Appointment, powers, remuneration and duties of receiver

(1) The appointment of a receiver under the powers conferred by section 75, shall be in writing signed by the chargee and the filing of a copy thereof with the Registrar. (2) A receiver may be removed at any time and a new receiver appointed in writing signed by the chargee and the filing of a copy thereof with the Registrar. 55 (3) A receiver appointed under this section shall be deemed to be the agent of the chargor for the purposes for which he is appointed, and the chargor shall be solely responsible for the receiver’s acts and defaults unless the charge otherwise provides. (4) The receiver shall have power to demand and recover all the income of which he is appointed receiver, by action or otherwise, in the name of the chargor, and to give effectual receipts accordingly for it. (5) A person paying money to the receiver shall not inquire into the validity of the receiver’s appointment. (6) Subject to sub-section (8), the receiver shall be entitled to retain out of any money received by him all costs, charges and expenses incurred by him as receiver, and, for his remuneration, a commission at such rate, not exceeding five per cent of the gross amount of all moneys received, as is specified in his appointment, or if no rate is specified, at the rate of five per cent of that gross amount or such other rate as the chargor and the chargee and other chargees, if any, agree or the court thinks fit to allow on application made by the receiver for that purpose. (7) The receiver shall apply insurance money in making good the loss or damage in respect of which the money is received. (8) Subject to sub-section (7), the receiver shall apply all moneys received by him in the following order of priority– (a) in discharge of all rents, rates, taxes and outgoings whatever affecting the charged property; (b) in keeping down all annual sums or other payments, and the interest on all principal 56 sums, having priority to the charge in right whereof he is receiver; (c) in payment of his commission, costs, charges and expenses and of the premiums of fire, life and other insurance, if any, properly payable under the charge instrument or under this Act and the cost of executing necessary or proper repairs directed in writing by the chargee; (d) in payment of the interest accruing due in respect of any principal money due under the charge; and (e) in or towards the discharge of the money secured by the charge, if so directed in writing by the chargee, and shall pay the residue, if any, of the money received by him to the person who, but for the appointment of the receiver, would have been entitled to receive the income of which he is appointed receiver, or who is otherwise entitled to the charged property.