1964_CONVEYANCING_AND_PROPERTY_ORDINANCE — Page 23

22

CAP. 219]

1979.

Conveyancing and Property

[1988 Ed.

(2) This section applies only to agreements entered into after 22 June

[cf. U.K. 1925 c. 20, s. 81]

PART V

MORTGAGES

Mortgage of legal estate

44. (1) After the commencement of this section, a mortgage of a legal estate, including any second or subsequent mortgage of that legal estate, may be effected at law only by a charge by deed expressed to be a legal charge.

(2) Under a mortgage effected by a legal charge, the mortgagor and the mortgagee shall, subject to this Ordinance, have the same protection, powers and remedies (including but not limited to those relating to foreclosure and the equity of redemption but excluding the power of the mortgagee to enter into possession before any default by the mortgagor) as if the mortgage had been effected by way of assignment of the legal estate before the commencement of this section.

(3) Upon the commencement of this section, a mortgage of a legal estate effected by way of assignment of the legal estate before the commencement of this section shall be deemed, for the purposes of this Ordinance, to be reassigned and discharged and replaced by a legal charge in the same terms and having the same validity and priority, subject to this Ordinance, as the mortgage which it replaces.

(4) Subsection (3) does not affect-

(a) the mortgagee's right to the possession of any documents; or

(b) any rights or obligations, under any guarantee, suretyship or otherwise, ancillary to the mortgage replaced under that subsection.

(5) Subject to any agreement between the mortgagor and the mortgagee, where the mortgaged land is mortgaged by way of legal charge, the mortgagor may execute a second or subsequent charge against the mortgaged land by a legal charge.

(6) Unless the contrary intention is expressed, the mortgagee under the first mortgage of a legal estate shall be entitled to possession of the deeds of title relating to the mortgaged land.

(7) This section does not affect any mortgage, including a mortgage by sub-demise, effected before the commencement of this section which is not replaced under subsection (3).

(8) This section does not affect any mortgage, charge or lien arising under any Ordinance or by operation of law.

(9) This section does not affect the right or interest of any person arising out of or consequent on the possession by him of any documents relating to a legal estate in land.