South Australian Current Acts South Australian Current Acts55—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, released, or postponed 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 he 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.
(2) This section shall
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.