CHAPTER - 15

(Pages 1 to 27)

Source:

(i) GFR Vol-I of the Federal Government adopted by

the Government of N.W.F.P.

(ii) Different Notifications of the Government of

N.W.F.P., Finance Department.
 ADVANCES
INTEREST BEARING ADVANCES

HBA, Motor Car, Motor Cycle/Scooter and Cycle

CEILING AND ENTITLEMENT
Amount of Recoverable in
S.No. Advance Pay Limit
Advance installments
1. Motor Car Rs.8135/- PM & above Rs.150,000/- 60
2. Motor Cycle/Scooter Rs.2926/- PM - Rs.8134/- PM Rs.50,000/- 60
3. Bicycle Upto Rs.2926/- PM Rs.3,000/- 40
House Building
4. Nil 36 months pay 120
Advance

Second Advance.
Second House Building Advance, Motor Car and Motor Cycle advances are
allowed provided that the Ist advance including with interest accrued thereon has been
repaid in full.

Conditions of House Building Advance.

House Building Advance is admissible to civil servants subject to the following
conditions:-
a. The civil servant has completed at least 10 years continuous service.
However, the civil servants B-1 and B-2 will be eligible to draw the
advance irrespective of the length of their service.
b. A certificate is produced from the Head of the Department to the effect that
his services are not likely to be terminated within the period prescribed for
the repayment of the advance;
c. Security of two permanent Government servants is furnished who can be
released when the house has been built and mortgaged to Government. The
sureties should be such as would not retire before the house is built and
mortgaged;
d. In cases where the official has already acquired (obtain) the land for
construction of the house, he should mortgage it to the Government together
with the house to be built thereon, before the advance is sanctioned;
e. Rate of recoverable installments will be fixed in whole rupee except in the
case of last installment. If a civil servant is likely to retire within 10 years,
installments will be so fixed that the recovery of the principal amount along
with interest is recovered before the date of retirement.

2
 GFR 253-A read with Finance Department letters No.
FD(SR-II)1-2/91/Vol-II dated 19.7.1995 and No.
FD(SR-II)1-1/91/Vol-II dated 16.8.1995.

Conditions for Motor Car/Motorcycle.

a. At the time of drawing the advance, the Government servants should be
required to execute an agreement in form GFR-16 and on completing the
purchase, he should further be required to execute a mortgage bond in form
GFR-17 *hypothecating the car to the Government as security for the
advance.
b. The sanctioning authority should see that the conveyance is purchased
within one month from the date on which the advance is drawn and should
submit the mortgage bond promptly to the Accountant General for
examination before final record.
c. The mortgage bonds should be kept in the safe custody of the sanctioning
authority. When the advance has been fully repaid, the bond should be
returned to the Govt Servant concerned, duly cancelled, after obtaining a
certificate from the Accountant General as to the complete repayment of the
advance and interest.
d. The Car must be insured against full loss by fire, theft or accident. Para-258
of GFR V-I.

Interest on Advances.
Simple interest at the rate fixed by Government should be charged. The interest
should be calculated on balances outstanding on the last day of each month. The amount of
interest will be recovered in one or more installments, each such installment being not
appreciably greater than the installment by which the principal was recovered. The
recovery of interest will commence from the month following that in which the repayment
of the principal has been completed.
Para-251 and 256 (iv) of GFR Vol-I.

Formula of Interest of Advance.

Advance x No. of installment +1 x Rate of interest x 1
2 100 12

Decision
a. no interest, whether by way of penalty or otherwise, shall be charged from
Government servants on advances sanctioned by Government for the
purchase of Cycles on or after 2-12-1978, or on an advance which is in the
process of repayment on that date; and

*
Conditional

3
 b. no interest shall be charged from Government servants in B-1 to 15 on
house building advances sanctioned by Government on or after 2-12-1978,
or on an advance which is in the process of repayment on that date;
Provided that for the purpose of an advance under clause(b) above,
i. where a Government servant in B-15 or below, to whom house
building advance has been sanctioned, is promoted to B-16 or above
and consequent upon his promotion the amount of his advance is
revised on the basis of his pay in B-16 or above, interest at the
prescribed rate shall be charged from him under the normal rules,
orders or instructions; and
ii. where a Government servant, to whom house building advance has
been sanctioned on the basis of his pay in B-16 or above, is reverted
to a post in B-15 or below, interest at the prescribed rate will be
charged from him under the normal rules, orders or instructions.
No. FD/SO(SR-II)P-1-1/78/78 dated 11.4.1979.
Decision.
It has been decided that the civil servants who do not claim interest on their
G.P.Fund balances shall not be charged interest on House Building Advance or other
advances as admissible under the rules. This concession is admissible in cases where the
House Building Advance and Motor Car advance have been sanctioned on or after
1.7.1983 and no interest is claimed on G.P.Fund balances by Government Servants
concerned on or after this date. Advances granted prior to 1.7.1983 will continue to be
governed by the instruction, which were in force prior to that.
No. FD(SR-II)1-1/78(P) dated 23.8.1983 read with even letter No. dated
10.10.1984. Waiving of Recovery of Outstanding Balances of Advances.

