Section 92 — Property Law Act 2007: Priority extends to further advances up to stated priority limit

92 Priority extends to further advances up to stated priority limit (1) If a mortgage over property secures further advances by way of financial accommodation up to a stated priority limit, the priority of the mortgage, in relation to any subsequent mortgage over the property, extends to every such further advance, up to the stated priority limit. (2) Subsection (1) applies whether or not the mortgagee had actual notice of the existence of the subsequent mortgage when the further advance was made. (3) A stated priority limit may be expressed— (a) in the currency of any country; and (b) as an amount plus interest, or as an amount without more (in which case the amount expressed includes interest). (4) Unless a stated priority limit expressly includes amounts paid or advanced by the mortgagee for any of the purposes referred to in section 87 ,— (a) amounts paid or advanced for any of those purposes and the interest referred to in section 87(2) must not be taken into account in determining whether or not further advances exceed the stated priority limit; and (b) the priority of the mortgage, in relation to any subsequent mortgage, extends to all amounts paid or advanced for any of those purposes and to the interest referred to in section 87(2) , even if the effect of the payment or advance or interest is to take the total of the amounts secured by the mortgage over the stated priority limit. Compare: 1952 No 51 s 80A(2), (3)