Consequences of failure by borrower to comply with an order made or to furnish information required under section 8

If the borrower fails without reasonable cause— (i) to comply with any order made or to furnish information required under section 8, or (ii) if the Controlling Authority, after inspection provided for in section 8 or otherwise, is satisfied that the money lent is not being applied to the purpose or purposes for which it was lent or that any condition on which it was granted is not being duly fulfilled, the Controlling Authority may declare, notwithstanding anything contained in the bond executed by the borrower, that the loan shall be immediately recoverable against the borrower and the surety and shall give notice of such declaration to the borrower.