54Amount of compensation

54 Amount of compensation (1) The amount of compensation to which a mortgagee is entitled under this part in respect of the acquisition of a mortgage interest under a mortgage (the relevant mortgage) is an amount equal to the sum of— (a) so much of the sum of— (i) the amount of the principal secured by the relevant mortgage at the time of acquisition of the mortgage interest; and (ii) the amount of any interest, costs or charges due to the mortgagee under the relevant mortgage at that time; as does not exceed the amount of compensation payable under this Act to the mortgagor in respect of the acquisition of the interest in land that was subject to the relevant mortgage; and (b) any legal or other professional costs reasonably incurred by the mortgagee in relation to the acquisition of the mortgage interest, including costs of— (i) obtaining advice in relation to the acquisition, the entitlement of the mortgagee to compensation or the (ii) executing, producing or surrendering such documents, and making out and providing such abstracts and attested copies, as the director-general, the solicitor-general, the chief solicitor or a person authorised under the Law Officers Act 2011, section 29 (1) (Person authorised by chief solicitor) requires. (2) For subsection (1), if— (a) the relevant mortgage was the only mortgage over the interest in land immediately before the acquisition; or

Amount of compensation—mortgage interests Division 6.3 (b) there were 2 or more mortgages over the interest in land immediately before the acquisition and the relevant mortgage had, at that time, priority over the other mortgage or mortgages; the compensation payable to the mortgagor in respect of the acquisition of the interest in land shall be taken to be the compensation that would have been payable to the mortgagor if there had been no mortgage over the interest. (3) For subsection (1), if— (a) there were 2 or more mortgages over the interest in land immediately before the acquisition; and (b) the relevant mortgage did not have, at that time, priority over the other mortgage or mortgages; the compensation payable to the mortgagor in respect of the acquisition of the interest in land shall be taken to be the compensation that would have been payable to the mortgagor if there had been no mortgage over the interest, reduced by the principal secured at the time of the acquisition by, and the interest, costs and charges due at that time under, a mortgage or mortgages having priority over the relevant mortgage.