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Mortgage of houses sold or leased by housing authorities.
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17.—(1) Where a housing authority give or have given consent to a mortgage in respect of a house sold or leased by them under section 90 of the Principal Act, the authority shall be regarded as having consented to—
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(a) any further or consolidated mortgage effected by the same mortgagor, and
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(b) the exercise by the mortgagee of his powers under any such mortgage.
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(2) Where a mortgagee who has exercised his powers under a mortgage sells a house which was subject, under section 90 of the Principal Act, to special conditions, the conditions shall no longer apply in relation to that house from the date of the sale.
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(3) Notwithstanding section 107 of the Principal Act, a housing authority shall, before making an application for a warrant under subsection (1) of that section in respect of a house sold or leased by them, give to a mortgagee in whose favour a mortgage on the house has been effected not less than two months' notice in writing of the authority's intention to make the application, and every such notice shall state the grounds on which the application is to be based.
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