In the matter of section 119 of the Property Law Act 2007

and

In the matter of Mortgage Instrument No: [specify], [Land Registration District] Registry (the mortgage)

[Mortgagee’s or receiver’s full name], the mortgagee/receiver* under the mortgage, gives notice that the consequence specified below will follow if each default specified below has not been, or cannot be, remedied on or before [date].¹

As at the date of this notice, you are in default under the mortgage in that—

• †(a)

  you have failed to pay [specify each default of payment claimed, stating the amount, due date, and nature (for example, principal, interest, insurance premiums, etc) of each missed payment, and any other particulars necessary to adequately inform the mortgagor of the nature and extent of the default]:

• †(b)

  you have failed to observe or perform the following express or implied covenant(s) in the mortgage: [specify each default complained of with sufficient particularity to adequately inform the mortgagor of the nature and extent of the default, for example, failure to keep building(s) insured or in good repair]:

• †(c)

  the following has occurred: [specify any other event (other than the arrival of the due date) on the occurrence of which any amounts secured by the mortgage become payable, or may be called up as becoming payable, under any express or implied term in the mortgage].

²You are required to remedy the specified default(s), or to cause the default(s) to be remedied,—

• †(a)

  by payment of the sum of $[amount] †(which includes [amount], being the reasonable costs and disbursements of the mortgagee/receiver* in preparing and serving this notice):

• †(b)

  by [specify action required to remedy each default].

If each default has not been, or cannot be, remedied on or before [date],¹—

• †(a)

  all amounts/the following selected amounts* secured by the mortgage will become payable, namely: [specify relevant amounts]:

• †(b)

  all amounts/the following selected amounts* secured by the mortgage may be called up as becoming payable, namely: [specify relevant amounts]:

• †(c)

  the following powers of the mortgagee/receiver* will become exercisable:

  • †(i)

    the mortgagee’s power to enter into possession of the mortgaged land:

  • †(ii)

    the receiver’s power to manage the mortgaged land or demand and recover income from the mortgaged land:

  • †(iii)

    the mortgagee’s/receiver’s* power to sell the mortgaged land.

You are strongly recommended to consult a lawyer about this notice without delay.

Signed and dated at [place] on [date] by [full name], who is/who signed this notice on behalf of* the mortgagee/receiver*: [signature]

This notice is given by [specify], whose address for service is [address].

Copy to [each person specified in section 121(1)(a) to (d) of the Property Law Act 2007³ of whose name and address the mortgagee or receiver has actual notice].

These notes are not part of the form.

• 1

  Section 120(1)(c) of the Property Law Act 2007 requires the date specified to be a date—

  • (a)

    at least 20 working days after the date of service of the notice; or

  • (b)

    after any longer period for the remedying of the default specified by any term that is expressed or implied in any instrument.

• 2

  If the default complained of is incapable of remedy, omit this paragraph and substitute: “The default is incapable of remedy.”

• 3

  The persons specified in section 121(1)(a) to (d) of the Property Law Act 2007 are as follows:

  • (a)

    any former mortgagor:

  • (b)

    any covenantor:

  • (c)

    any mortgagee under a subsequent mortgage, and any holder of any subsequent encumbrance, over the mortgaged land if—

    • (i)

      the subsequent mortgage or other subsequent encumbrance is registered; or

    • (ii)

      the subsequent mortgage or other subsequent encumbrance is unregistered, but either the mortgagee or receiver has actual notice of it:

  • (d)

    any person who has lodged a caveat under section 138 of the Land Transfer Act 2017, or a notice under section 42 of the Property (Relationships) Act 1976 having the effect of a caveat, against the title to the mortgaged land or any part of it.

• 4

  A notice under section 118 (calling up of mortgage over any kind of property if interest has been accepted after expiry of term) of the Property Law Act 2007 may be given in the same document as the notice: Property Law Act 2007, sections 118(4) and 119(4).

In the matter of section 128(1) of the Property Law Act 2007

and

In the matter of the mortgage over goods (the security agreement) dated [date] over the following mortgaged goods (the collateral): [describe collateral].

