Dermot Ahern (Louth, Fianna Fail)

I move amendment No. 23:

In page 62, to delete lines 22 to 44 and in page 63, to delete lines 1 to 7 and

substitute the following:

93.—(1) This section applies to any action brought by a mortgagor for—

(a) redemption, or

(b) sale, or

(c) the raising and payment in any manner of the mortgage debt, or

(d) any combination of these in the alternative.

(2) In any action to which this section applies the court may, if it thinks fit, direct a sale of the mortgaged property on such terms as it thinks fit.

(3) Without prejudice to the generality of the court's discretion under subsection (2), it may—

(a) allow any time for redemption or payment of the mortgage debt,

(b) require lodgment in court of a sum to meet the expenses of a sale and to secure a performance of its terms,

(c) give directions as to costs and require the giving of security for costs,

(d) direct a sale without previously determining priorities of incumbrances,

(e) give the conduct of the sale to a particular party,

(f) make a vesting order conveying the mortgaged property to a purchaser or appoint a person to make such a conveyance.

(4) Except in the case of a housing loan mortgage, this section takes effect subject to the terms of the mortgage.".

I mentioned on Committee Stage that I would bring forward a revised text to the section following concerns expressed to my Department that its original scope was too broad and might have unintended consequences for immediate legitimate business purposes. Deputy Flanagan also raised this issue.

I mentioned also on Committee Stage that the intention behind this section is to put into statutory form a right which has existed for some time, namely, the right of a borrower who may be facing financial difficulty to seek an order to sell the mortgaged property in order to reduce his or her debts or to prevent them from mounting further. The text has been redrafted to make this clearer. In addition, a subsection (4) has been added which confines the application of the section to house loan mortgages. In other cases, the terms of the mortgage will apply. These changes address the concerns raised in regard to the original text of the section.

See this speech in context