56Loans to be repayable if improperly expended

56 Loans to be repayable if improperly expended

(1) Where a prescribed authority is satisfied:

(a) that any money lent under this Part by that prescribed authority has not been applied for the purpose for which it was lent or has not been carefully and economically expended; or

(b) owing to the misconduct, idleness or inefficiency of the person to whom the loan was made, the purpose for which the loan was made is not likely to be achieved;

the balance of the loan then remaining unpaid shall, at the option of the prescribed authority, become due and payable on demand and be recoverable with interest on that balance and, after the exercise of the option, interest accrues from day to day. (2) Where the prescribed authority by which a loan has been made under this Part is satisfied as to any of the matters specified in paragraphs (a) and (b) of the last preceding subsection, the prescribed authority may vary all or any of the terms and conditions on which the loan was made. (3) Where the prescribed authority by which a loan has been made under this Part is satisfied that, in view of the efficiency or industry of the person to whom the loan was made, it is desirable to do so, the prescribed authority may vary, in favour of that person, all or any of the terms and conditions on which the loan was made.