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In This Volume

  • 11 (1) The borrower appoints both the lender and any agent of the lender as the borrower’s attorney to appoint a receiver of the land.
  • (2) The lender or the lender’s agent may, if any default happens, appoint a receiver of the land and the receiver
  • (a) will be the borrower’s agent and the borrower will be solely responsible for the receiver’s acts or omissions,
  • (b) has power, either in the borrower’s name or in the name of the lender, to demand, recover and receive income from the land and start and carry on any action or court proceeding to collect that income,
  • (c) may give receipts for income which the receiver receives,
  • (d) may carry on any business which the borrower conducted on the land,
  • (e) may lease or sublease the land or any part of it on terms and conditions that the receiver chooses,
  • (f) may complete the construction of or repair any building or improvement on the land,
  • (g) may take possession of all or part of the land,
  • (h) may manage the land and maintain it in good condition,
  • (i) has the power to perform, in whole or in part, the borrower’s promises and agreements, and
  • (j) has the power to do anything that, in the receiver’s opinion, will maintain and preserve the land or will increase or preserve the value or income potential of the land or the borrower’s business on the land.
  • (3) From income received the receiver may do any of the following in any order the receiver chooses:
  • (a) retain a commission of 5% of the gross income or any higher commission approved by the court;
  • (b) retain enough money to pay or recover the cost to collect the income and to cover other disbursements;
  • (c) pay all taxes and the cost of maintaining the land in good repair, completing the construction of any building or improvement on the land, supplying goods, utilities and services to the land and taking steps to preserve the land from damage by weather, vandalism or any other cause;
  • (d) pay any money that might, if not paid, result in a default under any charge or encumbrance having priority over this mortgage or that might result in the sale of the land if not paid;
  • (e) pay taxes in connection with anything the receiver is entitled to do under this mortgage;
  • (f) pay interest to the lender that is due and payable;
  • (g) pay all or part of the principal amount to the lender whether or not it is due and payable;
  • (h) pay any other money owed by the borrower under this mortgage;
  • (i) pay insurance premiums.
  • (4) The receiver may borrow money for the purpose of doing anything the receiver is authorized to do.
  • (5) Any money borrowed by the receiver, and any interest charged on that money and all the costs of borrowing, will be added to and be part of the mortgage money.
  • (6) A receiver appointed by the lender may be removed by the lender and the lender may appoint another in the receiver’s place.
  • (7) The commission and disbursements of the receiver will be a charge on the land and will bear interest at the interest rate.
  • (8) Nothing done by the receiver under this section will make the lender a mortgagee in possession.