53Forfeiture of mortgaged pastoral lease

53 Forfeiture of mortgaged pastoral lease (1) Where a pastoral lease is subject to a mortgage given for valuable consideration and registered under the Land Title Act 2000, the Minister shall not cause notice of the forfeiture of the lease to be published in the Gazette in pursuance of section 35(10) or 40(6) until after the expiration of a period of 28 days after the Minister has given to the mortgagee notice of the Minister's intention to do so. Pastoral Land Act 1992 34 (2) The Minister shall give a copy of the notice under subsection (1) to the pastoral lessee, and thereafter the lessee ceases, except with the consent in writing of the Minister, to be entitled to exercise any of the rights or powers conferred by the lease. (3) If, during the period of 28 days after receipt of a notice under subsection (1), or within such further time as the Minister allows, a mortgagee advises the Minister that the mortgagee wishes to exercise the mortgagee's power of sale, the Minister shall allow the mortgagee 6 months, or such further time as, in the opinion of the Minister, is reasonable, to exercise it. (4) Where the Minister allows a mortgagee time to exercise a power of sale, the Minister shall advise the mortgagee of the extent to which the Minister is prepared to vary the conditions of the pastoral lease (other than those relating to land monitoring and land management) and, where the Minister does so, he or she shall, if the lease is transferred following a sale, so vary those conditions and lodge with the Registrar-General a notice of the variation. (5) Where a mortgagee exercises the mortgagee's power of sale of a pastoral lease after receipt of a notice under subsection (1) in relation to the lease: (a) the total of all amounts due and payable to the Territory by the lessee in relation to the lease up to and including the date of the sale is a debt due and payable to the Territory out of the proceeds of the sale, having priority before all debts secured by mortgage; (b) the balance of the proceeds of the sale, after payment of all debts and expenses payable out of those proceeds, are payable: (i) as to any amount not exceeding the unimproved value of the lease – to the Territory; and (ii) as to any amount in excess of the unimproved value – to the lessee; and (c) on the transfer of the lease following the sale, the transferee holds the lease, as varied in pursuance of subsection (4), as though the action leading up to the forfeiture of the lease had not been commenced. Pastoral Land Act 1992 35