Section 91 — Property Law Act 2007: Priority extends to further advances if mortgagee does not have actual notice of subsequent mortgage or is obliged to make further advances

91 Priority extends to further advances if mortgagee does not have actual notice of subsequent mortgage or is obliged to make further advances If a mortgage over property secures a further advance by way of financial accommodation, the priority of the mortgage, in relation to any subsequent mortgage over the property, extends to the further advance if, when the further advance is made,— (a) the mortgagee does not have actual notice of the existence of the subsequent mortgage; or (b) the mortgagee has actual notice of the existence of the subsequent mortgage, but— (i) is under an obligation to make the further advance; and (ii) does not, at the time of entering into the obligation, have actual notice of the existence of the subsequent mortgage. Compare: 1952 No 51 s 80A(2)