Section 17 Mortgage and Property Law of Lagos State

Section 17 of the Mortgage and Property Law of Lagos State 2010 is about Charges by way of Legal Mortgage. It provides as follows:

(1) Where a Legal Mortgage of land is created by a charge by deed expressed to be by way of Legal or Statutory Mortgage, the mortgagee shall have the same protection, powers and remedies (including the right to initiate proceedings to obtain possession from the occupiers and the persons in receipt of rents and profits, or any of them) as if—

(a) where the mortgage is a mortgage of a right of occupancy, a mortgage term for the unexpired term of years has been created in favour of the mortgagee; and

(b) where the mortgage is a mortgage of a term of absolute, a sub-term less by one day than the term vested in the mortgagor had been created in favour of the mortgage.

(2) Where an estate vested in a mortgagee immediately before the commencement of this Law has be virtue of this Law been converted into a term of years absolute or sub-tem, the mortgagee may, by a declaration in writing signed by him, convert the
mortgage into a charge by way of Legal Mortgage, and in that case the mortgage term shall be extinguished in the inheritance or in the head term as the case may be, and the mortgagee shall have the same protection powers and remedies (including the right to initiate proceedings to obtain possession from the occupiers and the persons in receipt of rents and profits or an of them) as if the mortgage term or subterm has remained subsisting. The power conferred by this subsection may be exercised by a mortgagee notwithstanding that he is a trustee or personal representative.

(3) Such declaration shall not affect the priority of the mortgagee or his right to retain possession of documents, or affect his title to or right over any fixtures or chattels personal comprised in the mortgage.

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