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Section 246

Tacking of further advances

of National Land Code (Revised - 2020)

ActIn forceProvision 238 of 391
Section 246

(1)

Notwithstanding any other provision of this Act, any chargee may, in the circumstances specified in paragraph (2)(a)

or (b), make further advances (including, where appropriate, advances consisting of the giving of additional credit) to rank in priority to any subsequent charge of the same land or lease.

(2)

The said circumstances are—

(a)

where the making of the advance or advances in question is expressly authorized by the prior charge, or the purpose of that charge is to secure the balance from time to time due to the chargee under any current or continuing account; or

(b)

where the advance or advances in question are made with the consent of the person entitled to the benefit of the subsequent charge.

(3)

For the purposes of paragraph (2)(b), any advance made by a chargee at any time before he is notified in writing of the registration of a subsequent charge shall be deemed to have been made with the consent of the person entitled to the benefit of that charge.

(4)

Except as provided by this section, the right to tack shall not apply to any charge.

266

National Land Code 399