1964_CONVEYANCING_AND_PROPERTY_ORDINANCE — Page 27

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CAP. 219]

Conveyancing and Property

[1988 Ed.

Application of money received

54. Any money received by a mortgagee or a receiver from the sale or other dealing with the mortgaged land or any security comprised in the mortgage shall be applied according to the following priority---

(a) in discharge of all rent, taxes, rates and other outgoings due and

affecting the mortgaged land;

(b) unless the mortgaged land is sold subject to a prior incumbrance, in

discharge of that prior incumbrance;

(c) in payment of the receiver's lawful remuneration, costs, charges and expenses and all lawful costs and expenses properly incurred in the sale or other dealing;

(d) in payment of mortgage money, interest and costs due under the

mortgage,

and any residue shall be paid to the person who, immediately before any sale or other dealing, was entitled to the mortgaged land or authorized to give a receipt for the proceeds of the sale of that land.

[cf. U.K. 1925 c. 20, ss. 105 & 107(2)]

Mortgagee's receipt

55. (1) A receipt in writing of a mortgagee or a receiver shall be a sufficient discharge for any money arising under a power of sale or for any money or security comprised in the mortgage or arising under it; and a person paying that money or transferring that security shall not be concerned to inquire whether any money remains due under the mortgage.

(2) A receipt mentioned in subsection (1) need not be under seal.

[cf. U.K. 1925 c. 20, s. 107]

Discharge of mortgage by signed receipt

56. (1) A receipt, written on or annexed to a mortgage deed, for all money secured by that mortgage, which is executed by the mortgagee or the person in whom the mortgage is vested and who is legally entitled to give a receipt for the mortgage money, shall operate, without any surrender or release as a discharge and, where applicable, reassignment of the mortgaged property from all principal money and interest secured by, and from all claims under, that mortgage, but without prejudice to any term or other interest which is paramount to the estate or interest of the mortgagee or other person in whom the mortgage is vested. (Amended, L.N. 387/87 and 31 of 1988, s. 19)

(2) Upon performance of the terms of a mortgage, a mortgagor shall be entitled, at his cost and charge, to a receipt mentioned in subsection (1).

(3) In a receipt mentioned in subsection (1), there shall be implied, unless the contrary intention is expressed, a covenant by the person who executes the receipt that such person has not executed or done, or knowingly suffered, or been party or privy to, any deed or thing, whereby or by means whereof the mortgaged property or any part thereof is or may be impeached, charged, affected or incumbered in title, estate or otherwise.

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