The Government Servants in B-1 to B-15 who have been granted House Building
Advance, Scooter advance and cycle advance and who dies while in service, the
outstanding amount of those advances would stand *waived off. This decision having the
prospective effect will be applicable in the cases occurring on or after 20.2.1992.
The outstanding balances on the books of A.G. office would be cleared by making
necessary budget provision under the relevant service head by Finance department on the
basis of information furnished by respective Administrative Departments. It has however
been observed that budget provision is usually delayed due to lack of in-time demand of
funds by the Administrative Departments which results in the delay in finalization of
family pension cases of the deceased employees.

In order to avoid such delays and early finalization of family pension it has been
decided that family pension cases of the deceased Government servants would not be
delayed by the Audit Authorities for want of budget provisions, provided a case for
necessary budget provision is initiated by the pension sanctioning authorities viz
Administrative Departments and other subordinate offices and a certificate in this regard is
furnished to the audit with the pension application. However, Administrative Departments,

*
To forgo

4
before submission of family pension cases to the respective Audit Authorities, should
initiate case for the provision of budget with the Finance Department.
No.FD(SR.II)2-2/91(P) dated 17.4.1993.

As regards the cases of Government Servants in BPS-16 and above who die while
in service, the following formula has been prescribed for the waiving off outstanding loans
against them:

Outstanding Amount Extent of write off

1. Upto Rs. 20,000/- 100%
2. Beyond Rs. 20,000/- Rs. 20,000/- plus 50% on the *residual liability subject to the
total relief not exceeding Rs. 1.5 Lac (inclusive of
Rs. 20,000).
However, the Heads of the Departments/Administrative Secretaries shall take
following into account while recommending waiving off outstanding arrears of deceased
Government servants BPS-16 and above):-
i) Other properties owned by the family and family income; and
ii) Payment made/due to be made to the family by way of (a) G.P.Fund (b)
Benevolent fund grant (c) Group Insurance (d) Family Pension (e)
Gratuity/Commutation and (f) any other waive off House Building Loans
applied for/ granted by House Building Finance Corporation/ Nationalized
Commercial Banks.
The proposals for writing off the outstanding amount of advances and loans to the
Government servants in BPS-16 and above, who die while in service, would be forwarded
to the Finance Department for sanction on the enclosed Proforma with certification that
facts mentioned above have been fully taken into consideration.
No.FD(SR-II)2-1/91/Vol-II dated 20.2.1992.
No.FD(SR-II)2-2/91(P) dated 10.1.1993 and
No.FD(SR-II)2-2/91(P) dated 17.4.1993.

*
Remaining liability

5
 FORMAT FOR APPLYING THE WAIVE OFF (OUTSTANDING
AMOUNT AGAINST THE DECEASED GOVT. SERVANTS)

1) Proposal for the writing off the outstanding amount of Advances/Loans in respect
of Mr./Miss/Mrs.____________________
2) Name of the deceased Govt. Servant.____________________________
3) Post Last held at the time of death __________________________
4) Pay Scale _______________________
5) Amount of advance drawn by the deceased Government Servants (nature of
advance may be specified). ______________________.
6) Detail of drawl of Advance _______________________________
7) Number of installments in which the advance has to be repaid
_______________________________________________________
8) Total amount repaid at the time of death _________________________.
9) Balance ___________________________________
10) Amount of interest to be accrued thereon ________________________
11) Total outstanding amount (total of column 9 & 10) ________________ .
12) Number of the dependents with their name and age ______________
13) Details of moveable/immovable properties left by the deceased Government
Servants _____________________________________________
14) Details of payment made due to ____________________________
i G.P.Fund
ii Benevolent Fund
iii Group Insurance
iv Family Pension
v Gratuity/Commutation
vi Any other waiver of H.B.A Loan granted by the House Building Finance
Corporation/Nationalized Commercial Banks.
vii Amount to be waived off in accordance with the laid down formula.
viii Specific recommendation by the A.D with detailed justification.

6
INTEREST-FREE ADVANCES.

They are advances on transfer and advances on tour.

1. Advance on Transfer.

i) Paid to a Government Servant under orders of transfer from one station to

the other.

ii) Advance is equal to one month’s pay and amount TA to which he may be
entitled on account of transfer.
iii) Pay advance is recoverable in three equal (nearby equal) installments and
TA in one from the TA bill.

iv) Recovery is made from the pay bill/TA bill drawn at the new station.

2. Advance on Tour.

i) Paid to Government Servant (not being an inspecting officer) proceedings

on tour upto an amount sufficient to cover for a month’s contingent
charges, hire of conveyance for carriage of records, etc.

ii) Adjustment of advance is made before 30th June or returns to headquarters.

iii) Paid to non-gazetted employees accompanying officers on tour equal to

amount sufficient to cover their personal TA for a month subject to
adjustment on return to headquarters or on 30th June.

iv) Also paid to the gazetted employees when proceeding on long and
expensive tours for a month subject to adjustment on return to
headquarters or 30 June.

