National Land Code (Revised - 2020) · Updated to 15 Oct 2020 · Chapter 4 · Remedies of chargees: Possession
277. Application of rents and profits by chargees in possession
Feedback & supportThe sums received by a chargee of land in possession of the whole or any part thereof under this Chapter shall, subject to any express provision with respect thereto in the instrument of charge, be applied by him as follows:
firstly, in discharge of the rent payable to the State
Authority in respect of the charged land and, so far as no person other than the chargor is responsible therefor, any other outgoings payable in respect thereof to the
State Authority or any local authority;
secondly, in payment of the premiums due under any policy of insurance effected pursuant to the instrument of charge in respect of any buildings on the charged land;
thirdly, in carrying out any repairs reasonably necessary for the preservation of any such building, and in taking any other action necessary to comply with any condition to which the said land is subject; and
fourthly, in payment of all sums due to him under the charge;
and the residue, if any, from time to time in his hands shall be paid to the chargor.
293
National Land Code 439
Subsection (1) shall apply to the sums received by a chargee of any lease subject to the necessary modifications and, in particular, as if—
in paragraph (a), for the reference to rent payable to the
State Authority there were substituted a reference to rent payable by the chargor as lessee; and
in paragraph (c), for the reference to any condition to which the charged land is subject there were substituted a reference to any agreement contained expressly or by implication, in the lease.