- Laws of Fiji

Last Updated: 1 August 2020

[PL 82] Mortgagee may appoint receiver82

(1) When a mortgagee has become entitled to exercise the power of sale conferred by the provisions of this Act, he or she may by writing under his or her hand appoint such person as he or she thinks fit to be receiver, and the person so appointed shall be entitled to exercise the powers by this Act conferred on a receiver.

(2) The receiver shall be deemed to be the agent of the mortgagor and the mortgagor shall be solely responsible for the receiver’s acts or defaults unless the mortgage otherwise provides.

(3) The receiver shall have power to demand and recover all the income of the property of which he or she is appointed receiver by action, distress or otherwise in the name either of the mortgagor or of the mortgagee to the full extent of the estate or interest which the mortgagor could dispose of and to give effectual receipts accordingly for the same.

(4) A person paying money to the receiver shall not be concerned to inquire whether any case has happened to authorise the receiver to act.

(5) The receiver may be removed and a new receiver may be appointed from time to time by the mortgagee by writing under his or her hand.

(6) The receiver shall be entitled to retain out of any moneys received by him or her for his or her remuneration and in satisfaction of all costs, charges and expenses incurred by him or her as receiver a commission at such rate not exceeding 5% on the gross amount of all moneys received as is specified in his or her appointment, and, if no rate is so specified, then at the rate of 5% or at such higher rate as the court thinks fit to allow on application made by him or her for the purpose.

(7) The receiver shall, if so directed in writing by the mortgagee, insure and keep insured against loss or damage by fire out of the moneys received by him or her any building, effects or property comprised in the mortgage, whether affixed to the land or not, being of an insurable nature.

(8) The receiver shall apply all moneys received by him or her as follows—

(a)in discharge of all rents, taxes, rates and outgoings whatsoever affecting the mortgaged property; and
(b)in keeping down all annual sums or other payments and the interest on all principal sums having priority to the mortgage in right whereof he or she is the receiver; and
(c)in payment of his or her commission and of the premiums on fire, life or other insurance, if any, payable under the provisions of the mortgage or of this Act and the costs of executing necessary or proper repairs directed in writing by the mortgagee; and
(d)in payment of the interest due and unpaid and accruing due in respect of any money due under the mortgage; and
(e)in or towards discharge of the principal money, annuity, rent charge or periodical payment due under the mortgage, if so directed in writing by the mortgagee,

and shall pay the residue, if any, of the moneys received by him or her to the person who, but for the possession of the receiver, would have been entitled to receive the income of the mortgaged property or who is otherwise entitled to that property.