with this Scheme for approved extension
of buildings for which loans have already been granted the limits being determined by the participant's
salaries including Regional Allowance (or the total estimated value of the improved property as the case may
be) at the time of the application.

Insurance

        21.    The taking of an acceptable life insurance to cover the loan is not compulsory. However, the
participant is advised to take up either a life insurance policy or a single mortgage insurance policy to
safeguard the interest of his family. If the participant elects to take up the latter, he may be granted an
additional loan notwithstanding the limitations laid down in paragraphs 6 and 7 to pay for the premium.
The additional amount so advanced for the insurance premium will be treated as part of his loan.

Government Quarters

        22.    A participant having once entered the Scheme and having completed the building of the house        33 of 8/57
will not be eligible for Government quarters when posted to the station in or near which such house of his
own is situated even if he has repaid all moneys outstanding and even it he has sold  rent or otherwise
disposed  of his house.

Administration

        23.    All loans granted under the Scheme are to be administered by Borneo Housing Mortgage
Finance Berhad under an arrangement agreed on 1st August, 1960 between the Government and the
Company. A management fee, calculated on the basis of the difference between the lending rates charged
by the Company on its loans and the rate of interest that Government officers have to pay under the Scheme,
will be paid by Government to Borneo Housing Mortgage Finance Berhad for such services.

Application to Borneo Housing Mortgage Finance Berhad

        24.    Officers who are eligible for loans under the Scheme may apply to Borneo Housing Mortgage          4 of 8/57
Finance Berhad by completing the relevant forms which can be obtained from the Company's office.

Evidence of Ownership of Land

        25.    Where an application is  for the erection, or reconstruction, of a house on the officer's own land,
evidence of ownership of the land will be required. Ownership of the land by anyone other thus the applicant
himself will not be accepted for a loan.

Approval of State Financial Secretary

        26.    The State Financial Secretary may approve or reject any application as he may in his discretion      7 of 8/57
 see fit.

Procedure

        27.    As Borneo Housing Mortgage Finance Berhad is the Government agent for the Scheme,
the following procedure will be adopted:-                                                                                              6(i) of 17/60

                 (a) All officers are to submit their applications to the Company through and with the
        personal comments and recommendations of their  Heads of Departments. The Company              6(ii) of 17/60
        will investigate the applications including the conduct of a property survey. No fee will be
        chairged for this service.

                 (b) When the Company is satisfied that an application conforms with the conditions
        of the Scheme it will then submit the application with its recommendations and that of the               6(iii) of 17/60
        Head of Department to the State Financial Secretary for consideration.

                 (c) The State Financial Secretary will approve or reject or amend the recommendation.
        The decision will accordingly be conveyed by the Company to the applicant.                                6(iii) of 17/60

                 (d) On the applicant's acceptance of the offer, the Company will arrange the                       6(vi) of 17/60
        investigation of the land title and will give all necessary instructions for the preparation and
        completion of the Charge Instruments. The participant will be informed when it is in order for
        him to pay an initial deposit and enter into a contract of purchase.

                (e) Requests for progress payments should be made to the Company. Progress payments
        will only be made when all conveyance contract and charge instruments are completed and          6(vii) of 17/60
        on certification issued by the Company's Surveyor.

                 (f) The Company's Surveyor will inspect the property at regular intervals. Participants         6(viii) of 17/60
        should, however, realise that the Company's Surveyor is responsible for ensuring that property
        mortgaged to Borneo Housing Mortgage Finance Berhad should constitute adequate security
        at all times for loans made and to this end will ensure that contract specifications are followed.
        There will be no charge for these inspections.

                 (g) Charge accounts will be debited with capital payments and interest Repayments will
        be by way of annuity at 3 per cent computed from half-yearly principal and interest tables.           6(ix) of 17/60
        Each half-yearly installments or principal and interest will be repaid by the participant by               6(x) of 17/60
        monthly installments. The applicant is required to give an undertaking in his application that if         3 of 7/63
        his loan is approved, he will authorize the Accountant General by signing a copy of Form T.228
        to deduct the monthly installment from his salary, and he must forward a copy of Form T.228
        duly completed to the Accountant General upon receipt of an advice from the Borneo Housing
        Mortgage Finance Berhad of the approval of his loan and the date when his monthly installments
        will begin. Repayments should normally commence six months after the first advance or whenever
        the house is ready for occupation  whichever is the sooner. If the house is not completed after six
        months. participants may apply to Borneo Housing Mortgage Finance Berhad for further deferment
        of repayment.

                 (h) Participants will receive from Borneo Housing Mortgage Finance Berhad each year copies
        of their charge accounts showing all debits and credits and the balances outstanding as at 31st          6(xi) of 17/60
        December of the previous year.

                 (i) Borneo Housing Mortgage Finance Berhad will be responsible for the enforcement of the
        conditions of the charge instruments.                                                                                               6(xii) of 17/60

                 (j) Fire, aircraft risk and loss of rent insurance will be arranged by the Company at the
        borrower's expense. Premia will be paid by it and recovered                                                          6(xiii) of 17/60

                 (k) In the event of default, the Company will be responsible for taking such legal action as
        is considered necessary. The cost of such action will be debited to the charge account.                  6(xiv)of 17/60

                 (l) the Company will arrange for the release of Charge when repayment has been made in
        full, Expenses incurred in this connection will be on the account of the participant.                         6(xiiv) of 17/60
 

State Financial Secretary.
Sarawak.

Date :1st July, 1980.

File Ref: SFS/01742/4 (TC)
                SFS/00021/2

                The State Government has revised the Government Officers Building Loan Scheme as set out in the State Financial Secretary's Circular No. 2/80 and has approved the revision of the quantum of the loans for officers serving under State Ministries and Departments. The amount of loan that can be granted under the revised scheme for cash
grade of officers is as shown in the amendment to the Circular No. 2/80 at Appendix A. All the other terms and conditions in the State Financial Secretary's Circular No. 2/80 remain unchanged. This amendment  is to take effect
from July 1, 1981.

        2.    The Government  Officers Building Loan Scheme (Revised 1980) and as amended by this Circular is applicable to all Stale officers serving in State Ministries and Departments including those officers on secondment to Federal Departments or Statutory Bodies.
 
 

1st July, 1981
 

Distribution:
    State Secretary, Sarawak.
    All Residents, Sarawak.
    All Permanent Secretaries to Ministries, Sarawak.
    All Heads of State Departments, Sarawak.