Section 50 Mortgage and Property Law of Lagos State

Section 50 of the Mortgage and Property Law of Lagos State 2010 is about Forms of statutory transfer of legal charges. It provides as follows:

(1) A transfer of a statutory mortgage, being in such one of the three forms (Nos 2, 3, or 4) set out in the Second Schedule to this Law as may be appropriate to the case with such variations and additions, if any, as circumstances may require, and
if so made the provisions of this section shall apply to it.

(2) In whichever of those three forms the deed of transfer is made, it shall have effect as follows –

(i) there shall become vested in the person to whom the benefit of the mortgage is expressed to be transferred (who, with his personal representatives and assigns, is in this section designated the transferee), the right to demand, sue for, recover
and give receipts for the mortgage money, or the unpaid part thereof, and the interest then due, if any, and subsequently to become due thereon and the benefit of all securities for the same, and the benefit of and the right is to sue on all covenants with the mortgagees and the right to exercise all powers of the mortgagee;

(ii) all the terms and interests, if any, subject to redemption of the mortgagee in the mortgaged land shall vest in the transferee, subject to redemption.

(3) If a covenantor joins in the deed of transfer, there shall also be deemed to be included and there shall by virtue of this Law be implied therein, a covenantor to the effect following –
(i) that the covenantor will on the next of the days fixed by the mortgage deed for payment of interest, pay to the transferee the stated mortgage money, or so much of it as then remains unpaid with interest on it, or on the unpaid part of it, in the meantime, at the rate stated in the mortgage deed and will thereafter as long as the mortgage money or any part of it remains unpaid, pay to the transferee interest on that sum, or the unpaid part of it, at the same rate, on the successive days fixed by the mortgage deed for payment of interest.

(4) The deed of transfer in Form No.4, shall by virtue of this Law, operate not only as a statutory transfer of mortgage, but also as a statutory mortgage, and the provisions of this section shall have effect in relation to it accordingly.

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