(1) Where any loan made by the Bank or any part of such loan has been misapplied, the Bank may, by notice in writing addressed to the person to whom the loan was made, recall the said loan or any part thereof and may require the loan or that part, together with any interest due on such loan or part thereof on the date of the notice, to be repaid on a date to be specified in the notice, and in default of payment on such specified date, any security given for the purpose of the loan may be realised.