Land Act, 1923

Prohibition of penal interest on mortgages pending sale.

4.—Where the instrument creating any mortgage, charge or incumbrance payable out of or charged upon the purchase money of lands taken under the Act provides that interest shall be accepted at a reduced rate upon prompt payment, no higher rate shall be due or recoverable in respect of arrears of interest or on account of any default or delay in payment of interest upon such mortgage, charge or incumbrance pending the completion of the sale.