sec.123Appointment of receiver

### sec.123 Appointment of receiver This section applies if a mortgagee under a mortgage over property is entitled to take or enter into possession of the property. The mortgagee may appoint an appropriately qualified person as receiver of the property. The appointment must be in the approved form. The receiver is the agent of the mortgagor. The receiver may take or enter into possession of the property. As soon as practicable after taking or entering into possession of the property, the receiver must give a receipt for the property to the person from whom the property was taken or who held possession of the property. The receiver may take or enter into possession of the property despite a lien or other security over the property claimed by another person. However, the taking or entry into possession does not affect the other person’s claim to the lien or other security against a person other than the receiver. The receiver may deal with the property in the same way as the mortgagor may have lawfully dealt with the property if the receiver had not taken or entered into possession of the property, including, for example, claiming or receiving an amount owing in relation to the property. The receiver may insure the property, and deal with money received under an insurance of the property, to the extent the mortgagee is authorised under section 121 to insure the property or under section 122 to deal with the money. The receiver is entitled to remuneration— if an amount of remuneration, of not more than 5% of the gross amount of all money received by the receiver, is stated in the appointment—in the amount stated in the appointment; or if no amount of remuneration is stated in the appointment—in the amount of 5% of the gross amount of all money received by the receiver; or if the receiver makes an application to the court to decide the amount of remuneration—in the amount decided by the court. The receiver must apply money received by the receiver in payment of the following amounts in the following order— rents, taxes, rates, and outgoings relating to the property; amounts owing on other mortgages over the property having priority to the mortgage, including, for example, instalments of the principal amount, and interest on the principal amount, owing under those mortgages; the receiver’s remuneration under subsection (11) ; premiums for insurance of the property under section 121 , if any; repairs of the property authorised by the mortgagee, if any; interest on the principal amount owing under the mortgage; the principal amount owing under the mortgage, if authorised by the mortgagee; amounts owing under other mortgages over the property; the balance to the owner of the property. However, if the property is disclaimed property mentioned in section 115 , the mortgagee must pay into court the balance mentioned in subsection (12) (i) . A person claiming an amount paid into court under subsection (13) may apply to the court for an order dealing with the amount. In this section— remuneration includes costs, charges, expenses and commission. (sec.123-ssec.1) This section applies if a mortgagee under a mortgage over property is entitled to take or enter into possession of the property. (sec.123-ssec.2) The mortgagee may appoint an appropriately qualified person as receiver of the property. (sec.123-ssec.3) The appointment must be in the approved form. (sec.123-ssec.4) The receiver is the agent of the mortgagor. (sec.123-ssec.5) The receiver may take or enter into possession of the property. (sec.123-ssec.6) As soon as practicable after taking or entering into possession of the property, the receiver must give a receipt for the property to the person from whom the property was taken or who held possession of the property. (sec.123-ssec.7) The receiver may take or enter into possession of the property despite a lien or other security over the property claimed by another person. (sec.123-ssec.8) However, the taking or entry into possession does not affect the other person’s claim to the lien or other security against a person other than the receiver. (sec.123-ssec.9) The receiver may deal with the property in the same way as the mortgagor may have lawfully dealt with the property if the receiver had not taken or entered into possession of the property, including, for example, claiming or receiving an amount owing in relation to the property. (sec.123-ssec.10) The receiver may insure the property, and deal with money received under an insurance of the property, to the extent the mortgagee is authorised under section 121 to insure the property or under section 122 to deal with the money. (sec.123-ssec.11) The receiver is entitled to remuneration— if an amount of remuneration, of not more than 5% of the gross amount of all money received by the receiver, is stated in the appointment—in the amount stated in the appointment; or if no amount of remuneration is stated in the appointment—in the amount of 5% of the gross amount of all money received by the receiver; or if the receiver makes an application to the court to decide the amount of remuneration—in the amount decided by the court. (sec.123-ssec.12) The receiver must apply money received by the receiver in payment of the following amounts in the following order— rents, taxes, rates, and outgoings relating to the property; amounts owing on other mortgages over the property having priority to the mortgage, including, for example, instalments of the principal amount, and interest on the principal amount, owing under those mortgages; the receiver’s remuneration under subsection (11) ; premiums for insurance of the property under section 121 , if any; repairs of the property authorised by the mortgagee, if any; interest on the principal amount owing under the mortgage; the principal amount owing under the mortgage, if authorised by the mortgagee; amounts owing under other mortgages over the property; the balance to the owner of the property. (sec.123-ssec.13) However, if the property is disclaimed property mentioned in section 115 , the mortgagee must pay into court the balance mentioned in subsection (12) (i) . (sec.123-ssec.14) A person claiming an amount paid into court under subsection (13) may apply to the court for an order dealing with the amount. (sec.123-ssec.15) In this section— remuneration includes costs, charges, expenses and commission. - (a) if an amount of remuneration, of not more than 5% of the gross amount of all money received by the receiver, is stated in the appointment—in the amount stated in the appointment; or - (b) if no amount of remuneration is stated in the appointment—in the amount of 5% of the gross amount of all money received by the receiver; or - (c) if the receiver makes an application to the court to decide the amount of remuneration—in the amount decided by the court. - (a) rents, taxes, rates, and outgoings relating to the property; - (b) amounts owing on other mortgages over the property having priority to the mortgage, including, for example, instalments of the principal amount, and interest on the principal amount, owing under those mortgages; - (c) the receiver’s remuneration under subsection (11) ; - (d) premiums for insurance of the property under section 121 , if any; - (e) repairs of the property authorised by the mortgagee, if any; - (f) interest on the principal amount owing under the mortgage; - (g) the principal amount owing under the mortgage, if authorised by the mortgagee; - (h) amounts owing under other mortgages over the property; - (i) the balance to the owner of the property.