(2)Where a loan has been granted by the insurer to a director of such insurer or to any company in which such person is a director, on the mortgage of a policy of life assurance and such loan is outstanding on the appointed date, the Board shall have the power, notwithstanding anything to the contrary in any agreement or contract, to examine the adequacy of the security given by such person for the repayment of the loan and, if the Board considers it necessary to do so, to require that the loan be repaid or that additional security be given, on or before a specified date. If such person fails to repay the loan, or to give additional security, on or before the specified date, he shall, on the expiry of a period of one year from that date, cease to hold office as a director of such insurer.