Section 72Part 5 — Dispositions
Chargee's remedies
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72. (1) If default is made in payment of the principal sum or of any interest or any other periodical payment or of any part thereof, or in the performance or observance of any agreement expressed or implied in any charge, and continues for one month, the chargee may serve on the chargor notice in writing to pay the money owing or to perform and observe the agreement as the case may be.
If the chargor does not comply within three months of the date of service, with a notice served on him under subsection (1), the chargee may —
appoint a receiver of the income of the charged property; or
sell the charged property:
a chargee who has appointed a receiver may not exercise the power of sale unless the chargor fails to comply, within three months of the date of service, with a further notice served on him under subsection (1).
The chargee shall be entitled to sue for the money secured by the charge only —
where the chargor is bound to repay the same;
where, by any cause other than the wrongful act of the chargor or chargee the charged property is wholly or partially destroyed or the security is rendered insufficient and the chargee has given the chargor a reasonable opportunity of providing further security which will render the whole security sufficient, and the chargor has failed to provide such security; or
where the chargee is deprived of the whole or part of his security by, or in consequence of, the wrongful act or default of the chargor:
in the case specified in paragraph (a) —
a transferee from the chargor shall not be liable to be sued for the money unless he has agreed with the chargee to pay the same; and
no action shall be commenced until a notice served in accordance with subsection (1) has expired; and
the court may, at its discretion, stay a suit brought under paragraph (a) or (b), notwithstanding any agreement to the contrary, until the chargee has exhausted all his other remedies against the charged property.