The Approved Credit policy

3. Collaterals of borrowing from JMRC

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   1. Loan collaterals consist of first degree liens on properties transferred to the order of JMRC and relating to the refinanced mortgage loans. In this regard, the following shall be observed:

   • The aggregate residual value of mortgages and other collaterals shall in no event be less than 120% of the loan value.
     
     
   • The financial institution shall ensure that JMRC's security interest in the mortgages assigned hereunder has been duly recorded in the appropriate registry in order that JMRC has a perfect security interest in the mortgage collateral.
     
     
   • In order to maintain the percentage referred to in (a) above at end of each calendar quarter, the financial institution shall transfer additional first degree mortgages on properties to the order of JMRC or else provide additional collateral as may be approved by JMRC on temporary basis in any of the following cases :
     • Reduction of principal through normal repayments or prepayment of any mortgage loans secured by existing mortgages transferred to the order of JMRC
       
       
     • Delinquency of any refinanced mortgage loan because more than two instilments are due if repayment is on monthly basis, or three months have elapsed since the due date of an installment, if repayment is not on monthly basis.
       
       
     • If the financial institution requests a replacment of existing mortgages.
       
       
     • If changes in market interest rate reduce the financial value of the existing collateral.

- Additional Collaterals Include:

Government of Jordan bonds, treasury bills issued by the Central Bank of Jordan, or bonds issued by JMRC.

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