Mortgagee to receive rent
99 Mortgagee to receive rent
Whenever a mortgagee or encumbrancee gives notice of his or her demanding to enter into receipt of the rents and profits of the mortgaged or encumbered land to the tenant or occupier or other person liable to pay or account for the rents and profits thereof, all the powers and remedies of the mortgagor or encumbrancer in regard to receipt and recovery of, and giving discharges for, the rents and profits, shall be suspended and transferred to the mortgagee or encumbrancee until the notice is withdrawn, or the mortgagee or encumbrancee is satisfied, and a discharge thereof duly registered.
In every such case, the receipt in writing of the mortgagee or encumbrancee shall be a sufficient discharge for any rents and profits therein expressed to be received, and no person paying the rents and profits shall be bound to inquire concerning any default or other circumstance affecting the right of the person giving the notice beyond the fact of his or her being duly registered as mortgagee or encumbrancee of the land.
Nothing herein contained shall interfere with the effect of any rule, order or judgment of the court in regard to the payment of rent under the special circumstances of any case, or prejudice any remedy of the mortgagor or encumbrancer against the mortgagee or encumbrancee for wrongful entry or for an account.
In this section:
court includes a court having jurisdiction under the Family Law Act 1975 (Cwlth).
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