LAW NOTES : Land Law - Summary Notes for Land Law : Charge

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Malaysia Land Law
National Land Code [NLC]

CHARGE (S.241(1) NLC)

ü  Who can charge? - S.205 & S.43 (Indi. ; not a minor, Corp, Govt, Any authorized body)

ü  Concept :

1.        Here, the chargor (pencagar / land owner / etc) will charged his land to the chargee (penerima cagaran / Bank) as security for the loan made, and registered as per NLC. (Registration give statutory right to the chargee).

2.       Chargor’s right / remedy

Ø  Tender payment (Sec. 266 (1)).

v  Here, the chargor have right at any time before the order for sale is being made to make a full payment for the loan he indebted to, and get an order to stop such sale of land, and reinstate his right to get the land.

3.       Chargee’s right /remedy

Ø  Secured via creation of interest, and have statutory right to enforce the sale (S.253)/ to take possession (S.271) of land upon the breach.

4.       Legal ownership still vested with the registered proprietor, the chargor.

DIFFERENCE OF MORTGAGE vs CHARGE

1.      What Is Being Transferred :

ü  Mortgage : Title & Ownership is with the mortgagee (lender) – Transfer of ownership.

ü  Charge : Title & Ownership is with the registered proprietor, the chargor (pencagar / peminjam) – Only give bundle of rights to the chargee.

2.   Remedy :

ü  Remedy of mortgagor :

§  Equity of redemption & S.206(3) of NLC.

ü  Remedy of mortgagee :

§  Sale of land

ü  Remedy of chargor :

§  To make tender payment - S.266(1) of NLC.

ü  Remedy of chargee :

§  Order for sale – S.253 of NLC.

§  Take possession – S.271 of NLC.

CHARGE

POWER OF CHARGING (S.241)

1)      Power of charging - S.241

§  S.241(1)(a) : The whole land, not part only.

v  Case : Raju

Ø  H : You can charge partly of your land, but upon any breach, there will be no remedy available under NLC.

§  S.241(1)(b) : The whole undivided share, not a part only.

§  S.241(1)(c) : Any lease of alienated land

2)    Purpose of charging - S.241 

§  S.241(1)(aa) : Charged for repayment of any debt (referring to the loan)

§  S.241(1)(bb) : Charged for payment of annuity & periodic sum

3)     Power to create second & subsequent charge S.241(2)

§  The way is to use the same land, and charged it to get a loan from others bank. But this depends on the value of the land.

4)    Limitation for power in S.241(1) & (2) - S.241(3)

FORM (BORANG) OF CHARGES

1)       S.242(1) : FORM 16A , used to paid loan [repeat the S.241(1)(aa) & (bb)]

2)     S.242(2)(a) : Form 16B - period sum / annuity [repeat the S.241(1)(aa) & (bb)]

EFFECT OF CHARGES

§      MAHADEVAN MANILAL

©      Any unregistered charge will have no effect under NLC.

©      Remedy of order for sale & taking possession is only effective upon the registration of the charge, and no way before.

1)       S.243 : Every charge registered is valid as security of the loan.

§  If chargor fail to pay the loan, remedies can be sought under NLC as long as the charge is registered.

HOW IS ‘CHARGE’ ACT TO SECURE THE PAYMENT?

§      Subject of the charge is Land. Land is a very limited earth resource, and its immovable property. As it’s a very valuable property, it can be considered as a good subject matter to secure payment.

CUSTODY OF IDT (ISSUE DOCT. OF TITLE) / DUPLICATE LEASE

1)       S.244(1) : Only the 1^st chargee entitle to the custody of the IDT / duplicate lease.

§  As per S.241(2), if the chorgor charged his land to more than one charge, only the 1^st chargee can keep the IDT.

2)     S.244(2) : The 1^st chargee shall produce that IDT / duplicate lease to the Registry / Land Office upon the written request made by proprietor.

MULTIPLE CHARGES (CAGARAN PELBAGAI)

ü  Consolidate charge (charge bergabung), is only allowed if its expressly stated in the Consolidate Agreement/Contract (Loan agreement) & the subsequent chargee aware of it.

ü  Eg : Ali had charge the Land ‘A’ to CIMB and also to MAYBANK. Later, he had entered into Consolidate Charge Agreement/Contract and charged the Land ‘B’ to the CIMB. Here, he need to make sure the MAYBANK (as a subsequent chargee) aware of the consolidate charge agreement/contract he made with CIMB.

