Liabilities of Mortgagee in Possession
When during the continuance of the mortgage the mortgagee take possession of the mortgaged property, he has the following liabilities.
(1) He must manage the property as a person of ordinary prudence would manage it if it were his own.
(2) The must use his best endeavors to collect the rents and profits thereof.
(3) He must in the absence of the contract to the contrary out of the income of the property pay the Government revenue all other charges of public nature and all rent accruing due in respect thereof during such possession, and any arrears of rent in default of payment of which the property may be summarily sold.
(4) He must in the absence of the contract to the contrary make such necessary repairs of the property as he can pay for out of the rents and profits thereof after deducting from such rents and profits the payments mentioned in clause 3 and the interest on the principal money.
(5) He must not commit any act which is destructive or permanently injuries to the property.
(6) Where he has insure the whole or any part of the property against loss or damages by fire he must in case of such loss and damage apply any money which he actually receives under the policy or so much thereof as may be necessary in reinstating the property or if the mortgagor so directs in reduction or discharge of the mortgage money.
(7) He must keep clear full and accurate accounts of all sums received and spent by him as mortgagee and at any time during the continuance of the mortgage give the mortgagor at his request and cost true copies of such accounts and of the vouchers by which they are supported.
(8) His receipts from the mortgaged property or where such property is personally occupied by him a fair occupation rent in respect thereof shall after deducting the expenses properly incurred for the management of the property and the collection of rents and profits and other expenses mentioned .
(9) When the mortgagor tenders or deposits in manner hereinafter provided the amount for the time being due on the mortgage the mortgagee must account of the receipt from the mortgaged property from the date of the tender or from the earliest time when he could take such amount out of court.