39Equity of redemption may be released in discharge of mortgage debt

##### 39. Equity of redemption may be released in discharge of mortgage debt (1) Where an equity of redemption is vested in a trustee and the mortgaged property is not of greater value than the amount of the mortgage debt, the trustee may release the equity of redemption to the mortgagee in discharge of the mortgage debt or part thereof; and the trustee shall not be chargeable with breach of trust nor shall the release be impeached by any beneficiary upon the ground only that the mortgaged property was of greater value than the amount of the mortgage debt or the part thereof discharged, if the trustee has acted *bona fide* and on the advice of a person whom he reasonably believed to be a competent valuer instructed and employed independently of the mortgagee, whether the valuer carried on business in the locality where the property is situate or elsewhere. (2) A subsequent purchaser or the Registrar of Titles or other person registering or certifying title shall not be concerned to inquire whether a release was authorised by this section.