Chapter II.

Registered land.

39. —(1) Where—

(a) (i) a person is registered in a register of freeholders as full owner of land, and

(ii) such land is registered subject to equities, and

(iii) such person charges such land in favour of the Corporation with the repayment of a principal sum not exceeding four hundred pounds and any interest, and

(iv) such charge is duly registered in such register as a burden affecting such land,

or

(b) (i) a person, registered in a register of freeholders as full owner of land, is dead, and

(ii) such land is registered subject to equities, and

(iii) the person who is the personal representative (whether his name is or is not entered in such register as full owner subject to an inhibition) of such deceased person, in his capacity as personal representative charges such land in favour of the Corporation with the repayment of a principal sum not exceeding four hundred pounds and any interest, and

(iv) such charge is duly registered in such register as a burden affecting such land,

or

(c) (i) a person is registered in a register of freeholders as limited owner of land, and

(ii) such land is registered subject to equities, and

(iii) such person or the assignee of the limited estate of such person and the person or all the persons entitled to such land for an estate or estates in remainder or in expectancy after or in defeasance of the estate of such first-mentioned person join in charging such land in favour of the Corporation with payment of a principal sum not exceeding four hundred pounds and any interest, and

(iv) such charge is duly registered in such register as a burden affecting such land,

then, subject to the provisions of this section, such charge (which shall be construed as extending, in addition to the said principal sum and interest secured thereby, to 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 said principal sum and interest) shall as against such land be in priority to and shall override all equitable claims against such land.

(2) Where—

(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 under section 69 of the Act of 1891 appears on the register in respect of such land, and

(b) such caution was lodged by a person claiming to be entitled to an equitable claim against such land, and

(c) 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,

then, notwithstanding anything contained in subsection (1) of this section, the relative priorities of such charge and such equitable claim shall, unless such person agrees to the contrary, be determined as if the said subsection (1) had not been enacted.

40. —(1) A priority charge on registered land which is not a permanent improvement charge on such land shall as between the mortgagor and equitable claimants (other than the mortgagor) against such land be deemed to be charged on all and every (if any) estate and interest in such land to which such mortgagor was at the date of the registration of such priority charge or becomes at any time thereafter beneficially entitled in indemnification of all equitable claims against such land by equitable claimants other than the mortgagor.

(2) All moneys paid to the Corporation by, or out of the share, estate or interest of an equitable claimant (other than the mortgagor) on foot of a priority charge on registered land which is not a permanent improvement charge on such land shall be repaid to such equitable claimant by the mortgagor on demand with interest thereon at the rate of three per cent. per annum and until so repaid such moneys and the said interest thereon shall be a debt due by the mortgagor to such equitable claimant and shall be deemed to be charged in favour of such equitable claimant on all and every (if any) estate and interest to which, the mortgagor is beneficially entitled in such land or the proceeds of the sale thereof at the date of such payment to the Corporation.

41. —(1) Where registered land is subject to a priority charge which is not a permanent improvement charge and an equitable claimant against such land is, at the date of registration of such priority charge, under the age of twenty-one years or of unsound mind, such equitable claimant shall be entitled at any time after such registration (but, in case he is under the age of twenty-one years at the time of such registration, not after he attains the age of twenty-five years) to obtain from the Circuit Court an order that the mortgagor do, by giving security, lodgment of money in Court or such other means as shall be approved of by the Court, give to such equitable claimant an indemnity which in the opinion of the Court adequately protects his equitable claim against the said priority charge and that in default of the mortgagor giving such indemnity within three months after the date of such order the said registered land be sold by the Court and the proceeds of such sale be applied according to law and that in any event the costs of such equitable claimant in relation to such 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 an order under the foregoing subsection shall be enforceable, with the leave of the Circuit Court and in such manner as that Court shall direct, whenever the priority charge in respect of which such indemnity was given is enforced to the prejudice of the equitable claim for the protection of which such indemnity was given or in such other circumstances as in the opinion of the said Court render it just and equitable that such indemnity should be enforced.

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

(4) No order under subsection (1) of this section shall be granted without notice to the mortgagor unless the Court shall think proper to dispense with such notice.