HC Deb 10 July 1928 vol 219 c2161
Mr. GUINNESS

I beg to move, in page 11, line 28, after the word "bank," to insert the words, "in relation to the making of further advances under the charge."

This is a re-enactment of Section 94 of the Law of Property Act, and it really only affects the bank and the validity of a second charge in relation to a first charge. In Sub-section (2) of Clause 8 we have laid down the priority of charges, and we have to provide that, where a bank has taken a charge to cover an overdraft, that charge should cease to be valid for any further advance if the bank has received special notice of a second charge or the second charge had been registered before the bank last searched the register. The object of this Amendment is to make the position absolutely clear.

Amendment agreed to.