Australian Capital Territory Consolidated Acts

LIMITATION ACT 1985 - SECT 26

    (1)     In an action for redemption or otherwise in relation to a mortgage of property including an action in relation to the proceeds of sale or other realisation of property subject to a mortgage—

        (a)     a mortgagor is not, as against a mortgagee, to be required to pay or bear interest that could not, because of a period of limitation fixed by or under this Act, be recovered in an action by that mortgagee against that mortgagor brought on the date when the firstmentioned action is brought; and

        (b)     in adjusting the rights of a mortgagor and a mortgagee the mortgagee is not to be entitled to the interest mentioned in paragraph (a).

    (2)     If—

        (a)     interest becomes due under a mortgage; and

        (b)     a mortgagee—

              (i)     holds money on the date when the interest becomes due; or

              (ii)     after that date but before the end of the limitation period fixed by or under this Act for an action on a cause of action to recover that interest by that mortgagee against a mortgagor, receives money; and

        (c)     before or after the bringing of an action to which subsection (1) applies, that mortgagee or a person claiming through him or her properly applies that money in or towards satisfaction of that interest;

subsection (1) does not, as against the person so applying that money or a person claiming through him or her, apply to that interest to the extent to which it is so satisfied.