ü  To discharge Land ‘A’, Ali now need to discharge Land ‘B’ too, as the charge on the both Lands had been consolidated.

ü  If there is no agreement/contract to consolidate the charge, the effect to discharge the land will be different. – S.245 of NLC.

RESTRICTION ON CONSOLIDATION (SEKATAN UNTUK PEGABUNGAN)

ü  S.245 : If there is no contract (“…absence of any express provision…” in this sec. refer to the ‘contract’) on CONSOLIDATE CHARGE (which need the chargor to discharge all the land at the same time), chargor is allowed to only discharge 1 land at 1 time without the need to discharge other land charged upon the same bank.

ü  Eg : Ali had charged Land ‘A’ to CIMB and also to MAYBANK. Later, he had charged the Land ‘B’ to the CIMB, but there is no contract of consolidate charge/whatsoever. Here, if he intends to discharge Land ‘A’, he doesn’t have to discharge Land ‘B’ simultaneously as per S.245 of NLC.

ISSUE ON SECOND CHARGE / SUBSEQUENT CHARGE / UNREGISTERED CHARGE – “PRIORITY”

      WHAT ARE THE 2^ND & SUBSEQUENT CHARGEE

§      It’s the charge made after the 1^st charge, on the same land towards 2 diff. chargees.

§      Why its needed / accepted ?

1)       S.241(2) – What is being transferred in every charge is interest & not ‘title’.

2)     To create 2^nd / subsequent charge, the consent from the 1^st chargee is a must, so there is no issue of “un-known / sudden chargee”.

3)     The IDT is only going to be kept by the 1^st chargee, so no issue of competing priorities if this is done accordingly.

4)     PRIORITY : General Rule is that who is on the 1^st time being a chargee will be given the priority.

      REGISTERED CHARGEE vs UNREGISTERED CREDITOR

§      The registered lender will get priority over the unregistered creditor / borrower.

§      Here, the registered lender will avoid collecting his debt in pari passu with another creditor.

      REGISTERED CHARGEE vs REGISTERED CHARGEE / UNREGISTERED CHARGEE vs UNREGISTERED CHARGEE

§      In pari passu is 2 securities / obligations having equal rights to payment.

©      Eg : Unsecured creditor ‘A’ shared the same value of land with the creditor ‘B’. Here, if ‘A’ can get priority in the charge, ‘A’ doesn’t have to share the money obtained from the sale of the land with ‘B’.

CHARGEE WHO DON’T GET ANY PAYMENT FROM THE SALE OF THE LAND

§      In the situation where the 1^st chargee had sold the land and all the money obtained from such sale was taken by him to paid the loan he had served to the borrower (land owner), HE MAY SUED the borrower if there is any balance un-solved.

§      For the subsequent chargee who didn’t get any payment from such sale, they MAY SUED the borrower (land owner) for the debt / loan.

§      Here, court will produce “Judgment debt”, an order to ask the borrower to pay such amount of debt.

©      Lender = Judgment creditor

©      Borrower = Judgment debtor.

§      So, even though some chargee may get 2^nd / 3^rd / even non-priority over the land, they still can execute their remedy / right under the law of contract as to gain back their money loan.

TACKING OF FURTHER ADVANCES (PENAMBAHAN DUIT PINJAMAN KEPADA CHRGOR)

§      This is involving the situation when the 1^st chargee / any chargee that have the subsequent chargee, wish to credit more loan / money to the borrower. So here, the additional sum of money is known to be as ‘advance/s’, and its allowed if it fulfil the following conditions :

©      S.246(2)(a) : The advance/s expressly authorised by the prior charge (dibenarkan dalam cagaran sebelum ini / telah dipersetujui di dalam loan agreement pertama bahawa advance/s loan dibenarkan jika perlu) OR purpose of that charge is to secure the balance incurred upon the chargee under the current/continuing account

OR

©      S.246(2)(b) : The advance/s are made with the consent of the subsequent chargee.

§  So, here, in order for the advance/s to be valid, it need to fulfil one of the condition in (a) or (b) of S.246(2).

§      S.246(3) : For the purpose of S.246(2)(b), if the chargee had made an advance/s via the agreement of advance loan, and the 1^st/ that chargee who made the advance didn’t know that there is subsequent chargee, the advance/s made is said to be valid as if the subsequent chargee had consented on it.

