Cap. 503 Art. 33CMeaning of default.

(1)The mortgagor or the mortgagee may at any time agree in writing as to the events that constitute a default or otherwise give rise to the rights and remedies specified in articles 33 to 33B and other provisions of this Act.

(2) Where the mortgagor and the mortgagee have not so agreed, "default" for the purposes of this Act means:

(a) the fulfilment of a condition under which the dissolution of the agreement between the mortgagor and the mortgagee was expressly covenanted or a failure by a party to perform his obligations; or

(b) a change in the financial condition of the mortgagor as provided for in article 1079 of the Civil Code; or

(c) a default which substantially deprives the mortgagee of what it is entitled to expect under the agreement between the mortgagor and the mortgagee.

(3) When a default has taken place and a notice thereof is given to the mortgagor and any guarantor, in accordance with this Act or the agreement between the parties, such notice shall be valid and binding and all effects at law and under any agreement between the parties shall arise without the need of any determination by any court as to whether a default has occurred or not, as to whether the benefit of time has been lost or not and as to whether any rights are immediately enforceable or not.

(4) Where a mortgagee exercises his rights in the preceding articles, and in any valuation for the purpose, he must exercise such rights in accordance with any agreement between the parties and in any event in a commercially reasonable manner and in good faith so as to ensure fair treatment for the mortgagor.