Existing loans and mortgages
253 Existing loans and mortgages
This section applies to a loan made by a continuing society under the previous law if the loan is in existence at the commencement.
A standard may provide for the transition of the loan to a loan complying with section 90(4).
The standard must require the transition to happen within 12 months after the commencement.
The standard must not operate to the disadvantage of a person other than a society by—
decreasing the person’s rights; or
imposing additional liabilities on the person.
The conditions of the loan are taken to be changed to the extent necessary to comply with the standard.
A mortgage securing the loan at the commencement and continuing in force immediately before the change of conditions of the loan continues to secure the loan.
The mortgage is taken to be changed to the extent necessary to secure the loan with the changed conditions.
This Act’s bill:Explanatory memorandum
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