427. General duties of the mortgagee in possession.

(v)     Liabilities of the Mortgagee in Possession

a.     General Duties of the Mortgagee in Possession

427.     General duties of the mortgagee in possession.

A mortgagee who goes into possession becomes the manager of the charged property1. He thereby assumes a duty to take reasonable care of the property2. This requires him to be active in protecting and exploiting the security, maximising the return, but without taking undue risks3.