The owner of a house in respect of the provision or improvement of which an improvement grant has been made or the holder of a heritable security over the house, being a heritable creditor entitled to exercise his power of sale, may, at any time when the conditions specified in section 246 are required to be observed with respect to the house, pay to the local authority the like amount as would become payable to them by virtue of Schedule 19 in the event of a breach of any of the conditions referred to in section 246(2), and on the making of the payment observance with respect to the house of those conditions shall cease to be requisite and the provisions of paragraph F16 of the said Schedule shall apply for the purposes of this subsection as they apply for the purposes of that Schedule.

A sum paid under subsection (1) by a heritable creditor shall be treated as part of the sum secured by the heritable security.