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Operation and effect of specific chattel mortgage.
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26.—(1) A specific chattel mortgage shall so long as it is duly registered under this Act and any moneys remain owing for principal or interest on the security thereof operate and have effect—
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(a) to confer on the mortgagee the right whenever the principal moneys secured by the chattel mortgage or any part of such moneys or any payment of interest thereon is unpaid for seven days after the day appointed by the chattel mortgage for payment thereof to seize and remove from the custody of any person (other than a bona fide purchaser for value in money or money's worth without notice of the chattel mortgage) and from any place (other than land or premises belonging to such purchaser) all or any of the farming stock comprised in the chattel mortgage; and
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(b) to impose on the mortgagee the obligation to sell with all convenient speed all farming stock seized and removed by him under the chattel mortgage and to apply the proceeds of such sale in or towards the discharge of the principal moneys and interest secured by the chattel mortgage and to pay the surplus (if any) of such proceeds to the mortgagor or his legal representative or assignee; and
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(c) to prohibit the mortgagor from selling any farming stock comprised in the chattel mortgage without giving at least three days' previous notice in writing to the mortgagee of his intention to sell the same and from selling any of such farming stock for less than a fair and reasonable price; and
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(d) to impose on the mortgagor the obligation, whenever he sells any of the farming stock comprised in the chattel mortgage, of giving forthwith to the mortgagee notice in writing of such sale with such particulars thereof as the mortgagee may require and either of paying to the mortgagee the proceeds of such sale or so much thereof as may be necessary to discharge the principal moneys and interest owing on the security of the chattel mortgage or of applying such proceeds in such other manner as may have been previously authorised by the mortgagee; and
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(e) to imply a covenant on the part of the mortgagor his heirs executors and administrators with the mortgagee to pay to the mortgagee the principal moneys and interest secured by the chattel mortgage at the times and in the manner appointed by the chattel mortgage; and
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(f) to impose on the mortgagor the obligation to preserve and keep safe the farming stock comprised therein and (save as may be otherwise authorised by the chattel mortgage or the mortgagee or may be necessary for any intended lawful sale) not to remove such farming stock from his farm.
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(2) If and whenever the mortgagor commits a breach (whether of commission or of omission) of any provision implied in a specified chattel mortgage by virtue of this section (other than the covenant for payment of the principal moneys and interest secured by such chattel mortgage) the whole of the principal moneys secured by such chattel mortgage shall become and be forthwith payable notwithstanding anything to the contrary contained in such chattel mortgage.
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