REAL PROPERTY ACT 1900 - SECT 57
Procedure on default
REAL PROPERTY ACT 1900 - SECT 57
Procedure on default
57 Procedure on default
(1) A mortgage, charge or covenant charge under this Act has effect as a
security but does not operate as a transfer of the land mortgaged or charged.
(2) A registered mortgagee, chargee or covenant chargee may, subject to this
Act, exercise the powers conferred by section 58 if--
(a) in the case of a
mortgage or charge, default has been made in the observance of any covenant,
agreement or condition expressed or implied in the mortgage or charge or in
the payment, in accordance with the terms of the mortgage or charge, of the
principal, interest, annuity, rent-charge or other money the payment of which
is secured by the mortgage or charge or of any part of that principal,
interest, annuity, rent-charge or other money,
(a1) in the case of a covenant
charge, default has been made in--
(i) the payment, in accordance with the
terms of the judgment to which the covenant charge relates, of the principal,
interest or other money the payment of which is secured by the covenant
charge, or
(ii) the payment, in accordance with the terms of that judgment,
of any part of that principal, interest or other money,
(b) where--
(i) the
default relates to that payment, or
(ii) in the case of a mortgage, the
default does not relate to that payment and notice or lapse of time has not
been dispensed with under section 58A,
a written notice that complies with
subsection (3) has been served on the mortgagor, charger or covenant charger
in the manner authorised by section 170 of the Conveyancing Act 1919 ,
(b1)
where a notice is required to be served under paragraph (b), a copy of that
notice has been served (in the manner authorised by section 170 of the
Conveyancing Act 1919) on--
(i) each mortgagee, chargee or covenant chargee
(if any) of the land mortgaged or charged under a registered mortgage, charge
or covenant charge which has less priority than that of the person intending
to exercise the power of sale, and
(ii) each caveator (if any) who claims as
an unregistered mortgagee or chargee to be entitled to an estate or interest
in the land mortgaged or charged, and
(iii) each person (if any) who has
lodged a priority notice and claims as an unregistered mortgagee or chargee to
be entitled to an estate or interest in the land mortgaged or charged, and
(c) where such a notice is so served, the requirements of the notice are not
complied with within the time notified pursuant to subsection (3) (d).
(3) A
notice referred to in subsection (2) complies with this subsection if--
(b) it requires the mortgagor, charger or covenant
charger on whom it is served--
(i) to observe, except in relation to any time
expressed in the covenant, agreement or condition for its observance, the
covenant, agreement or condition in respect of the observance of which the
mortgagor, charger or covenant charger made default, or
(ii) as the case may
be, to pay the principal, interest, annuity, rent-charge or other money in
respect of the payment of which the mortgagor, charger or covenant charger
made default,
(c) if the costs and expenses of preparing and serving the
notice are to be demanded, it requires payment of a reasonable amount for
those costs and expenses and specifies the amount, and
(d) it notifies the
mortgagor, charger or covenant charger that, unless the requirements of the
notice are complied with within one month after service of the notice (or,
where some other period exceeding one month is limited by the mortgage, charge
or judgment for remedying the default referred to in the notice, within that
other period after service of the notice), it is proposed to exercise a power
of sale in respect of the land mortgaged or charged.
(4) Where a notice is
served under subsection (2) (b) and the requirements of the notice are
complied with within the time applicable to the notice under subsection (3)
(d), the default to which the notice relates shall be deemed not to have
occurred.
(5) Without prejudice to any other manner in which it may be
deprived of force or effect, a covenant, agreement or condition whereby upon a
default referred to in subsection (2) (a)--
(a) the whole of the principal or
other money of which the payment is secured by a mortgage or charge becomes
payable, or
(b) a part of that principal or other money (not being a part to
which that default relates) becomes payable,
has no force or effect until the
powers conferred by section 58 become exercisable by reason of that default.