8Apportionment of mortgage moneys where land subdivided

8 Apportionment of mortgage moneys where land subdivided

S. 8(1) amended by No. 53/1988 s. 45(Sch. 2 item 40).

(1) Where any land which is subject to a mortgage is or has been subdivided into separate lots or parcels the mortgagor may require the mortgagee to apportion the mortgage moneys to the respective lots or parcels of land which are subject to the mortgage.

S. 8(2) amended by No. 53/1988 s. 45(Sch. 2 items 40, 41).

(2) If the mortgagee fails to apportion the mortgage moneys to the respective lots or parcels or if the mortgagor is dissatisfied with the proposed apportionment the mortgagor may apply to an arbitrator for a determination as to the amount to be apportioned to each such lot or parcel.

S. 8(3) amended by No. 53/1988 s. 45(Sch. 2 item 40).

(3) Where the mortgage moneys have been apportioned to the respective lots or parcels pursuant to this section the mortgagee shall on tender of—

S. 8(3)(a) amended by No. 53/1988 s. 45(Sch. 2 item 41).

(a) the amount apportioned to any particular lot or parcel; or

S. 8(3)(b) amended by No. 53/1988 s. 45(Sch. 2 item 41).

(b) a registrable instrument of mortgage to secure payment of all moneys apportioned to that lot or parcel—

execute and deliver to the mortgagor a discharge of the first-mentioned mortgage in so far as it relates to that lot or parcel.

(4) A mortgage tendered under this section shall contain all such powers in favour of the mortgagee and all such covenants on the part of the mortgagor as are usual in mortgages and shall fully accord with and provide for the observance of all obligations of the mortgagor pursuant to the mortgage to be discharged and shall be prepared and registered at the cost of the mortgagor.

(5) Any question as to the sufficiency of any instrument of mortgage tendered pursuant to this section shall in the absence of agreement between the parties be determined by an arbitrator.

S. 8A
inserted by No. 7898 s. 2, substituted by No. 53/1988 s. 45(Sch. 2 item 42) (as amended by No. 47/1989 s. 18(1)(m)
(i)–(vii)), amended by No. 48/1991 s. 53(1).