Land and Agricultural Development Bank Act, 2002 (Act No. 15 of 2002)Part III : Funds and Business of Bank29. Substitution of debtors |
| (1) | Despite anything to the contrary in this Act, any person who acquires the whole of any land hypothecated to the Bank under a registered mortgage bond may, with the consent of the Bank granted on an application in the form prescribed by the Bank, take over all the obligations of the debtor under that mortgage bond and be substituted as debtor in respect of that bond. |
| (2) | A substitution in terms of subsection (1) does not constitute a novation. |
| (3) | When a person is substituted in terms of subsection (1), the advance secured by the mortgage bond is for the purposes of this Act deemed to have been made to that person by the Bank. |