Hong Kong Ordinances

RAILWAYS ORDINANCE - SECT 37

Payment to mortgagees

Amendments retroactively made - see 25 of 1998 s. 2

(1) Subject to subsection (2), a mortgagee of land which reverts to the
Government or vests in The Financial Secretary Incorporated under this
Ordinance, in so far as he has priority over any other mortgagee, is entitled
to be paid so much of any compensation as is required to pay out his mortgage
debt including any interest owing.

(2) If compensation is payable under this Ordinance otherwise than for land
resumed or if the land to which compensation relates is part only of the
mortgage security, a mortgagee, in so far as he has priority as against any
other mortgagee, is entitled to be paid so much of the compensation as is
necessary to reduce his mortgage debt to an amount which is adequately secured
by the land or the remaining land as the case may be.

(3) The payment of compensation, as required by subsections (1) and

(2), is to be made with the written agreement of the claimant and every
mortgagee of the land or failing agreement in accordance with an order of the
High Court under subsection (4). (Amended 25 of 1998 s. 2)

(4) The claimant or a mortgagee may apply to the High Court for an order as to
the payment of unpaid compensation. On the application the Court may make such
order as it thinks just and equitable having regard to subsections (1) and
(2). (Amended 25 of 1998 s. 2)