Section 5
.t\ ny agreement between a money-lender
5. .t\ ny agreement between a money-lender
f b · ·
i yl
f
o der
b
e · ·
t.nu a borrower or mtending borrower b
or t e payment by the borrower or intending borrower to the money-lender of any sum on account of costa, charges or expenses incidental to or to the negotiations f,n· or the granting of the loan or proposed loan shall be illegal , and if a'tlY. sum is pa.id to a money-lender by a borrower or intending borrowet· as for or on account of any suoh costs, charges or expenses, that sum
shall be recoverable as o. debt due to the borrower or intending borrower , or, in the event of
t he loan being completed , eha.ll, if so recovered be set off against the amount actually lent and that amount shall be deernod to be reduced accordingly.
E:s::ception.-This will not
debar money-lenders from recovering
reaconable costs of inspection of Revenue or Registration records including examination of titles and also costs of inspection of property. in cases where the contract includes a etipulation that property is giTen as security ot· l>y way of mortgage and where both parties have agreed to £moh costs and l'eimbnrsement there of.
. .
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01
Roop's Law Assist