Where a mortgagor defaults in repayment of the mortgage, the mortgagee has a right to appoint a receiver to realise the assets of the mortgagor.
Highlight the order of priority of payments by the receiver
The order of priority of payments by the receiver
- Cancellation: under section 63 (1) of the Act, if a bill is intentionally cancelled by the payee or his agent and the cancellation is apparent thereon, the bill is discharged. An unintentionally cancellation does not discharge a bill.
- Material alteration: under section 64 (1) of the Act a material alteration on a bill discharges nil the parties not proxy to the alteration. Under section 64 (2) a material alteration comprises a change in amount payable, time of payment, date and place of payment.
- Non-presentation: under section 45(1) of the Act the non-presentation of a bill for payment as prescribed by law discharges the drawer and endorses.