301Powers incidental to mortgages

301 Powers incidental to mortgages (1) If a mortgage is made in writing, the mortgagee has, because of this Act, the following powers: (a) a power to sell or agree with someone else to sell all or any part of the mortgaged property; (b) a power to appoint or have appointed, in accordance with this part, a receiver of the income of all or any part of the property; (c) a power to insure from loss or damage all or any part of the property and to add the premiums paid for the insurance to the principal secured at the same rate of interest. (2) The power of sale under subsection (1) includes the following powers: (a) a power to sell the property by public auction or private contract on any reasonable conditions the mortgagee considers appropriate; (b) a power to rescind or vary contracts for sale; (c) a power to buy in and resell the property with all the powers of sale given by this section. (3) A mortgagee must not exercise the power given by subsection (1) (a) or (b) until— (a) 1 year after the day the principal becomes payable under the mortgage; or (b) interest on the principal has been in arrears for longer than 6 months. (4) A mortgagee may exercise the power given by subsection (1) (c) only if the mortgagor has failed to pay a premium for insurance that the mortgagor is by the mortgage obliged to pay.