§ [No. 17]
§
Clause 2, page 4, line 40, at end insert—
("(8) Where a spouse's rights of occupation are a charge on the estate or interest of the other spouse, and that estate or interest is the subject of a mortgage within the meaning of the Law of Property Act 1925, then if, after the date of creation of the mortgage, the charge is registered by virtue of subsection (6) above, the charge shall, for the purposes of section 94 of that Act (which regulates the rights of mortgagees to make further advances ranking in priority to subsequent mortgages), be deemed to be a mortgage subsequent in date to the first-mentioned mortgage.")
§ BARONESS SUMMERSKILLMy Lords, this Amendment meets a point raised by the Committee of London Clearing Bankers. The effect of the new subsection is that any further advance made by a mortgagee will have priority over the wife's charge if the mortgagee was under an obligation to make a further advance, or even where he was under no such obligation provided he did not have actual notice of the charge by searching at the Land Registry before making the advance. I beg to move.
§ Moved, That this House doth agree with the Commons in the said Amendment.—(Baroness Summerskill.)
§ On Question, Motion agreed to.