3. Procedure.

i) Advances are sanctioned to non-gazetted staff by the head of office while

to the gazetted officer by the heads of departments.

ii) Advances on Tour are debited to the functions and objects to which the
TA is debited. But the advances on transfer are debited to ‘F02119-OB
Advances’.

253 – A

7
 INTEREST-BEARING ADVANCES

HOUSE-BUILDING ADVANCES

253-A. Advances to Government servants for the construction of houses are

regulated by the following rules :-

1- Advances may be made under the sanction of Ministers of the

Government of Pakistan, Heads of Departments, and Heads of Circles in the Pakistan
Post Office and Telegraphs and Telephone Department, to Government servants, who
desire to build houses, for occupation by themselves, at any place in Pakistan. No
advance is ordinarily permissible to a Government servant who is likely to retire before
complete recovery can be effected.

Note 1.- deleted.

Note.2 - Advances will be granted for the construction of new houses.

Advances will also be granted for purchasing a newly constructed house, or for
completely reconstructing a house already owned by the Government servant concerned,
or for extending/renovating a house already owned by the Government servant
concerned.

Government decision.- Building Advance for the purchase of flats in multi-

storeyed buildings may be granted to Government servants to the extent and subject to
the usual conditions prescribed for the admissibility of house building advance. This shall
be subject to the following further provisions :-

(a) Before receiving the amount of the advance, or payment of the amount to
the construction agency direct (vide para 2 below), the Government
servant concerned shall be required to execute an agreement in the
prescribed form attached; and after the purchase of the flat is complete to

8
 execute and register the Mortgage deed in the prescribed form as security
for repayment of the amount advanced with interest;

(b) Satisfactory evidence shall have to be produced within 3 months of the

drawal of the advance to show that the amount has been spent on the
purchase of flat. This can be done by showing the valid legal receipt
issued by the Construction Agency concerned in token of the purchase
deed.

2. Where a Government servant desires that the payment of

the advance sanctioned under the above orders be made direct to the
construction agency, the Drawing and Disbursing Officer shall arrange
for the direct payment of the sanctioned amount to the agency
concerned and obtain a valid receipt in the name of the Government
servant from that agency and hand over the same to him.

Note.3 - House building advance for construction/purchase of houses in Azad

Kashmir territory may also be granted to the Federal Government servants domiciled in
Azad Kashmir subject to usual conditions.

Note.4 - Government servants are entitled to draw advances for construction of

houses either from the Government or from the House Building Finance Corporation but
not from both.

(i) deleted.

(ii) All such advances must be bona fide required for the purpose of building
suitable houses for the personal residence of the officers concerned, and if more is
advanced than shall be actually expended for the purpose, the surplus shall be refunded to
Government.

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 (iii) Advances for the construction of new houses may be drawn in two equal
installments. The first installment will be paid on the production of documents
establishing proprietary rights in the land and the second installment will be paid only
when the house reaches plinth level. Advances granted for reconstruction, purchase,
extension or renovation of houses may, however, be drawn in one installment, provided
all other conditions governing the execution and registration of mortgage deed, etc., are
duly fulfilled and the Government interest is fully secured. The repayment shall
commence from the month immediately after the grant of the second installment or six
months after the drawal of the first installment whichever is earlier. The repayment shall
be completed in 10 years in the case of a former superior service Government servant and
in 20 years in the case of a former class IV Government servant, provided that the age of
the Government servant concerned at the time of repayment of first installment is below
47 years in the former case and below 38 years in the later case. In the case of those who
would at the time of such repayment be attaining the age of 47 years or 38 years, as the
case may be, the number of installments by which recovery is effected, shall be so
regulated as to enable the recovery of the total amount advanced including interest,
possible before the date on which the officer would be reaching the age of 60 years.

Note.1. - The bills for the drawal of the advances when presented to audit should be
accompanied by a certificate in the following form from the Controlling Officer in the
case of gazetted officers and the drawing officer in respect of non-gazetted Government
servants.

Certified that Mr._________________ who has been granted a House Building

Advance of Rs.___________ has *produced documents stating proprietary rights in the
land on which the house is proposed to be built *|satisfied me that the house has reached
the plinth level.

Signature of Controlling/Drawing Officer.

*This portion may be deleted if the bill is drawn for the second installment.

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Note.2. - Utilisation certificate shall be furnished in the following manner :-

1. Where the house building advance is drawn in installments.—At the end of

six months of each installment.
2. Where full advance is drawn in one installment.—At the end of one year from
the drawal of advance.

(iv) No advance shall exceed 24 months pay of a former

superior service Government servant and 36 months pay of a former
Class IV Government servant, to whom it is made. Not more than one
advance shall be made to a Government servant for the same house or
for another house at the same station, or at any other station.

A second advance may, however, be granted to a Government servant for the

construction of a house in Islamabad provided he has fully repaid the advance previously
drawn from the Government with interest thereon.