§      Eg : Ali had entered into advance loan agreement with CIMB, and had received another RM200k addition loan. But here, CIMB doesn’t know that there is  subsequent chargee that it need to get consent to make such advance, as for his un-knowledgement, the advance/s made still held valid as if the subsequent chargee had consented it.

§      WHY WE NEED THE ABOVE CONDITION?

©      This is because the act of adding the credit money will affect the total of debt incurred by the borrower, and if the order for sale took place, the amount of money collected from the sale of land will also increased, and affects the subsequent chargee in priority.

POSTPONEMENT OF CHARGES – PRIORITY  (PENANGGUHAN CAGARAN - KEUTAMAAN)

§      S.247(1) : Any charge can be postpone via FORM 16C.

§      S.247(2) : For purpose of determining the ranking of charge / priority of charge, see which one had been advance in time when its being registered. (cross refer to S.292)

©      S.292 : Presentation of instrument to be registered.

§  NOTED : Sometimes, for some reason, the rank of charge may be reduce, ie ; CIMB who ranks no. 2 in priority had actually now ranks at no. 3 in priority as it had commit error in executing his loan.

IMPLIED CONDITION FOR CHARGOR DURING IN THE ‘CHARGE’.

§      S.249 : One of the obligation is to protect the land from being seized by govt, by way of making sure that all rent upon State Authority, is paid.

§      S.250(a)-(c) : He’ll repaired all the building / loss of fire / maintenance.

§      S.250(d)(i) & (ii) : If chargor fail to repair, the chargee may take any action to remedy all the defection over the building and the cost incurred may later be claimed from the chargor.                  

                                                                                                                                                     IMPLIED CONDITION FOR CHARGEE DURING IN THE ‘CHARGE’.

§      S.251 : After charge took place, without any lawful reason,  chargee must consent any dealing made by the chargor, eg : lease & tenancy.

§      S.252 : The chargee must keep the land “in repair” at all time.

REMEDY / RIGHTS O F THE CHARGEE / CHARGOR

§  KIMLIN HOUSING DEVELOPMENT v BANK BUMIPUTRA

©      F : The borrower was the owner of the land and had entered into 2 legal charged with the Bank Bumiputra. To secure the loan, the borrower had created a debenture (doct. to acknowledge the debt) in favour of the bank. In the debenture, its also provided for appointment of any receivers / managers and their power. But, later, the receivers & managers had sold the land without resorting to the provision in NLC.

©      I : Whether the receivers & managers appointed via the debenture could sell the land charged under NLC, without taking proceeding of sale under NLC? *Right of chargor any chargee.

©      H : Right & remedies preserved for both chargee & chargor are very exclusive and any attempt to act contradicting with the right reserved shall be declared void. The right of chargor can never be waived, and he can also neither contract himself out of the code. Therefore, there shall be no power of sale conferred to the chargor under the code by way of debenture, but proceeding must be brought by the chargee to obtain judicial sale as prescribed under the Code.

LIM ENG CHUAN v UNITED MALAYAN BANKING CORP

§      This case is distinguished with the case of Kimlin. As in this case, the officer appointed is the Attorney, and there is special clause in their Sale & Purchase Agreement for the Attorney act in selling the land. This attorney had been appointed by the bank for the borrower. To distinguished, in the Kimlin’s case, there is no such special clause like the one presence in the case of Lim Eng Chuan.

HARTA EMPAT v KOPERASI RAKYAT

§      Principles laid down :

1.        ‘Charge’ is subject to any prohibition imposed by any written law (Eg : Contract Act / Co. Act) – S.241 (3a)

2.       It takes effect upon registration – S.243

3.       Registration is obtained by presenting it to the registrar – S.292(1c),

4.       But if only the charge is fit for registration – S.301,

5.       And only if the charge fit to registered it fit for registration - S.301(c)

CHARGEE

§      There are 2 statutory remedies available for the chargee.

              i.            Order for sale by way of public auction : S.253

            ii.            Taking possession of the charged property : S.271

§      1^ST REMEDY FOR THE CHARGEE : ORDER FOR SALE

©      S.253(1) : Upon the breach of the loan agreement, chargee may exercised his right as chargee to obtain the sale of the land.

©      S.253(2) : The right for order for sale is an additional right for the chargee, after he had taken possession over the land. Or in another words, if he had taken into possession over the land, such exercise of right doesn’t invalid this 2^nd right / remedy – order for sale.

©      S.253(4) : In process of order for sale, the chargor and chargee may appoint any person / body to represent them, but 1^st they have to inform the Registrar of the Court / Land Administrator by way of giving the ‘NOTICE’, and only if the Registrar determine such appointment is valid as per S.430-433, then such appointment is valid.

