sec.111Payment to primary beneficiary on recovery of all or part of mortgage debt

sec.111 Payment to primary beneficiary on recovery of all or part of mortgage debt

This section applies if— all or part of the mortgage debt is recovered, whether by repayment or on realisation of the security or otherwise; and under section 110 , the trustee has applied income of the land received by the trustee to pay 1 or more priority outgoings in relation to the land; and the income, or part of the income, applied by the trustee would otherwise have been payable to the primary beneficiary as interest of the mortgage debt. As between the beneficiaries for whom the mortgage debt is held on trust— the income, or the part of the income, applied by the trustee that would otherwise have been payable to the primary beneficiary is taken to be arrears of interest on the mortgage debt; and the amount recovered by the trustee must be apportioned accordingly. However, the primary beneficiary is not entitled to be paid interest on the amount taken to be arrears of interest under subsection (2) (a) . (sec.111-ssec.1) This section applies if— all or part of the mortgage debt is recovered, whether by repayment or on realisation of the security or otherwise; and under section 110 , the trustee has applied income of the land received by the trustee to pay 1 or more priority outgoings in relation to the land; and the income, or part of the income, applied by the trustee would otherwise have been payable to the primary beneficiary as interest of the mortgage debt. (sec.111-ssec.2) As between the beneficiaries for whom the mortgage debt is held on trust— the income, or the part of the income, applied by the trustee that would otherwise have been payable to the primary beneficiary is taken to be arrears of interest on the mortgage debt; and the amount recovered by the trustee must be apportioned accordingly. (sec.111-ssec.3) However, the primary beneficiary is not entitled to be paid interest on the amount taken to be arrears of interest under subsection (2) (a) .

• (a) all or part of the mortgage debt is recovered, whether by repayment or on realisation of the security or otherwise; and
• (b) under section 110 , the trustee has applied income of the land received by the trustee to pay 1 or more priority outgoings in relation to the land; and
• (c) the income, or part of the income, applied by the trustee would otherwise have been payable to the primary beneficiary as interest of the mortgage debt.
• (a) the income, or the part of the income, applied by the trustee that would otherwise have been payable to the primary beneficiary is taken to be arrears of interest on the mortgage debt; and
• (b) the amount recovered by the trustee must be apportioned accordingly.