Western Australian Current Regulations Western Australian Current Regulations (1) The lessee of land
demised for tenure of perpetual leasehold by instrument of lease under the
scheme that is mortgaged or otherwise encumbered may, with the approval of the
Minister first had and obtained, further mortgage or otherwise encumber his
interest in that land.
(2) Application for
approval of the Minister under this regulation shall be made in writing and
shall be lodged at the office of the Board together with a copy of the further
mortgage or other encumbrance which the lessee proposes to execute.
(3) Upon application
being made to him for approval pursuant to this regulation, the Minister may
require the lessee to furnish such information as the Minister at his
discretion considers necessary in respect to the financial position of the
lessee and his proposal to further mortgage or otherwise encumber his interest
in the land, and may require the provisions of the further mortgage or other
encumbrance to be amended or modified in such manner and to such extent as the
Minister thinks fit.
(4) Among the grounds
upon which the Minister may refuse to give approval under this regulation are
the following —
(a) if
the further mortgage or other encumbrance expressly or impliedly contains any
provision which in the opinion of the Minister would prejudicially or
adversely affect or be likely so to affect any of the rights and powers
conferred by the existing mortgage or other encumbrance on the mortgagee
thereof;
(b)
unless the person to whom the further mortgage or other encumbrance is
proposed to be given executes such covenant or agreement as the Minister may
require agreeing that the existing mortgage or other encumbrance shall, in
respect to further advances made from time to time thereunder after and
notwithstanding notice of that further mortgage or other encumbrance, have
priority to that further mortgage or other encumbrance up to but not exceeding
the limit of the moneys secured by the existing mortgage or other encumbrance;
(c)
unless and until the provisions of the further mortgage or other encumbrance
are amended or modified as required by the Minister pursuant to
subregulation (3).
(5) Notwithstanding
any provision contained in a further mortgage or other encumbrance to which
the Minister has given approval in accordance with this regulation, no such
approval shall —
(a)
confer, or be deemed to confer, on the person to whom the further mortgage or
other encumbrance is given, any right or power authorising or empowering him
to override or derogate from any provision of the perpetual lease or these
regulations; or
(b)
prevent the exercise of any right or power under the existing mortgage or
other encumbrance from being as valid and effectual as that exercise would be
if the further mortgage or other encumbrance had not been approved and given.
[Regulation 17A inserted: Gazette
1 Nov 1961 p. 3041‑2.]