§      NOTICE BEOFRE SALE

©      S.254 : When there is a breach done on part of chargor which must continued for at least 1 month / any agreed duration which must not less than 1 month, chargee may serve notice to chargor in FORM 16D. In this notice / FORM, the chargee may :

                                 i.            Specified the breach in qs

                               ii.            Requiring the chargor to remedied it within 1 month / any alternative duration specified in the charge agreement

©      CITIBANK v MOHD KHALID

§  H : “… alternative duration…” = Allowed the chargor to received statutory notice less than 1 month via contract.

                              iii.            Warn the chargor that if this notice is not complied with, proceeding for an order of sale may be executed.

©      C. CENTRAL BANK v MENG KUANG

§  H : If there is mistake in the sum of payment stated in the notice, this fact will not make such notice to be invalid.

©    FORM 16 D & 16 E

§  FORM 16D (NOTICE OF DEFAULT):

Ø  Purpose is to serve to the defaulter to notify on intention to commence proceedings for sale. *correcting the breach.

§  S. 255 : FORM 16E : (NOTICE OF DEMAND)

Ø  Purpose is to demand the chargor to paid the sum debted  in within 1 month. *specific asking for the loan.

§  JACOB v OVERSEAS

Ø  H : Interest also may be claimed under FORM 16E or 16D, as there is no specific word ‘interest’ stated in S.254/255.

§      PROCEDURE FOR APPLICATION OF ORDER FOR SALE

      S.256 : For Registry Land Title

1)       A forced sale under this Sec. is conducted by a registrar / a licensed auctioneer as agent of chargee who is the real vendor (penjual).

2)     Application for sale must be made to the Court in accordance with provision of the Rules of High Court 1980, Order 31 & 83.

§  CITIBANK v IBRAHIM

Ø  H : Court must make an order for sale, unless “cause to contrary exist”.

§  LOW LEE LIAN

Ø  H : “Cause to contrary” = Exception to indefeasible in S.340 / Chargee failed to meet the conditions precedent / Contrary to some rule, law or equity.

§  UMBC v SYARIKAT PERUMAHAN LUAS

Ø  H : Charge registered is contrary to a restriction in interest on the title. Title / interest was unlawfully acquired – S.340(2c) ; “Exception to indefeasible title S.340”.

§  MUI BANK v CHEAM KIM YU

Ø  H :  Once the order for sale had been granted by the Court, the court now is ‘Functus Officio – no power to cancel the order.’

§  LIM YOKE FOO

Ø  H : Chargor / chargee can’t go to appeal on the same court based on the ‘functus officio’ concept, but they can always go and appeal at the higher court.

©      NOTED : Under “functus officio”, Court may not cancel the order for sale, but may vary the date / venue.

3)     S.257 : Matters to be dealt with by order for sale.

©      Among the important part on the matters to be dealt by order of the sale is :

                       i.            The sale must be made within a month after the sale had been made.

                      ii.            Registrar of court must fix the price for the sale which on consideration of paying the chargee debt & market price.

                    iii.            If the purchaser can’t paid the full purchase price at the moment of the fall of the hammer, he may paid the deposit 1^st to the chargee & the rest of the purchase price might be paid within 120 days from the date of the sale.

                   iv.            NOTED : Here, the 120 days may be used by the purchaser to get loan from bank in paying the purchase price.

§  M & J FROZEN

Ø  F : The purchaser in this case had make a very late payment on the purchase price to SAR, but had been accepted by SAR and proceeded to issue the certificate of sale to the purchaser.

Ø  H : Court have power to vary the conditions made if its fair to so, however such power shall not be exercise without service of notice upon the chargor. Here, the certificate granted by SAR is ultra vires as per NLC, and the title is unlawfully acquired by the purchaser. Besides, the act of paying the full purchase price at the very late kind of time also vs S.257.

4)     S.258 : Procedure Prior to the Sale :

                       i.       Registrar : S.258(1)(a) & (b) : Serve a copy about the order for sale to chargor / every chargee on the land & to see whether the sale is conducted within rules of court / practise customarily adopted in State.

                      ii.       Chargee : S.258(2)(a)-(c) : Prepare the condition of the sale, surrender the IDT / duplicate lease if any, to the Court / surrender the ‘unidivded-share doct.’ to the court.

