17. Where a lender other than the Société sustains a loss with respect to a farm loan or a forestry loan, he may, provided that he complies with the conditions prescribed by regulation, file with the Société a claim for repayment by the Fonds of the losses and expenses contemplated in section 4, and the Fonds, upon the recommendation of the Société, shall make payment thereof.
Before making the recommendation contemplated in the first paragraph, the Société shall examine the said claim and assess its merits. The Société may, for such purposes, require from the lender any other document or information it considers necessary in addition to the documents prescribed by regulation.
Notwithstanding any inconsistent legislative provision and subject to section 19, where the Fonds makes a payment in accordance with the first paragraph, the Société is subrogated plenojure in the rights of the lender to whom such payment is made, up to the amount of such payment.
This section also applies, adapted as required, to disbursements referred to in the second paragraph of section 4.
1978, c. 49, s. 17; 1991, c. 11, s. 6; 1992, c. 32, s. 43.