Hong Kong Regulations

WATER POLLUTION CONTROL (SEWERAGE) REGULATION - SECT 21

Payment to mortgagees

(Past version on 30/06/1997).

Amendments retroactively made - see 25 of 1998 s. 2; 29 of 1998 s. 105

(1) Subject to subsection (2), a mortgagee of land which reverts to the
Government or vests in The Financial Secretary Incorporated under the
Roads (Works, Use and Compensation) Ordinance ( Cap 370) as applied by
section 26 of this Regulation shall, in so far as he has priority as against
any other mortgagee, be entitled to be paid so much of any compensation as is
required to discharge his mortgage debt including any interest on it. (29 of
1998 s. 105)

(2) If compensation is payable under this Regulation otherwise than for land
resumed or if the land to which compensation relates is part only of the
mortgage security a mortgagee shall, in so far as he has priority as against
any other mortgagee, be 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) shall be made in accordance with the written agreement of the claimant and
every mortgagee of the land or failing such agreement in accordance with an
order of the Court of First Instance under subsection (4).

(4) The claimant or any mortgagee may apply to the Court of First Instance for
an order as to the payment of unpaid compensation and the Court may make an
order that it thinks just and equitable having regard to the requirements of
subsections (1) and (2).

(25 of 1998 s. 2)