Note.1. - The full advance will be admissible only to those who are less than 47
years of age in the case of former superior service Government servants and 38 years of
age in the case of former Class IV Government servants on the date of the repayment of
the first installment of the advance. In the case of those former superior service
Government servants who are above the age of 47 years and those former Class IV
Government servants who are above the age of 38 years the amount of the advance
should be reduced so much as would enable the recovery at the rate of not more than 1/4th
of the Government servants pay in any one month of the total amount advanced including
interest, possible before the retirement of the Government servant. For instance, a former
superior service Government servant who is 55 years of age on the date on which
recovery of the advance is to commence, should get a house building advance equal to
his 15 months pay (1/4 x 60, ; i.e., the number of months for which the Government
servant has still to serve).

11
 Note.2. - The advances may be revised on the request of the Government servants
concerned subject to the following conditions:-

(i) The increase in pay other wise then by accrual of time scale increments is
not less than 20%.

(ii) The net amount payable against the revised sanction be arrived at after the
adjustment of any amount drawn against the original sanction, whether
that amount, or any portion thereof, has been repaid or not.

(iii) The installments of recovery shall be refixed so as to recover the total

amount minus the amount already repaid within the maximum period
originally prescribed.

(iv) The revision will be admissible only if the event entitling the Government
servant for the revision of the advance takes place within a period of 12
months prescribed or the completion of house from the date of the drawal
of the first instalment of advance for construction, as distinct from the
instalment for development charges.

(v) The revision will not be allowed, if the house has been completed and
occupied by any one.

(vi) If the mortgage deed already executed and registered stands for the
advance originally sanctioned, the mortgagor may be required to execute a
new separate deed in form G.F.R. 34. The new deed should also be
registered under the Registration Act.

(v) Advances will be recovered by the deduction of monthly

instalments of not less than 20% of the pay of the Government servant

12
concerned from his pay bills. In the case of those who at the time of the
repayment of the first instalment of the advance are more than 47|38
years of age, the rate of recovery will be such higher rate than 20% of
pay as would enable the recovery of the principal together with interest
possible before the retirement of the officer. The authority sanctioning
an advance may permit recover to be made in a smaller number of
instalments, if the officer receiving the advance so desires. The amount
of interest will be recovered in one or more instalments, each such
instalment being not appreciably greater than the instalments by which
the principal was recovered.

The recovery of interest will commence from the month following that in which the
whole of the principal has been repaid.

Note 1. - The amount of the advance to be recovered monthly should be fixed in

whole of a rupee, should be recovered.

Note 2. - The instalments should be recovered in cash during the periods of leave
without pay. If the Government servant fails to pay any such instalments in cash, the
arrears of instalments falling due during period of leave without pay should be recovered
in lump sum from the first payment of pay or allowances which may become due to the
Government servant at the end of that leave.

(vi) In order to secure Government from loss consequent on a Government

servant dying or quitting the service before complete repayment of the advance with
interest accrued thereon, the house so built together with the land it stands upon must be
mortgaged to Government, by whom the mortgage will be released on liquidation of the
full amount due.

Note. - The mortgage bond will be prepared in form G.F.R. 23 and the
reconveyance in form G.F.R. 24.

13
 (vii) The officer must satisfy the sanctioning authority regarding his title to the
land upon which the house is or is proposed to be built.

Note 1. - This rule does not preclude the grant of an advance to a person who does
not possess full proprietary rights in the land upon which he intends to build, provided the
sanctioning authority is satisfied that the applicant has a lease of which the unexpired
portion is of a term and value sufficient to justify the grant of the advance, and that there
is no danger of the lease lapsing or of Government being unable to dispose of it, should it
become necessary to foreclose the mortgage. In examining the mortgagor’s title care
should be taken to see that the lease does not prevent any sub demise by the lessee (the
mortgagor). The mortgage bond in such cases will be prepared in form G.F.R.25.

In cases in which ground rent, municipal taxes and similar dues are payable to
local authorities on account of land taken on lease, the sanctioning authority may, at its
discretion ask the Government servant taking the advance to produce for inspection
receipts for these payments within fifteen days of their falling due. If the sanctioning
authority finds that such dues have not been paid by the borrower steps may be taken to
recover the said dues including interest thereon, if any, from the pay of the Government
servant concerned for payment to the parties concerned.

No.2. - The applicant’s title to the property should be examined by the sanctioning
authority before the advance is actually paid, and in cases where there is any doubt as to
the validity of that title, the Revenue and Registration authorities or if technical legal
advice is necessary, the Law Officers of Government should be consulted. It should be
seen that he has undisputed title to the land on which it is proposed to build and that there
will be no legal obstacle to the properly being mortgaged to Government; and that
Government will have the right of foreclosing on the conditions mentioned in the
mortgage bond.
No.3. - This rules does not also preclude the grant of advances for the purpose of
building houses on plots of land taken on lease from Government in Nazimabad, Karak.

14
The grant of an advance in such cases is, however, subject to the condition that the
applicant executes an agreement in form G.F.R.26. Advances sanctioned under this note
will be made in instalments.

