Charges are provided for under Section 65 of the RLA which provides for a legal charge and there is nothing like an equitable charge under the RLA.  It is important to note that since the conclusive proof of ownership is the register, it is always prudent that anyone engaging in a charge transaction perform an official search other than relying on the title deed or certificate as evidence of title.  It is because the conclusive proof of title under the RLA properties that one does not need to conduct a search with the lending institutions.

It must be in prescribed form the RL9 which is provided for at the back of the Act.
Property being offered must be specified;
Chargor and his Address –
Charge in clause
Chargee and his address
Principle sums advanced together with rates of interests therein must all be specified.
Acknowledgement by the Chargor that he understands Section 74 of the RLA as required by provisions of Section 65 of the RLA.

It is possible to have a legal charge and the RLA allows for subsequent transactions to be entered into on the same property.  It is possible to have a second charge and a further charge to secure financial accommodation.  Section 66 one must convince the financial institutions that the property value is such that they need not think that they are losing.

It is allowed to take over a loan on a 2nd charge with a different institution on the same charge as long as the 1st institution is aware and does not object.  If the property can accommodate extra levels of borrowing, there would be no objection, this is not possible under the ITPA.  Registration is mandatory once duly executed, they must be formalised by the registrar.


There is a covenant to the effect that the Chargor shall pay back money borrowed.
The property must be kept in good condition, good state of repair and all financial levies must be paid as and when they fall due or any other outgoing in respect of the property;
The Chargor shall take out suitable insurance cover and if agricultural land, shall keep it in good husbandry;
The Chargor’s rights, the most basic of these rights are to be found under Section 72 of the RLA in the right to redeem.  Such a right is exercisable anytime before the chargee exercises statutory power of sale under Section 77 of the Act.


Appointment of a receiver.  Personal covenant to repay the money if sold or rent out Section 74 – 77
The Chargee may serve the Chargor with a notice in writing requiring the chargor to pay the principal sum.  Should there be default after the notice, the Chargee may avail himself any of the remedies.
it vests the said estate from any claims from the borrower including claim of entitlement to right of redemption.
the purchaser gets a good title to the property even where power of sale was improperly conducted provided that he was not a party to the impropriety and was not aware of the same.  Courts have held that where such is the same, the mortgagor’s right of claim is not against the purchaser who acquires good title but against the mortgagee where he can proceed by claim in damages.


The general principle being that the sale must unless otherwise allowed by the court to be carried out by public auction when the right to exercise the statutory power of sale accrues.  If there has been a further default, the chargor gives a 3 months notice.  If the Chargee desires to avail himself of his rights, laid down procedure must be followed.

Advertise for sale;
Inform the chargor

Section 77 requires that the chargee exercise the rights in good faith and has the interests of the chargor during the sale.

Where the sale does not realise sufficient funds to discharge, the chargee is entitled to further relief in form of a civil suit.


The exercise is similar except in procedural requirements which are that a receiver is appointed by the lender in writing and is deemed to be the agent of the borrower.  Once duly appointed a receiver is charged with the responsibility of accruing and benefits and income and with the help of such proceeds, the receiver is supposed to apply the same to the mortgage debt and to meet the receiver’s fee.


This right accrues to a lender in whom the 2 mortgages are vested and where exercised it allows the lender to decline redemption of one mortgage unless the others are redeemed.  You consolidate the aggregate rights and interests in tow or more by requiring that they be set out at once.


Right to consolidate must be provided for in the instrument;
both or all the mortgages must have been made by one borrower;
they must vest in one and the same person;


Apart from accepting security in certain cases, you require the borrower to personally take responsibility and in this case you can sue the borrower.


A restricted right under Section 74(3) restricts the charge but in certain cases an action can be instituted where the subject matter is destroyed due to no fault of either the Chargee or the Chargor.  Where the chargee is deprived of part or the whole due to acts of the chargor.

Amendment in relation to the exercise of statutory power of sale Act No. 19 which amends Section 77 of the RLA by providing that when the charged property is of an agricultural nature, the Chargee shall before exercising the right serve a notice to the District Commissioner disclosing the information and the DC upon receiving such a notice can within 14 days apply for the sale to be postponed where the grounds are that the sale may create disturbances or cause social disorder.  The significance of the amendment is it only interrupts the liberty of the chargee to proceed with the realisation of his security when it is ripe for him to do so.  All the DC has to intimate is that the sale is likely to cause disorder.

It is a serious intervention that would have ………………………. Individuals dealing with some of these properties because if the sale is postponed for 6 months to start again, one loses out of the whole year.


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