Section 116 Property and Conveyancing Law of the Western Region of Nigeria 1959

Section 116 of the Property and Conveyancing Law of the Western Region of Nigeria 1959 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 the 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 had such notice as aforesaid, where the mortgage imposes an obligation on him to make such further advances.
This sub-section applies whether or not the prior mortgage was made expressly for securing further advances.

(2) In relation to the making of further advances after the 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 Land Instruments Registration 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 sub-section only applies when the prior mortgage was made expressly for
securing a current account or other further advances.

(3) Save in regard to the making of further advances as aforesaid, the right to tack is hereby 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 incumbrance or by arrangement with the subsequent incumbrancer.

(4) This section applies to mortgages of land made before or after the
commencement of this Law, but not to charges registered under the Land Titles
Registration Law.