PROPERTY LAW ACT 1958 - SECT 115 Re-conveyances of mortgages by indorsed receipts under seal[27]

PROPERTY LAW ACT 1958 - SECT 115

    (1)     A receipt under seal indorsed on, written at the foot of or annexed to a mortgage for all money thereby secured which states the name of the person who pays the money and is executed by the person in whom the mortgaged property is vested and who is legally entitled to give a receipt for the mortgage money shall operate without any re‑conveyance, re-assignment, surrender or release—

        (a)     in the case of freehold land in fee-simple comprised in the mortgage as a re‑conveyance of the land to the person (if any) who immediately before the execution of the receipt was entitled in fee‑simple to the equity of redemption or otherwise to the mortgagor in fee-simple to the uses (if any) upon the trusts and subject to the powers and provisions which at that time are subsisting or capable of taking effect with respect to the equity of redemption or to uses (if any) which correspond as nearly as may be with the limitations then affecting the equity of redemption;

        (b)     in the case of a mortgage by demise or sub‑demise as a surrender of the term as respects the subject-matter of the mortgage so as to merge in the reversion immediately expectant on that term;

        (c)     in the case of other property as a re‑assignment thereof to the extent of the interest which is the subject-matter of the mortgage to the person who immediately before the execution of the receipt was entitled to the equity of redemption;

        (d)     and in all cases as a discharge of the mortgaged property from all principal money and interest secured by and from all claims under the mortgage but without prejudice to any term or other interest which is paramount to the estate or interest of the mortgagee or other person in whom the mortgaged property was vested.

S. 115(1A) inserted by No. 128/1986 s. 16.

    (1A)     An instrument of discharge lodged in accordance with section 84(4) of the Transfer of Land Act 1958 operates as provided in section 84(5) of   that Act without any re-conveyance, and operates as a discharge of the mortgaged or charged property from all principal moneys and interest secured by, and all claims under, the mortgage or charge.

    (2)     Provided that (except as hereinafter mentioned) where by the receipt the money appears to have been paid by a person who is not entitled to the immediate equity of redemption then unless it is otherwise expressly provided the receipt shall operate as if the benefit of the mortgage had by deed been transferred to him; but this provision shall not apply where the mortgage is paid off out   of capital money or other money in the hands of a personal representative or trustee properly applicable for the discharge of the mortgage unless it is expressly provided that the receipt is to   operate as a transfer.

    (3)     Nothing in this section shall confer on a mortgagor a right to keep alive a mortgage paid off by him so as to affect prejudicially any subsequent incumbrancer, and where there is no right to keep the mortgage alive the receipt shall not operate as a transfer.

    (4)     This section shall not affect the right of any person to require a re-conveyance, re-assignment, surrender, release or transfer to be executed in lieu of a receipt.

    (5)     A receipt under seal may be given in the form contained in the Sixth Schedule to this Act with such variations and additions (if any) as are deemed expedient.

    (6)     In a receipt given under this section the same covenants shall be implied as if the person who executes the receipt had by deed been expressed to convey the property as mortgagee subject to any interest which is paramount to the mortgage.

    (7)     Where the mortgage consists of a mortgage and a further charge or of more than one deed it shall be sufficient for the purposes of this section if the receipt refers either to all the deeds whereby the mortgage money is secured or to the aggregate amount of the mortgage money thereby secured and for the time being owing and is indorsed on, written at the foot of or annexed to one of the mortgage deeds.

    (8)     This section shall apply to the discharge of a mortgage whether made by way of statutory mortgage or not executed before or after the commencement of this Act but only as respects discharges effected after the thirty-first day of December One thousand nine hundred and eighteen.

    (9)     The provisions of this section relating to the operation of a receipt shall (in substitution for the like statutory provisions relating to receipts given by or on behalf of a building, friendly, provident or industrial and provident society or a successory trust) apply to the re-conveyance or discharge of a mortgage made to any such society or trust, provided that the receipt is executed in the manner required by any Act relating to the society or trust.

No. 3754 s. 116.