Queensland Consolidated Acts Queensland Consolidated Acts(1) In order to raise funds for effecting permanent improvements on land placed under the control of trustees under this Act, or for adding to or maintaining permanent improvements already effected on such land or for such other purposes as are specified under section 4(3) the Governor in Council may authorise the trustees, either generally or in a particular case, to mortgage the land on the conditions decided by the Governor in Council.
(2) If trustees default in payment of moneys secured by, or otherwise fail in the observance of any of the covenants expressed in the bill of mortgage, the mortgagee shall give to the Minister 1 months notice in writing before exercising any right or remedy had under the mortgage.
(3) Notwithstanding any provision of the Property Law Act 1974 or anything contained in the bill of mortgage, the mortgagee shall not sell the land in question until payment is made to the State of the amount of the unimproved value of the land, as at the date of the notice by the mortgagee.
(4) The amount of the unimproved value referred to in subsection (3) shall be the amount as agreed upon between the Minister and the mortgagee or, failing such agreement, as determined by the Land Court.
(5) The Minister may consent in writing to the sale if the mortgagee gives the State security, or an undertaking, for the money owing to the State.
(5A) The security or undertaking under subsection (5) must be satisfactory to the Minister.
(6) For the purposes of subsection (3), the unimproved value of the land shall be the amount which, in the opinion of the Minister or the Land Court, as the case may be, experienced persons would be willing to pay for the fee simple of the land, assuming it were unimproved, freed and discharged from the trusts, and were offered for sale on such reasonable terms and conditions as a bona fide seller would require.
(7) Upon compliance by the mortgagee with the provisions of this section the mortgagee shall be entitled if default continues to sell the land freed and discharged from any encumbrances, provided that in the first instance the land is offered for sale by public auction.
(8) If land is sold under this section, the mortgagee must--
(a) give to the Minister a declaration setting out--
(i) the gross amount received from the sale; and
(ii) the amount of the debt under the mortgage on the date of the sale; and
(iii) details of the expenses of the sale; and
(iv) the amount calculated by deducting from the gross amount received from the sale--
(A) any amount paid to the State under subsection (3); and
(B) the amount mentioned in paragraph (a)(ii); and
(C) the expenses of the sale; and
(b) pay to the State--
(i) any amount mentioned in paragraph (a)(iv); or
(ii) if the mortgagee has given the State security or an undertaking under subsection (5)--the amount by which the value of the security or undertaking exceeds the amount mentioned in paragraph (a)(iv).
(9) Upon sale by the mortgagee of land pursuant to this section, the trustees of the land shall cease to hold office as trustees and the Minister may appoint some person to realise any property or assets on the land not subject to the bill of mortgage under which sale of the land was effected.
(10) All money received by the person appointed under subsection (9) must be paid to the State.