Tasmanian Consolidated Acts Tasmanian Consolidated Acts
(1) Subject to this section, a mortgage to which this section applies has effect as if the principal secured by the mortgage were reduced by one-quarter of that portion of the principal that on the appropriate date still remains due to be repaid, and where any part of the principal secured by the mortgage falls due to be paid on or after the appropriate date the mortgage has effect as if that part were proportionately reduced.
(1A) Where, after the thirty-first day of December 1963, any further sum is lent or advanced on the security of a mortgage that was subsisting on that date, nothing in this section (other than subsection (4) of this section) prejudices or affects the rights, liabilities, or obligations of any person with respect to the recovery or payment of that sum, and accordingly for the purposes of subsection (1) of this section that further sum shall be deemed not to form part of the principal secured by the mortgage.
(1B) Where any such further sum as is referred to in subsection (1A) of this section is lent or advanced on the security of a mortgage it shall be assumed, for the purpose of determining for the purposes of subsection (1) of this section the portion of the principal secured by the mortgage that on the appropriate date remains due to be repaid, that any payment made, or assumed by virtue of subsection (2) of this section to have been made, by way of repayment of principal was applied to the repayment of that further sum and to the other principal moneys secured by the mortgage in the proportion that, immediately before that payment, the amount of so much of that further sum as then remained due to be repaid bore to the amount of the other principal moneys secured by the mortgage that then remained due to be repaid.
(2) For the purpose of determining for the purposes of subsection (1) of this section the amount by which the principal secured by a mortgage, or any part thereof, is to be reduced it shall be assumed that all payments due under the mortgage before the appropriate date have been paid on the date on which they became due and that the covenants and other terms and conditions of the mortgage have been duly observed.
(3) Nothing in subsection (1) of this section affects the operation of a mortgage with respect to the payment of interest on the principal secured by the mortgage, or any part thereof, except that no interest otherwise required to be paid under the mortgage, shall be required to be paid or be regarded as accruing, in respect of any period commencing on or after the appropriate date, on that part of the principal secured by the mortgage that by virtue of this section is not required to be repaid.
(4) The mortgagee of any mortgage to which this section applies is not entitled after the appropriate date to exercise any power of sale or leasing that he would otherwise be entitled to exercise by virtue of that mortgage and, after that date, no order or direction shall be made for the foreclosure or the sale of any land that is subject to the mortgage.
(5) Nothing in subsection (4) of this section affects any rights or obligations arising on or in respect of the acquisition of the land to which the mortgage relates.
(6) This section applies to a mortgage of an estate or interest in any land in respect of which an entitlement to an additional sum has arisen or would arise if a notice to treat were served for the acquisition of that land, other than a mortgage that is entered into after the thirty-first day of December 1963.
(7) If a mortgage ceases to be a mortgage to which this section applies, the fact of its so ceasing does not have the effect of requiring to be repaid any part of the principal secured by the mortgage that, apart from this section, would, while this section applied to that mortgage, have fallen due to be repaid, and that by virtue of this section has not been required to be repaid.
(7A) This section has effect notwithstanding any covenant or agreement to the contrary (whether that covenant or agreement was entered into before or after the commencement of this Act) and notwithstanding any stipulation, covenant, condition, term, or other provision of a mortgage (whether made before or after the commencement of this Act), and any such covenant or agreement, or any such stipulation, covenant, condition, term, or other provision, in so far as it would otherwise exclude, prejudice, or affect the operation of this section in relation to any mortgage is void and of no effect.
(8) In this section "appropriate date" means, when used in relation to a mortgage of any land, the date on which that land first becomes part of the prescribed lands.