N.R.C.D.

96
MORTGAGES ACT, 1972

ARRANGEMENT OF SECTIONS

General Provisions
1. Nature of a mortgage.
2. Act to govern all mortgages.
3. Mortgages evidences by writing.

Effect of a Mortgage
4. Extent of mortgaged property.
5. Acts secured by mortgage.
6. Personal liability of mortgagor.
7. Mortgage to more than one person.
8. Implied covenants on creation of mortgage.
9. Implied covenants joint and several.
10. Right to title documents.
11. Insurance.
12. Transfer by mortgagor.
13. Transfer by mortgagee.
14. Illegal, void and voidable transactions.
15. Remedies of mortgagee on default.
16. Appointment of receiver on default.
17. Mortgagee in possession.
18. Judicial sale.
19. Priorities.
20. Methods of redemption.
21. Judicial sale in lieu of redemption.
22. Written discharge.

Miscellaneous
23. Model precedents.
24. Interpretation.
25. Application.
26. Commencement.
 SCHEDULES
First Schedule Implied Covenants
Second Schedule Model Precedents

N.R.C.D. 96
MORTGAGES ACT, 19721(1)

AN ACT to provide for the law relating to mortgages and for related matters.

General Provisions

1. Nature of a mortgage
(1) A mortgage for the purposes of this Act is a contract charging immovable property as security for
the due repayment of a debt and the interest accruing on the debt or for the performance of any other
obligation for which it is given, in accordance with the terms of the contract.
(2) A mortgage is an encumbrance on the property charged, and does not, except as provided by this
Act, operate so as to change the ownership, right to possession or any other interest, whether present or
future in the property charged.
(3) A mortgage may be created in an interest in immovable property which is alienable.

2. Act to govern all mortgages

(1) A mortgage of immovable property is only capable of being effected in accordance with this Act,
and a transaction which is in substance a mortgage of immovable property, whether expressed as a
mortgage, charge, pledge of title documents, outright conveyance, trust for sale on condition, lease,
hire-purchase, conditional sale, sale with right of repurchase or in any other manner is, for the purposes of
the Act, a mortgage of immovable property and is governed by this Act.
(2) A customary loan transaction in respect of which a farmland is given as security for the loan shall
be made in accordance with this Act.2(2)

3. Mortgages evidences by writing

(1) A mortgage is not enforceable unless
(a) it is evidenced by a writing signed by the mortgagor or by the agent of the mortgagor
authorised by the mortgagor in writing to sign, or
(b) it is excused from the necessity of a writing by the operation of the rules of equity, including
the rules relating to fraud, duress, hardship, unconsciousnability and part performance, or
(c) it is excused from the necessity of a writing by an enactment, in the case of a customary law
transaction.
(2) A writing evidencing a mortgage is, for the purpose of this Act, an instrument which may be
registered in accordance with the Land Registry Act, 1962 (Act 122).
 (3) A registrar empowered to register instruments in accordance with the Land Registry Act, 1962
(Act 122) may, in addition to a power given by that Act, refuse to register a writing evidencing a
mortgage unless the writing
(a) states the name and address of each mortgagor and each mortgagee,
(b) states the nature of the mortgagor’s interest in the property which is mortgaged and the
extent to which that interest is subject to the mortgage,
(c) identifies the mortgaged property by reference to its location and boundaries (which may be
by reference to an official plan) or to a previously registered writing describing that property,
and
(d) where the mortgage secures the payment of money, states the date on which payment is due
and states the principal sum of money lent or to be lent, or if the sum of money to be lent is
indeterminate the writing so states, and if further advances are to be made and secured by the
mortgage the writing so states.
(4) A writing evidencing the transfer or encumbrance of a mortgage or an interest in a mortgage is, for
the purposes of this Act, an instrument which may be registered in accordance with the Land Registry
Act, 1962 (Act 122).
(5) A writing evidencing a discharge of a mortgage or a part of a mortgage in accordance with section
22 of this Act is, for the purposes of this Act, an instrument which may be registered in accordance with
the Land Registry Act, 1962 (Act 122), which writing shall be registered without the payment of stamp
duty.

Effect of a Mortgage

4. Extent of mortgaged property

(1) A mortgage is effectual to create a charge on the interests and rights which the mortgagor has in
the property mortgaged, or which the mortgagor enjoys as an incident of the interest in the mortgaged
property.
(2) Subsection (1) applies only if and as far as a contrary intention does not appear expressly or by
necessary implication, and has effect subject to the mortgage.

