Government Decree No. 149 / 1997 Coll.
Government Regulation laying down the conditions for granting further financial support to mortgage lending for housing
Valid
Regulation
Effective from 01.07.1997
Text versions:
01.07.1997
30.06.1997
149
GOVERNMENT REGULATION
of 12 June 1997
laying down the conditions for granting further financial support to mortgage lending for housing
The Government mandates the implementation of the Act of the Czech National Council No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and of the Municipality of the Czech Republic (Budget Rules of the Republic), as amended by the Act of the Czech National Council No. 579 / 1991 Coll., Act of the Czech National Council No. 166 / 1992 Coll., Act of the Czech National Council No. 321 / 1992 Coll., Act No. 160 / 1995 Coll.:
(1) This Regulation provides for financial support for mortgage lending for housing in the form of a repayable contribution from State budget funds ("the contribution ').
(2) The contribution is granted to natural persons who are citizens of the Czech Republic, who are resident in its territory and do not carry out residential construction in the framework of their business activities (hereinafter referred to as "the citizen ').
(3) There is no legal entitlement to the grant.
The contribution shall be granted for the partial reimbursement of the principal and interest on the mortgage loan granted for the purposes referred to in Article 2 (1) (a) and (c) of the Government Regulation laying down the conditions for State financial support for mortgage lending for housing. 1)
Conditions for granting the contribution
The contribution may be granted under the following conditions:
(a) the mortgage loan will finance the acquisition of real estate in the Czech Republic based on a building permit issued from 1 July 1997;
(b) the amount of the mortgage credit does not exceed CZK 700,000;
(c) a citizen applying for a contribution (hereinafter referred to as the applicant) shall, at the latest with the acquisition of ownership of the building, become owner or co-owner of the land built;
(d) the average monetary income of the applicant and the persons jointly assessed with him shall not exceed the product of the amounts of the minimum life and coefficient of 4,00;
1. the amounts of life minima shall be determined in accordance with the Life Minimum Act, 2)
2. For the purposes of this Regulation, the applicant and the persons concerned shall be considered as family; if there is no such person, the applicant himself shall be considered a family;
3. spouses, dependent children and parents of unmarried children, including persons to whom undependent children have been entrusted in the care of parents, on the basis of a decision of the court, the spouse of the parent or the said person, the widower or the widow of the parent or the said person, shall be considered to be the persons to whom they have been entrusted, provided that such persons live together permanently in a common household;
4. the average monetary income shall be determined as the monthly average of the family's income over the relevant period;
5. The operative period for which income is collected shall be the calendar year preceding the calendar year in which the applications lodged during the period 1 July of the calendar year concerned, up to 30 June of the following calendar year,
6. for the purposes of this Regulation, the income referred to in Articles 5 (2) (a) to (f) and 5 (6) of the Act on State Social Support shall be considered as income, (3) child allowance, parental allowance and provision allowance provided for in the Act on State Social Support.3)
Amount of the contribution
(1) The amount of the allowance is determined by the sum of the monthly amounts of the contribution paid for the partial payment of the monthly instalments of the mortgage credit ("monthly amounts of the contribution"). The amount of the monthly amount of the contribution shall be determined on the basis of the amount of the monthly instalment of the mortgage credit at the time of the decision granting the contribution and on the basis of the period after which the monthly amount of the contribution will be paid.
(2) In the first year following the decision granting the contribution, the amount of the monthly amount of the contribution may correspond to a maximum of one third of the monthly instalment of the mortgage loan. The monthly repayment of the mortgage loan means a constant monthly repayment of principal (amortisation) and interest spread over the period of repayment of the loan at the interest rate agreed by the bank in the mortgage loan contract, minus three percentage points per year.
(3) For each subsequent year, the monthly amount of the contribution shall be reduced by a constant amount for each relevant year, calculated from the decision granting the contribution, so that it is zero after the period referred to in paragraph 5.
(4) The payment of the allowance shall be paid by the beneficiary during the payment of the monthly amount of the allowance and the payment of the allowance. The remuneration shall be 2,5% per year of the agreed amount of the contribution. Payment of the remuneration may be deferred up to the period of payment of the contribution.
