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    CHARGE

    LAND LAW

    05.08.07 Jamaludin Yaakob 1

    http://dealings_charge.ppt/http://dealings_general.ppt/http://dealings_charge.ppt/
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    CONTENT

    Statutory provisions Definition

    Creation of Charge

    Effect of Registered Charge

    Unregistered EquitableCharge

    Matters of Charge

    LAND LAW_DEALINGS_CHARGE

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    Rights of Parties Defaults and Remedies

    Sale by Receiver

    Chargors Relief & ThirdParties

    Cause to the contrary

    Powers of Land

    Administrator

    http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://c/Users/user/Documents/LAW_LAND/NEW%20MODULES/DEALINGS/DEALINGS_GENERAL.ppthttp://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/http://dealings_charge.ppt/
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    Statutory Provisions

    Part Sixteen: Chapters 1 6

    Chapter 1 Creation of Charge & General Provisions (sections 241

    248)

    Chapter 2 Implied Provisions (sections 249 252)

    Chapter 3 Remedies of Chargees Sale (sections 253 - 269

    Chapter 4 Remedies of Chargees - Possession (sections 270 - 277)

    Chapter 5 Discharge of Charge (sections 278 280)

    Chapter 6 Liens (section 281)

    LAND LAW_DEALINGS_CHARGE

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    Definition of Charge

    LAND LAW_DEALINGS_CHARGE

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    DictionaryA financial responsibility or obligation

    Law Dictionary An encumbrance, e.g. on land, which

    secures payment of money;

    Fixed charge is a charge on specific

    property;

    Floating charge is created by a company

    to secure debentures.

    NLC 1965

    Salleh Buang

    Section 5

    Page 128

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    Creation of Charge

    Formality Registration section 242 Form 16A

    Sime Bank Berhad v. Mohd Hassan Bin Sulaiman [2000]

    1 AMR 1021

    LAND LAW_DEALINGS_CHARGE

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    Effect of Registered Charge

    PHB v. BBMB [1988] 3 MLJ 54

    Borneo Housing Mortgage Finance v. Time Engineering

    Bhd. [1996] 1 AMR 1539

    OCBC v. Lee Lee Fah & Five Ors. [1999] 4 AMR 4476

    LAND LAW_DEALINGS_CHARGE

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    Unregistered Equitable Charge

    Mahadevan s/o Mahakingam v. Manilal & Sons (M)

    Sdn. Bhd. [1984] 1 MLJ 266

    Borneo Housing Mortgage Finance v. Time Engineering

    Bhd. [1996] 1 AMR 1539

    OCBC v. Lee Lee Fah & Five Ors. [1999] 4 AMR 4476

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    Matters of Charge

    Section 241

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    Rights of Parties

    Express

    Implied Chapter 1 (sections 249 252)

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    Chargor Chargee

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    Implied Duties of Chargor

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    Section249

    Section 249(1)

    Compliance with provisions in loan agreement

    Compliance with additional agreement

    Section 249(2)

    a) Pay all rents and rates as they fall due

    b) Observe conditions express and implied

    Section250

    a) Keep building in repair

    b) Insured premises

    c) Grant chargee permission to enter for inspection

    and maintenance

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    Implied Duties of Chargor

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    Section

    250

    a) Keep building in repair

    b) Insured premises

    c) Grant chargee permission to enter for inspection

    and maintenance

    S. 252 Read together with section 233 Lease building

    lessee under similar duty to keep building under

    repair.

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    Implied Duties of Chargee

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    Section

    251

    Chargee will not unnecessary withhold consent for

    chargor to lease the charged land

    Section250

    Section 250(d)chargor fails to comply with duties,

    chargee may:

    a) Take legal action for breach; and

    b) Claim cost incurred

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    Remedies for Default

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    SALE Possession

    Chapter 3

    Sections 253 - 269

    Chapter 4

    Sections 270 - 273

    Statutory

    Instruments

    Section 254

    Form 16D Notice of default

    Form 16E - Demand for Payment of

    Principal Sum

    V.A.M. Hussain v. B.P. Malaysia

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    Remedies_Sale

    Land Office Title (section 260)

    Tan Teng Pan v. Wong Fook Shang [1973] x MLJ 31

    Gurpal Singh v. Kananyer [1976] 2 MLJ 34

    Registry Title (section 256)

    Form 16F Certificate of Sale

    Lim Beng v. A.V.A. Palaniappa Chetty (1916) 1 FMSLR264

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    Remedies_Possession

    Chapter 4(sections 270 277)

    Section 270 Registry Title only

    Other Limitations

    Undivided share

    Not occupied by chargor

    Section 271 Two or more charges First Chargee may

    take possession.

    Actual or Constructive Possession

    Section 272 Procedure

    Form 16J

    Form 16K

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    Remedies_Possession

    Effects of taking possession

    Woon Foon Hoh v. Muthiah Chetty [1934] MLJ 121

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    Cause to the Contrary

    LAND LAW_DEALINGS_CHARGE

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    Section 256(3)

    Lau Lee Lian v. Ban Hin Lee Bank [1997] 1 AMR 1036 (SC)

    Keng Soon Finance v. M.K. Retnam Sdn. Bhd. [1996] 3 AMR3021

    Perwira Affin Bank v. Saad Bin Abdullah [1999] 4 AMR 4142

    Arab-Malaysian Finance v. Chan Sai Mee [2001] 2 AMR 1743 Diamond Peak v. United Merchant Finance [2003] 2 AMR 637

    Aseam Credit v. Eminent Avenue [2003] 1 AMR 122

    http://case_diamond%20peak%20v%20umf.docx/http://case_diamond%20peak%20v%20umf.docx/