New South Wales Consolidated Acts

CONVEYANCING ACT 1919 - SECT 96A

96A Notice of trusts affecting mortgage debts

(1) A person dealing in good faith with a mortgagee, or with the mortgagor if the mortgage has been discharged or released as to the whole or any part of the mortgaged property, shall not be concerned with any trust at any time affecting the mortgage money or the income thereof, whether or not the person has notice of the trust, and may assume, unless the contrary is expressly stated in the instruments relating to the mortgage--

(a) that the mortgagees (if more than one) are or were entitled to the mortgage money on a joint account, and

(b) that the mortgagee has or had power to give valid receipts for the purchase money or mortgage money and the income thereof (including any arrears of interest) and to release or postpone the priority of the mortgage debt or any part thereof, or to deal with the same or the mortgaged property or any part thereof,

without investigating the equitable title to the mortgage debt or the appointment or discharge of trustees in reference thereto.

(1A) For the purposes of this section the expression
"mortgagee" includes a mortgagee who, pursuant to any power conferred by a trust instrument or by law has purchased or otherwise acquired the equity of the redemption in the mortgaged property.

(2) This section applies to mortgages made before or after the commencement of the Conveyancing (Amendment) Act 1930 , but only as respects dealings effected after such commencement.

(3) This section does not affect the liability of any person in whom the mortgage debt is vested for the purposes of any trust to give effect to that trust.

(4) This section applies and shall be deemed to have applied from the commencement of the Conveyancing (Amendment) Act 1930 to mortgages under the Real Property Act 1900 .