Note.4. - The Heads of the Office in the case of a non-gazetted Government servant
and the Controlling Officer in the case of a gazetted Government servant should when
asking for the authority for payment, send to the principal Auditor concerned a certificate
either in the bill in which the advance is drawn, or separately, to the effect that the
mortgage bond in Form G.F.R.23/25 has been executed by the Government servant
taking the advance and that it has been duly registered.

Note.5. - This rule does not preclude the grant of advance for the purpose of
building houses on plots of land acquired in Karachi through the co-operative housing
societies registered under the Bombay Co-operative Societies Act, 1925 even though in
such cases the Government servant concerned becomes entitled to a lease of 99 or 50
years only on the completion of the house on the plot allotted. The grant of the advance
will be subject to the condition that the Government servant shall not acquire land from
the societies concerned on such terms and conditions as will prevent him from alienating
the land.

Advances on account of development charges will be allowed when the societies

demand these charges from the Government servant concerned. At the time of the drawal
of such advances the Government servant must sign an agreement in Form G.F.R.27. He
should be required, as soon as it is possible for the societies to allot the land to him, to
produce original documents showing that the land has actually been allotted to him.
When he has been allotted land and wishes to draw further advances for the construction
of a house, advance will be allowed up to a maximum of 50% of the total house building
advance sanctioned in his case. At the time of drawal of this instalment he must be called
upon to execute an agreement in Form G.F.R.31. This instalment is intended to enable
him to start building the house and to complete at least the plinth. As soon as practicable
and in any case, not later than three months from the date of the drawal of this instalment,

15
he must produce a certificate from the Executive Engineer appointed by the Government
for the purpose to the effect that the plinth has been finished. Thereafter, he should be
asked to execute a mortgage deed in Form G.F.R. 25. Further instalment will be allowed
on the fulfillment of the above conditions.

Note.6. - Advances may also be given where considered necessary for the purchase
of land on which to construct a house, if the other condition laid down in this paragraph
are satisfied and the total amount of the advance for the purchase or leasing of the land
and the construction of the house does not exceed 24 months pay of the officer
concerned.

The Government servant should sign an agreement in form G.F.R.28 at the time
of taking an advance for the purchase of land and the amount should not exceed what is
required for the purpose. A mortgage deed in Form G.F.R. 29 should be executed before
any further advance is drawn for the purpose of constructing the house. The mortgage
deed must be registered within 4 months of its execution.

The Government servants who acquire land on lease, should sign an agreement in
form G.F.R.27 at the time of taking an advance for the leasing of the mortgage deed in
form G.F.R. 25 should be executed before any further advance is drawn for the purpose
of constructing the house.

The mortgage deed must be registered within 4 months of its execution.

In order to save Government from loss, the applicant’s title to the property should
be carefully examined by the sanctioning authority and all instructions should be
followed.

(viii) deleted.

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 (ix) Applications for advances must be made through the
applicant’s departmental superior, who will record his opinion as to the
necessity for the assistance solicited. The applicant must certify that the
sum is to be expended in building only, and pledge himself that, should
there be any surplus funds after the house is completed, they will be at
once refunded to Government.

(x) The last-pay certificate granted to Government servants under advances

must specify the original amount of such advance, the amount repaid and the balance
together with interest accrued.

(xi) Advances may be granted to Government servants subject to the following

conditions :-

(a) The temporary Government servant has completed at least 10 years

continuous service. However, the temporary Government servant in
National Pay Scales No.1 & 2 will be eligible to draw the advance
irrespective of the length of their temporary service;

(b) A certificate is produced from the Head of the Department to the effect
that his service are not likely to be terminated within the period prescribed
for the repayment of the advance;

(c) Security of two permanent Government servants if furnished, who can be

released when the house has been built and mortgaged to Government.
The sureties should be such as would not retire before the house is built
and mortgaged;

17
 (d) In cases where the official has already acquired the land for construction
of the house, he should mortgage it to the Government together with the
house to be built thereon, before the advance is sanctioned;

(e) In cases where the advance is required for the purpose of land, the first
instalment of advance will be limited to 25% of the total amount of the
advance or the actual cost of the land, whichever is less.

(f) The official concerned produces a certificate from the appropriate House
Building Society; Improvement Trust; C.D.A., etc; that the land has been
allotted to him and the price should be indicated as also the instalment that
is immediately payable after allotment.

(g) In cases where the applicant is not a member of any co-operative house-
building society registered under Co-operative Societies Act, 1912, the
land for the house should be acquired and mortgaged to Government
before the first instalment of the advance is paid to him.

253-B. Subject to such terms and conditions as may be prescribed from time to
time, loan may be advanced to a Government servant subject to the rule making control
of the President and paid from Civil Estimates for the purchase of a house for his
residence built by the Central Government or Provincial Government or a local authority,
including a Rehabilitation authority, or an Improvement Trust. Except as otherwise
provided, the general principles of paragraphs 253-A, shall apply to the grant and
recovery of the loan.

Note.1. - The loan shall be drawn after the Government servant concerned has
executed an agreement in form G.F.R.37.