5. Acts secured by mortgage

Unless a contrary intention appears expressly, a mortgage is security only for the performance of the
act provided in the mortgage and not for a performance promised in a past or future contract.

6. Personal liability of mortgagor

Unless a contrary intention appears expressly or by necessary implication, the mortgagor is personally
liable as well as liable on the mortgage security, for the performance of the act secured by the mortgage.

7. Mortgage to more than one person

(1) Unless a contrary intention appears expressly or by necessary implication, a mortgage made to two
or more mortgagees or transferred to two or more transferees or securing performance to two or more
obligees is, for the purposes of this Act, as against the mortgagor or obligor or a person deriving an
interest through the mortgagor or obligor and without prejudice to the rights of the mortgagees,
transferees or obligees among themselves, made to the mortgagees or transferred to the transferees or
secured to the obligees as joint holders with the right of survivorship.
(2) Subsection (1) applies despite a notice to the mortgagor or obligor or person deriving an interest
through either or both of them of a severance of the joint holding after the mortgage.

8. Implied covenants on creation of mortgage

Unless a contrary intention appears expressly or by necessary implication
(a) there shall be implied the covenants relating to the right to mortgage, quiet enjoyment,
freedom from encumbrances, further assurance, maintenance, repairs and protection of the
mortgage security in the terms set out in Part One of the First Schedule, and
(b) where the mortgaged property includes a leasehold as to that leasehold there shall be implied
the further covenants relating to validity and past and future observance of the lease in the
terms set out in Part Two of the First Schedule.

9. Implied covenants joint and several

Unless a contrary intention appears expressly or by necessary implication, in a mortgage or transfer of
a mortgage
(a) where two or more persons are expressed to mortgage or transfer or to join as covenanters,
an implied covenant on their part shall be deemed to be a joint and several covenant by them;
and
(b) where there are two or more mortgages, or transferees an implied covenant with them shall
be deemed to be a covenant with them jointly unless the performance secured by the
mortgage is secured to them in shares or distinct sums of money in which case the implied
covenant shall be deemed to be a covenant with each in respect of the share or distinct sum
secured to the mortgagor.

10. Right to title documents

(1) Unless a contrary intention appears expressly or by necessary implication,
(a) as against the mortgagor the prior mortgagee is entitled to possession of the mortgagor’s title
documents which relate exclusively to the mortgaged property;
(b) where during the life of the mortgage the mortgagor becomes entitled to possess a title
document relating exclusively to the mortgaged property the mortgagor shall deliver that
document to the then prior mortgagee.
(2) A mortgagee having possession of a mortgagor’s title documents
(a) shall keep them whole, uncancelled and undefaced and is liable in an action for damages for
a wilful or negligent failure to do so, and
(b) shall deliver them on timely performance of the act secured by the mortgage or on
redemption to the then prior mortgagee, and if there is no mortgagee then to the mortgagor or
person succeeding to title through the mortgagor.
(3) Where the mortgagee has possession of the title documents, the mortgagor at a reasonable time, on
the request and at the expense of the mortgagor is entitled in person or through an agent to inspect and
make copies or extracts from those documents.

11. Insurance
(1) Both the mortgagor and the mortgagee have an insurable interest in the mortgaged property.
(2) Unless a contrary intention appears expressly or by necessary implication,
(a) where the mortgagor has covenanted to insure all or a part of the mortgaged property and
fails to do so as required by the terms of the mortgage, the mortgagee is entitled, after giving
notice in writing to the mortgagor, to insure and keep insured the mortgaged property against
loss or damage by theft, fire, earthquake or any other natural disaster; and
(b) the premiums paid by the mortgagee for the insurance shall be secured with the same priority
as the mortgage and, where the mortgage secures payment of money, shall be added to the
principal sum of money with interest at the same rate as on the principal sum of money.
(3) Unless a contrary intention appears expressly or by necessary implication, where the mortgagor
has covenanted to insure all or a part of the mortgaged property and the insurance has been effected by
the mortgagor, or on behalf of the mortgagor by the mortgagee, the money received on the insurance shall
be applied in making good the loss or damage in respect of which the money is received unless the
mortgagor elects to apply all or a part of it toward the performance of the act secured by the mortgage.

