87. The following Article shall be substituted for Article 156 or the principal Order—
156.—(1) The Executive may, with the approval of the Department, enter into agreements with building societies lending on the security of house property in Northern Ireland whereby, in the event of default by the mortgagor, and in circumstances and subject to conditions specified in the agreements, the Executive binds itself to indemnify the building society in respect of—
(a)the whole or part of the mortgagor's outstanding indebtedness; and
(b)any loss or expense falling on the building society in consequence of the mortgagor's default.
(2) In paragraph (1) “house property” means any property which is a house within the meaning of Article 2(2).
(3) The agreement may also, where the mortgagor is made party to it, enable or require the Executive in specified circumstances to take a transfer of the mortgage and assume rights and liabilities under it, the building society being then discharged in respect of them.
(4) The transfer may be made to take effect—
(a)on any term provided for by the agreement (including terms involving substitution of a new mortgage agreement or modification of the existing one); and
(b)so that the Executive is treated as acquiring (for and in relation to the purposes of the mortgage) the benefit and burden of all preceding acts, omissions and events.
(5) The Department may under paragraph (1) approve particular agreements or give notice that particular forms of agreement have its approval; and—
(a)may in either case make the approval subject to conditions;
(b)shall, before giving notice that a particular form has its approval, consult the Registrar of Friendly Societies for Northern Ireland, the Executive and such organisations representative of building societies as the Department thinks expedient.
(6) In this Article “building society” means a society within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967.”.