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11 November 2022 / Cecily Crampin , Tricia Hemans , Imogen Dodds
Issue: 8002 / Categories: Features , Property
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Mortgage receivership: Playing second fiddle?

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Priority in mortgage receivership: Cecily Crampin, Tricia Hemans & Imogen Dodds examine distribution of funds & multiple receivers
  • Priority between those potentially entitled to a proportion of funds coming into the hands of a receiver.
  • Issues of priority arising where there are multiple lenders and multiple receivers.

Playing second fiddle can be awkward at the best of times, but in the world of mortgage receivership, the creation of multiple charges and being one of two receivers appointed in respect of debts secured over the same asset can generate both practical and legal conundrums. This article considers the issues of priority between those potentially entitled to a proportion of funds coming into the hands of a receiver, and also issues of priority arising where there are multiple lenders and multiple receivers.

Priority when distributing funds

Distribution of income

The receiver’s obligations in respect of monies received as income will depend on the source of the power which led them to receive the money and the type of funds received. Where a receiver is exercising a statutory

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