ACTIn ForceAct
Trustee Act 1925
20Release of part of security
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20 Release of part of security
(1) Where any property is held by a trustee by way of security and the
trustee has power under this Act or otherwise to invest on mortgage
and to vary investments, the trustee—
(a) may release part of the property from the mortgage, whether any
part of the mortgage debt is repaid or not, provided that the
unreleased part of the property would, at the time, be a proper
investment in all respects for the amount remaining unpaid; and
(b) may, on a sale by the mortgagor of part of the mortgaged
property and on the receipt by the trustee of the whole of the
purchase money for the part after deduction of the expenses of
the sale, release such part from the mortgage.
(2) A subsequent purchaser of the released part of the property, or the
registrar-general, shall not be concerned to inquire whether the
release was authorised by this section.