5)     S.259 : Procedure At the Sale :

                       i.       The officer : S.259(2)(a) - (d) : Deal with the bids accordingly.

                      ii.       The purchaser : S.259(3)(a) & (b) : Received certificate from the officer in FORM 16F on the sale purchase / Received IDT / duplicate order for sale.

    S.260 : FOR LAND OFFICE TITLE

1)       The application is to be made to Land Administrator (LA).

2)     The application must be made in the FORM 16G.

3)     LA must make an order for sale when he is satisfied that there is no cause to contrary.

4)     S.261 : LA may hold any inquiry if he need so.

5)     S.262 : About the INQUIRY :

§  Only chargee & chargor / their representative can be in the inquiry.

§  In the process of inquiry, the party is given RIGHT TO BE HEARD, so they need to produce evidence on the inquiry.

§  Here, chargor may prove to the LA, that the order  should not be given as there is “cause to the contrary”. (refer to the case for cause of contrary, Low LeeLian, etc)

§  AFTER the inquiry, the party if may, entitle with right to postpone or cancel the sale, / change venue – S.28(2) / receive notice - S.28(4).

§  NOTED : Nothing with regard to the cause of contrary upon the charge can be complained right after the order is granted to the chargee.

6)     S.263 : Matters to be dealt with by order for sale.

7)      S.264 : Procedure Prior to Sale

§  The LA, Chargee’s duties, Postpone of Sale & Notice of postponement.

§  LIM YOKE FOO v EU FINANCE

Ø  LA has no power to cancel the order, as LA is funtus officio, LA only can be postponed.

§  GURPAL v KANANAYER

Ø  F : In this case, the LA had considered the fraud, misrep, mistake and other factors in the case, and had decided to refuse the order for sale, chargee appeal.

Ø  H : Only HC have power to set aside any registered interest of a proprietor, chargee, or lessee.

8)      S.265 : Procedure at sale

EFFECT OF SALE

1)       S.267

©      Right after the sale certificate had been registered on the new purchaser’s name, the title and interest of the chargor will now pass & vested on the purchaser.

©      The land also will be fully discharged from all liability under the charge in qs.

©      MUI BANK v CHEAH KIM YU

§  F : Chagor attempted to sell the land via private treaty when the land had undergone the auction process as order for sale (OFS) had been granted to the chargee. Here, the private buyer intervened and successfully applied to HC to set aside the OFS where in fact the land had been auctioned.

§  H : The bank (chargee) appealed to the SC, and it was accepted, and the HC judgment was set aside.

APPLICATION / DISTRIBUTION OF PURCHASE MONEY

1)       S.268 (1) :

a)     Payment to rent to State Authority

b)     Payment of expenses in carrying the order for sale

c)      Payment to the chargee (1st) on the amount due

d)     Payment of annuity / periodic sum

e)     Payment of subsequent charges,  according to the priority order.

2)     NOTED : If still after the sale of the land, there is still debt/money owed by chargor, claimed to court for Judgment Debt.

CHARGOR

1)       S.266 : Right to tender payment

©      S.266(1) : Here, chargor is given a RIGHT to tender payment (make the full payment of the debt) at any time before the “CONCLUSION OF SALE”, tender (pay) the amount specified in S.266(2) to the Registrar of Court / LA / Officer who in charge on that selling which fixed on a date, and the order for sale will then stop from being effective.

©      Here, the chargor is reinstate with the title & interest of the land & chargee is obliged to accept the payment terminating the sale process.

©      M & J FROZEN

Ø  H : “CONCLUSION OF SALE” = there had been acceptance of the bid between the vendor and the purchaser.

2)     S.266(2) : The amount that need to be paid by the chargor under this section is :

                       i.            Amount in order / chargee debt.

                      ii.            Further amount if any from the date of tender to date of order.

                    iii.            Expenses incurred due to the process of carrying out the order for sale.

3)     S.253 : Order for Sale

©      DEVELOPMENT BANK v KIM MING CHOON

Ø  H : Upon the order for sale, chargor is not completely lost his right. Here, the chargee will only excising his right to formally sell the land. If the chargee committed anything that will negate his right to sell the land, (cause to contrary), the chargor will be re-instate with the right to own the land.

§      2^ND REMEDY FOR CHARGEE : TAKING POSSESSION /OCCUPATION

©      S.270 : This Section is on the limitation of power to certain lands, and only open to the 1^st chargee – S.270(2). (He may / may not exercise this right).

