Section 7: Requirements as to security, and certain restrictions on operations.

A mortgage institution shall not-(a) grant a loan or advance for the building, improvement or extension of a dwelling house unless adequate security has been taken on an existing property or the property in respect of which the loan or advance is being granted;
(b) grant to any person any loan, advance or credit facility or give any financial guarantee or incur any other liability on behalf of such person so that the total of the loan, advance, credit facility or guarantee is at any time more than twenty per centum of the sum of the paid-up capital and statutory reserves of the mortgage institution;
(c) grant any loan, advance or credit facility on the security of its own shares; and
(d) engage in any commercial, agricultural, industrial or any other undertaking except as permitted under this Act or as the mortgage institution may in anyway acquire in the course of the satisfaction of debts due to it so however that any interest in such undertaking shall be disposed of within a reasonable time.