Could the Minister explain the purpose of this section?
SECTION 113.
Question proposed: "That section 113 stand part of the Bill."
This comes directly from building societies legislation and it is normal in winding up for the liquidator to realise all assets. It could be an intolerable burden on some borrowers to clear their mortgage before time. It is designed to ensure that where a liquidator proposes to sell a lender's mortgages in accordance with his powers under the Companies Act, 1963, he must first obtain the approval of the High Court. The High Court in granting this approval must be satisfied that the terms of the new loan, if they differ from the original ones, are both fair and broadly in line with what the borrowers would reasonably be entitled to expect if the mortgage lender had not been wound up. It protects the original rights one gains when taking out the mortgage.
It is not possible to sell the debt off to another person who will manage it on more draconian terms.
That is correct.
Question put and agreed to.