Each register should contain full particulars regarding drawals, recoveries and transfers. The amount of advance drawn in a bill date of encashment and the voucher number, the name of treasury and the names of the individual officers to whom the advances drawn were paid should be entered in the register in respect of each debit item. When fresh debits are received through last pay certificates that should also be entered in the register giving full particulars of the transfer. The recoveries effected  every month should be noted against the concerned individuals in the relevant monthly columns giving reference to the bill in which the recoveries were effected. When a person to whom advance was paid is transferred to another office, the particulars of the transfer should be noted in the registers and his outstanding dues clearly indicated in the last pay certificate issued to him.

A. ADVANCES  FOR THE PURCHASE OF
MOTOR  CONVEYANCES

(i) General

240.  No authority subordinate to the Government has power to sanction any advance for the purchase of motor conveyance.

 Procedure for Sanction

241. Every application for an advance, *[from Gazetted Officers] unless otherwise directed by Government, should be referred to the Accountant General for remarks as to whether the grant of the advance would involve any departure from the ordinary rules and what amounts, if any, are outstanding against the applicant on account of advances of all kinds. *[The applications from Non-Gazetted Officers shall be verified by the Heads of Officers/Departments concerned. Date of effect 4-8-1980.] The sanctioning authority should specify in the sanction order a date by which the advance should be drawn, which should be within one month of the date of the order sanctioning it and in any case not later than the close of the current financial year in which it was sanctioned. If the advance is not drawn within this period, the sanction will lapse.

(ii) Advances for the Purchase of a Motor Car

242. These advances are sanctioned subject to the provisions of Articles 239, 240 and 241 and the following rules:—

(a)  Eligibility of Government servants for an advance.— A Government servant is not eligible for an advance unless the Government consider that it is desirable in the interest of the public service that he should use a motor car in the discharge of his duties.

Only Government servants drawing a pay of not less than ** ` 2,640 with effect from 1-4-1990 per mensem and holding posts which entail duties involving touring or to whom the Government have granted a conveyance allowance for the maintenance of a motor car for the discharge of their duties are eligible for the advance. # But those officers having less than two years of service for superannuation on the date of receipt of application in the Finance Department will not be eligible for Motor Car Advance.

Note:— For the purposes of these rules, Officers who have to move about frequently within the limits of the Trivandrum City may be regarded as touring officers.

(b)  Conditions under which an advance is granted.— The grant of an advance is subject to the following conditions:— 

(1)  A Government servant is not eligible for an advance on account of a motor car which he has already taken delivery unless the application is made within three months from the date of purchase of the conveyance.

Note:— If a Government servant on duty who has applied for an advance from the Government has a favourable opportunity for buying a suitable car he may take delivery of it on payment of the whole or any portion of its purchase price, to be recouped later from the advance already applied for,  if and when the Government sanction it.

(2)The amount to be advanced to an officer shall not exceed ₹40,000 (Rupees Forty thousand only) with effect from 1-4-1983 or 20 months substantive pay or the amount applied for, or the anticipated price of the car, whichever is least.]  Government may, however, base the amount at their discretion on the officiating pay, instead of substantive pay, when an officer is acting  in an appointment or in a grade from length of time during the period of repayment. If the actual price paid is less than the advance taken, the balance should be refunded to Government forthwith.

Pay in respect of provisional appointments may be treated as officiating pay for this purpose and taken into account for calculating the eligible amount of advance, provided such appointments have been continuing for a period of twelve months and where Government consider that there is little chance of the officer being reverted to a lower post.

Note 1:— The term actual price includes the price of such items which have necessarily to be purchased along with the motor conveyance (or in other words, on the purchase of which the purchaser has no choice), e.g., spare wheel, tyre and tube, pillion seat in a scooter. Where, however, certain accessories (e.g., radio in a car, plastic covers) are purchased which are not essential and which the customer purchases of his own volition, the term ‘actual price’ will not cover their cost. Insurance and registration charges which are incurred for running the motor vehicle cannot be included in the actual price of the vehicle.

Note 2:— Special pay treated as coming under class II of Appendix IV, Kerala Service Rules will also be taken into account for fixing the eligibility of an officer, provided the officer is likely to draw the special pay during the period of repayment of the advance.

Note 3:—  D.P. will be reckoned for the purpose of calculating the amount of advance admissible under these rules.

(3)  When the Government sanction an advance to a Government servant who is on leave or is about to proceed on leave, the advance may be drawn at any time during the currency of the leave if he receives intimation regarding the availability of the conveyance while he is on leave. If in any such case the restriction in Article 241 operates the sanction order may be renewed.

(4)  Except when an officer proceeds on leave for a period of four months and over or retires from service, or is transferred to an appointment the duties of which do not render the possession of a motor car necessary, he may not without the Government’s previous sanction, sell a car purchased with the aid of an advance which, with the interest on it in accordance with Article 239 (3) and (4)  has not been fully repaid. If a Government servant wishes to transfer such a car to another Government servant who performs duties of a kind that renders the possession of the conveyance necessary the Government may permit the transfer of the liability attaching to the car to the latter Government servant, provided that he records a declaration that he is aware that the conveyance transferred to him remains subject to the mortgage bond and that he is bound by its terms and provisions.

(5)Whenever a Government servant sells a car before completing the repayment of an advance received from the Government for its purchase with the interest on it in accordance with Article 239  (3) and (4), he should apply the sale proceeds so far as may be necessary, towards the repayment  of the outstanding balance due to the Government. If, however, the borrower sells the car only in order to purchase another car the Government may permit him to apply the sale proceeds towards such purchase subject to the following conditions:—

(i)If the amount outstanding exceeds the cost of the new car, the Government servant should repay the excess to the Government immediately.

(ii) the Government servant should continue to repay the amount outstanding by the monthly instalments already fixed; and

(iii)  the new car should be insured or mortgaged to the Government as required by these rules. The mortgage bond need be only for the outstanding balance due under the original mortgage and should be executed in Form No. 27A.

Form of supplementary mortgage bond to be executed by a Government when he sells a car before completing repayment of an advance for purchasing another car

A:-Form No. 27 A

B:-Form No. 34 A

C:-Form No. 27 C

D:-Form No. 41

Correct Answer:- Option-A

(6)If on sale of a motor car as contemplated in clause 5 above, a Government employee is in actual need of a second advance for the purchase of a new car and applies for it, he may be given an additional advance for the purchase subject to the following conditions:—

(i) The second advance will be restricted to the excess of the price of the newly purchased car over the sale proceeds of the old car provided the second advance plus the balance outstanding in respect of the original advance previously granted should not exceed the price of the newly purchased car and the limits prescribed in clause (2) above.

