C-75.1 - Act to promote long term farm credit by private institutions

Section 22 Disposition versions

1978-08-01

22. If a borrower obtains a loan as a result of false declarations or false pretences, if he disposes in any manner, without the authorization required under section 32, of part or all of the hypothecated property or of the pledged property, if he causes or allows abnormal deterioration of the property serving as security, or a diminishing of the security, if he ceases to meet the requirements to qualify for a loan or if he uses the proceeds or a part of the proceeds of such loan for purposes other than those for which the said loan was granted, the lender or, as the case may be, the Office as mandatary of the lender may, by mere notice sent by registered or certified letter to the borrower at his last address known to the lender or to the Office, declare the borrower forfeited of the benefit of the term granted, cancel the loan, claim repayment thereof with interest and, failing such repayment, exercise any recourse provided by law.

1978, c. 50, s. 22.