6Mortgages to the Crown etc

6 Mortgages to the Crown etc

6 Mortgages to the Crown etc

(1) This section shall apply to—

(a) any mortgage to the Crown, a Minister, or a statutory body representing the Crown, held for advances made under the Returned Soldiers Settlement Act 1916, as amended by subsequent Acts,

(b) any mortgage to the Commissioners of the Government Savings Bank of New South Wales, held in respect of the Rural Bank Department, Advances for Homes Department, or Government Housing Department.

(2) A mortgagee under any such mortgage shall not exercise any of the rights, powers, or remedies against the mortgagor or the mortgaged property for the recovery of the moneys secured by the mortgage or for the enforcement or realisation of the security expressly or impliedly given to him by the mortgage, other than rights, powers, or remedies which may be exercised in accordance with this Part by a mortgagee without the leave of the court, unless he first gives not less than one month’s notice of his intention so to do to the mortgagor.

Provided that where a mortgagor has by instrument inter vivos disposed of the whole of his estate or interest in any mortgaged property it shall not be necessary, nor shall it be deemed ever to have been necessary, to give any such notice to such mortgagor.

Provided further that in the case of a mortgage of land it shall not be necessary, nor shall it be deemed ever to have been necessary, to give notice to any person whose interest in the land was created by an instrument which is not registered either under the Registration of Deeds Act 1897, or the Real Property Act 1900, but this proviso shall not apply where the person whose interest is so unregistered is the original mortgagor or his personal representative or where such person is in possession of the land or where the mortgagee has express notice of the interest of such person.

(3) Any mortgagor who has been given any such notice may apply to the court for an order under this section.

The mortgagee on receiving notice of such application shall not exercise the right, power, or remedy the subject-matter of the notice given by him until such application has been heard and determined.

(4) On any such application the court may make such order as to the exercise by the mortgagee of his rights, powers, and remedies under the mortgage or as to the suspension thereof, and on such terms and conditions as under all the circumstances of the case it thinks fit.