Section 155 — Property Law Act 2007: Mortgagee in possession to account to current mortgagor

155 Mortgagee in possession to account to current mortgagor (1) A mortgagee in possession of mortgaged land, goods, or accounts receivable must account to the current mortgagor, and to every person holding a subsequent encumbrance over the land, goods, or accounts receivable, for all income received from the land, goods, or accounts receivable as mortgagee in possession and for its application or payment under sections 152 to 154 . (2) The income received from the land, goods, or accounts receivable by the mortgagee as mortgagee in possession includes— (a) all income from the land, goods, or accounts receivable actually received by the mortgagee as mortgagee in possession; and (b) an allowance for the amount of all income that the mortgagee would have received from the land, goods, or accounts receivable as mortgagee in possession but for the wilful misconduct of the mortgagee; and (c) if the mortgagee in possession of mortgaged land has the personal occupation of all or part of the land, an allowance for an amount that is a fair occupation rent for that land, as between the current mortgagor and the mortgagee. (3) For the purposes of subsection (2)(c), a mortgagee must not be taken as having the personal occupation of land by reason only of the fact that the mortgagee entered into or took physical possession of the land with the object of— (a) doing anything in connection with the land that a mortgagee in possession is required or entitled to do under section 148 , 149 , or 150 ; or (b) facilitating the sale of the land (but, in this case, the mortgagee must show that the sale was not unreasonably delayed). (4) In an accounting under this section, interest must be calculated with half-yearly rests, or, if rests at a shorter or a longer interval are provided for by the mortgage, then with rests at that interval.