EXAMINATION OF THE EFFECTIVENESS OF THE LAW GOVERNING THE POWERS AND DUTIES OF THE RECEIVER OF INCOME OF THE MORTGAGED LAND IN TANZANIA
The appointment of a receiver of income of the mortgaged land is one of the remedies available to the lender when the borrower defaults on debt repayment. The power to appoint a receiver is either expressly or statutory, and when a receiver is appointed is deemed to be an agent of the borrower with the power of selling the mortgaged property. The deemed agency relationship between the borrower and receiver who indeed is appointed by the lender poses legal and practical challenges in selling the mortgaged land. The receiver in selling the mortgaged land acts as an agent of the borrower or the lender and if the mortgaged land does not generate income still a receiver of income of the mortgaged land may be appointed.
The article further examines a receiver’s legal and practical challenges in exercising his powers and duties as an agent of the borrower with the powers of selling the mortgaged property. Finally, the article concludes that a receiver of income of the mortgaged land should only appointed to the mortgaged property which generates income also a receiver should not have the power of selling the mortgaged land which is similar to that of the lender unless he obtained leave of the court to exercise that power.
Keywords: Mortgaged Land, Receiver of Income, Legal, the Powers and Duties
