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5(1)Where default is made in complying with the statutory condition as to residence, the local authority may take possession of the house, and where default is made in complying with any of the other statutory conditions, whether the statutory condition as to residence has or has not been complied with, the local authority may either take possession of the house or order the sale of the house without taking possession.
(2)In the case of the breach of any condition other than that of punctual payment of the principal and interest of the advance, the authority shall, previously to taking possession or ordering a sale, by notice in writing delivered at the house and addressed to the proprietor, call on the proprietor to comply with the condition, and if the proprietor—
(a)within 14 days after the delivery of the notice gives an undertaking in writing to the authority to comply with the notice, and
(b)within two months after the delivery of the notice complies with it,
the authority shall not take possession or, as the case may be, order a sale.
(3)In the case of the bankruptcy of the proprietor of the house, or in the case of a deceased proprietor’s estate being administered in bankruptcy under section 130 of the [1914 c. 59.] Bankruptcy Act 1914, the local authority may either take possession of the house or order the sale of the house without taking possession, and shall do so except in pursuance of some arrangement to the contrary with the trustee in bankruptcy.
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