(ii)The Government servant should continue to repay the amount outstanding under the original advance plus the amount of the second advance in monthly instalments at the rates fixed by the Government.

(iii)  The new car should be insured and mortgaged to the Government as required by these rules.

(iv)  The mortgage bond should be for the amount outstanding under the original mortgage plus the amount of the second advance and should be executed in Form No. 27B.

Note:— The officers applying for second advance should state in the loan application the probable price of the car proposed to be purchased, probable amount by way of sale proceeds of the car purchased with the earlier advance and the balance amount required to purchase the new car.

(7)  An officer who has taken an advance will be entitled to a fresh advance only after the lapse of fifteen years from the date of drawal of the previous advance and the previous advance is fully repaid with interest. Applications for second advances should be sent through the Accountant General who will forward them to Government with a certificate that the previous advance has been fully adjusted.

An officer who has taken a motor car advance will be entitled to a fresh  advance only after the lapse of _______________ years from the date of drawal of previous advance.

A:-10

B:-20

C:-25

D:-15

Correct Answer:- Option-D

(8)  An officer drawing the advance is liable to pay penal interest at 2.5 per cent over and above the usual rate of interest on the balance of the principal amount outstanding from time to time from the due date of execution of the bond till the date of its final execution, if he fails to execute the mortgage deed within the prescribed period, viz., one month from the date of drawal of the advance. Government reserve the right to exempt the loanees from the operation of the penal clause if they are able to show that the delay for the excecution of the bond is occasioned by circumstances beyond their control. Penal interest at 2.5 per cent over and above the usual rate of interest will also be levied in cases of belated/defaulted repayment of the monthly instalment of the principal and/or interest.

(9)  If an officer who has taken the advance dies while in service before the final settlement of the advance, no interest will be recoverable on the principal amount of outstanding advance proposed to be adjusted from the insurance amount and/or gratuity for any period beyond the date of death of the loanee. The amounts due on the insurance policy/policies assigned in favour of Government and the gratuity should be realised and adjusted to the extent necessary for the final settlement of the advance amount as early as possible after the death of the officer who has taken the advance.

(10) (i) The date of drawal of advance will be the date of issue of cheques when payment of the conveyance advance is made by personal cheque and the date of actual drawal or disbursement in the other cases of Gazetted Officers/Non-Gazetted Officers. To enable the Audit Officer to know the month from which the recovery should start, the Head of Office should invariably intimate the date of such disbursement promptly to the concerned audit officer. It should also be ensured that the time-lag between the date of drawal of a cheque and its disbursement by the Head of Office is reduced to the minimum.

(ii) The period of one month laid down in the rule will be a calendar month from the date of drawal of the advance.

(iii)When the period of one month provided under the rules is extended by competent authority the penal interest will be charged with effect from the date following that on which the extended period expires.

(11) Every Government servant who applies for an advance should forward along with his application an agreement executed by him in the prescribed form. If the advance is granted, he should execute a mortgage bond in the prescribed form after buying the car and should also insure the car against full loss by fire, theft or accident.

(c)  Repayment.— 

(1) Particulars of repayment of the advance will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan. Ordinarily the whole amount of principal shall be recovered in 144 monthly instalments with effect from 1-4-1983 and interest as indicated in sub-rule (4) of Article 239.

The maximum number of instalments of repayment of motor car advance is

A:-144

B:-108

C:-120

D:-60

Correct Answer:- Option-A

(2)In cases where the recovery could not be effected in 144 monthly instalments with effect from 1-4-1983 before the normal date of retirement the rate of recovery may be so fixed as to effect recovery at the normal rate till the date of retirement of the loanee, the balance being recovered in the lump from the death-cum-retirement gratuity admissible to him at the time of retirement subject, however, to the following:—

(i)  that he agree to the incorporation of a suitable clause in the prescribed agreement and the mortgage deed to the effect that the Government shall be entitled to recover the balance of the said advance with interest remaining unpaid at the time of his retirement or death preceding retirement from the whole or any specified part of the gratuity that may be admissible to him, and

(ii)  that he has not availed himself of and will not be availing himself of this facility in respect of house construction advance taken or to be taken by him.

Note:— Calculation of death-cum-retirement gratuity will be as provided in rules in K.S.R.

(d) Procedure.— (1) A Government servant who is eligible for and requires an advance should submit his application in Form 25A.

(2) If the application is in order, the Head of the Department should certify #[that this has been verified and found correct] and forward it to the Government in the Finance Department through the Accountant General, who will certify as to ‘whether the grant of the advance would involve any departure from the ordinary rules, etc., (See Article 241). If for any reason, the sanctioning authority has to return the application for correction, the Government servant should re-submit the revised application through the Head of the Department, who should certify as to its correctness and through the Accountant General, who will again certify as to whether the grant of the advance would involve any departure from the ordinarily rules etc. @The applicant eligible for the advance should submit an agreement executed by him in Form 26, when the advance is sanctioned.

KFC Form 26 is related to _________.

A:-Motor Car advance

B:-Onam Advance

C:-Details of estimate

D:-Public work deposit

Correct Answer:- Option-A

Note 1:— In the case of application from Members of Board of Revenue and Secretaries to Government, the authority competent to furnish the verification certificate will be the Special Secretary to Government in the General Administration Department.

(3) A Government servant who draws an advance should pay finally for, and take delivery of the car within one month from the date of drawing the advance; otherwise he should repay to the Government at once the full amount of the advance drawn with interest on it for one month. If he completes the transaction with in one month allowed, he should then immediately execute a mortgage bond in Form 27 hypothecating the car to the Government as the security for the advance. He should enter the actual price paid for the car in the schedule attached to the bond. The sanctioning authority should see that the borrower completes the transaction within the time allowed or makes the necessary repayment immediately on its expiry. If he duly completes the transaction in time, the sanctioning authority should see that he immediately submits the necessary mortgage bond duly executed and should transmit it promptly to the Accountant General for scrutiny. It should after such scrutiny be forwarded to the Head of the Department or the District Treasury Officer, as the case may be, for custody. When the advance had been fully repaid, the bond should be returned to the Government servant concerned, duly cancelled, after obtaining a certificate from the Accountant General as to the complete repayment of the advance and interest.

Note 1:— The stamp duty on account of execution of the mortgage bond will be borne by the Government.

Note 2:— The advance should be drawn only after the Government servant concerned has received a written assurance from the motor car dealer that the supply is likely to be available within a month and a certificate to this effect should also be recorded on the bill for the advance. In the event of any delay in supply despite the written assurance given by the dealer, the Government servant should apply within the permissible period of one month for extension of the time limit for taking delivery of the car,  supported by a letter from the dealer indicating the probable period of supply and seek permission for retaining the advance amount for that period. The requests will be considered by Government on the merits of each case.

