Victorian Consolidated Legislation

Land Acquisition and Compensation Act 1986 - SECT 70

Sum to be paid when mortgage exceeds value of land

70. Sum to be paid when mortgage exceeds value of land



(1) If any mortgaged interest in land acquired or proposed to be acquired
pursuant to this Act for the purposes of the special Act appears to the
Authority to be of less value than the principal interest and expenses secured
thereon, the value of the interest or the compensation to be paid by the
Authority in respect of the interest is to be settled by agreement between-

   (a)  the mortgagee and the person entitled to the equity of redemption of
        the land on the one part; and

   (b)  the Authority on the other part.

(2) If an agreement is not reached under subsection (1) with respect to the
amount of the value of the interest in land or of the compensation that amount
is to be determined under this Act in the same manner as a disputed claim for
compensation.

(3) The amount of the value of the interest in land or of the compensation so
agreed upon or determined pursuant to this section must be paid by the
Authority to the mortgagee in satisfaction of the mortgage debt so far as the
amount will extend.

(4) Upon payment or tender of the amount under subsection (3), the mortgagee
must convey or release all the interest in the land comprised in the mortgage
to the Authority or as the Authority directs.