12.—(1) A borrower’s liability to make repayments in respect of all loans shall be cancelled if—
(a)he dies; or
(b)he is a person to whom paragraph (2) applies.
(2) This paragraph applies to a borrower who is not in breach of any obligation in relation to any loan and—
(a)if he was aged less than forty when he last entered into an agreement for a loan, if he attains the age of fifty or if the loan for which he last entered into an agreement has been outstanding for not less than twenty-five years (whichever event is the sooner); or
(b)if he was aged not less than forty when he last entered into an agreement for a loan, if he attains the age of sixty.