Note 3:— A State Government servant who is sent on deputation exceeding 12 months out of India before an advance drawn by him for the purchase of a Motor Car is completely repaid by him, may at his option, be allowed by Government to repay the remaining instalments in rupees in India. The Government servant should arrange to remit the amount due by bank draft by the 15th, of every month in favour of the Accountant General, Kerala. A second mortgage deed shall be obtained from the Government servant to this effect in Form 27C and the office to which he is attached abroad informed accordingly. If the bank draft is not received by the Accountant General before the end of the month, he would immediately report the matter to Government in the Finance Department and also to the office abroad where the Government servant is working, for further necessary action. Failure on the part of the Government servant to remit the bank draft by the due date will render him liable to pay penal interest in accordance with the provisions in these rules, and on return of the officer, any amount left unrecovered will be deducted as before from his monthly pay bills by the Accountant General.

(4)  The mortgage bond to be executed by a Government servant who draws an advance provides that he shall keep the car insured against full loss or damage by fire, theft or accident. He should effect the necessary insurance within one month from the date of purchase of the car or within one month from the date of drawal of the advance whichever is later. The insurance in such cases should be arranged with the Kerala State Government Insurance Department.

Form of the clause to be inserted in policies is as follows:

“It is hereby declared and agreed that the Insured’s………………………………………. is pledged to the Governor of the State of Kerala (hereinafter referred to as the pledgee); and it is further declared and agreed that the said pledgee is interested in any money which but for this endorsement would be payable to the insured under this policy in respect of the loss or damage to the said *……………………………………………(which loss or damage is not made good by repair, reinstatement or replacement) and such money shall be paid to the said pledgee as long as they are the pledgee of the …………………………and their receipt shall be full and final discharge to the Government in respect of such loss or damage.

Save by this Endorsement expressly agreed nothing herein shall modify or affect the rights or liabilities of the Insured or the Government respectively under or in connection with this policy or any term, provision of condition thereof.”

The Government servant should also send direct to the Accountant General the insurance cover notes or the insurance policies. The Accountant General will bring to the notice of Government any case in which the insurance has not been effected within the period specified above. If the borrower fails to insure the car within the prescribed period, he should refund the whole of the advance with the interest that has accrued on it unless good reason is shown to the contrary. The amount for which the car is insured during any period should not be less than the outstanding balance of the advance with the interest that has accrued at the beginning of that period and the insurance should be renewed from time to time until the amount due is completely repaid. If at any time and for any reason the amount for which the car is actually insured is less than the outstanding balance of the advance including the interest that has already accrued, the Government servant should refund the difference to the Government in not more than three monthly instalments.

The Accountant General should, whenever the policy is about to fall due for renewal, so long as any amount remains outstanding on account of the advance, require the borrower to produce his receipt for the renewal premium on each such occasion before the date on which the policy is due for renewal, and should scrutinise it to see that it is in order.

(5) All motor conveyances purchased with the advance sanctioned by Government should be compulsorily insured with the State Insurance Department. 

(6)  Officers who have been granted advances for the purchase of conveyances should furnish the prescribed securities within two months from the date of issue of the authority for payment of the advance. If the documents are not furnished to the Accountant General and finally accepted by him within a period of two months, the Accountant General may order recovery of the advance in a lump.

(e) Advances to Government servants on Foreign Service.— When a Government servant who is on foreign service requires an advance for the purchase of a motor car he should apply to the foreign employer to grant it from its funds. If the foreign employer wishes to grant the advance, he should apply to the Government for their sanction. If the Government accord their sanction, it will be subject to the proviso that the advance by the foreign employer shall be regulated by the same conditions as would apply to an advance by the Government. In special cases, however, where an Officer’s services have been lent to a local body or statutory corporation or industrial or commercial corporation or a company owned by Government or in which Government have controlling interest, whose financial position will not permit of the advance being made from its funds, the Government may, at their discretion sanction advances from the State Funds under these rules provided the officer’s duties are such as to render the possession of a motor car a practical necessity.

(iii) Advances for the purchase of motor cycles/ scooters — Eligibility of Government servants for an advance

243. Article 242 applies mutatis mutandis to advance for the purchase of a motor cycle/scooter subject to the following modifications :¬

(a)A Government servant is eligible for an advance if he is included in one of the following classes.

(i)Government servants who are eligible for an advance for the purchase of a motor car under Article 242 if they prefer to take an advance for the purchase of a motor cycle/scooter; and

(ii)Government servants drawing a pay of not less than * ` 1220 with effect from 1-4-1990 per mensem and holding posts which entail duties involving touring or to whom the Government have granted a conveyance allowance for the maintenance of a motor cycle/scooter for the discharge of their duties.

(iii) A physically (orthopaedically) handicapped Government servant whose basic pay is not less than @ ₹ 740 p.m.

Note 1.— The application for the advances should be supported by a Medical Certificate from an Ortheopaedic Surgeon of a Government Hospital that a Motor Cycle/Scooter will be of great help to the applicant and that the applicant will be able to drive the vehicle in spite of his handicap.

Note 2.— The maximum number of instalments of repayments of the advance will be 100.

(b) The maximum amount of advance admissible for the purchase of any type of motor cycle/scooter will be ! ₹ 6,000 ^(Rupees six thousand only) with effect from 1-4-1983, or 15 months’ pay of the applicant or the amount applied for or the anticipated price of the vehicle, whichever is least.]

The whole amount of principal shall be recovered in ! 96 monthly instalments with effect from 1-4-1983, and interest as indicated in subrule  (4) of Article 239.

B. HOUSE BUILDING ADVANCE TO GOVERNMENT SERVANTS

Different Kinds of Advances included under this  Head

244. Under the sanction of the Government or other competent authority to whom the power under this article is delegated advances may be made to an officer/ officers (on joint salary basis) in pensionable service towards the following purposes :¬

(1)  Construction of a house for personal residence.

(2)  Purchase of a site and for the construction of a house thereon for personal residence.

(3)  Purchase of site with house for personal residence.

(4)  Purchase of site with house for personal residence and repairs thereto.

(5)  Repairs to own house to make it habitable.

(6)  Completion of construction of a house already taken up or to extend a house to make it sufficiently accommodative.

