Agricultural Credit Act, 1978

Protection of minors and persons of unsound mind.

[1947, s. 45.]

45.—(1) Where unregistered land is subject to a priority charge which is not a permanent improvement charge and a puisne claimant against the land is, at the date of registration of the priority charge, under the age of twenty-one years or of unsound mind, the puisne claimant shall be entitled at any time after registration (but, in case the puisne claimant is under the age of twenty-one years at the time of registration, not after he attains the age of twenty-five years) to obtain from the Circuit Court an order that the mortgagor shall, by giving security, lodgment of money in Court or such other means as are approved of by the Court, give to the puisne claimant an indemnity which in the opinion of the Court adequately protects his puisne claim against the priority charge and that in default of the mortgagor giving the indemnity within three months after the date of the order the land be sold by the Court and the proceeds of sale be applied according to law and that in any event the costs of the puisne claimant in relation to the order, the application therefor and all proceedings thereunder when taxed as between solicitor and client be paid by the mortgagor.

(2) An indemnity given by a mortgagor in pursuance of subsection (1) shall be enforceable, with the leave of the Circuit Court and in such manner as that Court directs, whenever the priority charge in respect of which the indemnity was given is enforced to the prejudice of the puisne claim for the protection of which the indemnity was given or in such other circumstances as in the opinion of the Court render it just and equitable that the indemnity should be enforced.

(3) The rights and benefits conferred on any puisne claimant by this section shall be in addition and without prejudice to any other rights or benefits to which such puisne claimant may be entitled under this Act.

(4) No order under subsection (1) shall be granted without notice to the mortgagor unless the Court thinks proper to dispense with notice.