Kuwait Court of Cassation principle number 3180

Providing housing welfare to those entitled to it. Its purpose. Achieving the public interest. Its effect. The Credit and Savings Bank may set conditions ensuring achievement of that purpose. It may stipulate that the borrower be prohibited from leasing the property wholly or partly, disposing of it without the bank’s prior approval, or using the loan for a purpose other than that for which it was allocated. A disposition contrary to these conditions may not be invoked against the bank unless the loan or its outstanding balance has been repaid. - The respondent’s bringing an action against the appellant bank in exercise of the respondent’s debtor’s rights against the bank. It being established that the debtor’s rights against the bank do not authorise the debtor, without the bank’s approval, to dispose of the property purchased with the loan funds and mortgaged in favour of the appellant bank before full repayment of the loan. The challenged judgment ruling that the respondent is entitled to register the judgment resulting in transfer of ownership of the property to the respondent before paying the bank the entire outstanding balance of the loan. Error. This is not altered by the bank’s previous approval of the borrower’s gift of half the property to the borrower’s wife. The reason therefor.