12. Transfer by mortgagor

(1) Unless a contrary intention appears expressly or by necessary implication, a mortgagor may
transfer all or a part of the mortgagor’s interest in the mortgaged property without the concurrence of the
mortgagee.
(2) The transfer of all or a part of the mortgagor’s interest in the mortgaged property does not relieve
the mortgagor of personal liability on a covenant in the mortgage.
(3) In a transfer of a mortgage from a mortgagor for valuable consideration, unless a contrary
intention appears expressly or by necessary implication, the transferee shall be deemed to have
covenanted to indemnify the mortgagor’s personal liability on a covenant in the mortgage.
(4) Unless a contrary intention appears expressly or by necessary implication, it is implied that the
mortgagor covenants to give notice to the mortgagee of a transfer of all or a part of the mortgagor’s
interest in the mortgaged property by the mortgagor subsequent to the mortgage; but despite a provision
to the contrary, failure to give the notice does not invalidate the transfer.
(5) In this section, a transfer includes a sale, lease, encumbrance or any other disposition.

13. Transfer by mortgagee

(1) A mortgagee may transfer all or a part of the mortgagee’s interest in the mortgage without the
concurrence of the mortgagor, but the transfer is void if it purports to make a disposition of the
mortgagee’s interest in the mortgaged property without making the same disposition of the right to
performance of the act secured by the mortgage.
(2) Unless a contrary intention appears expressly or by necessary implication, a transfer of a mortgage
by a mortgagee operates to transfer the entire interest of the mortgagee to the transferee, including,
(a) the right to demand, sue for, recover and give receipts for performance of the act secured by
the mortgage, and the performance then due or later becoming due, and
 (b) the benefit of the securities for performance and the collateral securities and the benefit of
and right to sue on the covenants with the mortgagee and the right to exercise the powers of
the mortgagee.
(3) In this section, a transfer includes a sale, lease encumbrance or any other disposition.

14. Illegal, void and voidable transactions

(1) Where the performance of an act secured by the mortgage is illegal, or derives from a contract
which is illegal, the mortgage is not, to that extent, enforceable, but a court may order the return of the
title documents or the removal of a clog on the title to the mortgaged property.
(2) Where the performance of an act secured by the mortgage derives from a contract which is void or
voidable at the mortgagor’s option, the mortgage is not, to that extent, enforceable but a court may order
restitution as a condition to the return of the title documents or the removal of a clog on the title to the
mortgaged property.

15. Remedies of mortgagee on default

On the failure of performance of an act secured by the mortgage the mortgagee may
(a) sue the mortgagor or obligor or both of them on a personal covenant to perform, or
(b) realise the mortgagee’s security in the mortgaged property in all or any of the ways provided
in this Act and in no other despite a provision to the contrary in the mortgage.

16. Appointment of receiver on default

(1) On the failure of performance of an act secured by the mortgage, the mortgagee may apply to the
Court for the appointment of a receiver, and where it is satisfied that grounds do exist for the appointment
of a receiver, the Court shall appoint a receiver.
(2) The Court may empower a receiver appointed under subsection (1)
(a) to take possession of the mortgaged property,
(b) to collect by demand, action in the name of the mortgagor or mortgagee, or otherwise the
income including arrears accruing from the mortgaged property,
(c) to give valid receipts for the income collected, and
(d) to do any other act necessary or proper to manage the property including the making of
repairs and improvements, but a repair or improvement does not bind the mortgagor, the
mortgagee or the property until approved by the Court.
(3) A receiver appointed under subsection (1) is liable to account when so ordered by the Court.
(4) A receiver appointed under subsection (1) is entitled to retain out of money received for the
receiver’s remuneration, and in satisfaction of the costs, charges and expenses incurred as receiver, a fee
or commission at the rate determined by the Court.
(5) Unless otherwise directed by the Court, a receiver appointed under subsection (1) shall apply the
income received from the property,
(a) first, in discharge of the rents, taxes, rates and any other required outgoing affecting the
mortgaged property,
 (b) secondly, in payment of the annual sums of money or any other payments, and the interest
on the principal sums due, and having priority to the mortgage in right of the receivership,
(c) thirdly, in payment of the fee or commission of the receiver and of the premiums of
insurance payable in accordance with the mortgage and the cost of effecting the necessary
repairs,
(d) fourthly, in the payment of the interest accruing due in respect of a principal money due
under the mortgage,
(e) fifthly, in or towards the discharge of a principal money due under the mortgage,
and shall pay the residual to the person who, but for the possession of the receiver, would have been
entitled to receive the income or who is otherwise entitled to the mortgaged property.
(6) A provision in a mortgage authorising the appointment of a receiver on the failure of performance
of an act secured by the mortgage other than as provided in this section is void.

