TRUSTEE ACT 1925 - SECT 34
Release of equity of redemption in discharge of mortgage debt
TRUSTEE ACT 1925 - SECT 34
Release of equity of redemption in discharge of mortgage debt
34 Release of equity of redemption in discharge of mortgage debt
(1) Where an equity of redemption is vested in a trustee and the mortgaged
property is not of greater value than the amount of the mortgage debt, the
trustee may release the equity of redemption to the mortgagee in discharge of
the mortgage debt or part thereof.
(2) The trustee shall not be chargeable
with breach of trust nor shall the release be impeached by any beneficiary
upon the ground only that the mortgaged property was of greater value than the
amount of the mortgage debt or of the part thereof discharged, provided that
the trustee has acted bona fide and on the advice of a person whom the trustee
reasonably believed to be a competent valuer instructed and employed
independently of the mortgagee, whether the valuer carried on business in the
locality where the property is situate or elsewhere.
(3) A subsequent
purchaser or the Registrar-General Crown Solicitor or other person registering
or certifying title shall not be concerned to inquire whether the release was
authorised by this section.
(4) This section applies whether the equity of
redemption vested in the trustee before or after the commencement of this Act.