PROPERTY LAW ACT 1974 - SECT 92
Appointment, powers, remuneration and duties of receiver
PROPERTY LAW ACT 1974 - SECT 92
Appointment, powers, remuneration and duties of receiver
92 Appointment, powers, remuneration and duties of receiver
(1) A mortgagee entitled to appoint a receiver under the power in that behalf
conferred by this Act shall not appoint a receiver until the mortgagee has
become entitled to exercise the power of sale conferred by this or any other
Act, but may then appoint such person as the mortgagee thinks fit to be
receiver.
(1A) However, for a mortgage registered under the Land Act or the
Mineral Resources Act a mortgagee entitled to appoint a receiver may appoint a
receiver at any time after the mortgagee has become entitled to enter upon and
take possession of the land subject to the mortgage.
(2) A receiver appointed
under the powers conferred by this Act, shall be deemed to be the agent of the
mortgagor, and the mortgagor shall be solely responsible for the receiver’s
acts or defaults unless the instrument of mortgage otherwise provides.
(3)
The receiver shall have power to demand and recover all the income of which
the receiver is appointed receiver, by action or otherwise, in the name either
of the mortgagor or of the mortgagee, to the full extent of the estate or
interest which the mortgagor could dispose of, and to give effectual receipts
accordingly for the same, and to exercise any powers which may have been
delegated to the receiver by the mortgagee under this Act.
(4) A person
paying money to the receiver shall not be concerned to inquire whether any
case has happened to authorise the receiver to act.
(5) The receiver may be
removed, and a new receiver may be appointed, from time to time by the
mortgagee by writing.
(6) The receiver shall be entitled to retain out of any
money received by the receiver, for the receiver’s remuneration, and in
satisfaction of all costs, charges and expenses incurred by the receiver as
receiver, a commission at such rate, not exceeding 5% on the gross amount of
all money received, as is specified in the receiver’s appointment, and if no
rate is so specified, then at the rate of 5% on that gross amount, or at such
other rate as the court thinks fit to allow, on application made by the
receiver for that purpose.
(7) The receiver shall, if so directed in writing
by the mortgagee, insure to the extent (if any) to which the mortgagee might
have insured, and keep insured against loss or damage by fire, or by storm and
tempest out of the money received by the receiver, any building, effects, or
property comprised in the mortgage, whether affixed to the freehold or not,
being of an insurable nature.
(8) Subject to this Act as to the application
of insurance money, the receiver shall apply all money received by the
receiver as follows, namely—
(a) in discharge of all rents, taxes, rates,
and outgoings whatever affecting the mortgaged property;
(b) in keeping down
all annual sums or other payments, and the interest on all principal sums,
having priority to the mortgage in right of which the receiver’s is
receiver;
(c) in payment of the receiver’s commission, and of the premiums
on fire, life, or other insurances (if any) properly payable under the
instrument of mortgage or under this Act, and the cost of executing necessary
or proper repairs directed in writing by the mortgagee;
(d) in payment of the
interest accruing due in respect of any principal money due under the
mortgage;
(e) in or towards discharge of the principal money if so directed
in writing by the mortgagee;
and shall pay the residue (if any) of the money
received by the receiver to the person who, but for the possession of the
receiver, would have been entitled to receive the income of which the receiver
is appointed receiver, or who is otherwise entitled to the mortgaged property.
(9) The appointment of a receiver or of a new receiver under this section
shall be made by the mortgagee by writing in the approved form.