Section 43 Mortgage and Property Law of Lagos State

Section 43 of the Mortgage and Property Law of Lagos State 2010 is about Appointment powers, remuneration and duties of receiver. It provides as follows:

(1) A mortgagee entitled to appoint a receiver after obtaining an order of a high court under powers conferred by this Law shall only appoint a receiver when he has become entitled to exercise the power of sale conferred by this Law, by appointing such person as he thinks fit to be receiver in writing.

(2) A receiver appointed under the powers conferred by this Law, or any other Law shall be deemed to be the agent of the mortgagor and the mortgagor shall be solely responsible for the receiver’s acts pr defaults unless the mortgage deed otherwise provided.

(3) The receiver shall have power to demand and recover all the income of which he is appointed receiver, by action, distress or otherwise in the name either of the mortgagor or of the mortgagee to the full extent of the estate or interest which the
mortgagor could dispose of; and to give effectual receipt accordingly for the same, and to exercise any powers which may have been delegated to him by the mortgagee in accordance with this Law.

(4) A person paying money to the receiver shall not be concerned to inquire whether any incident has happened to authorize the receiver to act.

(5) The receiver may be removed, and a new receiver may be appointed, form time to time by the mortgagee in writing under his hand.

(6) The receiver shall be entitled to retain out of any money received by him, for his remuneration and in satisfaction of all costs, charges and expenses incurred by him as receiver, a commission at such rate, not exceeding five per cent on the gross
amount of all money received, as is specified in his appointment and if no rate is so specified, then at the rate of five per cent on that gross amount, or at such other rate as the court thinks fit to allow, on application made by him for that purpose.

(7) The receiver shall, if so directed in writing by the mortgagee, insure to the extent, if any, to which the mortgagee might have insured and keep insured against loss or damage by fire, out of the money received by him, any building, effects or property
comprised in the mortgage, whether affixed to the right of occupancy or leasehold or not being if an insurable nature.

(8) Subject to the provisions of this Law as to the application of insurance money, the receiver shall apply all money received by him as follows-
(a) in discharge of all rents, taxes, rates and outgoings whatever affecting the mortgaged property;

(b) in keeping down an annual sums or other payments and the interest on all principal sums, having priority to the mortgage in right whereof he is receiver.
(c) in payment of his commission and of the premiums on fire, life or other insurances if any, properly payable under the mortgage deed or under
this Law and the cost of executing necessary or proper repairs directed in writing by the mortgagee;

(d) in payment of the interest accruing due in respect of any principal money due under the mortgage; and
(e) in or towards discharge of the principal money if so directed in writing by the mortgagee, and shall pay the residue, if any, of the money received by him
to the person who, but for the possession of the receiver would have been entitled to receive the income of which he is appointed receiver or who is otherwise entitled to the mortgage property.

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