Victorian Current Acts Victorian Current Acts(1) If—
(a) part only of the mortgaged interest or of the land in which the mortgaged interest subsists is required for the purposes of the special Act; and
(b) the value of the mortgaged interest in the part so required is of less value than the principal sum, interest and expenses secured on the whole of the land; and
(c) the mortgagee—
(i) does not consider the interest in the remaining part of the land a sufficient security for the money charged thereon; or
(ii) is not willing to release the part so required—
the value of the interest in the required part and the compensation (if any) to be paid in respect of the severance of that part or otherwise are to be settled by agreement between the mortgagee and the person entitled to the equity of redemption of the mortgaged interest on the one part and the Authority on the other part.
(2) If an agreement is not reached under subsection (1) with respect to the amount of the value of the interest in the part or of the compensation, the Authority must make an offer in accordance with section 32 and the amount is to be determined under this Act in the same manner as a disputed claim for compensation.
(3) The amount of the value of the interest in the part or of the compensation so agreed upon or determined pursuant to this section must be paid by the Authority to the mortgagee in satisfaction of the mortgage debt so far as the amount will extend.
(4) Upon payment or tender of the amount under subsection (3), the mortgagee must convey or release all the mortgagee's interest under the mortgage in the part of the land for which the payment is made to the Authority or as the Authority directs.
(5) A memorandum of the amount so paid must—
(a) be endorsed on the deed creating the mortgage; and
(b) be signed by the mortgagee.
(6) A copy of the memorandum must (if required) be furnished by the Authority without charge to the person entitled to the equity of redemption of the interest in land comprised in the mortgage.