|
|
Operation and effect of specific chattel mortgage.
|
25.—(1) A specific chattel mortgage shall, so long as it is duly registered under this Part and any moneys remain owing for principal or interest or costs on the security thereof, operate and have effect—
|
|
| |
(a) to prohibit the mortgagor from selling or otherwise transferring the ownership or possession of any stock comprised therein without giving to the mortgagee at least seven clear days' previous notice in writing of his intention to effect such sale or transfer, and
|
|
| |
(b) to prohibit the mortgagor from selling or otherwise transferring such ownership or possession for less than a fair and reasonable price, and
|
|
| |
(c) to impose on the mortgagor, in the event of any of the said stock dying or being stolen or being destroyed by fire or other agency, the obligation to notify the mortgagee of such event within seven days after it occurs, and
|
|
| |
(d) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the said stock, the obligation to give forthwith to the mortgagee notice in writing of such sale or transfer, with such particulars thereof as the mortgagee may require, and
|
|
| |
(e) to impose on the mortgagor, in the event of his selling or otherwise transferring the ownership or possession of any of the said stock, the obligation to pay to the mortgagee, within seven days after such sale or transfer, all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept or to apply the proceeds of such sale or transfer in such other manner as may have been previously authorised by the mortgagee, and
|
|
| |
(f) to imply a covenant on the part of the mortgagor to pay to the mortgagee on demand the principal moneys and interest secured by the chattel mortgage at the time and in the manner thereby appointed, and
|
|
| |
(g) to impose on the mortgagor the obligation to preserve and keep safe the stock therein comprised and (save as may be otherwise authorised by the chattel mortgage or the mortgagee or as may be necessary for any intended lawful sale) not to remove such stock from his land.
|
|
| |
(2) If the mortgagor under a specific chattel mortgage commits a breach (whether by commission or omission) of any provision implied in the chattel mortgage by virtue of subsection (1) (other than paragraph (f) thereof) of this section, or contained therein, the whole of the principal moneys secured by the chattel mortgage shall, on demand by the mortgagee for payment thereof, become and be due and be forthwith payable notwithstanding anything contained in the chattel mortgage.
|
|
| |
(3) If the mortgagor under a specific chattel mortgage—
|
|
| |
(a) sells or otherwise transfers the ownership or possession of stock which is the subject of such specific chattel mortgage without having given to the mortgagee at least seven clear days' previous notice in writing of his intention to effect such sale or transfer, or
|
|
| |
(b) having sold or transferred such stock or any part thereof, does not within seven days after such sale or transfer pay to the mortgagee all sums secured by the chattel mortgage or such lesser sum as the mortgagee may in writing agree to accept,
|
|
| |
the mortgagor shall be guilty of a misdemeanour and shall be liable on conviction thereof to a fine not exceeding one hundred pounds or, at the discretion of the Court, to imprisonment for a term not exceeding two years.
|
|
| |
(4) A copy of this section shall be endorsed on every specific chattel mortgage, but non-compliance with this provision shall not invalidate the specific chattel mortgage.
|
