Kuwait Court of Cassation principle number 655

Provision of housing welfare to those entitled to it. Its purpose. Achievement of the public interest. Its effect. The Credit and Savings Bank may set conditions ensuring achievement of this purpose. It may stipulate that the borrower be prohibited from leasing - 124 - Commercial the property wholly or partly, or disposing of it without the bank's prior approval, or using the loan for a purpose other than that designated for it. A disposition contrary to these conditions may not be invoked against the bank unless the loan or its remainder has been repaid. - The respondent's bringing his action against the appellant bank in exercise of his debtor's rights against the bank. Establishment 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 favor 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 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. Reason therefor.