P-21 - Student Loans and Scholarships Act

Section 6 Disposition versions

1977-12-31

6. The Government shall guarantee to any credit institution the reimbursement of the losses in principal and interest resulting from approved loans and the expenses allowed by regulation and incurred to obtain payment of the principal and interest of such loans.

The Government is subrogated in the rights of any credit institution to which it makes a repayment under this section, to the extent of the amount so reimbursed.

The rights of a credit institution against a student to whom it has made an approved loan are extinguished upon his death. In such a case, the Government shall pay to the credit institution the amount in principal and interest owed by the student on the date of his death or on the date fixed by the Minister in cases where the credit institution was not notified within thirty days following death.

1966-67, c. 70, s. 6; 1976, c. 37, s. 4; 1977, c. 5, s. 14.