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2 1978

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.

Lodgement of cautions by puisne claimants.

[1947, s. 43.]

43. —(1) Any person claiming to be entitled to an estate or interest in or incumbrance on or claim against any unregistered land which is a puisne claim against the land or would become a puisne claim if a priority charge were created on the land, may (whether the instrument, if any, under which the claim arises is or is not registered in the Registry of Deeds) lodge under section 96 of the Act of 1964 a caution against the registration against the land, on or after the first registration thereof, of any dealing with the land in favour of the Corporation to the prejudice of the claim.

(2) Where a caution is so lodged, subsection (2) of the said section 96 shall not apply to the caution but in lieu thereof the caution shall, on the first registration of the land, be entered on the folio relating to the land as a caution lodged under section 97 of the Act of 1964 and shall have effect accordingly.

Rights of puisne claimants.

[1947, s. 44.]

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

(2) Money paid to the Corporation by, or out of the share, estate or interest of, a puisne claimant (other than the mortgagor) against unregistered land on foot of a priority charge which is not a permanent improvement charge on the land shall be repaid to the puisne claimant by the mortgagor on demand with interest thereon at the rate applicable to the charge and until so repaid such money and the interest thereon shall be a debt due by the mortgagor to the puisne claimant and shall be deemed to be charged in favour of the puisne claimant on all and every (if any) estate and interest to which the mortgagor is beneficially entitled in the land or the proceeds of the sale thereof at the date of payment to the Corporation.

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.

Lodgement of cautions by the Corporation.

[1947, s. 46.]

46. —Whenever the Corporation claims to be an incumbrancer on unregistered land by virtue of an instrument registered in the Registry of Deeds, the Corporation may, notwithstanding anything to the contrary in section 96 of the Act of 1964, lodge with the registering authority a caution under that section, and when the caution is so registered the registering authority may, on the first registration of the land, register the incumbrance created by the instrument as a burden affecting the land with such priority (if any) as is given to the incumbrance by this Act or otherwise by law.