🆀 House Building Advance will not be sanctioned to Government servants for :

(A)Purchase of a site and for the construction of a house thereon for personal residence

(B) Construction of house for personal residence

(C) Making minor repairs of existing house

(D) Purchase of site with house for personal residence

Correct Answer:- Option:(C) Making minor repairs of existing house

The House building Advance sanctioned to a Govt. employee in Kerala may be for

 A:-Construction of a house for personal residence 

 B:-Purchase of site with house for Tourist residence 

C:-Purchase of site with hotel for personal business and repairs thereto

 D:-All of the above 

 Correct Answer:- Option-A

House Building Advance will not be sanctioned to Government Servants for :

(A) Purchase of a site and for the construction of a house thereon for personal residence

(B) Construction of house for personal residence

(C) Making minor repairs of existing house

(D) Purchase of site with house for personal residence

244

Eligibility of Government Servants for Advance

244A. The following Government employees will be eligible for the advance:—

1. All officers having substantive appointment in pensionable service.

2 A Government employee without a substantive appointment who has put in a continuous service of not less than five years, subject to the following conditions :—

The minimum period of service required under the Government for the sanction of House Building Advance :

(A) 2 years

(B) 10 years

(C) 5 years

(D) 3 years

(i)  The Head of Department concerned should certify to the effect that the applicant is not likely to be thrown out of service and that he is likely to be confirmed. The certificate should be in Form 37.

(ii)  The maximum amount of advance admissible in such cases should be calculated on to the basis of the officiating pay of the post in which the incumbent is likely to continue.

3. A Government employee whose services are lent on foreign service conditions institutions having statutory existence like the Kerala State Electricity Board, the University, the Finance Corporation and other commercial concerns and institutions owned or sponsored by Government provided the institutions concerned guarantee repayment during the period such employee is retained by them.
4. Advances will also be given to officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State.

Note 1:— It has been agreed that the State within whose jurisdiction the house is constructed will act as an agent for the State granting the advance on a reciprocal basis and

(a)  examine the correctness of the title deeds;

(b)  watch the progress of construction; and

(c)  enforce mortgage proceedings in case of default in the observance of the conditions on which the loan has been granted.

In the case of State Government Officers advances will be given only in cases where the house to be purchased or constructed or repaired or extended is within the States of Tamil Nadu and Karnataka.

Note 2:— The cost of verification of title deeds in other States, if any, will be borne by the member of the All India Services or other State Government Officer as the case may be.

The minimum period of service required for the sanction of House Building Advance:

(A) 2 years

(B) 10 years

(C) 5 years

(D) 3 years

Correct Answer:- Option: (C) 5 years

A Government servant applied for House Building Advance – 2017. With effect from 1-9-2017, he is working on deputation in Kerala University. What is the condition under which House Building Advance, can be sanctioned to him after 1-9-2017 ?

(A) The amount has to be paid by Kerala University

(B) The repayment during the period of deputation is to be guaranteed by University

(C) Payment will be made, after the Govt. Servant reverse to parent department

(D) None of the above

244B. Authority Competent to Sanction the Advance

	Authority competent to sanction the  advance		Category of applicants for whom  advances can be sanctioned
1	Government in the Finance Department	1	Applications from the All India  Service Officers
1	Government in the Finance Department	2	Applications from the Heads of Departments
1	Government in the Finance Department	3	Joint applications of employees serving in different departments
1	Government in the Finance Department	4	Cases involving relaxation of rules or standing orders on the subject.
1	Government in the Finance Department	5	Advance to N.G.Os coming under the categories mentioned under article 244A sub-clause (4)
2	Heads of Departments and District  Collectors,		All other cases under their respective administrative control
3	Joint Secretary (Accounts) Public Department,		All other cases under their respective administrative control
4	Secretary to Government, Law Department		All other cases under their respective administrative control
5	Secretary to Government, Legislative Department		All other cases under their respective administrative control

🆀Applications from the All India Service Officers for advance can be sanctioned by

 A:-Govt. of India 

 B:-Government in the Finance Department 

 C:-Secretary to Government, Legislative Department 

 D:-The President of India 

 Correct Answer:- Option-B 

🆀Joint application for advance by employees serving in different dept. will be sanctioned by …………

A:-Joint Secretary, General Administrative Dept.

 B:-Secretary, Law Dept. 

 C:-Govt. in Finance Dept. 

 D:-Head of Depts. 

 Correct Answer:- Option-C

🆀Authority competent to sanction house building advance to Officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State is : (A)Heads of Departments

(B) Government in the Finance Department

(C) District Collector

(D) Secretary to Govt. Law Department

Correct Answer:- Option: (B) Government in the Finance Department

🆀The authority competent to sanction house building advance to Heads of Departments is :

(A) Secretary to Government

(B) Heads of Departments

(C) Govt. in the Finance Department

(D) Law Department

Correct Answer:- Option:(C) Govt. in the Finance Department

🆀The authority competent to sanction house building advance for joint applications of Government employees serving in different departments is

(A)District Collector

(B) Head of Department 

(C) Govt. in the Finance Department 

(D) Law Department

Correct Answer:- Option: (C) Govt. in the Finance Department

The authority competent to sanction house building advance to Heads of Departments is

(A) Secretary to Government

(B) Heads of Departments

(C) Govt. in the Finance Department

(D) Law Department

The authority competent to sanction house building advance for joint applications of Government employees serving in different departments is

(A) District Collector

(B) Head of Departments

(C) Govt. in the Finance Department

(D) Law Department

Authority competent to sanction house building advance to Officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State is

(A) Heads of Departments

(B) Government in the Finance Department

(C) District Collector

(D) Secretary to Govt. Law Department

A Deputy Collector in Revenue Dept. propose to build a house in his native place in Kannyakumari District of Tamil Nadu. Who is the authority competent to sanction house building advance to him ?

(A) District Collector

(B) Secretary to Govt. Revenue Dept.

(C) Head of Department

(D) Govt. in the Finance Department

CONDITIONS UNDER WHICH ADVANCE  IS SANCTIONED 

SECTION A 

General

244C. (i) Advances for the purposes mentioned as items 1 to 4 under article 244 will not be sanctioned to a Government servant(s) who own(s) a house anywhere in the country either in his/her/their name(s) or in the name of his wife/her husband/their minor children *and to those having less than two years of service for superannuation on the date of sanctioning.

While applying for the advance the applicant (s) should make a declaration in the following form in the application.

“I/We do not already own a house anywhere in the country either in my name/our names or in the name of my wife/husband or in the name of my/ our minor children.”

Note.— Government may relax this provision in exceptional cases where they are satisfied that the house proposed to be built is required for the bonafide residence of the applicant and that it will be impossible for the applicant to reside in his existing house for reasons other than of its having already been let out on rent, or being situated at a place other than the place of his work.

(ii) Loans under more than one housing scheme will not be sanctioned to an applicant/applicants.

(iii)  Not more than two advances will be given to a Government servant(s) during the entire period of his/her/their service.

(iv) The grant of the second advance is, however, subject to the condition that the Government servant(s) is/are obliged, for reasons beyond control, to dispose of the house constructed or purchased out of the first advance and that the first advance has been completely repaid by deductions from the salary or out of the sale realisation of the house which had to be sold by the Government servant(s), or partly by deductions and partly by sale realisation.