17. Mortgagee in possession

(1) On the failure of performance of an act secured by the mortgage, the mortgagee is entitled, as
against the mortgagor and a person deriving an interest in the mortgaged property through the mortgagor
whose interest is subsequent to that of the mortgagee, to possession of the mortgaged property, but in the
case of default in the payment of principal or interest secured by the mortgage, the mortgagee’s right to
possession may be exercised only after thirty days’ notice in writing to the mortgagor or a longer period,
as provided by the mortgage.
(2) A mortgagee entitled to possession under this section is entitled
(a) to enter and take possession of the mortgaged property if that may be done peacefully, or
(b) to assert the right to possession by an action of possession.
(3) A mortgagee in possession liable to account to the mortgagor for the income, whether in cash or in
kind, derived from the mortgaged property which the mortgagee has received or without wilful default
might have received from the time of taking possession, and to pay over to the mortgagor the excess on
the amounts due on the mortgage.
(4) In accounting under this section the mortgagee in possession
(a) is liable for a failure to be diligent in realising a sum of money due to the mortgagee from the
mortgaged property;
(b) is liable at the fair market value for the occupational rent if the mortgagee occupies all or a
part of the mortgaged property;
(c) is liable for an unreasonable injury to or neglect of the mortgaged property caused by the
wilful or negligent act or omission of the mortgagee; and
(d) is not entitled to compensation for personally managing the mortgaged property.
(5) In accounting under this section the mortgagee in possession shall be allowed the cost of the
reasonable repairs or improvements made to protect the value of the mortgaged property or to maintain or
increase the income from the mortgaged property.
(6) To the extent that the sums of money involved under subsection (5) exceed the income from the
mortgaged property they shall be secured with the same priority as the mortgage and where the mortgage
secures the payment of money shall be added to the principal sum of money with interest at the same rate
as on the principal sum.
(7) A mortgagee in possession may, from the date of the possession, collect by action or otherwise the
income from the mortgaged property, including arrears to which the mortgagee would have been entitled
had the mortgagee owned the mortgaged property since the date of the mortgage.
(8) A mortgagee in possession, unless the mortgagee otherwise agrees, is not bound by a lease, profit
or licence entered into by the mortgagor subsequent to the mortgage unless the tenant, profit holder or
licensee took the interest as a purchaser for value without notice of the mortgage.
(9) A mortgagee in possession is entitled to transfer all or a part of the interest in the mortgaged
property, including the right to possession, as provided in section 13.

