540510-1905-Ordinance-passed-and-assented-to--New-Territories-Land-No-3- — Page 8

1098

THE HONGKONG GOVERNMENT GAZETTE, 7TH JULY, 1905.

shall be deemed to extend to such person's own acts only, shall be implied (namely)

Powers of Mortgagee,

(1) Power

to sell.

(2) Insur-

ance,

Protection of purchasers from Mort-

gagees,

Application

of proceeds of sale.

Mortgagee's receipt a sufficient discharge.

That the person so conveying has not executed or done er knowingly suffered or been party or privy to any act, deed or thing, whereby or by menus whereof the subject matter of the Conveyance or any part thereof is, or may be impenched, charged, affected or incumbered in title, estate or otherwise, or by means whereof the person who so conveys is in anywise hindered or prevented from convey- ing the subject matter of the Conveyance, or any part thereof, in the manner in which it is expressed to be conveyed.

28. A Mortgagee and any person for the time being entitled to give a receipt for the mortgage money, where the mortgage is made in accordance with Form B in the Schedule bereto, shall have the following powers to the like extent as if they had been conferred by the mortgage deed but not further (namely) ;-

(1.) A power where the mortgage money hus become due to sell and convey the mortgaged property, subject to prior charges, estates and interests (if any) to which the mortgaged property is subject, but free from all other estates, interests and rights to which the mortgage had priority, in such manner and subject to such conditions, not being at variance with the meaning of this Ordinance, as he thinks fit, with power to vary any contract for sale, buy in at any auction, and rescind any contraer for sale, and to re-sell without being auswerable for any loss occasioned thereby ; PROVIDED that a Mortgagee shall not exercise the power of sale unless and until notice requiring payment of the mortgage money has been served on the Mortgagor, or on one of the several Mortgagors, or left on the mortgaged pre- mises, and default has been made in payment of the mortgage money or part thereof for one month after such service, or some interest under the mortgage is in arrear and unpaid for one month after becoming due, or there has been a breach of some provision contained in the mortgage deed or under this Ordinauce, other than a covenant for payment of the mortgage money and interest.

(2.) A power to insure the mortgaged property, or any part thereof, for any sun not exceeding the amount of the mortgage money, and any moneys paid for such insurance shall be a charge on the mortgaged property in addition to the mortgage money, and with the same priority, and with interest at the same rate as the mortgage money.

The Mortgagee shall account to the Mortgagor for all moneys received by him on an insurance effected on the mortgaged property.

29. When a sale is made under a power of sale con- ferred by this Ordinance the title of the purchaser shall not he impeached by reason that no case had arisen to authorise the sale, or that due notice was not given, or that the power was otherwise improperly or irregularly exercised; but any person damnified by an unauthorised, improper or irregular exercise of the power of sale shall have his remedy in damages against the person exercising the power.

30. Any money received by a Mortgagee from the sale, after payment and discharge of prior incumbrances (if any) to which the sale is not subject, shall be applied first in payment of all proper costs and expenses incurred by him on such sale, secondly, in payment of the mortgage money, interest and costs due under the mortgage, and the residue (if any) shall be paid to the person entitled to the mortgaged property, or authorised to give receipts for the proceeds of sale thereof.

31. The receipt in writing of a Mortgagee shall be a sufficient discharge for any money arising under the power of sale conferred by this Ordinance, and no person paying or transferring the same to the Mortgagee shall be con- cerned to enquire whether any mouey remains due under the mortgage.