24Proceedings on securities

24 Proceedings on securities

(1) Proceedings in respect of a breach of the condition of a security may be instituted by the Commissioner or a Deputy Commissioner suing in his official name.

(2) When a security is put in suit by the Commissioner, the production of the security, without further proof, entitles the Commissioner to judgment against, and for the stated liability of, the persons appearing to have executed the security unless the defendants prove compliance with the condition of the security, that the security was not executed by them or release or satisfaction.

(3) If it appears to the Court that a non-compliance with the condition of a security has occurred, the security shall not be deemed to have been discharged or invalidated and a subscriber shall not be deemed to have been released or discharged from liability by reason of:

(a) an extension of time or other concession to the registered person referred to in the security;

(b) the Commissioner having consented to, or acquiesced in, a previous non-compliance with the condition; or

(c) the Commissioner having failed to bring suit against a subscriber upon the occurrence of a previous non-compliance with the condition.