Any lease, mortgage, conveyance, or other disposition made by the F1Public Works Loans Secretary under this Act of any mortgaged property may be in the prescribed form, and shall convey to the person in whose favour such lease, mortgage, conveyance, or other disposition is made, and according to the terms thereof, all or any part of the estate, right, interest, powers, authorities, and privileges, which under the mortgage and this Act are vested in or capable of being exercised by the F2Treasury, or the Public Works Loans Secretary, either before or after possession taken, and the same shall thereupon be vested in and may be exercised and put in force by such person accordingly.

Nothing in this Act shall operate to invalidate or affect the rights of any person entitled bonafa fide to any debt, estate, or interest, having priority over or ranking pari passu with the loan granted F3by the Treasury, or the security for such loan, or the rights of any lessee under any lease made either prior to such security or with the concurrence F4of the Treasury.