Marginal note:Death of borrower
12 (1) All rights of a lender against a borrower in respect of a guaranteed student loan terminate in the event of the death of the borrower, and the Minister shall pay to any lender whose rights against a borrower are terminated under this section the amount of principal and interest determined in prescribed manner to have been payable by the borrower at the time of the borrower’s death.
Marginal note:Undisclosed death or disappearance of borrower
(2) Notwithstanding subsection (1), where a borrower to whom a guaranteed student loan has been made by a lender
(a) dies and notice of the borrower’s death is not received by the lender within thirty days of the day of death, or
(b) disappears under circumstances that, in the opinion of the Minister, raise beyond a reasonable doubt a presumption that the borrower is dead,
the Minister shall pay to the lender the amount of principal and interest determined in prescribed manner to have been payable by the borrower on such day after the borrower’s death or disappearance as the Minister may fix, and all rights of the lender against that borrower in respect of that guaranteed student loan terminate on that day.
- R.S., c. S-17, s. 8
- R.S., c. 42(1st Supp.), s. 4
- Date modified: