sec.132Right to require transfer of mortgage instead of discharge

### sec.132 Right to require transfer of mortgage instead of discharge This section applies if a mortgagor is entitled to discharge a mortgage over property. The mortgagor may require the mortgagee (the first mortgagee ), instead of discharging the mortgage, to transfer the mortgage to another person as directed by the mortgagor. Also, if the property is subject to another mortgage, the mortgagee under that mortgage (the subsequent mortgagee ), may require the first mortgagee, instead of discharging the mortgage, to transfer the mortgage to another person as directed by the subsequent mortgagee. The transfer is on the terms on which the first mortgagee would be required to discharge the mortgage. However, a requirement may not be made under subsection (2) or (3) if— a mortgagee is in possession of the property; or the mortgage contains an enforceable condition in favour of a mortgagee in restraint of the trade or business of the mortgagor or any other collateral benefit or advantage in favour of a mortgagee. If a requirement of a mortgagor under subsection (2) is inconsistent with a requirement of a subsequent mortgagee under subsection (3) , the requirement of the subsequent mortgagee under subsection (3) prevails. Also, if more than 1 requirement of a subsequent mortgagee is made under subsection (3) , the requirement of the subsequent mortgagee under whichever of the subsequent mortgages is earlier prevails. (sec.132-ssec.1) This section applies if a mortgagor is entitled to discharge a mortgage over property. (sec.132-ssec.2) The mortgagor may require the mortgagee (the first mortgagee ), instead of discharging the mortgage, to transfer the mortgage to another person as directed by the mortgagor. (sec.132-ssec.3) Also, if the property is subject to another mortgage, the mortgagee under that mortgage (the subsequent mortgagee ), may require the first mortgagee, instead of discharging the mortgage, to transfer the mortgage to another person as directed by the subsequent mortgagee. (sec.132-ssec.4) The transfer is on the terms on which the first mortgagee would be required to discharge the mortgage. (sec.132-ssec.5) However, a requirement may not be made under subsection (2) or (3) if— a mortgagee is in possession of the property; or the mortgage contains an enforceable condition in favour of a mortgagee in restraint of the trade or business of the mortgagor or any other collateral benefit or advantage in favour of a mortgagee. (sec.132-ssec.6) If a requirement of a mortgagor under subsection (2) is inconsistent with a requirement of a subsequent mortgagee under subsection (3) , the requirement of the subsequent mortgagee under subsection (3) prevails. (sec.132-ssec.7) Also, if more than 1 requirement of a subsequent mortgagee is made under subsection (3) , the requirement of the subsequent mortgagee under whichever of the subsequent mortgages is earlier prevails. - (a) a mortgagee is in possession of the property; or - (b) the mortgage contains an enforceable condition in favour of a mortgagee in restraint of the trade or business of the mortgagor or any other collateral benefit or advantage in favour of a mortgagee.