(v)  The Government servant selling the house constructed with the advance from Government should convince Government/the sanctioning authority of the necessity for the same and obtain prior sanction. The whole or balance of the advance outstanding against the Government servant on this account with interest remaining unpaid shall become payable in lump on the date of sale or immediately thereafter.

(vi)  More than one advance shall not be made for the same house and no officer may receive a second advance while any portion of a previous advance (including interest thereon) is outstanding against him except as otherwise provided in these rules.

(vii) The maximum amount of advance admissible shall not exceed ₹20,00,000 or fifty times the basic pay of an officer/officers (on joint salary basis) or the amount applied for whichever is least.

The maximum amount of house building advance is

(A) 3 Lakh

(B) 5 Lakh

(C) 20 Lakh

(D) 10 Lakh

244C(vii)

The maximum amount of House Building Advance payable to Government servants whose application is received on or after 01.04.2016 is

A:-Fifteen lakhs

B:-Twenty lakhs

C:-Twenty five lakhs

D:-Twelve lakhs

Correct Answer:- Option-B

The maximum amount of house building advance is 

(A)  3 lakh

(B)  5 Lakh 

(C)  20 Lakh

(D) 10 Lakh

Correct Answer:-Option:(C)  20 Lakh

Note 1:— Dearness pay will also be reckoned for the purpose of calculating the maximum amount of advance admissible to an officer under this rule.

Note 2:— The computation of the loan amount on the basis of officiating pay will be made in the case of an officer having substantive appointment, only if the concerned Head of Department, certifies that he is not likely to be reverted to a post having a lower scale of pay during the period of repayment of the loan.

Pay in respect of provisional appointments may be treated as officiating pay for this purpose and taken into account for calculating the eligible amount of advance, provided such appointments have been continuing for a period of twelve months and where Government or the sanctioning authority consider(s) that there is little chance of the officer being reverted to a lower post.

(viii) All such advances must be for bona fide requirements for the purchase of or building suitable houses for the personal residence of the officers concerned and if more is advanced than what is actually expended for the purpose, the surplus shall be refunded to Government. Advance may be made either in one instalment or in instalments as considered desirable.

(ix)  Repayment of the advance shall commence from the first instalment of pay after the expiry of 9 months from the date of disbursement or the date of disbursement of the last instalment, as the case may be or the date of completion of the building whichever is earlier.  (This concession is not admissible to those who purchase a built house outright. The recovery in such cases will commence with the first issue of pay after disbursement of the advance.

The recovery of house building advance, sanctioned to an officer who purchased a built house outright, commence with :

(A) The date of disbursement of the last installment

(B) The first installment of the last installment

(C) The first issue of pay after disbursement of the advance

(D) The date of purchase of building

(x)  Particulars of recoveries to be made from the borrower will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan. The whole amount of principal and interest shall be recovered in not more than 216 monthly instalments.

In the case of officers who are due to retire before the expiry of the above normal period of recovery, the instalments of repayment should be so fixed that the loan and interest thereon are fully discharged before their retirement. Provided that the recovery of the advance with interest in such cases may be made in convenient monthly instalments ( the amount of which should not be less than the amount of monthly instalment on the basis of the full period of repayment admissible under the rules) during the remaining period of his service and provided also that he agrees to the incorporation of a suitable clause in the prescribed agreement and the mortgage deed to the effect that the Government shall be entitled to recover the balance of the said advance with interest remaining unpaid at the time of his retirement or death preceding retirement, from the whole or any specified part of the gratuity that may be sanctioned to him. Provided further that where a part of the advance or interest is to be wiped off by adjustment from gratuity the amount actually adjusted will be deemed to have been remitted on the date of retirement/death of the loanee, and no interest will accrue on the amount so adjusted beyond the date of retirement/ death.

(xi)  Instalments of recoveries will be so fixed as not to contain fractions of a rupee. Fractions of rupee occurring in the calculation of interest will be included in the last instalment of interest.

(xii) Advances will be recovered at the rate prescribed in clause (x) above or at a higher rate if the officer receiving the advance so desires in writing by compulsory monthly deduction from the bill for the salary or leave allowance of the officer.

(xiii) Interest will be recovered in one or more instalments, each such instalment being not appreciably greater or less than the instalments by which the principal was recovered. The recovery of interest will commence from the month following that in which the last instalment towards repayment of principal is due. If for any reason interest due cannot be worked out finally, recovery should be made provisionally at the rate fixed for the recovery of the principal.

(xiv) If for any reason, no salary is drawn by the officer in any month or months, the payment of the usual instalments must nevertheless be made by him. However, during full months of leave without allowance no recovery will be made and the repayment will be postponed to that extent, provided the principal and interest are fully repaid before the officer retires from service.

(xv) (a) In order to secure Government from loss consequent on an officer dying or quitting the service before complete repayment of the advance, the house together with the land it standing upon must be mortgaged to Government by whom the mortgage will be released on repayment of the full amount of the advance together with interest thereon.

(b)  The borrower should assign in addition to the land and building any one of the following as collateral security.

(1) A Life Insurance Policy taken by the loanee in the office branch of the State Insurance Department or in the Life Insurance Corporation of India or in the Postal Insurance for an amount sufficient to cover 25% of the amount of the loan.

Note 1.— The Policy should be absolutely assigned to the Governor of Kerala in Form No. 35. The assignment of policy of Life Insurance will be made by an endorsement in the prescribed form upon the policy itself or by a separate instrument signed by the assignor or his duly authorised agent and attested by at least one witness specifically setting forth the fact of assignment. If the assignment is not made by endorsement on the policy, the assignment will be in the Assignment Deed form prescribed.

Note 2.— In cases where the total value of the house constructed and the property hypothecated to Government alone with it as security for the loan exceeds the amount of the loan outstanding repayment by 100%, the insurance policy/policies pledged to Government as collateral security will be reassigned in Form 52 A in favour of the loanees, on request in writing.

(2)  Gratuity/death-cum-retirement gratuity to the extent of 25% of the loan.

Note 1.— An assignment may be made by a Government servant of his gratuity/death-cum-retirement gratuity in Form 35 A towards payment of the advance to him by Government under the rules. The amount of gratuity deemed to be available for this purpose would be the amount due to the applicant on the date of his superannuation/at the time of retirement calculated on the basis of the appointment held by the applicant at the time of submitting his application for the grant of the advance. The amount so worked out should be not less than 25% of the advance applied for.

