Victorian Consolidated Legislation

Land Acquisition and Compensation Act 1986 - SECT 72

Sum to be paid where part only of mortgaged land taken

72. Sum to be paid where part only of mortgaged land taken



(1) If-

   (a)  part only of the mortgaged interest or of the land in which the
        mortgaged interest subsists is required for the purposes of the
        special Act; and

   (b)  the value of the mortgaged interest in the part so required is of less
        value than the principal sum, interest and expenses secured on the
        whole of the land; and

   (c)  the mortgagee-

   (i)  does not consider the interest in the remaining part of the land a
        sufficient security for the money charged thereon; or

   (ii) is not willing to release the part so required- the value of the
        interest in the required part and the compensation (if any) to be paid
        in respect of the severance of that part or otherwise are to be
        settled by agreement between the mortgagee and the person entitled to
        the equity of redemption of the mortgaged interest on the one part and
        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 the part or of the compensation, the
Authority must make an offer in accordance with section 32 and the 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 the part 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 mortgagee's interest under the mortgage in the
part of the land for which the payment is made to the Authority or as the
Authority directs.





(5) A memorandum of the amount so paid must-

   (a)  be endorsed on the deed creating the mortgage; and

   (b)  be signed by the mortgagee.

(6) A copy of the memorandum must (if required) be furnished by the Authority
without charge to the person entitled to the equity of redemption of the
interest in land comprised in the mortgage.