Section 29 Mortgage and Property Law of Lagos State

Section 29 of the Mortgage and Property Law of Lagos State 2010 is about Tacking and further advances. It provides as follows:

(1) After the commencement of this Law, a prior mortgagee shall have a right to make further advances to rank in priority to subsequent mortgages
(whether legal or equitable) –
(a) if an arrangement has been made to that effect with subsequent mortgagees; or

(b) if he had no notice of such subsequent mortgages at the time when the further advance was made by him; or

(c) whether or not he has such notice as aforesaid, where the mortgage imposes an obligation on him to make such further advances and that obligation was noted on the register. This subsection applies whether or not the prior mortgage was made expressly for securing further advances.

(2) Tacking will only apply where the further advances does not exceed, with any other outstanding advance, the specified maximum amount secured under the prior mortgage which amount was noted in the register.

(3) In relation to the making of further advances after commencement of this Law, a mortgagee shall not be deemed to have notice of a mortgage merely by reason that it was registered under the Registration of Titles Law if it was not so registered
at the time when the original mortgage was created or when the last search (if any) by or on behalf of the mortgagee was made, whichever last happened. This subsection only applies when the prior mortgage was made expressly for securing a current account of other further advances.

(4) Except in regard to the making of further advance as mentioned above, the right to tack is abolished:

Provided that nothing in this Law shall affect any priority acquired before the commencement of this Law by tacking, or in respect of further advances made without notice of a subsequent encumbrance or by arrangement with the subsequent encumbrancer.

(5) This section applies to mortgages of land made before or after the commencement of this Law.

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