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Chapter 2
Registered Land
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Priority of charges in favour of Corporation.
[cf. 1947, s. 39; 1973, s. 4.]
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39.—(1) Where a charge in favour of the Corporation for the repayment of a loan is registered as a burden affecting registered land, then, subject to subsection (2) and (3), the charge (including interest and the costs and expenses of all legal proceedings instituted by the Corporation for the purpose of realising the amount at any time owing on foot of the charge) shall as against the land be in priority to and shall override any equitable claim against the land.
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(2) Where—
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(a) at the date of an instrument creating a charge on registered land which, but for this subsection, would on registration be a priority charge, a caution to which section 97 of the Act of 1964 applies appears on the register as affecting the land, and
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(b) the caution was lodged by a person claiming to be entitled to an equitable claim against the land, and
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(c) that equitable claim is at any time after the registration of the charge registered as an estate or interest in or burden on the land,
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then, notwithstanding subsection (1), the relative priorities of the charge and the equitable claim shall, unless that person agrees to the contrary, be determined as if subsection (1) had not been enacted.
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(3) Subsection (1) shall not operate in respect of any charge the effect of which is to make the land subject to the repayment of a total amount of outstanding principal exceeding £25,000 on foot of charges under that subsection.
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