Section 275
Power of chargee in possession to grant leases and accept surrenders
of National Land Code (Revised - 2020)
(1)
In the absence of any provision in the charge to the contrary, a chargee in possession of any land may, in the name of the chargor and on his behalf—
(a)
lease the whole or any part thereof in accordance with the following provisions of this section; and
(b)
for the purpose of granting any such lease, accept in accordance with those provisions the surrender of any existing lease or tenancy.
(2)
Subject to subsection (8), a chargee shall not have power under this section to grant building leases.
(3)
Every lease granted under this section shall be for a term exceeding three years; and, subject to subsection (8), no such lease shall be for a term exceeding fourteen years.
(4)
The date of commencement of any such lease shall be the date on which it is granted or, where it is granted in respect of land subject to an existing lease or tenancy, the date immediately following the determination thereof.
(5)
Every lease or surrender under this section shall be granted or effected in accordance with the appropriate provisions of Part
Fifteen, and shall be treated for all the purposes of this Act as if it had been granted or effected under that Part.
(6)
Subject to subsection (8), no lease under this section shall contain any express agreements on the part of the chargor as lessor.
(7)
A chargee shall notify the chargor of any lease or surrender under this section; and, on the grant of any lease, a chargee shall serve on the lessee a notice in Form 16j, and shall thereupon become entitled to all the rights, powers and remedies of the chargor with respect to the receipt and recovery of, and the giving of discharges for, the rent payable thereunder.
291
National Land Code 437
(8)
Any chargor may, either in the instrument of charge or by subsequent agreement in writing, extend the powers conferred by this section so as to enable the chargee—
(a)
to grant building leases thereunder; or
(b)
to grant leases thereunder for terms exceeding fourteen years; or
(c)
to include in any lease so granted any express agreement or agreements on the part of the chargor as lessor.
(9)
Nothing in this section, in any instrument of charge, or in any agreement between a chargor and chargee shall authorize any chargee to grant any lease which could not have been granted by his chargor.