Queensland Consolidated Acts

PROPERTY LAW ACT 1974 - SECT 96

96 Mortgagee accepting interest on overdue mortgage not to call up without notice

(1) Where the mortgagor has made default in payment of the principal sum at the expiry of the term of the mortgage, or of any period for which it has been renewed or extended, and the mortgagee has accepted interest on the sum for any period (not being less than 3 months) after default has been so made, then so long as the mortgagor performs and observes all covenants expressed or implied in the mortgage, other than the covenant for payment of the principal sum, the mortgagee shall not be entitled to take proceedings to compel payment of the sum, or for foreclosure, or to enter into possession, or to exercise any power of sale, without giving to the mortgagor 3 months’ notice of the mortgagee’s intention so to do.

(2) No purchaser from the mortgagee exercising the mortgagee’s power of sale shall be concerned to inquire whether the mortgagee has accepted interest after such default.

(3) This section applies to mortgages whether made before or after the commencement of this Act, but only where the default has occurred after such commencement, and shall have effect despite any stipulation to the contrary.