113Notice of trusts affecting mortgage debts

113 Notice of trusts affecting mortgage debts (1) A person dealing in good faith with a mortgagee, or with the mortgagor if the mortgage has been discharged, released or postponed as to the whole or any part of the mortgaged property, shall not be concerned with any trust at any time affecting the mortgage money or the income thereof, whether or not he has notice of the trust, and may assume unless the contrary is expressly stated in the instruments relating to the mortgage— (a) that the mortgagees (if more than one) are or were entitled to the mortgage money on a joint account; and (b) that the mortgagee has or had power to give valid receipts for the purchase money or mortgage money and the income thereof (including any arrears of interest) and to release or postpone the priority of the mortgage debt or any part thereof or to deal with the same or the mortgaged property or any part thereof— without investigating the equitable title to the mortgage debt or the appointment or discharge of trustees in reference thereto. (2) This section shall apply to mortgages made before or after the commencement of this Act, but only as respects dealings effected after such commencement. (3) This section shall not affect the liability of any person in whom the mortgage debt is vested for the purposes of any trust to give effect to that trust. No. 3754 s. 114.