In this arrangement the lender, or mortgagee, is entitled to share in the rental or resale proceeds from a property owned by the borrower, or mortgagor.
An attornment-clause, in mortgages, is a clause whereby the mortgagor attorns tenant to the mortgagee, thus giving the mortgagee the right to distrain, as an additional security.
The mortgagee therefore never holds any title documents, and there is a statutory process for initiating and conducting a mortgagee sale in the event that the mortgagor defaults.
The amount of the receiver's uncapped fees, costs and expenses of $209,844.37 also formed part of a deed of settlement entered into with the mortgagor.
