Section 103 — Land Transfer Act 1952: Variation of priority of mortgages

103 Variation of priority of mortgages (1) Despite anything in section 37 or section 47 , the priority between themselves of the mortgages affecting any land may, from time to time, be varied by a mortgage priority instrument. (2) A mortgage priority instrument must contain the following information: (a) each mortgage that will be affected by the change in priority, which must include a reference to the register in the prescribed manner; and (b) the priority of the mortgages intended following registration. (3) If any mortgage so postponed is subject to a submortgage, the mortgage priority instrument is not effective unless the submortgagee has consented. (4) Upon the registration of the mortgage priority instrument, there is implied in every mortgage so postponed the covenants, conditions, and powers set out in Schedule 3 , except as otherwise expressed in the priority instrument. (5) Upon the registration of a mortgage priority instrument, the Registrar must notify it on the register. (6) A mortgage priority instrument must be executed by— (a) the mortgagor; and (b) every mortgagee under every mortgage that, as a result of the mortgage priority instrument, will be ranked after any mortgage over which it previously had priority. (7) For the purposes of this section, mortgage includes any lien, charge, or other registered security for the payment of money. Subsection (1) was amended, as from 1 February 1999, by section 43(1) Land Transfer (Automation) Amendment Act 1998 (1998 No 123) by inserting the words “ or section 26 of the Land Transfer (Automation) Amendment Act 1998. ” Sections 101 to 103 were substituted, as from 26 August 2002, by section 45 Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002 (2002 No 11). See clause 2 Land Transfer (Computer Registers And Electronic Lodgement) Amendment Act Commencement Order 2002 (SR 2002/216).