18. Judicial sale

(1) On the failure of performance of an act secured by the mortgage, the mortgagee may apply to the
Court for an order for the judicial sale of the mortgaged property, and on being satisfied as to the
existence of grounds for the application, the Court shall, on the conditions that it considers just and
equitable, grant an order for judicial sale of all or a part of the mortgaged property.
(2) In considering what conditions to attach to an order for judicial sale the Court shall consider what
opportunity the mortgagee has afforded to the mortgagor or obligor or both of them to remedy the failure
of performance.
(3) A judicial sale ordered under this section shall be by public auction, unless the mortgagor and the
encumbrancers subsequent to the mortgagee requesting the judicial sale and of whom the mortgagor has
notice at the time of the sale, agree to a private sale and the terms of the sale are approved by the Court.
(4) Prior to a judicial sale ordered under this section, the mortgagee requesting the judicial sale shall
give reasonable notice of the sale to the mortgagor and every encumbrancer of whom the mortgagee has
notice.
(5) Failure to give that reasonable notice shall not affect the judicial sale but shall render the
mortgagee personally liable for the loss caused by the failure.
(6) The mortgagor or an encumbrancer, including the mortgagee who requested the judicial sale and a
mortgagee prior or subsequent to the first-mentioned mortgagee, is not precluded from purchasing the
mortgaged property at a judicial sale ordered under this section.
(7) A purchase under subsection (6) by the mortgagee who requested the judicial sale or the nominee
of that mortgagee shall not take effect unless approved by the Court.
(8) The Court ordering the judicial sale
(a) may make an order for a conveyance, or a vesting order, proper for giving effect to the sale,
and
(b) may authorise the Registrar or any other officer of the Court to execute, on behalf of the
mortgagor and the mortgagee who requested the judicial sale, a conveyance granting the
interests of the mortgagor and mortgagee in the mortgaged property to the purchaser at the
judicial sale.
(9) The purchaser at a judicial sale ordered under this section shall take title to the mortgaged property
free of the interests to which the mortgage of the mortgagee who requested the judicial sale has priority,
and free of that mortgage, but subject to the interests which have priority to that mortgage, and is entitled
as against any other person to the title documents relating exclusively to the mortgaged property other
than those title documents held by a person with an interest having priority to the mortgage of the
mortgagee who requested the judicial sale.
(10) Despite a provision to the contrary in the mortgage, a judicial sale ordered under this section
shall be the only manner in which a mortgagee may foreclose rights to redeem the mortgaged property.
(11) The proceeds from a judicial sale ordered under this section shall, as the Court directs, be
deposited in the Court for distribution as ordered by the Court or shall be held in trust for distribution by
the mortgagee who requested the judicial sale.
(12) Proceeds from a judicial sale shall be distributed
(a) first, in payment of the expenses properly incurred as incident to the judicial sale or a prior
attempted judicial sale,
(b) secondly, in payment of the sums of money secured by the mortgage or with the same
priority as the mortgage,
(c) thirdly, in payment in the order of priority of the encumbrances subsequent to that of the
mortgagee who requested the judicial sale, and
(d) fourthly, the residue to the mortgagor or the successors in interest of the mortgagor.
(13) Where a mortgagee holding in trust for distribution proceeds from a judicial sale, ordered under
this section is in doubt as to the proper distribution of all or a part of those proceeds, the mortgagee may
apply to the Court for direction and may if the Court so orders deposit the proceeds in the Court.
(14) The title of a purchaser at a judicial sale ordered under this section is not impeachable on the
grounds that the order for the judicial sale was improperly or irregularly ordered.
(15) A sale ordered by the Court under this section shall not take place until the expiration of thirty
days after the date of the order.

19. Priorities
(1) Except as otherwise provided by this Act, or any other enactment or by express agreement among
encumbrancers, priorities among encumbances shall be in order of time, the first encumbrance in time
having priority, subject to the operation of the rules of equity including the rules concerning fraud,
estoppel for gross negligence or otherwise, purchasers for valuable consideration without notice of prior
interests and the priority of legal over equitable interests where equities are equal.
(2) For the purposes of this section, including application of the rules of equity,
(a) notice may be actual or constructive; and
(b) a purchaser has constructive notice of a fact which would have been disclosed by a
reasonable inquiry as to
(i) the possession and contents of title documents,
(ii) the title to the property back to a good root of title more than twenty years old, and
(iii) the rights of a person occupying the property.
(3) In determining priority among mortgages tacking shall not be allowed, but a mortgage expressed
to secure further advances shall have priority to the full extent of the advances secured over a subsequent
encumbrancer, unless that encumbrancer was a purchaser for valuable consideration without notice of the
prior mortgage.
(4) In determining priorities among encumbrances, encumbrances shall not be consolidated so that a
mortgagor seeking to redeem any one mortgage is entitled to do so without performing an act secured by
a separate mortgage made by the mortgagor or by a person through whom the mortgagor claims, solely on
the property mortgaged by the mortgage which the mortgagor seeks to redeem.
(5) In determining the incidence of obligations secured by a mortgage the rules of equity relating to
contribution, exoneration and marshalling shall apply.

20. Methods of redemption

(1) A person entitled to redeem a mortgaged property may redeem that property by
(a) performing the acts secured by the mortgage which have yet to be performed, and
(b) compensating the mortgagee by payment of interest, costs and any other expenses due in
respect of the failure to have timely performance of the acts secured by the mortgage.
(2) A tender of performance and compensation sufficient to redeem the mortgaged property shall, if
refused by the mortgagee, have the effect of relieving the person offering to redeem from an obligation to
pay compensation for a further delay in performance of the acts secured by the mortgage.
(3) Redemption may, but need not be, by an action for redemption.

21. Judicial sale in lieu of redemption

A person entitled to redeem mortgaged property may have an order for judicial sale instead of an order
for redemption in an action brought by that person for redemption alone, or for judicial sale alone or for
judicial sale or redemption in the alternative.