Note.2. - The loan may be drawn in full at once but satisfactory evidence shall be
produced before the Audit Officer to show that the loan advanced for the purchase of the

18
house has been spent within three months of its drawal. This can be done by showing to
the Audit Officer concerned the valid legal receipt for the amount paid before record with
the Department Head.

Note.3. - Save in the case of a gazetted officer, the amount of loan shall be paid by
the Head of the Department of the grantee of the loan direct to the authority which built
the house.

Note.4. - When asking for the authority for payment of loan the Drawing Officer in
the case of a non-gazetted officer and the Controlling Officer in the case of a gazetted
Officer, shall pending executing of the mortgage deed to be executed in form G.F.R.38
after the purchase of the house, certify that he has secured an agreement in the prescribed
form from the grantee of the loan. The execution and registration of the mortgage deed
shall also be intimated to the Audit Officer as soon as possible.

FORM G.F.R. 23

(See note 1 under Rule VI of paragraph 253-A)

Form of Mortgage.

THIS INDENTURE made the ……….. day of ……… one thousand nine hundred
and………………Between……………………………of………………………a Civil
Officer of……………..(hereinafter referred to as the mortgagor which term shall where
the context so admits include his heirs, executors, administrators and assigns) of the one
part and the PRESIDENT OF PAKISTAN (hereinafter referred to as the mortgagee
which term shall where the context so admits include his successors and assigns) of the
other part.

WHEREAS the mortgagor is absolutely seized and possessed of or

otherwise well entitled to the land hereditaments and premises hereinafter

19
described and expressed to be hereby conveyed transferred and assured
(hereinafter referred to as the said hereditament).

AND WHEREAS, the mortgagor has applied to the mortgagee for

an advance of the sum of Rs…………………….. for the purpose of
enabling him to defray the expenses of building a house on the said
hereditaments as a suitable residence for his own use.

AND WHEREAS, under the provisions contained in para 253-A of

the General Financial Rules (hereinafter referred to as the said Rules
which expression shall where the context so admits include any
amendment thereof or addition thereto for the time being in force) the
mortgagee has agreed to advance to the mortgagor the said sum of
Rs………………………………… payable as follows that is to say the Delete words
in crotchets if
sum of Rs………………………on or before the execution of these advance is
not to be by
presents and the balance (unless and until the power of sale applicable instalment.
hereto shall have become exercisable) by equal instalments payable
quarterly, the first of such instalments to be payable on
the…………………………………………day of ……………… … … …

NOW THIS INDENTURE WITNESSETH, that in pursuance of

3. Delete – words
the said agreement and in consideration of the sum of in crotchets if
advance is to be
Rs………………………. Paid on or before the execution of these presents by instalments.
to the mortgagor by the mortgagee (the receipt whereof the mortgagor
4. Insert – a date
doth hereby acknowledge) for the purpose of enabling the mortgagor to two or for years or
the |case may be
defray the hereinbefore recited expenses the mortgagor hereby covenants from the date of
commencement
with the mortgagee to repay to the mortgagee the said sum of of repayment of
the loan. Where
Rs………………………[and such further sums as shall hereafter be paid possible the land
by him to the mortgagor pursuant to the hereinbefore recited agreement in should also be
described by
that behalf]3 and interest thereon calculated according to the Rules on reference to
Government map
the……………………………… day of…………………………. next4 of survey

20
and if the loan shall not be repaid on that date will pay interest in
accordance with the said Rules. AND THIS INDENTURE ALSO
WITNESSETH that for the consideration aforesaid the mortgagor doth
hereby convey transfer and assure into the mortgage ALL that piece of
land situate in the …………………………. District ………………… a
registration district of …………………. Sub-registration district of
……………………. Containing …………………. More or less now in
the occupation of the mortgagor and bounded on the North by
……………………………….. on the South by ……………………… on
the East by ………………….. and on the West by ……………………….
Together with the dwelling-house and the out-offices, stables, cook-rooms
and out-buildings now erected on the said piece of land together with all
rights, easements and appurtenances to the said hereditaments or any of
them belonging TO HOLD the said hereditaments will their appurtenances
including all erections and buildings hereafter erected and built on the said
piece of land unto and to the use of the mortgagee absolutely subject to the
proviso for redemption hereinafter contained PROVIDED ALWAYS that
if and as soon as the said advance of rupees ……….. 5[and of such further
sums as may have been paid as aforesaid] made upon the security of these
presents shall have been repaid and interest thereon calculated according 5. Delete –
to the said Rules by the deduction of monthly instalments of the salary of words in
crotchets if
the mortgagor as in the said Rules mentioned or by any other means the advance is
not to be by
whatsoever then and in such case the mortgagee will upon the request and instalments

at the cost of the mortgagor re-convey, re-transfer or re-assure the said

hereditaments unto and to the use of the mortgagor or as he may direct
AND it is hereby agreed and declared that if there shall be any breach by
the mortgagor convenants on his part herein contained or if he shall die or
quit the service before the said sum of rupees …………….. [and any
further sum as may have been paid as aforesaid and interest thereon
calculated according to the said Rules shall have been fully paid off then
and in any of such cases it shall be lawful for the mortgage to sell the said

