—(1) Where the competent authority appointed under the Planning Act (Cap. 232), or any other authority controlling or supervising the lawful subdivision of land, has granted subdivision approval for any land comprised in one or more folios which has been mortgaged or charged, any registered mortgagee or chargee (hereinafter called the applicant) may —
with the written consent of his registered mortgagor; or
where default is made in the payment of the interest, principal or other moneys secured by the mortgage or charge or in payment of any part thereof,
make an application together with the certificate of title for the creation of new folios for the separate subdivided lots.
(2) Where the registered mortgagor has given his consent for the application made by his registered mortgagee, the consent shall be endorsed on the application form lodged with the Registrar for creation of the new folios in accordance with subsection (1).
(3) Where the applicant is not the first registered mortgagee or chargee, the consent of mortgagees and chargees having priority to the applicant’s mortgage or charge shall be endorsed on the application.
(4) The Registrar shall not be concerned to enquire whether —
any default referred to in subsection (1)(b) has occurred;
notice has been given of the application for new folios under this section; or
the right conferred upon the mortgagee or chargee under this section is otherwise properly or regularly exercised.