19Powers of Corporation in relation to transferred securities

19 Powers of Corporation in relation to transferred securities

(1) Where an approved security is transferred or assigned to, or becomes vested in, the Corporation in consequence of the making of a payment by the Corporation under a contract of insurance, the Corporation is empowered: (a) to dispose of its rights under the security; or (b) if it is satisfied that in all the circumstances it is desirable to do so, to enter into an arrangement: (i) for the variation of any of the provisions of the security; or (ii) for the discharge of the security upon condition that a new security, containing such terms and conditions as the Corporation determines, is executed in favour of the Corporation for an amount not exceeding the amount of the loan and interest and other moneys then outstanding under the existing security. (2) The Corporation is empowered to dispose of its rights under a security the provisions of which have been varied in pursuance of an arrangement entered into under the last preceding subsection or under a new security executed in pursuance of such an arrangement. (3) Where a security collateral to an approved security is transferred or assigned to, or becomes vested in, the Corporation in consequence of the making of a payment by the Corporation under a contract of insurance, the Corporation is empowered to dispose of its rights under that security or, subject to any arrangement entered into under this section, to realize that security. (4) The powers of the Corporation under this section: (a) are in addition to any other powers or rights the Corporation has in relation to a security; and (b) may be exercised at any time. (5) Where, in pursuance of subsection (1) or (2), the Corporation disposes of its rights under a security to a person, the Corporation is empowered to enter into a contract of insurance under section 17 with that person in respect of so much of the loan secured by the security as is then outstanding as if that amount were the amount of an insurable loan made, or proposed to be made, by that person.