Note 2.— In the case of non-Gazetted Officers the fact of assignment of death-cum-retirement gratuity as collateral security will be recorded in their service books and a certificate to that effect will be attached to the bill claiming the amount of advance. In the case of Gazetted Officers, Heads of Departments concerned will intimate the Accountant-General that the death-cum-retirement gratuity of the officer stands mortgaged to Government and a copy of the communication will be attached to the bill claiming the amount of advance.

(3)  Insurance against fire in the State Insurance Department for a sum not less than the amount of the advance.

Immediately on completion of construction or purchase of the house, and in any case within two months thereafter the Government Officer concerned should insure the house at his own cost with the State Insurance Department for a sum not less than the amount of advance and keep it so insured against damage by fire, flood or lightning till the advance is fully repaid to Government, and keep the policy with the head of Department concerned or the Board of Revenue as the case may be. The premium must be paid regularly and premium receipts produced for inspection by the Head of Department/ the Board of Revenue. They should obtain from the Government Officer drawing the advance, a letter to the State Insurance Department notifying to the latter the fact that the Government are interested in the Insurance policy and forward it to insurer and obtain his acknowledgement. In the case of insurance effected on annual basis, this process should be repeated every year until the advance is fully repaid to Government. The Head of Department/Board of Revenue should furnish to the Accountant-General an annual certificate that the conditions prescribed in this clause have been fulfilled.

(c) The borrower should also produce an encumbrance certificate for 12 years in respect of the landed property furnished as security.

(xvi)  The officer must satisfy the sanctioning authority regarding his title to the land upon which the house is or is proposed to the built and in the case of purchase of house or house site, that the proposed vendor has got clear title to the property which has been agreed to be sold to the applicant by the vendor.

Note.— This rule does not preclude the grant of an advance to a person who does not possess proprietary rights on the land upon which he intends to build, provided that the Government are satisfied that the interest which he has in the land is such as to justify the grant of the advance.

(xvii) An officer quitting or removed from a station where he has built a house, before the whole amount of the advance has been liquidated, will continue to be liable to the deduction of the monthly instalment until the advance is fully repaid, but with the special sanction of the Government he may be allowed to dispose of the house, provided he is thereby enabled to clear off at once the whole amount due, or to transfer it to any officer of his own or higher rank, the further deductions being made from the salary of such an officer.

(xviii) Applications for advances should be made in Form 29 through the applicant’s departmental superior, who will record his opinion as to the necessity of the assistance.

(xix)  The applicant must declare that the amount will be expended only for the purpose for which it is applied for and pledge himself that surplus funds if any will at once be refunded to Government.

(xx)  The grant of advances is always subject to budget provision. If an advance which has been sanctioned has not been disbursed before the close of the

financial year in which it is sanctioned the applicant will have to get the sanction renewed in the following year if he still wants the loan.

(xxi)  The loan amount should be utilised for the purpose for which it is granted within a reasonable time not exceeding one year from the date of full disbursement of the loan.

(xxii)  In case the applicant commits breach of any of the conditions under which an advance is sanctioned the entire amount advanced with

interest shall become payable in a lump and shall be recoverable under the provisions of the Revenue Recovery Act.

(xxiii)  In the case of advances for purchase of site with house an amount not exceeding 25% of the value of the site with house may also be granted for repairs at the time of the purchase subject to the condition that the overall loan amount does not exceed the maximum amount for which the applicant is eligible at the time of application. The application in such cases should be accompanied by an estimate or repairs duly certified by the Assistant Engineer (Buildings and Roads) having jurisdiction over the area in which the site is situated.

(xxiv)  In the case of advances for the purchase of site with house and repairs thereto the advance will be disbursed in two instalments, the first instalment being equal to the value of the house and site and the second being the balance amount which will be disbursed only after the property is mortgaged to Government.

(xxv)In the case of mortgage deeds executed by an officer, whether Gazetted or non-gazetted, whether independently or jointly with his/her/wife/husband, towards security for the house construction advance of any of the different kinds sanctioned to him/her/them, the stamp duty chargeable will be entirely remissioned. The remission of stamp duty will be available even when the mortgage deeds are executed by the Government employees jointly with others who are not Government employees.

(xxvi)  The applicant should furnish along with the application for advance a plan of the building proposed to be constructed or purchased by him and a certificate from the Village Officer concerned regarding the location of the site with reference to the nearest road, Survey No., Village and the detailed address of the owners of the adjoining properties. These records may be passed on, duly countersigned by the Head of Office, to the Executive Engineer having jurisdiction over the area in which the site is situated with a request for valuation. They need not be sent to Government along with the application, in cases where Government are competent to sanction the advance. But the Head of the Department should state in his certificate recorded in the application that the certificate from the Village Officer and the plan of the building have been obtained from the applicant (s). In cases where the Head of the Department himself is competent to sanction the advance, he should obtain the records and keep them with him.

Note.— Since the purpose of the valuation is only to ensure proper utilisation of the loan amount an approximate valuation by the Public Works Department (Building and Roads Branch) will be sufficient.

(xxvii)  In the last pay certificate granted to officers the original amount of such advance, the amount repaid and the balance remaining due should be specified.

The House Building Advance amount should be utilized for the purpose for which it is granted within a reasonable time not exceeding ________ from the date of full disbursement of the loan.

A:-Two years

B:-One years

C:-Three years

D:-Six months

Correct Answer:- Option-B

SECTION B
Advances to Officers on Joint Salary basis

Conditions for advance to officers on joint salary basis given in __________ KFC Vol.I

A:-Art 188

B:-Art 122

C:-Art 244 C. Section B

D:-Art 252 A

Correct Answer:- Option- C:-Art 244 C. Section B

When both husband and wife are individually eligible and jointly apply for assistance to build or acquire a house for their joint residence, advance may be made to both on joint salary basis subject to the following conditions:—

(i)  The total of the officiating pay/substantive pay of the officers will be taken into account for determining the amount of advance admissible subject the maximum limit of ₹ 20,00,000.

(ii) The disbursement of the amount will be made on joint receipt signed by both the applicants.

(iii) The husband and wife will be jointly and severally liable for the repayment of the advance with interest. The bond/agreement for securing the advance should be jointly executed by them.

(iv)  Separate assignment deed is necessary in case the wife/husband also assigns her/his policy.

(v)  Joint policies issued in the name of both husband and wife will also be accepted as security for advance.

(vi) For the purpose of monthly recoveries/repayments the advance amount will be split into two portions in proportion to their respective officiating/substantive pay and recoveries/ repayments effected accordingly.

(vii)   Subject to the above, the general principles of Section A will be applicable.

When husband and wife are Government employees House Building Advance can be sanctioned :

(A) To husband only

(B) To wife only

(C) To both on joint salary basis

(D) To both if they are having children

correct Answer:- Option: (C) To both on joint salary basis

SECTION C
Advances to Officer/Officers to whom a plot of land is allotted
by the Kerala State Housing Board 

Advances may be sanctioned to an officer/officers on joint salary basis for construction of house on plots of land allotted by the Kerala State Housing Board, Trivandrum for purchase of land allotted by the Board and for construction of house thereon on land with houses allotted by the Board.

