Tacking and further advances
94 Tacking and further advances
After the commencement of this Act, a prior mortgagee shall have a right to make further advances to rank in priority to subsequent mortgages (whether legal or equitable)—
if an arrangement has been made to that effect with the subsequent mortgagees; or
if he had no notice of such subsequent mortgages at the time when the further advance was made by him; or
whether or not he had such notice as aforesaid, where the mortgage imposes an obligation on him to make such further advances.
This subsection shall apply whether or not the prior mortgage was made expressly for securing further advances.
In relation to the making of further advances after the commencement of this Act a mortgagee shall not be deemed to have notice of a mortgage merely by reason that it was registered under Part I of this Act or any corresponding previous enactment, if it was not so registered at the time when the original mortgage was created or when the last search (if any) by or on behalf of the mortgagee was made, whichever last happened.
This subsection shall apply only where the prior mortgage was made expressly for securing a current account or other further advances.
The right to tack, save in regard to the making of further advances as aforesaid, is hereby declared to have been abolished by the Property Law Act 1928, section 94(3):
Provided that nothing in this Part shall affect any priority acquired before the commencement of that Act by tacking, or in respect of further advances made without notice of a subsequent incumbrance or by arrangements with the subsequent incumbrancer.
This section shall apply to mortgages of land made before or after the commencement of this Act.
No. 3754 s. 95.
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