Where at the relevant date in any year—
is subject to a mortgage, and under the mortgage the mortgagee is in possession of the property or the mortgagee or a receiver is in receipt of the whole of the rents and profits incident to the mortgaged interest, the instalment of contribution becoming due in that year in respect of the property shall he payable by the mortgagee, and—
- (a) the proprietary interest in the whole of any contributory property; or
- (b) if there is then subsisting in the property more than one such interest, that one of them which as between them carries the immediate right to possession of the whole of the property,
- (i) the mortgagee shall be entitled to the like rights against any landlord or tenant of the mortgagor, and against any other mortgagee of the interest, as the mortgagor would have had if the instalment had been payable by him, and
- (ii) the amount of the instalment, reduced by the aggregate of any amounts which the mortgagee is entitled to recover by virtue of paragraph (i) of this Section and of any amount which the mortgagor would have been entitled by virtue of Section nineteen of this Act to recover from the mortgagee if the instalment had been payable by the mortgagor, shall be treated, except for the purpose of computing what amount, if any, the mortgagor would have been entitled to recover as aforesaid in respect of the instalment in question, as an addition to the capital sum secured by the mortgage.—[Sir K. Wood.]
I beg to move, "That the Clause be read a Second time."
This Clause makes provision for recovering instalments of contribution. It provides that where a mortgagee is in possession of property and the mortgagor would otherwise have been liable to pay an instalment of the contribution, the mortgagee shall be responsible for paying the instalment. The mortgagee then has the mortgagor's rights for recovering the appropriate portion of the instalment from any landlord or tenant of the mortgagor.