21
hereditaments or any part thereof either together or in parcels and either by
public auction or by private contract with power to buy in or rescind any
contract for sale and to re-sell without being responsible for any loss
which may be occasioned thereby AND to do and execute all such acts
and assurances for effectuating any such sale as the mortgagee shall think
fit AND it is hereby declared that the receipt of the mortgagee for the
purchase money of the premises sold or any part thereof shall effectively
discharge the purchaser or purchasers therefrom AND it is hereby declared
that the mortgagee shall hold the moneys to arise from any sale in
pursuance of the aforesaid power UPON TRUST in the first place thereout
to pay all the expenses incurred on such sale and in the next place to apply
such moneys in or towards satisfaction of the moneys for the time being
owing on the security of these presents and then to pay the surplus (if any)
to the mortgagor AND is hereby agreed and declared that the said Rules
shall be deemed and taken to be part of these parents.

The mortgagor hereby convenants with the mortgagee that he the mortgagor will
during the continuance of this security observe and perform all the provisions and
conditions of the said Rules on his part to be observed and performed in respect of these
presents and the said hereditaments.

IN WITNESS whereof the mortgagor, hath hereunto set his hand the day and year
first above written.
Signed by the said (Mortgagor)
In the presence of

Ist witness 2nd sitness

Address. Address
Occupation Occupation.

(The deed should be registered)

Note. – There must be two witnesses to a mortgage.
FORM G. F. R. 28

(See Note 6 under Rule VII of paragraph 253-A)

22
 Form of Agreement to be executed at the time of drawing an advance for the
purchase of land on which to construct a house.

AGREEMENT MADE

One thousand nine hundred and

BETWEEN of
(hereinafter called the Borrower, which expression shall include his legal
representatives and assigns) of the one part and the PRESIDENT OF PAKISTAN
(hereinafter called the President which expression shall include his successors in
office and assigns) of the other part, WHEREAS the Borrower has agreed to
purchase for the purpose of erecting a house thereon the piece of land situated
in……………………………in the registration district of ………………………..
sub-district……………………..thana ……………………. Containing
………………………….. more or less and bounded on the North
by……………….. on the East……………………and on the West
by…………………… for the sum of Rupees …………………………. AND
WHEREAS the Borrower has under the provisions of the General Financial Rules
(therelinafter referred to as the said Rules which expression shall include any
amendment thereof for the time being, in force) applied to the President for a loan
of Rupees……………………to enable him to purchase the said piece of land and
the President has agreed to lend the said sum of Rupees……………………………
to the Borrower on the terms and conditions hjereinafter contained, NOW IT IS
HEREBY AGREED between the parties hereto that in consideration of the sum of
Rupees ………………………..paid by the President to the Borrower ( the receipt
of which the Borrower hereby acknowledges) the Borrower hereby agrees with the
President (1) to repay the President the said amount with interest calculated

23
according to the said Rules by monthly deductions from his salary as provided for
by the said Rules and hereby authorizes the President to make such deductions and
(2) within one month from the date of these presents to expend the full amount of
the said loan in the purchase of the said piece of land and if the actual price paid is
less than the loan to repay the difference to the President forthwith and (3) to
execute a document mortgaging the said piece of land and the house to be erected
thereon to the President as security for the amount lent to the Borrower as
aforesaid and interest in the form provided by the said Rules AND IT IS HEREBY
FURTHER AGREED that the Borrower shall immediately he has purchased the
said piece of land commence and erect thereon a suitable residence for his own use
AND IT IS HEREBY LASTLY AGREED AND DECLARED that if the said
piece of land has not been purchased and mortgaged aforesaid within one month
from the date of these presents or if the Borrower within that period become
insolvent or quits the service of Government or dies the whole amount of the loan
and interest accrued thereon shall immediately become due and payable.

IN WITNESS whereof the Borrower has hereinto set his hand the day and year
first above written.

SIGNED by said in the presence of.

_______________

FORM G.F.R. 29

24
 (See Note 6 under Rule VII of paragraph 253-A)

Form of Mortgage Deed to the executed in connection with on advance for

the purchase of land on which to construct a house.

THIS INDENTURE made the ……………… day of ………………one thousand

nine hundred and ………………….. BETWEEN OF ………………………………. A
Civil Officer of ………………………………………………. (hereinafter called the
mortgagor which term shall where not repugnant to the context include his heirs,
executors an administrator and assigns) of the one part and THE PRESIDENT OF
PAKISTAN (hereinafter referred to as the mortgagee which term shall where not
repugnant to the context include his successors and assigns) of the other part,