The general principles and conditions in Sections A and B will be applicable in addition to the following:—

1. In case the Kerala State Housing Board will execute the sale deed in favour of the applicant only after the construction of the building is completed and if for that reason, it is not possible for the applicant to mortgage the property to Government before the amount of advance is drawn, the amount of advance will be paid to the applicant in one lump:

(a)  after assigning the insurance policies in favour of Government as laid down in the rules.

(b)  after obtaining a plan of the proposed building approved by the Kerala State Housing Board and

(c)  after obtaining an agreement from the loanee in Form 37A.

2. The building should be constructed within one year from the date of disbursement of the advance.

SECTION D
Additional Advances 

1. (a) An additional advance may, however, be sanctioned to an officer/officers on joint salary basis who has/have already availed of an advance provided that the aggregate of the original and additional advances does not exceed the maximum amount he/she was/they were eligible for on the basis of his/her/ their pay at the time the original advance was sanctioned subject to the following conditions:—

(1) A certificate from an officer of the Public Works Department (Roads and Buildings) not lower in rank than that of an Assistant Engineer who is having jurisdiction over the area in which the house is situated that the site with the construction already there on is worth the amount already sanctioned to the officer, specifying also the actual value of the construction (structure) is furnished along with the application.

(2)  The application should be submitted within one year from the date of disbursement of the original loan.

(3)  The additional advance thus granted will be treated as a part of the original loan.

(4)  The recovery of the additional advance will commence immediately on the expiry of six months from the month in which the additional loan is disbursed, the entire amount (including the additional advance) being recovered with interest within the period fixed for the repayment of the original loan.

(5)  As the property would have already been mortgaged to the Government in consideration of the original advance the amount of additional loan will be disbursed only on executing a document creating a second mortgage on the equity of redemption in the form prescribed by the Government.

(b) *Such additional advance shall not exceed ten times the basic pay of the officer or ` 20,000 whichever is less and will be allowed over and above the overall ceiling of ` 1,00,000 subject to the following conditions:—

(1)  The additional advance will be granted only if applications in Form 30 for such advances are submitted within one year from the date of drawal of the original advance.

(2)  The pay/salary of the applicant at the time of applying for the additional advance will be taken into consideration for reckoning the amount of advance.

(3) A certificate shall be produced from the Executive Engineer (Buildings and Roads) having territorial jurisdiction over the area to the effect that on account of non-completion of essential items of work the house is not fit for occupation and that the amount is required for bona fide completion of the house. In cases where the estimated value of the house (including the anticipated cost of completion of essential items of work) does not exceed ` 20,000 the certificate may be from the Assistant Engineer, having territorial jurisdiction over the area.

(4) The Additional advance thus granted will be treated as a part of the original advance.

(5)  In cases where the repayment of advance already sanctioned has commenced, the recovery of the additional advance will commence with the salary for the month, next to that in which the additional loan is disbursed provided the entire amount (including additional advance) is repaid with interest within the period fixed for the repayment of the original advance. In other cases, the repayment will commence along with that of the advance already sanctioned.

(6) As the property would have already been mortgaged to Government in consideration of the original advance/advances, the amount of the additional advance will be disbursed only on the Government servant executing a document creating a second or third, mortgage, as the case may be, on the equity of redemption.

(7)  In the case of applications on joint salary basis for additional advance for completion of house constructed with the assistance sanctioned to any one of them the amount for which the new applicant is eligible will be calculated on the basis of his/her salary at the time of verification of the joint application.

The disbursement of the amount will be made on joint receipt signed by both of them.

(8)  Subsequent refixation of pay sanctioned to an applicant with retrospective effect will be taken into account for calculating the eligibility for additional advance.

(c)  If the insurance policies already assigned in consideration of the original advances, do not cover 25% of the aggregate amount of the original and additional advances, fresh policy should be offered as collateral security in the case of application for additional advance and value of the new policy plus that of the policies already assigned should cover 25% of the total amount of the advance.

(d)  In cases where additional advances are sanctioned for construction of houses on plots of land allotted by the Kerala State Housing Board the amount of additional advance will be paid after executing a further agreement in Form 37B.

(e)  In cases of adjustment of a portion of the advance sanctioned for construction of a building in a plot allotted by the Kerala State Housing Board against the Death-cum-retirement Gratuity payable to the officer he has to execute a further agreement in the Form 37C over and above the agreement/agreements in Form 37A/37B.

(f)  In the case of additional advances applied for completion of construction of house or for repairs, a further encumbrance certificate supplementary to the one already furnished for the original loan, need not be insisted on, as the land with building stands mortgaged to Government.

(g)    Subject to the above, the general principles in Section A, B and C will be applicable.

1. (a) An advance may be made to an officer to enable him to effect repairs to his own house which are required to make it habitable where such repairs are not in the nature of ordinary repairs and which involve an outlay large in comparison with the value of the house.

(b) Such advances shall not exceed Ten times the basic pay of the officer to whom it is made subject to a maximum of ` 20,000 or the amount required for the work whichever is less.

(c)  Such advances may be made to an officer to repair a house which he has built or purchased with a previous advance but unless the Government otherwise permit at least five years should elapse since the previous advance was drawn.

(d)    Subject to the above, the general principles of Sections A to D (I) will be applicable.

Note:—The application for the advance should be supported by an estimate certified by the officer  mentioned in clause III (2) below.

III. (1) (a) An advance may be made to an officer to enable him to complete the construction of a house already taken up or to extend a house to make it sufficiently accommodative, provided that in the case of an officer who had availed of an advance under sections A to D1 the advance should be limited for the purpose of extension only and a period of at least 5 years should have elapsed from the date of drawal of the previous advance and

(b)  In the case of an officer who had availed of an advance under section DII the advance should be limited for the purpose of extension only and a period of one year should have elapsed from the date of drawal of the previous advance.

(2)  Such advance shall not exceed *15 times the basic pay of the officer to whom it is made subject to a maximum of ` 30,000 or the amount required for the work according to a certificate from an Engineer not lower in rank than that of an Assistant Engineer of the Public Works Department (Buildings and Roads) and having jurisdiction over the area in which the house is situated, whichever is the least.

(3)  Each such application should be accompanied by an estimate certified by the officer mentioned in clause (2) above.

(4)  For the purpose of repayment, the advance under this section will be treated as a separate advance, quite independent of the advance already drawn under section A to D1 or D II subject, however, to the General Principles in Article 244 C.

