Section 45 Mortgage and Property Law of Lagos State

Section 45 of the Mortgage and Property Law of Lagos State 2010 is about Notice of trust affecting mortgage debts. It provides as follows:

(1) A person dealing in good faith with a mortgagee, or with mortgagor if the mortgage has been discharged, released or postponed as to the whole or any part of the mortgaged property, shall not be concerned with any trust at any time affecting the mortgage money or the income thereof, whether or not he has notice of trust, and may assume unless the contrary is expressly stated in the instruments relating to the mortgage –

(a) that the mortgagee (if more than one) are or were entitled to the mortgage money on a joint account;

(b) that the mortgagee has or had power to give valid receipts for the purchase money or mortgage money and the income thereof (including any arrears
of interests) and to release or postpone the priority or the mortgage debt or any part of it or deal with the same or the mortgaged property or any part of it, without investigating the equitable title to the mortgage debt or the appointment or discharge of trustees in reference thereto.

(2) This section applies to mortgages made before or after the commencement of this Law.

(3) This section does not affect liability of any person in whom the mortgage is vested for the purpose of any trust to give effect to that trust.

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