Section 131 Property and Conveyancing Law of the Western Region of Nigeria 1959

Section 131 of the Property and Conveyancing Law of the Western Region of Nigeria 1959 is about Appointment, powers, remuneration and duties of receiver. It provides as follows:

(1) A mortgagee entitled to appoint a receiver under the power in that behalf
conferred by this Law shall not appoint a receiver until he has become entitled to
exercise the power of sale conferred by this Law, but may then, by writing under his
hand, appoint such person as he thinks fit to be receiver.

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

(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 receipts accordingly for the same, and to exercise any powers which may have been delegated to him by the mortgagee pursuant to this Law.

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

(5) The receiver may be removed, and a new receiver may be appointed, from time
to time by the mortgagee by 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 centum 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 centum 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 freehold or not, being of 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, namely:
(i) In discharge of all rents, taxes, rates, and outgoings whatever affecting the
mortgaged property; and
(ii) In keeping down all annual sums or other payments, and the interest on all
principal sums, having priority to the mortgage in right whereof he is receiver; and

(iii) 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; and
(iv) In payment of the interest accruing due in respect of any principal money due
under the mortgage; and

(v) 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 mortgaged property.