[Mortgagee’s or receiver’s full name], the mortgagee/receiver* under the security agreement, gives notice—

• (a)

  that the consequence specified below will follow if each default specified below has not been, or cannot be, remedied on or before [date]:¹

• †(b)

  that the mortgagee/receiver* has taken possession of the collateral, which is subject to the security interest that—

  • (i)

    was created or provided for in the security agreement; and

  • (ii)

    if perfected, was perfected on [date and time].

As at the date of this notice, you are in default under the security agreement in that—

• †(a)

  you have failed to pay [specify each default of payment claimed, stating the amount, due date, and nature (for example, principal, interest, insurance premiums, etc) of each missed payment, and any other particulars necessary to adequately inform the mortgagor of the nature and extent of the default]:

• †(b)

  the following has occurred: [specify any other event (other than the arrival of the due date) on the occurrence of which any amounts secured by the security agreement become payable, or may be called up as becoming payable, under any express or implied term in the security agreement]:

• †(c)

  the details of any other default under the security agreement are [details of default].

²You are required to remedy the specified default(s), or to cause the default(s) to be remedied,—

• †(a)

  by payment of the sum of $[amount] †(which includes [amount], being the reasonable costs and disbursements of the mortgagee/receiver* in preparing and serving this notice):

• †(b)

  by [specify action required to remedy each default].

If each default has not been, or cannot be, remedied on or before [date],¹—

• †(a)

  all amounts/the following selected amounts* secured by the security agreement will become payable, namely: [specify relevant amounts]:

• †(b)

  all amounts/the following selected amounts* secured by the security agreement may be called up as becoming payable, namely: [specify relevant amounts]:

• †(c)

  the following power of the mortgagee/receiver* to sell the collateral will become exercisable: [specify mortgagee’s or receiver’s power to sell].

• You are strongly recommended to consult a lawyer about this notice without delay.

• If you are the debtor, you may,—

  • unless you have otherwise agreed in writing after default, in accordance with section 132(1) of the Personal Property Securities Act 1999, redeem the collateral in accordance with section 132 of the Personal Property Securities Act 1999. Your right has priority over any other person’s right to redeem the collateral; or

  • unless you have otherwise agreed, reinstate the security agreement under section 133 of the Personal Property Securities Act 1999. Any right of reinstatement is subject, unless you have otherwise agreed, to section 134 of the Personal Property Securities Act 1999.

• If you are not a debtor, you may, subject to the debtor’s prior right to redeem the collateral, and unless you have otherwise agreed in writing after default, in accordance with section 132(1) of the Personal Property Securities Act 1999, redeem the collateral in accordance with section 132 of the Personal Property Securities Act 1999.

• If there is a question as to who is entitled to receive any surplus, the secured party (as defined in section 16(1) of the Personal Property Securities Act 1999) may pay the surplus into court under section 118 of the Personal Property Securities Act 1999.

Signed and dated at [place] on [date] by [full name], who is/who signed this notice on behalf of* the mortgagee/receiver*: [signature]

This notice is given by [specify], whose address for service is [address].

Copy to [each person specified in section 130(1)(a) to (c) of the Property Law Act 2007³ of whose name and address the mortgagee or receiver has actual notice].

These notes are not part of the form.

• 1

  Section 129(1)(c) of the Property Law Act 2007 requires the date specified to be a date—

  • (a)

    at least 10 working days after the date of service of the notice; or

  • (b)

    after any longer period for the remedying of the default specified by any term that is expressed or implied in any instrument.

• 2

  If the default complained of is incapable of remedy, omit this paragraph and substitute: “The default is incapable of remedy.”

• 3

  The persons specified in section 130(1)(a) to (c) of the Property Law Act 2007 are as follows:

  • (a)

    any former mortgagor:

  • (b)

    any covenantor:

  • (c)

    any mortgagee under a subsequent mortgage, and any holder of any subsequent encumbrance, over the mortgaged goods if—

    • (i)

      the subsequent mortgage or other subsequent encumbrance is registered; or

    • (ii)

      the subsequent mortgage or other subsequent encumbrance is unregistered, but either the mortgagee or receiver has actual notice of it.

