Commonwealth Numbered Acts

LANDS ACQUISITION ACT 1989 No. 15 of 1989 - SECT 65

65. (1) The amount of compensation to which a mortgagee is entitled under this
Part in respect of the acquisition of a mortgage interest under a
mortgage (in this section called the "relevant mortgage") is an amount equal
to the sum of:

   (a)  so much of the sum of:

        (i)    the amount of the principal secured by the relevant mortgage at
               the time of acquisition of the mortgage interest; and

        (ii)   the amount of any interest, costs or charges due to the
               mortgagee under the relevant mortgage at that time; as does not
               exceed the amount of compensation payable under this Act to the
               mortgagor in respect of the acquisition of the interest in land
               that was subject to the relevant mortgage; and

   (b)  any legal or other professional costs reasonably incurred by the
        mortgagee in relation to the acquisition of the mortgage interest,
        including costs of:

        (i)    obtaining advice in relation to the acquisition, the
               entitlement of the mortgagee to compensation or the amount of
               compensation; and

        (ii)   executing, producing or surrendering such documents, and making
               out and providing such abstracts and attested copies, as the
               Secretary to the Attorney-General's Department or a person
               authorised under subsection  55E (4) of the Judiciary Act 1903
               requires.

(2) For the purposes of subsection (1), if:

   (a)  the relevant mortgage was the only mortgage over the interest in land
        immediately before the acquisition; or

   (b)  there were 2 or more mortgages over the interest in land immediately
        before the acquisition and the relevant mortgage had, at that time,
        priority over the other mortgage or mortgages; the compensation
        payable to the mortgagor in respect of the acquisition of the interest
        in land shall be taken to be the compensation that would have been
        payable to the mortgagor if there had been no mortgage over the
        interest.

(3) For the purposes of subsection (1), if:

   (a)  there were 2 or more mortgages over the interest in land immediately
        before the acquisition; and

   (b)  the relevant mortgage did not have, at that time, priority over the
        other mortgage or mortgages; the compensation payable to the mortgagor
        in respect of the acquisition of the interest in land shall be taken
        to be the compensation that would have been payable to the mortgagor
        if there had been no mortgage over the interest, reduced by the
        principal secured at the time of the acquisition by, and the interest,
        costs and charges due at that time under, a mortgage or mortgages
        having priority over the relevant mortgage.