22. Written discharge

(1) A mortgagee shall be redeemed on acceptance of a tender of performance and compensation under
section 20 or on an order for redemption, but a person who redeems is entitled to require the mortgagee to
issue a written discharge.
(2) Where a written discharge is issued to a person other than the mortgagor or the successor to the
entire interest in the mortgaged property, it shall operate as a transfer of the mortgagee’s interest in the
mortgage.
(3) In a written discharge given under this section the same covenants shall be implied as if the person
who executes the discharge had been expressed to transfer as mortgagee subject to an interest prior to the
mortgage.

Miscellaneous

23. Model precedents

Instruments in the form of the model precedents contained in the Second Schedule, or in similar form
or using expressions to a similar effect are sufficient, in regard to form and expression.

24. Interpretation
(1) In this Act, unless the context otherwise requires,
 “court” means a court of competent jurisdiction;
“encumbrance” includes a mortgage, a lien and a charge;
“encumbrancer” includes a person entitled to the benefit of an encumbrance;
“mortgagee” includes a person from time to time deriving title through the original mortgagee;
“mortgagor” includes a person from time to time deriving title through the original mortgagor or
entitled to redeem a mortgage according to the interest in the mortgaged property;
“purchaser” includes a purchaser in good faith for valuable consideration and a lessee or
mortgagee who acquires an interest for valuable consideration.
(2) In this Act, unless the context otherwise requires,
(a) a reference to a prior mortgage or encumbrance is a reference to one that ranks in priority
above another mortgage or encumbrance on the same property;
(b) a reference to a subsequent mortgage or encumbrance is a reference to one that ranks in
priority below another mortgage or encumbrance on the same property.

25. Application
This Act applies to a mortgage created after the commencement of this Act.

26. Commencement
This Act shall come into force on the 1st day of January, 1973.

SCHEDULES

First Schedule
IMPLIED COVENANTS
[Section 8]

PART ONE
IMPLIED COVENANTS BY MORTGAGOR

There shall be implied the following covenants by the mortgagor:

1. That the mortgagor alone, or with the consent or concurrence of the other persons whose consent or
concurrence is required, has full power to mortgage the property expressed to be mortgaged by the
mortgagor in the manner in which it is expressed to be mortgaged.
2. That if either or both the mortgagee and persons deriving title through the mortgagee lawfully enter
into possession of the mortgaged property, the mortgagor and every person concurring in the mortgage by
the direction of the mortgagor and every person deriving title through the mortgagor, other than a person
having an interest to which the mortgage is expressly made subject, shall not interfere with, interrupt or
disturb the lawful possession of the person in possession.
3. That the mortgaged property is freed and discharged from or otherwise by the mortgagor
sufficiently indemnified against the interests, encumbrances, claims and demands whatsoever, other than
those to which the mortgage is expressly made subject.
4. That the mortgagor and every person concurring in the mortgage by the direction of the mortgagor
and every person deriving title through any of them, and every other person having or rightfully claiming
an interest in the mortgaged property other than an interest to which the mortgage is expressly made
subject, will from time to time and on the request of the mortgagee or a person deriving title through the
mortgage, execute and do the lawful assurances and things for further or more perfectly assuring the title
to the security interest as that person may reasonably request, the expenses in respect of this covenant to
be borne by the mortgagor during the life of the mortgage and after that by the person making the request.
5. That the mortgagor and every person deriving an interest through the mortgagor, other than a
person having an interest to which the mortgage is expressly made subject, will during the life of the
mortgage preserve, protect, repair and maintain the mortgaged property so as not to diminish its value
below what is reasonably required as security for the performance of an act secured by the mortgage but
which has yet to be performed.

PART TWO
IMPLIED COVENANTS BY MORTGAGOR OF LEASEHOLD PROPERTY

There shall be implied the following covenants by the mortgagor:

1. That the lease is at the date of the mortgage a good, valid and effectual lease of the mortgaged
property and is in full force, unforfeited and unsurrended, and has not become void or voidable.
2. That the rents reserved by, and the covenants, conditions and agreements contained in the lease and
to be paid, observed or performed by the mortgagor and persons deriving title through the mortgagor have
been paid, observed and performed up to the time of the mortgage.
3. That the mortgagor, or the person deriving title through the mortgagor, will during the continuance
in force of the mortgage pay, observe and perform or cause to be paid, observed and performed, the rents
reserved by the lease and the covenants, conditions and agreements contained in the lease, which the
mortgagor or the person deriving title are bound to pay, observe and perform.