• 4

  The parties to a security agreement may contract out of certain provisions of the Personal Property Securities Act 1999. If this has occurred, the notice needs to be altered accordingly.

• 5

  A notice under section 118 (calling up of mortgage over any kind of property if interest has been accepted after expiry of term) of the Property Law Act 2007 may be given in the same document as the notice: Property Law Act 2007, sections 118(4) and 128(4).

In the matter of section 128(2) of the Property Law Act 2007

and

In the matter of the mortgage over goods (the security agreement) dated [date] over the following mortgaged goods (the collateral): [describe collateral].

[Mortgagee’s or receiver’s full name], the mortgagee/receiver* under the security agreement, gives notice—

• (a)

  that, as at the date of this notice, the collateral is at risk on the grounds specified below:

• (b)

  that the mortgagee/receiver* has taken possession of the collateral, which is subject to the security interest that—

  • (i)

    was created or provided for in the security agreement; and

  • (ii)

    if perfected, was perfected on [date and time]:

• (c)

  that, on or after [date],¹ the secured party (as defined in section 16(1) of the Personal Property Securities Act 1999) may exercise any power to sell the collateral, by reason of the collateral being at risk.

As at the date of this notice, the collateral is at risk in that the secured party has the following reasonable grounds to believe that it has been or will be destroyed, damaged, endangered, disassembled, removed, concealed, sold, or otherwise disposed of contrary to the provisions of the security agreement: [specify grounds].

• You are strongly recommended to consult a lawyer about this notice without delay.

• If you are the debtor, you may,—

  • unless you have otherwise agreed in writing after default, in accordance with section 132(1) of the Personal Property Securities Act 1999, redeem the collateral in accordance with section 132 of the Personal Property Securities Act 1999. Your right has priority over any other person’s right to redeem the collateral; or

  • unless you have otherwise agreed, reinstate the security agreement under section 133 of the Personal Property Securities Act 1999. Any right of reinstatement is subject, unless you have otherwise agreed, to section 134 of the Personal Property Securities Act 1999.

• If you are not a debtor, you may, subject to the debtor’s prior right to redeem the collateral, and unless you have otherwise agreed in writing after default, in accordance with section 132(1) of the Personal Property Securities Act 1999, redeem the collateral in accordance with section 132 of the Personal Property Securities Act 1999.

• If there is a question as to who is entitled to receive any surplus, the secured party may pay the surplus into court under section 118 of the Personal Property Securities Act 1999.

Signed and dated at [place] on [date] by [full name], who is/who signed this notice on behalf of* the mortgagee/receiver*: [signature]

This notice is given by [specify], whose address for service is [address].

Copy to [each person specified in section 130(1)(a) to (c) of the Property Law Act 2007² of whose name and address the mortgagee or receiver has actual notice].

These notes are not part of the form.

• 1

  Under section 128(2) of the Property Law Act 2007, a power to sell is exercisable only on or after a date not less than 10 working days after service of the notice.

• 2

  The persons specified in section 130(1)(a) to (c) of the Property Law Act 2007 are as follows:

  • (a)

    any former mortgagor:

  • (b)

    any covenantor:

  • (c)

    any mortgagee under a subsequent mortgage, and any holder of any subsequent encumbrance, over the mortgaged goods if—

    • (i)

      the subsequent mortgage or other subsequent encumbrance is registered; or

    • (ii)

      the subsequent mortgage or other subsequent encumbrance is unregistered, but either the mortgagee or receiver has actual notice of it.

• 3

  The parties to a security agreement may contract out of certain provisions of the Personal Property Securities Act 1999. If this has occurred, the notice needs to be altered accordingly.

• 4

  A notice under section 118 (calling up of mortgage over any kind of property if interest has been accepted after expiry of term) of the Property Law Act 2007 may be given in the same document as the notice: Property Law Act 2007, sections 118(4) and 128(4).