WHEREAS by an agreement dated the ………….. day of ………….. 19 and

made between the mortgagor of the one part and the mortgagee of the other part the
mortgagee advanced and lent to the mortgagor the sum of rupees
…………………………………..for the purpose of purchasing the piece of land
hereinafter described and intended to be hereby transferred and assured and as security
for such loan for mortgagor agreed to execute a mortgage in favour of the mortgagee in
the form of these presents AND WHEREAS the mortgagor on the …………….. day of
……………………19 duly purchased the said piece of land and is now absolutely seized
and possessed of or otherwise well entitled to the said piece of land AND WHEREAS the
mortgagor has applied to the mortgagee for a further advance of the sum of rupees
…………………….for the purpose of enabling him to defray ……………………. The
expenses of erecting on the said piece of land a suitable residence for his own use AND
WHEREAS under the provisions contained in para 253-A of the General Financial Rules
(hereinafter referred to as the said Rules which expression shall where the context so
admits include any amendment thereof or addition thereto for the time being in force and
shall be deemed to form part of these present) the mortgagee has agreed to advance to the
mortgagor the said further sum of Rupees ………………………………………….
(payable as follows that is to say the sum of Rupees…………………………………. On

25
or before the execution of these presents) and the balance (unless and until the power of
sale applicable hereto shall have become exercisable) by……………………equal
………………………..instalments to be payable on the ……………………… day of
……………………………………

NOW THIS INDENTURE WITNESSETH that in consideration of the said

advances of Rupees …………………. And
Rupees………………………………………… making a total of Rupees
…………………………………so advanced as aforesaid and in pursuance of the said
agreement the mortgagor doth hereby convenant with the mortgagee to pay to the
mortgagee the said sum of Rupees…………………………(and such further sums as
shall hereafter be paid by him to the mortgagor pursuant to the hereinbefore recite
agreement in that behalf) and interest thereon calculated according to the said Rules on
the………………………………..day of………………………….next and if the loan
shall not be repaid on the date will pay interest in accordance with the paid Rules.

AND THE INDENTURE ALSO WITNESSETH that for the consideration

aforesaid the mortgagor doth hereby transfer assign and assure unto the mortgagee ALL
THAT PIECE of land situate in………………….in the registration District
of………………………….subdistrict………………………
thana……………………………containing……………………………..more or less and
bounded on the North by…………………………..on the South by………………………
on the East by…………………………….and on the West
by…………………………….together with the dwelling-house and the out-offices
stables, cook-rooms and out-buildings and all Kinds used or intended to be used with the
said dwelling-house (erected or hereafter to be erected on the said piece of Land) together
with all rights casements and appurtenances to the same or any of them belonging TO
HOLD the said premises including all erectings and buildings hereafter executed on the
said land (hereinafter referred to as the said premises) unto and to the use of the
mortgagee absolutely subject to the proviso for redemption hereinafter contained
PROVIDED ALWAYS that if and as soon as the said advance of

26
Rupees…………………..(and of such further sums as may have been paid as aforesaid)
made upon the security of these presents and interest thereon calculated according to the
said Rules shall have been repaid by the deduction of monthly instalments of the salary of
the mortgagor as in the said Rules mentioned or by any other means whatsoever than and
in such case the mortgagor will upon the request and at the cost of the mortgagor re-
convey, re-transfer or re-assure, the said premises unto and to the use of the mortgagor
and the mortgagor hereby convenants with the mortgagor that he the mortgagor now hath
good right to transfer the said premises unto the mortgagee free from incumbrances AND
FURTHER that he the mortgagor and all other persons have or lawfully claiming any
estate or interest in the said premises or any part thereof shall and will from time to time
and at all times hereafter at his or their own cost do and execute or cause to be done and
executed all such acts deeds and things for further and more perfectly assuring the said
premises unto the mortgagee in manner aforesaid as shall or may be reasonably required
PROVIDED ALWAYS and it is hereby agreed and declared that if there shall be any
breach by the mortgagor of the convenants on his part herein contained or if he shall die
or quit the service at any time before all same sums due or payable to the mortgagee on
the security of these presents shall have been fully paid off then and in any of such cases
it shall be lawful for the mortgagee to sell the said premises or buildings standing thereon
or any part thereof either together or in parcels and either by public auction or by private
contract with power to buy in or to rescind any contract for sale and to re-sell without
being responsible for any loss which may be occasioned thereby or to let the same for any
term or period and to do and execute all such acts and assurances for effectuating any
such sale or letting as the mortgagee shall think fit AND IT IS HEREBY DECLARED
that the receipt of the mortgagee for the purchase money of the premises sold or any part
thereof shall effectually discharge the purchaser or purchasers therefrom AND IT IS
HEREBY DECLARED that the mortgagee shall hold any rents, profits, premiums,
salaim or moneys arising from the premises or from any such letting or sale as aforesaid
UPON trust in the first place thereout to pay all expenses attending such sale or otherwise
incurred in relation of this security and in the next place to apply such moneys in or
towards situation of the moneys for the time being on the security of these presents and
then to pay the surplus if any to the mortgagor AND IT IS HEREBY DECLARED that of

27
lease made by the mortgagor of the said premises or any part thereof during the
continuance of this security shall have effect unless the mortgagee shall consent thereto
in writing.

IN WITNESS whereof the mortgagor, hath hereunto set his hand the day and year
first above written.

SIGNED BY the said

(mortgagor) in the
presence of
1st witness
Address
Occupation
2nd witness
Address
Occupation
(The Deed should be registered)

28