RULES REGULATING  CALCULATION  OF  INTEREST
AND DEATH-CUM-RETIREMENT  GRATUITY
1. CALCULATION  OF INTEREST 

The Head of Department concerned and the Secretary, Board of Revenue in the case of Heads of Departments shall work out roughly the gratuity/death¬cum-retirement gratuity payable to the officer under the service rules applicable to him as well as the principal and interest that would be outstanding recovery on the normal date of retirement of the applicant. The basis for working out the gratuity/death-cum-retirement gratuity will be the appointment held by the applicant at the time of submitting the application. For purposes of calculating the death-cum-retirement gratuity adjustable towards the outstanding advance amount and interest the pay that will be taken into account is such pay including dearness pay as he would be eligible for at the time of retirement had he continued in the same appointment. For the purpose of calculating the principal and interest, it will be assumed that the Government servant can generally commence repayment of the advance one year after the date of application of the advance if it is for purchase of site and/or construction of a building and six months after date of application if it is for outright purchase of a built house. All such applications from Gazetted Officers should be routed to Government through the Accountant General.  The actual amount to be sanctioned and that to be adjusted from gratuity/death-cum-retirement gratuity as also the amount to be recovered in monthly instalments will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan.

Note 1:— The applicant should furnish a declaration in the application form

that he agrees to adjust a portion of the advance (amount to be specified)

from the gratuity/death-cum-retirement gratuity admissible to him.

Note 2:— The Heads of Departments/Secretary, Board of Revenue should  certify in the application form “that the amount of gratuity/death-cum retirement gratuity due to the applicant on the date of his superannuation/at the time of retirement calculated on the basis of the appointment held by the applicant at the time of submitting the application is estimated to be `……………………. and that the applicant is governed by K.S.R./A.I.S. Rules”.

244E. (i) Except in the case of advances requiring sanction of the Government in the Finance Department application from non-gazetted officers for advance shall be submitted through the Head of Office concerned who will forward it to the authority competent to sanction it. In the case of advance requiring sanction of the Government in the Finance Department, application for advance shall be submitted through the Head of the Department concerned who will forward it to the Government in the Finance Department direct in the case of Non-gazetted Officers and through the Accountant General in the case of Gazetted Officers. The Head of the Department will forward along with the application certificate in Form 37. He shall satisfy himself as to the sufficiency of the security offered in each case and shall while forwarding the application record his opinion as to the extent of the amount that may be advanced without risk to Government. When the applicant is himself the Head of a Department, he shall forward the application to the Accountant General through the Board of Revenue who shall certify as to the sufficiency of the security offered.  Application for cancellation of loans already sanctioned shall likewise be forwarded to the sanctioning authority through the Accountant General in all cases. Applications shall be received by the Accountant General only till the end of December each year.

Note 1:— The procedure to be followed in the case of applications of the Heads of Departments will also apply to those of the Secretaries to Government including the Chief Secretary, Additional Secretaries and Joint Secretaries, Registrar of High Court and the Secretary to the Kerala Public Service Commission.

Note 2:— The Head of the Department will record his opinion as to the sufficiency of the security on the basis of the valuation made by the Revenue Department in the case of advances for purchase of site. If the advance is for the construction of a house, it should be got valued by the Public Works Department on completion.  References for valuation to the Public Works Department may be made to the Executive Engineer (Buildings and Roads) and those to the Revenue Department to the District Collector concerned.

 Note 3:— In the case of applications for purchase of site with building the Head of the office or Department, as the case may be, will forward the applications to the sanctioning authority without the certificate of sufficiency of  security, but take action simultaneously to get the property valued by the Public Works Department and the  Revenue Department. He will obtain and file the certificate of valuation and inform the Accountant General  accordingly before the time fixed for mortgaging the property expires. If the value fixed by the Public Works Department and the Revenue Department together falls short of the loan amount, excess will be recovered from the applicant immediately in a lump.

(ii)  On sanctioning the loan or on receipt of Government orders sanctioning the loan, the disbursing authority concerned should get the security bond executed and obtain all the documents specified by Government Pleader in support of the clear title certificate. He should then arrange for all these documents being kept under safe custody along with the mortgage deed. In the case of the loans granted to the Heads of Departments, all these documents should be transmitted to the Principal Sub-treasury, Trivandrum by the Secretary, Board of Revenue, for safe custody.  The details of the documents obtained should be noted on the right hand side of the Register of Advances to Government Employees for buildings repairing or purchasing houses (Form 38) and attested by the Head of the Department/the Secretary, Board of Revenue as the case may be.

The Head of Department or the Secretary, Board of Revenue, as the case may be, will be held personally responsible in the matter of keeping the documents under safe custody.  He can, however, nominate the Chief Ministerial Officer or the Superintendent-in-charge of Establishment Section/ the Sub Treasury Officer, Principal Sub Treasury, Trivandrum to assist him in this matter.  The documents pertaining to each loan should be kept in one cover or folder with a label on the outside giving details of the contents. An annual verification of the documents should also be made and the fact recorded in the register.

 The Head of Department or the Secretary, Board of Revenue, as the case may be, should also see that the insurance policies are kept alive and the insurance amount is adjusted to the loan account, if the policy matures during the period of repayment of advances. In the case of policies where the premia are paid by deduction from salary bills or otherwise the loanee should satisfy his immediate superior authority once in every three months that the premia have been remitted and policy is kept alive. The immediate superior in turn will report the fact to the Head of the Department who will make the necessary entries in the remarks column of the registers of advances maintained in his office, duly attested. Such reports should be sent to the Accountant General in respect of advances sanctioned to officers who are deputed on foreign service conditions.

This procedure should be followed in order to see that statutory dues such as property tax, land revenue, michavaram, etc., are paid in time and the property offered as security is kept unencumbered.

 Note:— In deserving cases, Government will have the discretion to re-assign such insurance policies to the loanee before complete repayment of the advance with interest, irrespective of the consideration whether they have matured or not, provided the amount of other insurance policies, if any, assigned in favour of Government will cover  an amount not less than 25% of the outstanding amount of the advance with interest thereon at the time when the loanee requests for the re-assignment of the insurance policy/policies.

 *(iii)The Head of Department/sanctioning authority shall authorise the Head of Office/Drawing Officer and disburse the advance to the applicant on proper acquittance. The sanctioning authority will specify the fact of authorisation in the sanction itself to enable the Treasury Officer to make payment to the Head of Office/Drawing Officer concerned on the authority of that sanction. Accordingly the Head of Officer/Drawing Officer should follow the normal procedure of presenting the bills for drawal of House Building Advance at the Treasury through the Treasury bill book. In the case of joint loans a declaration shall be obtained along with application from either of the applicants authorising the other to receive payment in case the advance applied for is sanctioned by competent authority.