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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.