PROPERTY LAW ACT 1958 - SECT 87 Foreclosure extinguishes right of action for mortgage debt etc.
PROPERTY LAW ACT 1958 - SECT 87
Foreclosure extinguishes right of action for mortgage debt etc.(1) On a decree judgment or order absolute for foreclosure the mortgagee shall be deemed to have taken the property mentioned in such decree, judgment or order in full satisfaction of the mortgage debt and his right or equity to bring any action or to take other proceedings for the recovery of the mortgage money from the debtor, surety or other person shall be extinguished and the right or equity of the mortgagor to redeem the said property shall also be extinguished.
S. 87(2) amended by No. 18/1989 s. 13(Sch. 2 item 68(a)).
(2) In the case of mortgages of land under the Transfer of Land Act 1958 "order absolute" includes an order for foreclosure under the hand of the registrar when recorded on the Register.
(3) Nothing in this section shall be deemed to disentitle the mortgagee (on such terms and conditions as to the Court seems just) from obtaining foreclosure of any other property over which he holds security by way of mortgage for the said money or part thereof or from enforcing all or any rights, powers and remedies expressed or implied in such mortgage except the right to sue the mortgagor or any surety for the mortgagor either for the mortgage money or on any bill or note given as security for the mortgage money as if this section had not been passed.
(4) This section shall have effect notwithstanding any stipulation to the contrary.
No. 3754 s. 88.