31 order in which they were incurred over all unsecured claims against the institution except claims arising out of the costs of the administration. (2) If a declaration is superseded by a winding-up order— (a) the preference conferred in terms of subsection (1) shall remain in force except in so far as claims arising out of costs of the winding up are concerned; and (b) all claims based on such liabilities incurred by the administrator or interim board shall be taken to have been proved, and section 220 of the Companies Act shall not apply in respect thereof. 37 Period of administration excluded in determining preference under mortgage bond The time during which any troubled financial institution, which is a debtor under a mortgage bond, is subject to administration, shall be excluded from the calculation of any period for the purpose of determining whether the mortgage confers any preference in terms of section 111(3) of the Insolvency Act [Chapter 6:04] as applied to the winding up of companies by the Companies Act. 38 Position of auditor during administration Notwithstanding the issue of a declaration in respect of any troubled financial institution and for so long as the declaration is in force, the provisions of the Banking Act or Companies Act relating to the appointment and reappointment of an auditor and the rights and duties of an auditor shall continue to apply as if any reference in those provisions to the directors of the troubled financial institution were a reference to the administrator. 39 Administration expenses (1) The expenses of the administration of a troubled financial institution (hereinafter in this section referred to as “administration expenses”), including in particular the remuneration of the administrator and any assistant administrator, shall be defrayed in the first instance by the troubled financial institution, but every specified person shall, to the extent mentioned in subsection (2), be liable to repay the institution for administration expenses. (2) Every specified person shall be liable for administration expenses to the extent of fifty per centum of the amount of the debts and other liabilities of the troubled financial institution for which such person is liable, or, if the liability of such person is unlimited, to the extent of fifty per centum of the amount of the administration expenses: Provided that if the amount due from all specified persons for administration expenses exceeds the actual amount of administration expenses, the amount due from each specified person shall be prorated accordingly. 40 Cancellation of declaration (1) If at any time the administrator notifies the Reserve Bank in writing that the purpose of the declaration has been fulfilled or that for any reason it is undesirable that the declaration should remain in force, the Reserve Bank may, by notice published in the Gazette, cancel the declaration and thereupon the administrator shall be divested of his or her functions. (2) In cancelling any declaration the Reserve Bank may (insofar as these matters have not been provided for under a scheme of resolution relating to the troubled financial