Loans

(1) Application for loans shall be in the form approved by the Board and appropriate to the circumstances and shall be addressed to the secretary of the Board. 13 (2) Every loan made under this Act and the interest thereon and all expenses recoverable by the Board from the borrower in connection with the loan or with any security therefor shall be secured to the satisfaction of the Board by a first charge on the land and building in respect of which the loan is to be granted and also, (a) if the life of the employee to whom the loan is to be made is insured to the satisfaction of the Board, by the assignment of the benefits of the policy to the Board and the deposit of the policy with the Board; (b) if the life of the employee is not so insured, or if he does not desire to proceed as laid down in paragraph (a) of this subsection, and he is able to pass the medical examination required by an insurance company approved by the Board, by insurance on his life in favour of the Board in such amount as the Board may in each case determine; or (c) if the life of the employee is not so insured and he is not able to pass such medical examination, by a charge on any gratuity payable on his death while in the service of the or of a (3) All expenses and payments of premium in respect of any insurance contemplated by subsection (2) of this section shall be borne by the employee concerned.