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

Section 31 Disposition versions

1978-08-01

31. In case of default of maintenance or in case of deterioration entailing the decrease in value of the securities, the lender may, at the borrower’s expense, do any work and repairs and take any step he considers necessary to ensure their maintenance in good condition and the keeping of the borrower’s agricultural operations functioning.

If the lender, in either of the cases mentioned in the first paragraph, omits to exercise the powers conferred on him under the first paragraph or does not exercise them to the satisfaction of the Office, the latter, if it considers it appropriate in order to ensure protection of the securities for the loan, is authorized of right to exercise them itself on behalf of the lender and at the expense of the borrower, as if it were acting as the mandatary of the lender, but it must notify the lender as soon as possible.

1978, c. 50, s. 31.