©      RESTIRCITION FOR THIS REMEDY :

      S.270(1)(a) : This section also can’t be used vs the Land Office Title (subjected to S.77(3)(b)] = only registry title land.

©      S.270(1)(aa) : Can’t also be used for the undivided share in alienated land.

©      S.270(1)(b) : For any village land, it can only be exercisable if its not occupied by the chargor. *This section however contradicts with S.271 & 272.

©      S.271 & 272 : Give power to the chargee to oust the chargor from their possession of the charged land.

§  MALAYSIAN CREDIT FINANCE v YAP HOCK CHOON

Ø  H : The court order for the deletion on the word ‘not’ in S.270(1)(b) so that it can be consonant with S.272 & 272. Here, the court stated that the deletion have to be done as the intention of Parliament here, definitely wanted to give the chargee the right on claiming the possession / by way of occupation.

§      HOW CAN CHARGEE BENEFITS FROM THIS REMEDY

1.      S.271(1) : Indirectly told us that chargee may exercise his right of taking possison of the land by way of receiving the the rent payable to the chargor for any lease / tenancy /etc.

2.       S.272 :

         i.            The chargee may via FORM 16J – Go for taking in possession; collecting rent, etc OR

       ii.            Via FORM 16K : Go for occupation of the charged property – If fail to secure the admission, he may go for the order of possession.

3.     DURATION

©      S.273(1) : The chargee may remains on the land, and taking possession over it as long as the loan still existed.

©      S.273(2) : The chargee in possession by occupation may remain in possession either by continuing in occupation & exercise his power under S.275.

©      S.273(3) : Chargee in possession may remain by way of receiving the rent payable under new lease granted by him pursuant to S.275 / going into occupation, or partly in one way & partly in the other.

4.    EFFECT

©      S.274(1) – The chargee may manage the land, and this include the right to take all the profits gained upon the land, but also at the same time liable for any loss / capital value is impaired (harga tanah turun) incurred on the land.

5.     S.275 – Here, the power of chargee is enhanced when the chargee is entitle to use the land / generate income by leasing it / sub-letting the property.

           i.            S.275(1)(a) : Give power to generate the lease over the land

         ii.            S.275(1)(b) : On purpose of granting the lease in para (a), the chargee may accept any surrender of any existing lease / tenancy.

      iii.            S.275(8)(a) : There shall be no power to grant building leases unless the chargor extend chargee’s power as to be so.

       iv.            S.275(3) : There shall be no lease granted more than 3 years unless for one provided in S.275(8)(b), which is allowed to extend for 14 years.

6.       The rents and profit may be distributed such as ; S.277(1)

a)     Rent to State Authority

b)     Premium dues upon the insurance

c)      Any repairs which is necessary

d)     Payment to the chargee as for the debt owed.

*And if there is any residue / balance, shall be paid to the chargor.

7.       NOTED : Although the chargee had exercised his right of taking possession, he still reserved with right to apply for an order of sale of the charged land WHEN THE RESULT OF TAKING POSSESSION HAS NOT BEEN EFFECTIVE.

WHICH ONE BETWEEN ORDER FOR SALE & TAKING POSSESSION IS BETTER?

©      For the 1^st chargee : the remedy in possession is faster & has less procedure.

©      For the 2^nd & subsequent chargee : its better for them to apply for remedy of sale, as for them to exercise remedy of possession, they need to obtain the consent from the Minister – S.270(3).

©      Remedy of sale is time consuming, but the money can be acquired at once, rather than waiting for the rent money / occupying the land.

DISCHARGE OF LAND OTHERWISE THAN BY PAYMENT (PELEPASAN TANAH DARI CAGARAN SELAIN DARI CARA MEMBAYAR )

©      S.278(1) : Any chargee may, by instrument in FORM 16N discharge the land  / lease where the charge is related to, and here chargor will be freed from any liability.

©      S.279 : Discharge by payment to registrar in cases of death, absence / disability. The chargee may apply to registrar to discharge himself from any payment of the charge if :

§      S.279(1)(a) : The chargee is dead / can’t be found within Fed. / chargee refused to payment / chargee is under legal disability.

§      S.279(1)(b) : The chargor is unable to trace person / body authorised to received payments on the chargee’s behalf.

§      MALAYAN UNITED FINANCE v TAY LAY SOON

Ø  H : The right to discharge the charge and to tender payment is an exclusive right of the chargor & the chargee.

DONE BY ;

AMERA MOHD YUSOF

FACULTY OF LAW, UM