56CConfirmation of identity of mortgagor

56C Confirmation of identity of mortgagor

56C Confirmation of identity of mortgagor

(1) Mortgagee must confirm identity of mortgagor Before presenting a mortgage for lodgment under this Act, the mortgagee must take reasonable steps to ensure that the person who executed the mortgage, or on whose behalf the mortgage was executed, as mortgagor is the same person who is, or is to become, the registered proprietor of the land that is security for the payment of the debt to which the mortgage relates.

(2) Without limiting the generality of subsection (1), the mortgagee is to be considered as having taken reasonable steps to ensure the identity of the mortgagor under subsection (1) if the mortgagee has taken the steps prescribed by the conveyancing rules.

(3) Record-keeping requirements A mortgagee must keep for a period of 7 years from the date of registration of the mortgage under this Act (or for such other period as may be prescribed by the regulations)—

(a) a written record of the steps taken by the mortgagee to comply with subsection (1), or

(b) a copy of any document obtained by the mortgagee to comply with subsection (1).

(4) Mortgagee to answer questions and produce documents The Registrar-General, in determining whether or not this section has been complied with, may at any time require the mortgagee—

(a) to answer questions in relation to the steps taken by the mortgagee to comply with subsection (1), and

(b) to produce for inspection any records kept under subsection (3).

(5) If a person fails to comply with a requirement made under subsection (4), the Registrar-General may—

(a) in relation to a registered mortgage—make a recording in the Register, with respect to the relevant land, to that effect, and

(b) in relation to a mortgage that has not been registered—refuse to register, or reject, the mortgage in accordance with section 39 (1A) or refuse to make any recording or entry in the Register or take any other action in respect of the mortgage.

(6) Cancellation of recordings in the Register The Registrar-General may cancel, in such manner as the Registrar-General considers appropriate, any recording in the Register with respect to a mortgage if the Registrar-General is of the opinion—