354. Essentials to validity of surrender of lease.

354.     Essentials to validity of surrender of lease.

A surrender of a lease of mortgaged land by virtue of the statutory powers1 is invalid unless:

  1.  

    (1)     an authorised lease2 is granted of the whole of the land3 or mines and minerals4 comprised in the surrender to take effect in possession immediately or within one calendar month after the date of the surrender5;

  2.  

    (2)     the term certain or other interest granted by the new lease is not less in duration than the unexpired term or interest which would have been subsisting under