Effect of compensation claim in respect of acquisition of mortgage interest
68 Effect of compensation claim in respect of acquisition of mortgage interest
This section applies where:
a mortgage interest has been acquired from a mortgagee; and
the mortgagee makes a claim for compensation in respect of the acquisition.
To the extent of the compensation payable to the mortgagee in respect of the acquisition, excluding amounts referred to in paragraph 65(1)(b), the acquisition shall, on the making of the claim, be taken to have discharged the liability of the mortgagor under the mortgage as from the time of acquisition.
On payment or tender of the compensation to the mortgagee, the mortgagee shall, if so required by the mortgagor and at the expense of the mortgagor, execute a discharge of the mortgage debt to the extent to which the mortgage debt is taken, by subsection (2), to have been discharged.
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