Agricultural Credit Act, 1978

Chapter 3

Unregistered Land

Priority of charges in favour of Corporation.

[cf. 1947, s. 42; 1973, s. 4.]

42.—(1) Where—

(a) a person is in occupation of land which is for the time being subject to a periodic (Land Commission) sum, and

(b) he is certified by the Land Commission to be the person by whom the sum is payable at the date of the certificate, and

(c) he (either alone or in conjunction with other persons) within one month after the date of the certificate charges the land in favour of the Corporation with repayment of a loan, and

(d) the instrument effecting the charge is duly registered in the Registry of Deeds,

then, subject to subsections (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 to the Corporation on foot of the charge) shall as against the land so charged be in priority to and shall override all estates and interests in and all incumbrances and burdens on the land which may be subsisting at the date of the instrument except the said periodic (Land Commission) sum, compounded arrears of rent within the meaning of the Land Purchase Acts, mortgages in favour of the Land Commission, any land purchase annuity which may subsequently be charged on the land under the Land Purchase Acts, any annuity, rent charge or other periodic payment payable to the Commissioners of Public Works in Ireland, any charge or mortgage in favour of the said Commissioners on foot of any moneys due or payable to them in respect of a local loan within the meaning of the Local Loans Fund Act, 1935 , and any of the charges mentioned in paragraphs (a), (b), (f) and (h) of section 72 of the Act of 1964.

(2) Where at the date of an instrument effecting a charge on land which would, on such instrument being registered in the Registry of Deeds, be entitled, but for this subsection, to priority under this section, a caution to which section 96 of the Act of 1964, as extended by section 43 applies appears in the Land Registry as affecting such land, then, notwithstanding subsection (1), the relative priorities of the charge and of the estate, interest, incumbrance or other claim against the land of the person by whom the caution was lodged shall, unless that person agrees to the contrary, be determined as if subsection (1) had not been enacted.

(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 for outstanding principal exceeding £25,000 on foot of charges under that subsection.