Section 2: Licensing.

(1) If any company is desirous of carrying on mortgage business in Nigeria, it shall apply in writing through the Federal Mortgage Bank to the Minister for the grant of a licence in accordance with the following provisions of this Act.
(2) Every application shall be accompanied by the following documents, namely-
(a) in the case of a company already in existence and engaged other than in mortgage business-
(i) a copy of the company's certificate of incorporation, memorandum and articles of association certified by a director, secretary or other senior official of the company;
(ii) a copy of the latest balance sheet of the company;
(iii) a feasibility survey report in respect of the company's proposal to engage in mortgage business;
(iv) such other particulars as may be called for by the Federal Mortgage Bank; and
(b) in the case of a company not yet engaged in any business-
(i) a copy of the company's certificate of incorporation, memorandum and articles of association certified by the Registrar of Companies;
(ii) a feasibility survey report in respect of the company's proposal to engage in mortgage business; and
(iii) such other particulars as may be called for by the Federal Mortgage Bank.
(3) Upon receipt of the application and the documents or particulars referred to in subsection (1) of this section, the Federal Mortgage Bank shall consider them and make a recommendation thereon to the Minister.
(4) After the receipt of an application, documents and particulars and the recommendation of the Federal Mortgage Bank thereon, if the Minister is of the opinion-
(a) that a licence ought to be granted to the company, he shall issue it with such licence with or without condition;
(b) that it would be undesirable in the public interest to issue a certificate to such a company, he may refuse to issue such certificates, where the Minister refuses to issue a certificate, he shall state his reasons for so doing.
(5) An applicant aggrieved by the decision of the Minister may within 14 days appeal to the President, who may confirm or revoke the decision of the Minister.
(6) Where a licence is subject to any condition, the mortgage institution shall comply with the condition.
(7) Any mortgage institution which fails to comply with any of the conditions of its licence shall be guilty of an offence and liable on conviction to a fine of N100 for each day during which the condition is not complied with.