Bankruptcy Act 1966
PART VI
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ADMINISTRATION OF PROPERTY
Division 4
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Realization of property
SECTION 136
RIGHT TO PAY OFF MORTGAGES
136(1)
Where any property of the bankrupt is subject to a mortgage, the trustee may, upon giving 6 months ' notice in writing to the mortgagee of his or her intention to do so or upon paying 6 months ' interest in lieu of notice, require the mortgagee to discharge the mortgage notwithstanding that the due time for payment of the moneys owing under the mortgage has not arrived and, upon tender of the moneys secured by the mortgage and, if appropriate, interest in lieu of notice, the mortgagee is bound to execute such documents as are necessary in consequence of the payment.
136(2)
The rights conferred on the trustee by subsection (1) are in addition to any rights to pay off the whole or part of the moneys secured by the mortgage before the due time conferred on the mortgagor by the mortgage instrument or by a law of a State or Territory.
Where any property of the bankrupt is subject to a mortgage, the trustee may, upon giving 6 months ' notice in writing to the mortgagee of his or her intention to do so or upon paying 6 months ' interest in lieu of notice, require the mortgagee to discharge the mortgage notwithstanding that the due time for payment of the moneys owing under the mortgage has not arrived and, upon tender of the moneys secured by the mortgage and, if appropriate, interest in lieu of notice, the mortgagee is bound to execute such documents as are necessary in consequence of the payment.
[ CCH Note: Modification Declaration FRLI No F2021L00261 ( Bankruptcy Regulations 2021 : FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Subsection 136(1) of the Act is modified by substituting " Where any property of the debtor that is subject to the personal insolvency agreement is also subject to a mortgage " for " Where any property of the bankrupt is subject to a mortgage " .]
136(2)
The rights conferred on the trustee by subsection (1) are in addition to any rights to pay off the whole or part of the moneys secured by the mortgage before the due time conferred on the mortgagor by the mortgage instrument or by a law of a State or Territory.
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