Act No. 203 / 1948 Coll.
Law on State guarantees for loans to municipalities for investment for residential buildings
Valid
Effective from 06.08.1948
203.
Law
of 19 July 1948
on the State guarantee for loans to municipalities for investment in residential buildings.
The National Assembly of the Czechoslovak Republic decided on the following Act:
The State may assume a guarantee for loans granted by municipalities to cover all or part of the cost of the necessary new public investment (Section 2), which is needed for mass-built residential buildings, wholly or partly concentrated in the district of the municipality, and which are linked between the housing tasks under the single economic plan.
The necessary public investment provided for in Article 1 is the most necessary communication and water and sewage facilities, provided that their establishment or expansion falls within the separate competence of the municipality. The same applies to energy distribution facilities where their investment costs are borne by municipalities.
(1) The State guarantee for loans to municipalities for investment under Section 1 is assumed by the Ministry of the Interior in an agreement with the participating ministries.
(2) The purpose of granting the State guarantee is to replace the approval of the loan under the rules on the approval of municipal loans. The municipal loans for which the State has taken over the guarantee under this Act are not subject to the restrictions applicable to the conclusion of new loans.
(1) By taking over the guarantee, the State guarantees the creditor for the loan, for its remuneration and amortisation, for secondary salaries and for the repayment of the loan with the facilities provided for in the debenture, and undertakes to pay the amount not received, including interest on late payments, until the actual payment and recovery costs, if the municipality does not fulfil the obligation imposed on it by the debtor.
(2) The payment obligation of the State under the provisions of the preceding paragraph is due on the expiry of the 30th day, counting from the date on which the creditor notified the debtor's debtor's default to the Ministry of the Interior (§ 5, 2, point (e))).
(3) Loans guaranteed under this Act benefit from orphan guarantees.
The State only takes over the guarantee,
1. where the debt note provides that interest and amortisation shall be paid on regular annual instalments (annuities) which are no more than 1% higher than interest on the initial principal; and
2. If the creditor undertakes,
(a) that it will not ask for library collateral;
(b) that it does not exercise the right to terminate a loan reserved for it by a debt note, without the permission of the Ministry of the Interior, or that, if the said Ministry so requests, it will withdraw or apply for repayment of the loan, or it will enforce it in court,
(c) immediately after the payment of the undertaking under the debtor's subscription, the municipality shall, if it has not received its obligations and shall invite it to do so;
(d) accept at any time the termination or exceptional repayment of the guaranteed loan or part thereof;
(e) inform the Ministry of the Interior without delay that it intends to transfer the guaranteed loan or part thereof, or that the municipality has not complied with the obligation it has assumed under the debtor's subscription, although it has been recalled, or that it has terminated or repaid the guaranteed loan or part thereof.
The municipality is obliged to use the guaranteed loan of contributions (aid) to cover the costs of the necessary public investments for which the municipality has granted the loan guaranteed under this Act and to reimburse the State for all the salaries it has made for it by virtue of the guarantee, in accordance with the decision of the Ministry of the Interior, issued in agreement with the Ministry of Finance.
The guaranteed loan principal shall be paid in accordance with the construction procedure as a building loan. The report on the progress of the construction process shall be certified by the District National Committee, the Regional National Committee for the Statutory Cities; in Slovakia state building office, near the city of Bratislava entrusted to the technician. The guaranteed loan can thus be paid up to 90%; the remainder may be paid only by the creditor on a voucher issued by the Ministry of the Interior after determining the final amount of the loan according to the actual, duly accounted for and proven construction cargo.
(1) The request for acceptance of the guarantee is made by the municipality via the District National Committee, if it is a statutory city, via the Regional National Committee, which will examine it and submit it with a reasoned proposal to the Ministry of Interior. In Slovakia, the municipality makes a request for the guarantee to be taken over by the District National Committee, which will examine the guarantee and submit it with a reasoned proposal from the Internal Council after hearing the State Building Office. The municipality (municipality) with the Municipality (Municipality) is making an application with the authority of the Interior.
(2) In an agreement with the participating ministries, the Ministry of the Interior will declare in the Official Journal the formalities to be taken over by the guarantee.
The State may take over the guarantees for the investment loans provided for in Section 1 to the total amount of CZK 1,500 million.
This Act shall take effect on the day of its publication; It shall be implemented by the Home and Finance Ministers in agreement with participating members of the Government.
Gottwald v. r.
Dr John v. r.
Zaporocký v. r.
Nosek v. r.
Dr Dolansky v. r.
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Regulation Information
| Citation | Act No. 203 / 1948 Coll., on State guarantee for loans to municipalities for investment in residential buildings |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 06.08.1948 |
|---|---|
| Effective from | 06.08.1948 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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