Housing Act, 1966

Schemes for guarantees.

42.—(1) A housing authority may, in accordance with a scheme approved by the Minister, guarantee a loan or part of a loan by a building society, an assurance company, a bank or other industrial or commercial organisation for the erection, purchase or reconstruction of a house.

(2) The Minister, with the consent of the Minister for Finance, may recoup out of moneys provided by the Oireachtas, not more than fifty per cent. of the expenditure by a housing authority in meeting a guarantee under a scheme under this section if the Minister is satisfied—

(a) that the loan would not have been made if the guarantee had not been given or that the guarantee was given in relation to such part of the loan as represents the excess of the loan over the loan that would have been made if the guarantee had not been given, and

(b) that the amount paid by the housing authority in meeting the guarantee did not exceed two-thirds of the loss which arose from the making of the loan or of the part of the loan referred to in paragraph (a) of this subsection, as the case may be.

(3) The making of a scheme under this section shall be a reserved function.

(4) In this section—

“assurance company” has the same meaning as in the Insurance Act, 1936 ;

“building society” means a society to which the Building Societies Acts, 1874 to 1942, apply.