Second Schedule
MODEL PRECEDENTS
[Section 23]

FORM ONE
FORM OF MORTGAGE

THIS MORTGAGE is made on the 1st day of January, 1974 between the mortgagor JOHN
MENSAH of 1, Adabraka Road, Accra in the Eastern Region and the mortgagee PHILIP
ARCHER of Cantonments Hill, Accra.
1. By a conveyance made on the 1st day of June, 1965 between James Bruce of Accra and the
mortgagor (registered number 6543/65) the property known as James Fort, Accra (hereinafter
called “the property”) was conveyed to the mortgagor for ever.
 p p y ) y g g
2. In consideration of the sum of five thousand cedis (¢5,000) now paid by the mortgagee to
the mortgagor (receipt of which the mortgagor hereby acknowledges,), the mortgagor
covenants with the mortgagee to pay [here state the terms for repayment of principal and
interest].
3. The mortgagor hereby mortgages the property to the mortgagee to secure payment of the
principal money, interest and other money hereby covenanted to be paid by the mortgagor.
4. [Add covenant to insure buildings and any other provisions desired]
5. The property consists of a house and land bounded [description of boundaries] and is
indicated by the colour red on the plan attached to the conveyance which shows the relevant
measurements.

..........................................................................
Signed by JOHN MENSAH
In the presence of: ............................................

..........................................................................
Signed by PHILIP ARCHER
In the presence of: ............................................

FORM TWO
FORM OF TRANSFER OF MORTGAGE

THIS TRANSFER OF MORTGAGE is made on the 1st day of June, 1974 between the
transferor PHILIP ARCHER of Cantonments Hill, Accra in the Eastern Region and the
transferee WILLIAM ARCHER of 99, Marine Driver, Accra.
1. This transfer is supplemental to a mortgage made on the 1st day of January, 1974 between
John Mensah of Accra and the transferor (registered number 100/74) on the property known as
James Fort, Accra.
2. In consideration of the sums of four thousand cedis and five hundred cedis now paid by the
transferee to the transferor, being the respective amounts of the principal money and interest
now owing in respect of the mortgage (the receipt of which sums the transferor hereby
acknowledges), the transferor hereby transfers to the transferee the benefit of the mortgage and
all the rights under the mortgage.

..........................................................................
Signed by PHILIP ARCHER
In the presence of: ............................................

..........................................................................
Signed by WILLIAM ARCHER
In the presence of: ............................................
 FORM THREE
FORM OF DISCHARGE OF MORTGAGE
THIS DISCHARGE OF MORTGAGE is made on the 1st day of January, 1980 by WILLIAM
ARCHER OF 99, Marine Drive, Accra in the Eastern Region.
1. This discharge is supplemental to a mortgage made on the 1st day of January, 1974 between
John Mensah of Accra and Philip Archer of Accra (registered number 100/74) on the property
known as James Fort, Accra and to a transfer of the mortgage made on the 1st day of June,
1974 between Philip Archer and myself (registered number 250/74).
2. I, William Archer of Accra hereby acknowledge that I have this 1st day of January, 1980
received the sum of one hundred cedis (¢100) representing the balance remaining owing in
respect of the principal money secured by the mortgage together with the interest and costs.
3. The property is accordingly discharged from the mortgage.

..........................................................................
Signed by WILLIAM ARCHER
In the presence of: ............................................
 Endnotes
1 (Popup - Footnote)
1. This Act was issued as the Mortgages Decree, 1972 (N.R.C.D. 96) made on the 4th day of August, 1972 and
notified in the Gazette on 18th August, 1972.
2 (Popup - Footnote)
2. Subsection (2) is an amendment effected by the Mortgages (Amendment) Decree, 1979 (A.F.R.C.D. 37)
made on the 19th day of September 1979, and notified in the Gazette on 21st September, 1979. The Decree
also provided that,
“2. Where at the commencement of this Decree any agricultural farmland stands as security for a loan under
any customary loan transaction whether or not recorded in writing, such transaction shall forthwith be and is hereby
converted into a mortgage under the Mortgages Decree, 1972 (N.R.C.D. 96) and accordingly all the provisions of
that Decree shall apply to such transaction as far as may be necessary.”