40 (1) When the Minister pays a lender for a loss sustained by it as a result of a loan, Her Majesty is subrogated from the payment of the final claim for the loss to the rights of the lender up to the amount paid by the Minister.
(2) If, after the Minister makes the payment, additional proceeds are realized from the taking of any measures by the lender described in subsection 37(3), the Minister must be paid an amount equal to 85% of the proceeds and the lender must be paid an amount equal to 15%.
(3) The payment made to the Minister under subsection (2) is to be taken into account in determining the losses sustained by the lender on loans made after March 31, 2009 when calculating the Minister’s limit of liability with respect to the lender under subsection 6(2) of the Act.
- SOR/2009-102, s. 23
- SOR/2014-7, s. 27
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