525. Effect of mortgagor's individual voluntary arrangement.

(iv)     Effect of Insolvency of Individual Mortgagors

525.     Effect of mortgagor's individual voluntary arrangement.

A debtor who wishes to make a proposal for a voluntary arrangement may apply for an interim order1 to enable him to put a scheme of arrangement to his creditors2. While an interim order is in force no proceedings and no execution or other legal process may be commenced or continued, and no distress may be levied, against the debtor or his property except with the leave of the court3. A mortgagee therefore needs leave to bring proceedings for possession, but does not appear