(5) The monthly amounts of the contribution may be paid for a period ending at the same time as the end of the first half of the maturity of the mortgage loan, but not more than 10 years after the decision granting the contribution.
(6) Immediately after the payment of the monthly amount of the allowance, the citizen is obliged to start paying the contribution and paying the contribution in regular monthly instalments. The amount of the instalments for the year in question, calculated from the end of the payment of the monthly amount of the allowance, shall be increased evenly so that the contribution granted and the payment for the grant referred to in paragraph 4 are fully paid for no more than the same period of time as the monthly amount of the allowance has been paid.
(7) In the event of a default of a mortgage credit by more than 20% of its originally agreed amount, the amount of the contribution shall be reduced proportionally depending on the mortgage loan actually drawn.
Provision of the contribution
(1) The contribution may be granted for the repayment of mortgage loans in Czech currency to banks which, by virtue of authorisation, may act as a bank to issue mortgage certificates. 4)
(2) The appropriations for contributions under this Regulation are covered by the State budget. The funds used for the payment of the monthly amount of the contribution and the funds paid or recovered, including the remuneration for the grant of the contribution, shall be settled by the selected bank5 (hereinafter referred to as the "mandated bank ') with the State budget.
(3) Contributions under this Regulation may be granted only up to the amount of the appropriations allocated to this purpose in the national budget for the year in question.
(4) A written request for a contribution shall be submitted by the applicant to the Bank, who shall forward it to the Ministry of Regional Development, together with documents confirming compliance with the conditions; the provisions of the Administrative Management Act (6) are not applicable to decisions on the contribution.
(5) The applicant shall repay the contribution without delay and shall pay the payment without delay if he fails to comply with one of the conditions set out in Article 3 or transfers the construction to another. This shall not apply if the construction is transferred five years after the decision to grant the contribution, but not before five years after the legal power of the approval decision has elapsed, to a person who fulfils the conditions for granting the contribution under this Regulation and assumes the commitments of the original applicant. The condition of acceptance of the commitments applies also to the transfer of ownership of the construction.
Control of compliance
(1) Control of compliance with the conditions laid down in this Regulation shall be carried out by the territorial financial authorities. 7)
(2) Where it is established that the contribution has been drawn or used in contravention of this Regulation, or where the contribution or reimbursement has been repaid in breach of this Regulation, the Financial Office shall order the funds unduly drawn, used or withheld to be transferred to the State budget and shall impose periodic penalty payments in accordance with a special regulation. 8)
(3) The administration of funds used to cover contributions under this Regulation shall be treated in a similar manner to the administration of subsidies under a specific regulation. 9)
This Regulation shall enter into force on 1 July 1997.
Prime Minister:
Prof. Ing. Klaus CSc.
Minister for Local Development:
Ing. Quapil v. r.
Minister of Finance:
Ing. Pilip v. r.
1) Government Decree No. 244 / 1995 Coll., laying down the conditions for State financial support for mortgage lending for residential buildings, as amended by Government Decree No. 276 / 1996 Coll.
2) Act No. 463 / 1991 Coll., on Life Minimum, as amended.
3) Act No. 117 / 1995 Coll., on State Social Support, as amended.
4) Act No. 21 / 1992 Coll., on Banks, as amended. Act No. 530 / 1990 Coll., on Bonds, as amended.
5) Act No. 199 / 1994 Coll., on Public Procurement, as amended by Act No. 148 / 1996 Coll.
6) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations).
7) Paragraph 1 (1) (b) of Act No. 531 / 1990 Coll., on Territorial Financial Authorities, as amended.
8) § 30 of the ČNR Act No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and the Municipality of the Czech Republic (Budget Rules of the Republic).
9) Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended.
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Regulation Information
| Citation | Government Decree No. 149 / 1997 Coll., laying down the conditions for granting further financial support to mortgage lending for residential construction |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.06.1997 |
|---|---|
| Effective from | 01.07.1997 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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