T mortgaged house to bank to secure overdraft.
Covenanted to pay on demand all monies owed.
Exceeded overdraft limit and bank demanded sum owing.
Bank later began possession proceedings.
Did Admin of Justice Acts 1970 and 1973 apply?
Court of Appeal held not.
Two necessary conditions for application of s8 of 1973
1. Mortgage or agreement
made under it must have effect that mortgagor is permitted to pay by instalments
or otherwise to defer payment of the principal sum in whole or in part.
2. Must be
provision for earlier payment in event of default by mortgagor or demand by
Agreement fails on (i) because an overdraft is being
Also fails on (ii) because although payment is on
demand there must be a provision for ‘earlier payment’ ie earlier than demand.