Land (Small Mortgages) Regulations, 2001 (L.N. No. 75 of 2001)

lnterprmtlon Nm!CSNo.1$-..,,1151;1001 Tllli LAND ACt (No. 4 QF I 999) fflE'LAND (SMALL MORTGAGES) RtGULATIONS, 2001 (Made under sections 114 and l 79J l. These Regulations shall be cited as the Land (Small Mortgages) Regulations 2001, 2. In these regulations, unless the cimtoxt otherwise requires .. Act'' means the Land Act 1999; "authorized officer" has the meaning aacribed to it by the Act; "Cot11rr1issioner'' means the Commissioner for Landa; "Minister" mean11 the Minfater te$ponsibte for lands: 638 Land (Small Mo/!flges) O.N.. .No. 1, (co,dtl.) ''small mortgage" means a mort.gage for a tenn not exceeding tlm:e· years and for a sum not greater than five hundred thousatld sbilliilg$. 3. No small mortgage shall have a tenn exceeding three Tenn yeam. 4. No small mortgage shall sooure .a sum (lf mooey greater lhan five hundred thousand Shillings, un.less there is an otdet&y the Milli8Ler tu clwige l!ui.1 sum. 5.-(1) The Coouni&Bioner shall have a duty to advise i;l1e Minister on the possibility to change the diaximWtJ rum under a small rtlortgage. (2) A body or organization which represent interests of bankers or lenders on &•JCurity of-mortgage .shall ~ duty to adviae 1hr, Minister on iie possibility to ·cl)ange the maximum sum und1:r a small mortgage 6. •O) Bvel)' imtrument for.a small ·mortgage .ahl1l provide fnr the followini matteti • (a) name oOhe borrower; (b) nam,; of tho knder; (t.\ ~kms1(Um 1mul whit.his. ~e ~iect of 1he mortgage; ( d) dtsierlption of developments on the land, if any, and if non so to state; (e} nature of interest in the land {i) Right of occupancy; or (ii) Lease; 639 ~ IUJ11 Consultation: Insfnunent of a '1Ulllll G.N. No.15 (ca"nld.) Land (Small Mortgages) ( {) wJw\b::r-th~ in\erQSl ii n,giim;.ml or nut, i.f ~B.\ffll\\, reference number(s) of registration; (g) the sum secured under the small mortgage including an overdraft, existing or a future or contingetlt debt; (h) the need for a memorandum in case of reducing or increasing secured amount under the small mortgage; (i) payable interest rate wid« the smuU mortgage and the requirement for not bm than thirty days notice upon revision, (2) Other conditions include {a) the lender to give a copy of the sma11 mortgage indrnme.nt to tlw. hnrrower•~ !!:p(lUSe(.11.) w1'eff, h born'.>we1 is married and any other person with an obligation under the mortgage; (b) a ~tatcmcnt that the. smull mortgage does not operate as a transfer .of the right of occupancy or leaso, as the case may be, but takes effect as security only; (~) prior.ity or nmlcing al'."coWing tn Ql'(!er nfregistration; (d) tacking or further advances or credit On a current or cuntm.uing. w:.ct\\ln.1:, (c,) lhe: nc:ed for ilic: Jt::nder's consent to any dispoaition affecting the security; (f) the duty for the borrower to pay the principal swn and interest on the agreed day; (g) default notices;. (h) remedies available to the lender upon borrower's default; (i) maimer of calculating interest on the .principal sum. and time or dates when inte.rest,shall be deemed due or to have accrued; {j) the borrower's duty to maintain the security :in iood condition and repair; 640 Land (Small Mortgages) G.N, NtJ. 7S (contd.! (k) the borrower's duty to pay all outgoings such M rent, (l) the lender's right to imspect the mortgaged land ot property, (m) the borrow,;,r'ti equitoble right ofredimtptiqn. 7. Every bol':rowcr shall haw a duty to notify the Commissioner or a111:rn.)rt:.e<;I offlccr the lntcnt.i.011 to i;arry uut a smaU mortguge. 8, For avoidance of ®t1bt, the following MC tile only remedies for which the lender is required to obtain an mder of the \;\.JW.l ii ~x,;.rOi:;,.c.;{ (a) appointment of ara:eiver of irtcome of\he ml)rtgaged land: (b) lc.lSlng the 111u1t~<q'.;cJ hmd or 11\lbklloiltr1.i 1Jof th~ mo1tgaged tease; (c) evte,Jng into possession of roortgimged l;u1d, 9. Unless otherwise expressly declared, customary mortgages sl\all be governed by C\1sto1nary law. Dar es Salaam, 3'" May. 2001 G. CUF:YO, Minister for Land'i and Human Sertlement Development 64[ Notificaticm: Protection,; Co~wmury mOrtf;<l&eS