43Where a statutory authority prepays a mortgage in whole or in part, the statutory authority
(a)
shall pay to the mortgagee an amount in respect of the prepayment amounting to
(i)
three months’ interest on the amount of principal prepaid at the rate of six per cent a year, or
(ii)
the value of any notice or bonus for prepayment provided for in the mortgage,
whichever is the lesser;
(b)
shall pay to the mortgagee where,
(i)
the prevailing interest rate for an equivalent investment is lower than the rate under the mortgage, and
(ii)
there is no provision in the mortgage permitting prepayment at the date of the expropriation,
an amount to compensate for the difference in the interest rates for the period for which the amount of principal prepaid has been advanced, not to exceed five years; and
(c)
shall pay to the mortgagor whose interest is expropriated an amount to compensate for any loss incurred by reason of a difference in the interest rates during the period for which the payment of principal provided for in the mortgage has been advanced, but such difference shall not be calculated on a new interest rate any greater than the prevailing interest rate for an equivalent mortgage.
43Where a statutory authority prepays a mortgage in whole or in part, the statutory authority
(a)
shall pay to the mortgagee an amount in respect of the prepayment amounting to
(i)
three months’ interest on the amount of principal prepaid at the rate of six per cent a year, or
(ii)
the value of any notice or bonus for prepayment provided for in the mortgage,
whichever is the lesser;
(b)
shall pay to the mortgagee where,
(i)
the prevailing interest rate for an equivalent investment is lower than the rate under the mortgage, and
(ii)
there is no provision in the mortgage permitting prepayment at the date of the expropriation,
an amount to compensate for the difference in the interest rates for the period for which the amount of principal prepaid has been advanced, not to exceed five years; and
(c)
shall pay to the mortgagor whose interest is expropriated an amount to compensate for any loss incurred by reason of a difference in the interest rates during the period for which the payment of principal provided for in the mortgage has been advanced, but such difference shall not be calculated on a new interest rate any greater than the prevailing interest rate for an equivalent mortgage.