### Conveyancing and Property Ordinance 《物業轉易及財產條例》

51. Powers of mortgagee and receiver
(1) Unless the contrary intention is expressed, there shall be implied in any legal charge or equitable mortgage by deed, the powers, exercisable by the mortgagee, a receiver (acting personally or through their agents) and any person entitled to give a receipt for the mortgage money on its repayment, mentioned in the Fourth Schedule.
(2) Any power exercisable under a mortgage shall be subject to any prior estates, interests and rights to which the mortgaged land is subject.
(3) No power of sale shall empower a mortgagee or a receiver under an equitable mortgage, by virtue of that mortgage only, to assign the legal estate in the mortgaged land.
(4) The powers implied by subsection (1), and the provisions of the Fourth Schedule relating to the exercise of those powers may be varied or extended by the mortgage deed and, as so varied or extended, shall have effect as if contained in this Ordinance.
(5) This section shall not apply to any mortgage executed before the commencement* of this section.

Editorial Note:
* Commencement date: 1 November 1984.

52. Protection of purchaser
Where a sale is made under a mortgage, the title of the purchaser shall not be affected by the fact that no case had arisen to authorize the sale or that due notice was not given or that the power was otherwise improperly or irregularly exercised; but any person who suffers loss through an unauthorized, improper or irregular exercise of the power of sale shall have a remedy in damages against the person exercising the power.

53. Sale by mortgagee
(1) Where a mortgagee or receiver sells under an express or statutory power of sale, the assignment shall operate— (Amended 31 of 1988 s. 18)
(a) to assign to the purchaser the mortgagor’s estate in that land, subject to any other mortgage having priority to the mortgage under which the sale is made; and
(b) to discharge that land from the mortgage under which the sale is made and any subsequent mortgage.
(2) Where a mortgagee obtains an order of foreclosure absolute, that order shall (unless it otherwise provides) operate—
(a) to assign to the mortgagee the mortgagor’s estate in the mortgaged land, subject to any other mortgage having priority to the mortgage under which the foreclosure order was obtained; and
(b) to discharge that land from the mortgage under which the foreclosure order was obtained and any subsequent mortgage.
[cf. 1925 c. 20 s. 89 U.K.]

### Conveyancing and Property Ordinance 《物業轉易及財產條例》

54. Application of money received
Any money received by a mortgagee or a receiver from the sale or other dealing with the mortgaged land or any security comprised in the mortgage shall be applied according to the following priority—
(a) in discharge of all rent, taxes, rates and other outgoings due and affecting the mortgaged land;
(b) unless the mortgaged land is sold subject to a prior incumbrance, in discharge of that prior incumbrance;
(c) in payment of the receiver’s lawful remuneration, costs, charges and expenses and all lawful costs and expenses properly incurred in the sale or other dealing;
(d) in payment of mortgage money, interest and costs due under the mortgage,
and any residue shall be paid to the person who, immediately before any sale or other dealing, was entitled to the mortgaged land or authorized to give a receipt for the proceeds of the sale of that land.
[cf. 1925 c. 20 ss. 105 & 107(2) U.K.]

55. Mortgagee’s receipt
(1) A receipt in writing of a mortgagee or a receiver shall be a sufficient discharge for any money arising under a power of sale or for any money or security comprised in the mortgage or arising under it; and a person paying that money or transferring that security shall not be concerned to inquire whether any money remains due under the mortgage.
(2) A receipt mentioned in subsection (1) need not be under seal.
[cf. 1925 c. 20 s. 107 U.K.]

### Conveyancing and Property Ordinance 《物業轉易及財產條例》

56. Discharge of mortgage by signed receipt
(1) A receipt, written on or annexed to a mortgage deed, for all money secured by that mortgage, which is executed by the mortgagee or the person in whom the mortgage is vested and who is legally entitled to give a receipt for the mortgage money, shall operate, without any surrender or release as a discharge and, where applicable, reassignment of the mortgaged property from all principal money and interest secured by, and from all claims under, that mortgage, but without prejudice to any term or other interest which is paramount to the estate or interest of the mortgagee or other person in whom the mortgage is vested. (Amended L.N. 387 of 1987; 31 of 1988 s. 19)
(2) Upon performance of the terms of a mortgage, a mortgagor shall be entitled, at his cost and charge, to a receipt mentioned in subsection (1).
(3) In a receipt mentioned in subsection (1), there shall be implied, unless the contrary intention is expressed, a covenant by the person who executes the receipt that such person has not executed or done, or knowingly suffered, or been party or privy to, any deed or thing, whereby or by means whereof the mortgaged property or any part thereof is or may be impeached, charged, affected or incumbered in title, estate or otherwise.
(4) Where the mortgage is contained in more than one deed, a receipt may, for the purposes of this section, refer to all those deeds and be written on or annexed to one of those deeds.
(5) A receipt under this section need not be under seal.
(6) This section applies to the discharge of any mortgage by deed, whether that deed was executed before or after the commencement of this section, but only to discharges effected after the commencement* of this section.
[cf. 1925 c. 20 s. 115 U.K.] Editorial Note:
* Commencement date: 1 November 1984.

56A. Floating charges
(1) A floating charge over property (whether or not it purports to restrict the chargor’s right to alienate the property) shall not affect any estate or interest in any land, being part of the property, acquired by any other person before crystallisation of the floating charge, whether or not the other person had actual or constructive notice of the floating charge or of any such purported restriction.
(2) This section applies to any floating charge granted on or after 1 November 1984.
(Added 31 of 1988 s. 20)