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There are two drawbacks to relying on
a LPA 1925:-
1. Mortgagees power to appoint a receiver
is restricted
2. Powers of receiver once appointed
are limited to collecting rents.
A mortgage deed, however, commonly gives
the receiver the power to take possession and sell the property,
and to borrow money to carry out his statutory duties, mainly
to insure and repair.
The deed may give the receiver extensive
powers to manage the company's business, however trading on
may prove difficult in practice as the receiver only has access
to the charged assets and would be a trespasser if, for example,
he used stock not covered by his appointors charges.
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