sec.110Application of income—priority outgoings accruing after trustee becomes mortgagee in possession

sec.110 Application of income—priority outgoings accruing after trustee becomes mortgagee in possession

This section applies if— a trustee is entitled, whether solely or as a co-mortgagee, to a debt that is secured, wholly or partly, by a mortgage of land (the mortgage debt ); and the mortgage debt is held on trust for persons in succession; and the trustee becomes mortgagee in possession of the land. The trustee must apply the income of the land received by the trustee to pay the priority outgoings in relation to the land, but only if, or to the extent, the priority outgoings accrue on or after the day the trustee becomes mortgagee in possession. If a priority outgoing relates to a period partly before and partly after the day the trustee becomes mortgagee in possession, the priority outgoing is taken to accrue from day to day and must be apportioned accordingly. Subject to the rights of the mortgagor, the trustee must hold the balance of the income of the land received by the trustee on the trusts to which the mortgage debt is subject. (sec.110-ssec.1) This section applies if— a trustee is entitled, whether solely or as a co-mortgagee, to a debt that is secured, wholly or partly, by a mortgage of land (the mortgage debt ); and the mortgage debt is held on trust for persons in succession; and the trustee becomes mortgagee in possession of the land. (sec.110-ssec.2) The trustee must apply the income of the land received by the trustee to pay the priority outgoings in relation to the land, but only if, or to the extent, the priority outgoings accrue on or after the day the trustee becomes mortgagee in possession. (sec.110-ssec.3) If a priority outgoing relates to a period partly before and partly after the day the trustee becomes mortgagee in possession, the priority outgoing is taken to accrue from day to day and must be apportioned accordingly. (sec.110-ssec.4) Subject to the rights of the mortgagor, the trustee must hold the balance of the income of the land received by the trustee on the trusts to which the mortgage debt is subject.

• (a) a trustee is entitled, whether solely or as a co-mortgagee, to a debt that is secured, wholly or partly, by a mortgage of land (the mortgage debt ); and
• (b) the mortgage debt is held on trust for persons in succession; and
• (c) the trustee becomes mortgagee in possession of the land.