42Assignment of contracts of insurance

42 Assignment of contracts of insurance

(1) Subject to subsection (2) and to such terms and conditions (if any) as the Corporation determines, a contract of insurance may be assigned: (a) where the contract relates to an insurable loan secured by an approved security—to the person to whom the approved security is transferred or assigned or in whom that security becomes vested; (b) where the contract relates to an insurable loan not so secured—to the person to whom the right of repayment of the loan is transferred or assigned; or (c) where the contract relates to an approved security or approved securities relating to one or more negotiable marketable securities—to the person to whom any interest in the approved security or approved securities is transferred or assigned. (2) A contract of insurance that is assigned under paragraph (1)(a) or (b) to a person who is not an approved lender may be cancelled by the Corporation if at, or at any time after, the time when the assignment takes effect an agency contract is not in force in relation to the loan in respect of which the contract of insurance was entered into.