The Central Government hereby makes the following Scheme to amend the Reserve Mortgage Scheme, 2008. This Scheme may be called the Reserve Mortgage (Amendment) Scheme, 2013 w.e.f. 07th Oct., 2013. In this scheme the Government has insert Para (2), after clause (a) i.e. "(ab) "annuity sourcing institution" means Life Insurance Corporation of India or any other insurer registered with the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);". Similarly in Para (3), in sub-Para (2) for the word, brackets and number "sub-rule (1)", the word, brackets and number "sub-para (1). As well para (5) shall be substituted by "5. Disbursement of Loan. - "The approved lending institution may disburse the loan (a) to the reverse mortgagor by any one or more of the following modes"
- periodic payments to be decided manually between the approved lending institution and the reverse mortgagor.
- lump-sum payment in one or more tranches, so the extend that the aggregate of the amount disbursed as lump-sum payments does not exceed fifty percent of the total loan amount sanction or in part or in full, to the annuity sourcing institution for the purposes of periodic payments by way of annuity to be reverse mortgagor.
The Government shall be substituted para 6 as "6. period of reverse mortgage loan. - The loan under reverse mortgage shall not be granted for a period exceeding, - 1. twenty years from the date of signing the agreement by the reverse mortgagor and the approved lending institute, where the loan is disbursed in accordance with clause (a) of Para. 5; 2. the residual life time of the borrower, where the loan is disbursed in accordance with clause (b) of Para.5."
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