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Priority of certain charges in favour of the Corporation.
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2.—(1) Where—
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(a) a person is registered in a register of free-holders maintained under the Act of 1891 as full owner of land, and
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(b) such registration is subject to a note (in this Act referred to as a note as to equities) that such land is registered subject to the rights or equities (if any) arising from the interest vested in a purchaser thereof under the Land Purchase Acts being deemed to be a graft on such purchaser's previous interest or arising in any other manner from the existence of such previous interest, and
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(c) such person charges such land in favour of the Corporation with payment of a principal sum not exceeding four hundred pounds, and
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(d) such charge is duly registered in such register as a burden affecting such land, and
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(e) no lis pendens is entered in the register against such land;
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then (subject to the provisions of this section) such charge shall as against such land be in priority to and shall override all estates and interests in and all incumbrances on and all claims against such land which at the date of the registration of such charge are not entered in the register but are preserved by virtue of the said note as to equities.
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(2) Where, at the date of an instrument creating a charge on registered land which would on registration be entitled to priority under this section, a caution under section 69 of the Act of 1891 appears on the register in respect of such land and such caution was lodged by a person claiming to be entitled to an equitable claim as defined by this section in respect of such land and such equitable claim is at any time after the registration of such charge registered as an estate or interest in or burden on such land, the relative priorities of such charge and such equitable claim shall notwithstanding anything contained in this Act be determined as if this Act had not been passed.
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(3) In this Act—
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land registered in a register of free-holders maintained under the Act of 1891 is referred to as registered land;
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a charge on registered land to which priority is given by this section is referred to as a priority charge;
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a person by whom a priority charge is given is referred to as a mortgagor;
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estates and interests in and incumbrances on and claims against registered land which at the date of the registration of a priority charge against such land are not entered in the said register but are preserved by virtue of a note as to equities are collectively referred to as equitable claims;
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a person entitled to an equitable claim against registered land is referred to as an equitable claimant; and
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the expression “permanent improvement charge” means a priority charge in respect of which it is shown by the mortgagor that the principal sum secured by such charge was advanced by the Corporation solely for the purpose of constructing buildings on the land the subject of such charge or for the purpose of making on such land improvements of a permanent character calculated to increase or facilitate or conduce to the increase of the productivity of such land and that the said principal sum was actually expended wholly for one or more of those purposes.
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