87AMortgagee to verify identity of mortgagor for execution of mortgage or variation of mortgage

87A Mortgagee to verify identity of mortgagor for execution of mortgage or variation of mortgage S. 87A(1) amended by No. 42/2017 s. 31. (1) In respect of a mortgage or a variation of mortgage, a mortgagee must take reasonable steps to verify the authority and identity of a mortgagor to ensure that the person executing the mortgage, or on whose behalf the mortgage is 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) For the purposes of subsection (1), the mortgagee is considered to have taken reasonable steps to verify the authority and identity of the mortgagor if the mortgagee has taken steps consistent with any verification of identity and authority requirements— (a) determined by the Registrar in accordance with section 106A; or (b) set out in the participation rules (within the meaning of the Electronic Conveyancing National Law (Victoria)). (3) If, in relation to a mortgage, the Registrar is satisfied that the mortgagee did not take reasonable steps to verify the authority and identity of the mortgagor and the registered proprietor of the land did not grant the mortgage, the Registrar may— (a) if the mortgage has not been registered, refuse to register the mortgage; or (b) if the mortgage has been registered, remove the mortgage from the Register. (4) If, in relation to a variation of mortgage, the Registrar is satisfied that the mortgagee did not take reasonable steps to verify the authority and identity of the mortgagor and the registered proprietor of the land did not grant the mortgage, the Registrar may— (a) if the variation of mortgage has not been registered, refuse to register the variation; or (b) if the variation of mortgage has been registered, remove the variation from the Register. (5) If the Registrar removes a mortgage from the Register under subsection (3)— (a) the mortgagee no longer has an indefeasible interest in the mortgaged land; and (b) the mortgage is void. (6) If the Registrar removes a variation of mortgage from the Register under subsection (4) the variation is void. S. 87B inserted by No. 70/2014 s. 17.