Land And Conveyancing Law Reform Act 2009

108.

Appointment of receiver.

108.— (1) Where—

[CA 1881, ss. 19(1)(iii), 24(1)—(7)]

( a) following service of notice on the mortgagor requiring payment of the mortgage debt, default has been made in payment of that debt, or part of it, for 3 months after such service, or

( b) some interest under the mortgage or, in the case of a mortgage debt payable by instalments, some instalment representing interest or part interest and part capital is in arrears and unpaid for 2 months after becoming due, or

( c) there has been a breach by the mortgagor, or some person concurring in the mortgage, of some other provision contained in the mortgage or any statutory provision, including this Act, other than a covenant for payment of the mortgage debt or interest,

the mortgagee or any other person for the time being entitled to receive, and give a discharge for, the mortgage debt, may appoint, by writing, such person as the mortgagee or that other person thinks fit to be a receiver of—

(i) the income of the mortgaged property, or

(ii) if the mortgaged property comprises an interest in income, or a rentcharge or other annual or other periodical sum, that property.

(2) A receiver appointed under subsection (1) is the agent of the mortgagor, who is solely responsible for the receiver’s acts or defaults, unless the mortgage provides otherwise.

(3) The receiver may—

( a) demand and recover all the income to which the appointment relates, by action or otherwise, in the name either of the mortgagor or mortgagee, to the full extent of the estate or interest which the mortgagor could dispose of,

( b) give effectual receipts accordingly for such income,

( c) exercise any powers delegated by the mortgagee or other person to the receiver.

(4) Any power delegated to the receiver shall be exercised in accordance with this Chapter.

(5) A person paying money to the receiver is not required to inquire whether the receiver is authorised to act.

(6) The receiver may be removed, and a new receiver may be appointed, by the mortgagee or the other person in writing.

(7) The receiver may retain out of any money received, for remuneration and in satisfaction of all costs incurred as receiver, a commission at the prescribed rate.

(8) The receiver shall, if so directed in writing by the mortgagee, insure to the extent, if any, to which the mortgagee might have insured and keep insured against loss or damage by fire, flood, storm, tempest or other perils commonly covered by a policy of comprehensive insurance, out of the money received, any property comprised in the mortgage, whether affixed to land or not, which is of an insurable nature.

Annotations:

Modifications (not altering text):

C8

Application of subs. (7) restricted (21.12.2009) by National Asset Management Agency Act 2009 (34/2009), s. 147(4), S.I. No. 545 of 2009.

NAMA’s power to appoint statutory receivers.

147.—...

(4) NAMA may fix the remuneration of a statutory receiver. A maximum rate imposed by law (including that specified in section 24(6) of the Conveyancing Act 1881 or prescribed by regulations under section 108(7) of the Land and Conveyancing Law Reform Act 2009 ) does not apply.

...

Editorial Notes:

E13

Rate of commission that may be retained by a receiver pursuant to subs. (7) prescribed (30.12.2010) by Land and Conveyancing Law Reform Act 2009 (Section 108) Regulations 2010 (S.I. No. 655 of 2010), in effect as per reg. 2.