Kuwait Court of Cassation principle number 4526

Providing housing welfare to those entitled to it. Its purpose. Serving the public interest. Its effect. The Credit and Savings Bank may set the conditions that ensure achievement of this purpose. It may stipulate that the borrower be prohibited from leasing the property in whole or in part, disposing of it without the Bank's prior approval, or using the loan for a purpose other than that for which it is 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 his action against the appellant Bank in exercise of his debtor's rights against the Bank. It being established that the debtor's rights against the Bank do not entitle him, without the Bank's approval, to dispose of the property purchased with the loan funds and mortgaged in favour of the appellant Bank before repayment of the entire loan. The challenged judgment's ruling that the respondent is entitled to register the judgment resulting in the transfer of ownership of the property to him before paying the Bank the entire outstanding balance of the loan. Error. This is not altered by the Bank's prior approval of the borrower's gift of half the property to his wife. The reason therefor. - 891 - Ownership