(1) Repayment of the loan and interest thereon shall be by monthly deductions from the salary of the borrower by the Controller and Accountant-General and such deductions shall be paid by the Controller and Accountant-General to the Board who shall credit the amount to the loan account of the borrower.

(2) Where the borrower's salary is paid by any person other than the Controller and Accountant-General, the monthly deductions referred to in subsection (1) of this section shall be made from the borrower's salary by his employer and paid by the employer to the Board who shall credit the amount to the loan account of the borrower.

(3) Where there is any doubt as to the authority or person actually responsible for effecting monthly deductions from the salary of a borrower under subsection (2) of this section that doubt shall be resolved by the Commissioner acting on the advice of the Controller and Accountant-General.

(4) The monthly deductions in respect of both principal loan and interest shall not exceed-

(a) thirty per centum of the borrower's basic monthly salary for the time being as may be determined by the Board, in the case of a person whose gross annual salary does not exceed ¢3,000.00; and

(b) thirty-five per centum of the borrower's basic monthly salary for the time being as may be determined by the Board, in the case of a person whose gross annual salary exceeds ¢3,000.00. [As substituted by Public Servants (Housing Loans Scheme) (Amendment) Decree, 1978 (SMCD 201), s. 1(ii)]

(5) The period of repayment of the loan and interest shall not exceed a period of thirty years.

(6) The borrower shall commence repayment of the loan and interest as follows-

(a) in the case of a loan for the purchase of an existing house, on the date of payment of his salary in the third month following the release of the loan;

(b) in the cause of the loan for the building of a new house, on the date of salary payment nine months from the date of first drawing on the loan or two months from the date of completion of the house, whichever is earlier:

Provided that in the case of a loan to which paragraph (b) of this subsection applies, interest shall accrue on any part of the loan released for the purpose of building the house from the day of such release and such interest shall be paid at such times, in such instalments and in such manner as the Board may determine.

(6) (a). The Board may if satisfied that there are exceptional circumstances which justify its doing so, postpone any date prescribed by subsection (6) of this section for the commencement of the repayment of any loan and interest to such later date as it may consider reasonable. [As inserted by the Public Servants (Housing Loans Scheme) (Amendment) Decree, 1977 (SMCD 79), s. 1(ii)]

(7) If any borrower fails or neglects to pay any sum due and payable under this Decree the Board may take legal proceedings to recover it or enforce any security for the loan given by the borrower.